In April 2020, Nasdaq’s CEO, Adena Friedman has highlighted a set of priorities for her venture. National Association of Securities Dealers Automated Quotations (NASDAQ) is set to continue the drive to offer technological solutions, and play the role of a home to as many as 4,000 listings.
It’s the first electronic stock market in the world, but it has developed some of the technological solutions for other marketplaces too, including the ones from Switzerland. This makes Nasdaq not only a stock exchange, but also the tech company.
Friedman stresses that the company’s fundament is the idea that no physical presence is needed for people to become members of the same community. Nasdaq is doing everything possible for it to be further implemented.
But it isn’t widely known for its technological achievements, though. Instead, most of the society remembers their name for some famous stories, like the one of Zoom’s IPO on the Philadelphia exchange in 2019. Others may know it because of some big companies from the fintech world that are listed there (PayPal, Fiserv, etc.).
It’s not a common knowledge, that Chinese companies are listed there too. 9F, which is a China-based tech and financial services company has been registered on Nasdaq in August 2019. The further development involving Chinese companies may be a bit difficult, as the US regulators are not the biggest fans of it, but the steps Nasdaq has taken so far show the incredible ambitions and long-term goals.
Fortunately, the IPO market seems to be more resistant to the influence of the pandemic. Of course, the effect it had on the whole world also affected their stocks, but we could observe a relatively quick bounce-back. With Nasdaq representing every other newly listed company, we can only imagine the gains it had over the last year.
The directions of developement
A few years back, Nasdaq has acquired the eVestment company, which provides content and analysis for asset managers, consultants, and owners of the assets. It facilitates the decision-making processes, and the deal itself has propelled Nasdaq’s Global Information Services offered by the company.
Since 2017 the eVestment has become a non-separable part of Nasdaq’s Financial Framework, but still managed to be a unique brand. Nasdaq itself has not stopped and has purchased further companies. That way another data provider was added to the family – Quandl, which has already worked with most of the biggest banks and hedge funds. Then they acquired Cinnober, Sybenetix, Solovis, OneReport, and it doesn’t look like they’re going to stop.
The increased focus on the ESG
Nasdaq also follows the current trends in the world of finances, and just like BlackRock puts a big emphasis on the ESG (Environmental, Social, and Governance) issues. To meet its goals and make a positive impact, it has launched an initiative under the name of Nasdaq ESG Footprint. The purchase of OneReport, which we mentioned above, was conducted specifically in order to accelerate ESG reporting and coming up with new solutions. The Nasdaq’s ESG Footprint is, according to James Mckeone – the company’s Head of European Data, one of the key reasons for a recent partnership with Nordea.
One shall spend a fair amount of time following everything that is currently going on at Nasdaq, to really understand the bigger picture. The plethora of new and exciting technologies that join forces in order to work with Nasdaq is huge, and we’re going to go through some more of them now.
The list continues with Frank Fallon, the Amazon Web Services Vice President, AWS Sales, and Financial Services. He spoke recently about Nasdaq’s use of the cloud that transforms their clients’ experiences, and internal operations as well. The cooperation with AWS is rather long-lasting, as it begun in 2010. Actually Nasdaq was one of the first serious Amazon Cloud’s customers, after the company has started to provide its services.
The new trends according to Nasdaq’s officials
Brad Peterson, Nasdaq’s Chief Technology & Information Officer and Executive Vice President, along with Lars Ottersgard, Head of Market Technology and Executive Vice President have formulated the three most important trends, that according to them have led us to present times:
- – M2M communication (machine-to-machine);
- – ML (machine learning);
- – AI (artificial intelligence).
They of course also explained why they think so – those three key trends have helped us understand things faster and on a much bigger scale, as well as they give us incredibly precise insights, allowed us to automate certain processes (again, enabling us to work faster and more efficiently).
To learn more about Nasdaq, its plans for the next years, and the Unicorns situation on its stock market, we invite you to read Andy Samu’s original Disruption Banking piece. You can find it in the following link: https://disruptionbanking.com/2020/06/18/nasdaq-where-do-unicorns-go-to-become-famous/