Nasdaq CEO Adena Friedman on Q1 Earnings, Market Volatility, and IPOs

Nasdaq's First Quarter Performance

• 📈 Nasdaq reported a strong first quarter with 12.5% revenue growth, driven by double-digit increases across all three divisions.
• 💡 Key highlights include a 26% growth in the index business due to $27 billion in inflows and strong futures volumes in the NASDAQ 100 franchise.
• 🚀 The fintech division grew 10%, with a notable 21% increase in the anti-financial crime business.
• 📊 The market services division, encompassing trading, grew 19% due to record volumes, which continued into April.

Navigating Heightened Market Volatility

• ⚠️ While Nasdaq's infrastructure proved hyper-resilient, handling record trading volumes and 550 billion messages on peak days, sustained uncertainty concerns investors.
• 📉 Short-term volatility can resolve, but a lack of market certainty leads investors to adopt a risk-off attitude.
• 🎯 Despite the environment, Nasdaq saw 45 IPOs in the first quarter, raising $5 billion, and seven companies switched to Nasdaq from the NYSE.

IPO Market Outlook and Regulatory Landscape

• ⏳ Many companies are putting IPO plans on hold rather than scrapping them, waiting for a more welcoming market environment to maximize shareholder value.
• 🇺🇸 Nasdaq remains a strong draw for global companies due to the liquidity, variety of investors, and deep pools of capital in US markets.
• 🤝 Nasdaq is looking forward to a constructive engagement with regulators, particularly SEC Chair Gary Gensler, to reform the regulatory landscape for public companies.
• 💡 The goal is to create a public company experience that is not a burden but an opportunity for growth.

Market Regimes and Investor Behavior

• 🕰️ Having been with Nasdaq for 32 years, CEO Adena Friedman has witnessed numerous market events, each unique in its causes but consistent in investor reactions.
• ❓ The primary driver of investor behavior during volatile periods is uncertainty, leading to a consistent risk-off approach as investors wait for clarity before re-engaging.