Core Insights - Nasdaq is accelerating deep reforms in its core market, focusing on tokenization and 24/7 trading to reshape modern capital market structures and efficiency [1][2] - The introduction of tokenized stocks will integrate blockchain technology directly into the core securities trading system, moving beyond off-exchange or ancillary markets [1][2] - Nasdaq plans to extend trading hours to a 24/5 model, allowing global investors to trade freely outside traditional US trading hours [2] Tokenization and Trading Hours - The primary focus is on stock tokenization, which aims to trade tokenized securities alongside traditional stocks in the same system, enhancing market efficiency [2][3] - Nasdaq's transition to a 24/5 trading model is seen as a necessary trend to serve global investors, with the potential for 24/7 trading in the future [2][3] Market Structure and Efficiency - Tokenization and extended trading hours are expected to significantly improve the efficiency of clearing and settlement processes, reducing friction and lowering costs [3] - Nasdaq currently processes 3 million messages per second and nearly 100 billion messages daily, indicating room for improvement in clearing and settlement [3] Regulatory Approach - Nasdaq adopts a cautious "regulatory first" stance towards digital assets, emphasizing investor protection and the need for clear regulatory frameworks before entering the crypto space [4] - The convergence of traditional and digital market regulations is seen as an opportunity for Nasdaq to collaborate with institutional clients in offering compliant crypto asset services [4] IPO and Listing Process Reforms - Nasdaq is advocating for reforms in the IPO process to alleviate the burdens that keep many companies private, emphasizing the importance of public markets for economic growth [5][7] - Proposed reforms include simplifying disclosure requirements, promoting direct listings with capital raises, and improving the SPAC model to provide diverse options for companies [5][7] - The exploration of tokenized direct listings is highlighted as a forward-looking reform, aiming to make the listing process more efficient and transparent [7]

Core Viewpoint - The article discusses the ongoing trade negotiations between the US and EU, focusing on tariffs, digital trade, and investment opportunities, highlighting the complexities and challenges in reaching an agreement [1][2][4]. Summary by Sections Trade Negotiations - The US and EU have exchanged negotiation documents covering tariffs, digital trade, and investment opportunities, with EU officials urging caution against US pressure for quick resolutions [1]. - The EU is wary of US attempts to use tariffs to force changes in its digital tax and non-tariff trade barriers, indicating that such pressure may be ineffective [2]. US-UK Trade Agreement - The recent US-UK trade agreement is not seen as a template for EU negotiations, as EU officials reject the retention of a 10% tariff that was part of the US-UK deal [4][5]. - EU trade officials express dissatisfaction with the US-UK agreement and indicate potential retaliatory measures if the US maintains its tariff stance [4]. EU's Position and Strategy - EU officials are considering their options regarding US tariffs, weighing the possibility of retaliatory tariffs against the need to minimize economic losses [6][8]. - The EU has not yet implemented significant retaliatory measures but continues to threaten increased tariffs as a means of negotiation [8]. Technical Standards and Regulatory Issues - The article highlights the longstanding difficulties in reconciling US and EU technical standards, which complicate trade negotiations beyond tariff discussions [8][9]. - EU officials assert that they will not compromise on their regulatory autonomy, particularly regarding digital services and value-added tax [10]. Potential Retaliation Measures - The EU is preparing a package of retaliatory measures worth €95 billion, targeting US exports such as aircraft, automobiles, and bourbon whiskey, should negotiations fail [10][11]. - Ongoing discussions among EU member states regarding which US products to include in the retaliation list indicate a lack of consensus, with some countries seeking exemptions for specific products [12]. Member States' Unity and Challenges - While EU member states currently support the EU Commission's trade negotiation strategy, this unity may be tested as the details of the agreement emerge [12]. - The final stance of the EU will depend on whether the negotiations yield substantial tariff reductions, with some member states potentially favoring a more conciliatory approach to avoid further losses [12].

Group 1 - The core issue between the US and EU extends beyond tariffs, involving deeper conflicts over EU technology regulations and digital services taxes [1][5] - The EU has initiated formal trade negotiations with the US, exchanging documents covering tariffs, digital trade, and investment opportunities [1][4] - EU officials express skepticism about the US's ability to pressure the EU into changing its digital tax and VAT policies through tariffs, citing the strength of the EU as a trading partner [1][3] Group 2 - The recent US-UK trade agreement is not seen as a template for EU negotiations, with EU officials rejecting the retention of a 10% tariff [3][4] - EU trade officials indicate that the US's proposed tariffs are unlikely to decrease below 10%, and some member states are more resistant to such agreements [3][4] - The EU's strategy may involve balancing between reducing losses and implementing counter-tariffs if the US maintains its current tariff levels [4][5] Group 3 - The EU has not taken significant retaliatory measures against US tariffs, relying instead on threats of increased tariffs, which have had limited effectiveness [5][6] - The ongoing trade issues are complicated by differing regulatory standards between the US and EU, which have led to numerous disputes in the past [5][6] - The EU is considering a comprehensive €95 billion retaliation package against US exports, including products like aircraft and bourbon whiskey [6][7] Group 4 - Discussions are ongoing among EU member states regarding which US products should be included in the retaliation list, with some countries seeking exemptions for specific goods [8][9] - The unity among EU member states in trade negotiations may be tested as the final agreement takes shape, with differing opinions on how to respond to US tariffs [8][9] - The EU's position will largely depend on whether the negotiations yield substantial tariff reductions [9]