Nasdaq Bank of America 31th Annual Financials CEO Conference

Yeah. Thank you. We are the trusted fabric of the financial system. By that, we mean that we architect the world's most modern markets, we power innovation, and we build trust in the financial system. You are right. When you think about all of the exchanges that we run, including, of course, Nasdaq, that is 30% of what we do. 30%, and that includes the market services piece and the listing piece. All of that is 30% of what we do. 15%, or over 15% at this point, is actually an index business, including the Nasdaq-100, but 1 trillion in ETP AUM constitute that index business, and has grown tremendously over the last seven years. The balance of it, about 50%, is core infrastructure for the financial system. By core infrastructure, you have named many of those.

Those are really important rails and gold data that enables the financial system to run and to transform. Our vision was about, call it, a decade ago. We saw trends, technology trends, that were going to transform the financial system. To be honest, it is all happening today, but it was visible 10 years ago. The first one is the cloud, the second one is the distributed ledger, and the third one, of course, is AI. Originally algorithmic AI, and now GenAI. By catching those trends, cloud 12 years ago, the distributed ledger nine years ago, and AI 10 years ago, we were able to put ourselves in a position where today, naturally, we are at the right place at the right moment. That all started a decade ago. What is very important is that we have modernized continuously during those 10, 12 years.

As we have done so, we have prepared ourselves to be ready to modernize the financial system. Our clients, the financial system operators, need solutions that are going to be GenAI ready, that are going to be digital ledger ready, that are going to have data that they cannot buy somewhere else, that help them have the liquidity, the trust, the integrity in the financial system as the financial system changes. I think what is even more powerful is that as we did that, we did it with the shareholders in mind. We did it trying to get, okay, a higher SAM as addressable market share, like serviceable addressable market, and more alpha, more solutions revenue. You mentioned the 80%. Today, we are a rule of 70 business. If you think of the rule of 40, we score at 70.

There are only 18 companies that are at scale in growing mode, 8% or more, and that are at rule of 60. It is a very good company in which we are, and it is a very rare occurrence to have rule of 70. Rule of 70, 80% solutions, double digit alpha growth in the last two quarters, and also mid-teens revenue growth over the last two quarters. We feel very good about where we are, and we feel that that transformation has been not only very timely, starting 10 years ago, but also really giving us an opportunity to deliver for the shareholders.

Yeah. Our big principles, and you are going to hear those words all the time, hopefully they stick, are liquidity, integrity, and transparency. This transformation of the financial system is happening. You have got the convergence of AI and the digital assets with continuous transformation, and those trends reinforce each other. When we are looking at what we need to do, we need to maintain liquidity in this particular case as we introduce the digital ledger, because the digital ledger is going to provide benefits for both the issuer and for the investor. But the problem is to make sure you do that without breaking what we have today, which is a very deep liquidity pool. We provide Nasdaq Equity Tokens is maintaining one unified liquidity pool. You have all of the rights of the security itself.

It trades in the same way the current fiat security actually trades. In addition, you have the benefits, the token, which issuer benefit from having some of the actions that are written into your token or other that enable you as an issuer to have a closer relationship with your shareholders by embedding, in some ways, messaging or actions, dividend could be an action, for example, into your token. You have got no harm done on the liquidity because of the unified liquidity. You have got more potential for the issuer to have capabilities on its token. Then from the investor's point of view, you have the ability, if you are in tokenized collateral, to use it more swiftly in terms of moving it as collateral, for example, to reduce your collateral needs.

Yeah. I am going to go back to that word liquidity. To the extent that you do a wrapper, for example, and I am not saying that every solution is a wrapper, a wrapper is breaking the liquidity pool. What you really want to make sure is that you are enabling the trading to happen in the way it does because whereas you can have the ability to trade a few shares here or there in a small liquidity pool, the beauty of the financial system here is the speed at which it operates, as well as the depth with which it operates. We go back to, for us, making sure that we have something that has the transparency, all of the integrity, but very importantly, that does not break the liquidity pool. We believe that markets will decide in some ways.