This chapter discusses the value of information. What types of information are handled through Nasdaq systems, what are the key characteristics of this information, and how do Nasdaq customers use this information to create value?

The world's largest "floorless" exchange handles hundreds of millions of trades every day. Buys and sells happen so fast that each trade has to be time-stamped to the nanosecond. First launched in 2000, Nasdaq is, above all, a technology company, and it successfully competes against the venerable New York Stock Exchange (NYSE) on its breathtaking trading speed.

When most people think of an exchange, they think of NYSE's enormous building on Wall Street, with loudmouthed traders on the floor shouting orders, racing stock tickers, and giant LCD screens laden with charts, numbers, and ticker symbols. In fact, most exchanges are in data centers, not in neoclassical buildings. And they are also forprofit businesses that compete for companies to list their shares and for investors and brokers to conduct their trades.