Toward that end, our ﬁrst initiative as NASDAQ OMX was to announce the NASDAQ OMX Pan-European Market which will enable best execution in high volume securities trading in a cross-border, multi-market environment. The market is scheduled to open in September 2008, pending Financial Services Authority (FSA) approval, and at launch, will trade approximately 300 of the most actively traded European blue chip stocks. In addition to creating a global exchange powerhouse through the combination with OMX, NASDAQ entered into a series of agreements with Borse Dubai that will extend our brand and technology to the Middle East’s premier market. NASDAQ acquired a one-third ownership stake in the Dubai International Financial Exchange, while Borse Dubai assumed a 19.9% interest in NASDAQ OMX, with voting rights capped at 5%. Our aim is to transform this partnership into the ﬁnancial center for the Middle East and the developing world. Taken together, these strategic partnerships and acquisitions provide NASDAQ with a unique global footprint, creating a worldwide exchange leader with operations in key markets around the globe and ready access to large pools of liquidity. Closer to home, we negotiated an agreement to acquire the Philadelphia Stock Exchange (PHLX) expected to close in the second quarter of 2008. When completed, the Philadelphia transaction will promote NASDAQ as a player of note in options trading further diversifying our overall business and customer base. With our ﬁrm belief that different customers require different market structures in the options space, NASDAQ launched our own price/time options market in March 2008. We also strengthened our position in the domestic exchange competition by completing negotiations to acquire the Boston Stock Exchange (BSX). This transaction will give NASDAQ a second exchange license and is expected to close in the ﬁrst half of 2008. These year-long strategic initiatives also included the sale of our approximately 31% stake in the London Stock Exchange, which resulted in a pre-tax gain of $431.4 million for NASDAQ. In 2007, we saw a broadening of the NASDAQ PORTAL MarketSM initiative. We are working with most of the major investment banking players to form The PORTAL AllianceSM in the effort to use our proven technology to tap the vast potential of the 144A private placement market and provide a truly transparent marketplace for Qualiﬁed Institutional Buyers (QIBs). 2007 may well be remembered as the year in which NASDAQ exceeded business expectations while identifying and securing the elements key to our future success. It is now time for NASDAQ to deliver, to our customers and investors, the value we articulated for our recent acquisitions. We will do what we have always done best: execute — bring it all together to deliver a new, more compelling, broader value proposition for our customers. NASDAQ has a unique and proven ability to integrate business acquisitions, while maintaining a clear focus on our customers. That has been the secret to our success for 37 years in the American markets. Now we have established a world-class presence abroad, and have become the ﬁrst exchange with signiﬁcant operations on six continents. We are well on the road to a successful transition from a leading U.S. market center to a much larger player on the global stage with an expanded technology footprint and a presence in emerging markets worldwide. We look to 2008 as a transformational year. Our challenge will be to prove the NASDAQ proposition on a global scale by demonstrating that we can expand successfully in both geography and assets. To that task, we bring a solid, tested management team and the best employees in the business who have consistently demonstrated an unmatched ability to focus, execute, innovate and deliver real value to our customers. Together, we have written a history of excellence, integrity and discipline in our approach to our core business operations, our expansion, technology and governance. This, along with the integration of our OMX colleagues into the NASDAQ OMX team, leaves us conﬁdent of our ability to respond to the challenges and opportunities of the future.
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