Nasdaq, Inc. (NDAQ) has agreed to acquire LeveL Markets, a major United States Alternative Trading System (ATS), as the exchange operator moves to expand its digital liquidity and institutional execution capabilities.

NDAQ shares closed at $95.02, down 0.63%, before edging 0.12% higher to $95.13 in after-hours trading.

Expanding the Institutional Equity Execution Network

Under a definitive agreement announced Tuesday, Nasdaq will acquire all equity interests in LeveL Markets. LeveL operates an ATS serving institutional equity market participants across the United States, and the transaction will add another large execution venue to Nasdaq's growing market infrastructure network.

LeveL processes hundreds of millions of shares each day across more than 7,000 listed symbols and connects with over 2,500 buy-side and sell-side clients through established trading systems. Nasdaq plans to invest in LeveL's technology, services, and capacity following completion of the acquisition.

Before the deal was announced, LeveL ranked as the third-largest US ATS by trading volume. Its average daily trading volume grew 56% year over year during 2025, reflecting expanding institutional demand for broader liquidity and execution options.

ATS venues, sometimes referred to as dark pools, enable institutional investors to execute large orders without publicly displaying pricing or order size, helping to reduce market impact and slippage. The acquisition deepens Nasdaq's access to this off-exchange flow at a time when dark venues account for a meaningful share of daily US equity trading volume.

Supporting the Digital Liquidity Strategy

Nasdaq initially acquired a minority stake in LeveL Markets in 2021 before pursuing full ownership. LeveL subsequently merged with Luminex in 2022, broadening its network across institutional trading firms. The platform now serves more than 300 institutional buy-side firms through multiple execution management integrations.

After the transaction closes, Nasdaq will place LeveL within its newly organized Digital Liquidity Networks division. That unit combines liquidity platforms, tokenization capabilities, and financial technology supporting digital asset markets. LeveL will contribute established equity execution infrastructure to the broader digital market operation.

The creation of the Digital Liquidity Networks unit aligns with a broader industry push by major exchange operators to position themselves at the intersection of traditional market infrastructure and emerging programmable finance. Exchanges including Nasdaq, Cboe Global Markets, and the London Stock Exchange Group have invested in tokenization, digital asset custody, and blockchain-based settlement infrastructure as institutional interest in on-chain financial products grows.

Nasdaq appointed Roland Chai to lead Digital Liquidity Networks as the company advances its market modernization strategy. Chai previously headed Nasdaq's European Market Services business and helped develop its digital assets strategy. His new role bridges traditional trading infrastructure with Nasdaq's expanding digital liquidity operations.

Preserving LeveL's Operational Independence

LeveL will continue operating as a separate trading venue with its own dedicated management team. Nasdaq intends to preserve participant confidentiality, operational integrity, and structural separation once the deal is completed. LeveL will also remain a registered ATS under oversight from the Financial Industry Regulatory Authority (FINRA).

Nasdaq views continuous trading models as a key component of evolving global financial market structure. Through this acquisition, the company gains greater institutional execution reach while laying groundwork for future digital liquidity services. The deal also strengthens Nasdaq's ability to connect traditional markets with newer programmable trading infrastructure.

The transaction remains subject to standard closing conditions and required regulatory approvals before Nasdaq can assume full ownership. Until completion, both Nasdaq and LeveL Markets will continue operating independently under their existing business structures. Nasdaq did not disclose the purchase price or other financial terms of the agreement.