Summary of Nasdaq (NDAQ) Conference Call - June 05, 2025 Company Overview - **Company**: Nasdaq, Inc. - **Industry**: Global exchange operator and financial technology company Key Points Economic Environment and IPO Market - The U.S. economy shows strength and resilience, which supports capital deployment by companies and investors [5][6] - The IPO pipeline is expected to open up as volatility moderates, with companies preparing to enter public markets [5][6] - There is pent-up supply from companies ready to go public, indicating optimism for increased IPO activity in the summer and second half of the year [6] Sector Engagement - High engagement is noted in sectors related to AI technology and financial services, particularly fintech [7] - Companies in the digital economy are more attractive to investors compared to those affected by tariff uncertainties [8] Sales Cycle and Demand for Financial Technology - Demand for Nasdaq's financial technology solutions remains strong, with normalized conversations following tariff volatility [10] - The company is well-positioned competitively, with a healthy demand orientation for its products [10] One Nasdaq Strategy - Progress is being made towards the goal of $100 million in cross-selling opportunities by 2027, with 15% of the fintech pipeline currently in cross-sells [11][12] - The strategy involves aligning teams, tracking client data, and engaging clients holistically [11] Product Demand and Market Modernization - Strong demand across all product vectors, including surveillance and market modernization solutions [15] - New regulations and the need for modernization in risk management are driving demand for Nasdaq's products [15][16] Crypto and Tokenization Opportunities - Nasdaq is actively providing trading and clearing technology for crypto markets, with growth potential as cryptocurrencies become more bankable [19] - The company aims to leverage its technology to reduce friction in the financial system through tokenization [20] Index Business Performance - The index business has shown strong revenue growth, with a focus on transparency and alpha generation [22] - New product launches and global expansion are key growth drivers [24] 24/5 Trading Initiative - Nasdaq is exploring the implementation of 24/5 trading to meet global retail demand, while ensuring investor protections are in place [26][27] - The company is working on building the necessary infrastructure and regulatory approvals for this initiative [29][30] Texas as a Capital Markets Hub - Texas is emerging as a significant capital markets hub, with Nasdaq planning to establish a regional headquarters in Dallas [32][34] - The pro-business environment and the state's efforts to create a capital markets hub present growth opportunities for Nasdaq [34][36] M&A Strategy - Nasdaq is focused on organic growth and deleveraging, with no immediate plans for large-scale M&A [40][41] - The company is open to small bolt-on acquisitions but prioritizes optimizing organic growth [41] Artificial Intelligence Integration - Nasdaq is implementing AI in product development and business operations, with a focus on enhancing efficiency and client service [42][43] - The company anticipates that AI will support margin expansion over time [48] Future Trends in the Exchange Business - Major trends identified include AI, tokenization, and the potential for 24/5 trading, with Nasdaq committed to being an innovator in these areas [50][51] Additional Insights - Nasdaq's engagement with clients in Texas and the broader regulatory environment is crucial for future growth [36] - The company is actively working on corporate reforms to improve the public company experience in the U.S. [36]