Exchange Q&A: Nasdaq
Nasdaq won Best Exchange Group at the 2019 Markets Choice Awards.
Markets Media caught up with Nelson Griggs, President of Nasdaq Stock Exchange, to learn more.
What were Nasdaq’s main achievements/milestones in 2018?
Nasdaq brought in net revenues of $2.5 billion in 2018, an increase of 5% compared to 2017, resulting from strong organic growth across all of the company’s business segments. Nasdaq expanded its information and technology services businesses, acquiring leading alternative data provider Quandl and financial technology provider Cinnober. The Nasdaq Stock Market also welcomed 186 initial public offerings and 20 exchange transfers to its U.S. exchange in 2018. Seven of the largest 10 technology IPOs, measured by proceeds raised, chose to list on Nasdaq and have been performing well despite market volatility during the second half of 2018. We expect a robust new listings pipeline for the rest of 2019, particularly in the technology and healthcare sectors.
How does Nasdaq differentiate itself from other exchanges?
Nasdaq is relentlessly focused on its clients. Our investment in technology and information services allow us to align our capabilities with client’s priorities. We are proud to create a milestone moment on their IPO day that is unique for our listed companies, more importantly, we are committed to supporting them every single day as public companies. After going public, companies continue to raise capital and focus on meaningful interaction with investors to maximize their valuation. Our full suite of investor relations analytics tools and a board and governance communications solution help management teams to efficiently plan their strategy and tell their investor story. Nasdaq also has a thriving index business for our listed companies to gain exposure to passive investors, which includes the global benchmark Nasdaq 100 with more than $70 billion in assets under management.
What are Nasdaq customers’ main challenges and how are you helping solve them?
Nasdaq customers’ main challenges are accessing the most safe and secure technology, data, and trading platforms to execute on their strategies. We help them inform and engage with their investors through intelligence and communications tools, technology and advisory services through our Corporate Services business unit. As companies staying private longer, Nasdaq Private Market has established itself as a leading provider of secondary solutions for private companies. Since its inception in 2013, NPM has facilitated 240 transactions for private companies, facilitating $19 billion in transaction value, and supporting 24,000 shareholders. These numbers demonstrate our long-term commitment in technology solutions that will best position us as the leading exchange partner supporting companies throughout their corporate journey.
What are Nasdaq’s main current/future initiatives to keep it in the forefront of the industry?
We recently launched TotalMarkets: Blueprint for a Better Tomorrow, which proposes structural changes to the U.S. equity markets to modernize regulations that benefits all investors and issuers. The proposal calls for updating regulations to reflect the evolution of the markets and technology advances that have occurred in the years since major market structure reform was enacted, and for enabling greater issuer choice in how issuers and investors interact within capital markets. Additionally, we continue to see adoption of the Nasdaq Financial Framework, Nasdaq’s harmonized approach to delivering robust end-to-end solutions to financial infrastructure providers globally in an open, agile environment.
Equity segments in Sweden, Denmark and Finland have been granted EU ‘SME Growth Market’ status.
There are indications that non-equivalence potentially has a positive effect on operating income.
There is a need to standardise ESG data.
The Americas and EMEA had a sharp decrease in the value and number of shares traded.
Trading was delayed by an hour and 40 minutes.