Nasdaq CEO Adena Friedman on Q3 results, prediction markets and IPO pipeline

Core Insights - NASDAQ reported a 19% increase in earnings to 88 cents per share, exceeding estimates, with revenue reaching $1.3 billion, slightly above expectations [1] - The company experienced robust trading volumes due to market volatility driven by macroeconomic and trade policy uncertainties [1] Financial Performance - NASDAQ achieved 11% revenue growth for the quarter and reached $3 billion in annualized recurring revenue, marking a consistent 9% growth over three consecutive quarters [3] - The trading business, index business, and fintech division each saw a 13% growth, indicating broad-based growth across various sectors [4] Market Activity - The options market experienced six of the top ten trading days ever in Q3, with an average of 20 billion shares traded daily in October [6][7] - Retail investment in equities has increased significantly over the past five years, contributing to a sustainable trend in market activity [7] Technological Impact - The introduction of AI technology has positively influenced the NASDAQ 100, with earnings growing by 32% and index values increasing by 47% since the beginning of 2024 [8] Options Market Dynamics - The options market has seen a mix of retail and institutional interest, with a notable increase in retail participation over the last five years [11] - The macroeconomic environment has led to mixed data, prompting investors to utilize options as a way to express their views on market changes [12] Regulatory Considerations - The company emphasizes the importance of operating within regulated markets to ensure investor protection and proper market functioning [17][18] - There is potential for the company to explore opportunities in prediction markets, particularly those related to financial assets, while maintaining a focus on regulation [15][21]