Nasdaq to acquire LeveL Markets' alternative trading system

Nasdaq Inc. said on Monday it will acquire LeveL Markets, an alternative trading system (ATS) provider, as part of a broader push to enhance its trading and market access offerings.

The acquisition, terms of which were not disclosed, adds LeveL Markets’ platform to Nasdaq’s suite of trading technologies. LeveL specializes in off-exchange liquidity solutions, including block trading and conditional order types, primarily serving institutional clients in equities and options markets.

Nasdaq chief executive Adena Friedman said in a statement that the deal aligns with the company’s strategy to provide more efficient and flexible trading solutions amid evolving market structures. LeveL’s technology is expected to integrate with Nasdaq’s existing platforms, including its matching engines and data services.

Alternative trading systems have grown in prominence as traditional exchanges face competition from electronic venues that offer faster execution and lower costs. LeveL’s conditional order types and block trading capabilities cater to large institutional investors seeking to minimize market impact during large transactions.

The deal follows a series of acquisitions by Nasdaq aimed at expanding its trading and data businesses, including the 2021 purchase of Adenza, a risk management and regulatory technology provider. Financial terms of the LeveL Markets deal were not disclosed, and the transaction is subject to regulatory approvals.

Nasdaq’s shares were down 0.4% in pre-market trading on Monday.