Nasdaq CEO Adena Friedman on Q1 Earnings, Market Volatility, and Capital Flows

Nasdaq's Strong Q1 Performance

• 🚀 Nasdaq reported strong Q1 results with 12.5% overall revenue growth, and all divisions achieving double-digit growth.
• 📈 Key highlights include 26% growth in the index business, 10% in fintech, and a record quarter for the markets business with 19% growth.
• 💡 The company's anti-financial crime business also saw significant growth at 21%.

Navigating Economic Uncertainty

• ⚠️ Friedman noted that despite initial economic resilience, increased uncertainty and volatility emerged throughout the quarter.
• 🤝 In times of disruption, clients increasingly turn to Nasdaq as a market operator and partner, evidenced by record volumes and 19% growth in the markets business.
• 📊 Even with market value shifts, Nasdaq's index products, particularly the NASDAQ 100, saw substantial inflows.

Fintech and Infrastructure

• ⚙️ Nasdaq's fintech division provides mission-critical technology, such as the Calypso platform for collateral management, essential for clients managing risk and moving collateral globally.
• 🌐 This highlights Nasdaq's role in providing the necessary infrastructure for the financial system to function effectively.

Future Capital Flows and Investment

• 🌍 Capital flows are driven by where returns are, with investors being highly adaptive to the operating environment.
• 🇺🇸 While geopolitical factors might influence some investment decisions (e.g., China, Canada), the long-term driver for asset owners and managers, who are fiduciaries, will be returns.
• 💬 Nasdaq's role is to provide the infrastructure for capital to express itself, regardless of flow direction, ensuring the financial system remains robust.

Nasdaq's Texas Expansion and Competitive Landscape

• 📍 Nasdaq is launching a regional headquarters in Texas, reflecting business growth and expansion in the state, not solely as a reaction to the Texas Stock Exchange.
• 🤝 With 700 clients and 200 listed companies in Texas, this expansion aims to better serve its broad clientele and offer them access to Nasdaq's global market, branding, and index products.
• 🌟 Nasdaq emphasizes its unique value proposition for companies looking to list, combining local presence with global market access.