1
00:00:00,120 --> 00:00:03,640
Speaker 1: Welcome to our Bloomberg television and radio audiences worldwide. I'm

2
00:00:03,680 --> 00:00:07,040
Speaker 1: Ad Ludlow live in Las Vegas at the Consumer Electronics Show.

3
00:00:07,040 --> 00:00:10,640
Speaker 1: I've just stepped off stage in a keynote with NASDAK

4
00:00:10,760 --> 00:00:13,760
Speaker 1: CEO and President Adena Freeman, and I'm delighted to say

5
00:00:13,800 --> 00:00:16,200
Speaker 1: A Dina has followed me over to the studio to

6
00:00:16,280 --> 00:00:17,520
Speaker 1: keep the conversation going.

7
00:00:18,000 --> 00:00:18,760
Speaker 2: It's great to be here.

8
00:00:19,480 --> 00:00:22,160
Speaker 1: What a cees has been and the news flows helped.

9
00:00:22,200 --> 00:00:28,200
Speaker 1: So let's start with the news the SEC approving Bitcoin

10
00:00:28,280 --> 00:00:32,280
Speaker 1: spot ETF. The NASDAK side here is that you will

11
00:00:32,360 --> 00:00:36,800
Speaker 1: be one of several exchanges that list these products. Your

12
00:00:36,840 --> 00:00:39,239
Speaker 1: reaction to the news, but what it means for your

13
00:00:39,320 --> 00:00:40,080
Speaker 1: business as well?

14
00:00:40,200 --> 00:00:42,520
Speaker 3: Sure well, we are very proud to partner with black

15
00:00:42,640 --> 00:00:45,360
Speaker 3: Rock and with dof Frey to have their ETFs listed

16
00:00:45,360 --> 00:00:45,960
Speaker 3: on NASAC.

17
00:00:46,040 --> 00:00:47,519
Speaker 2: And it's really interesting.

18
00:00:47,520 --> 00:00:49,560
Speaker 3: I think that what it really tells you is that

19
00:00:49,800 --> 00:00:52,920
Speaker 3: from a reglatory point of view, there's been maturing of

20
00:00:52,920 --> 00:00:55,960
Speaker 3: the bitcoin markets to the point where the SEC has

21
00:00:56,000 --> 00:00:59,400
Speaker 3: now said, we approve these new vehicles that allow retail

22
00:00:59,440 --> 00:01:02,360
Speaker 3: investors to access bitcoin. They don't have to actually buy

23
00:01:02,440 --> 00:01:05,120
Speaker 3: underlying bitcoin, but they can have an opinion about the

24
00:01:05,440 --> 00:01:08,240
Speaker 3: trends in bitcoin, and they can express themselves in a

25
00:01:08,280 --> 00:01:12,000
Speaker 3: regulated market, which of course is NASAX. So also, these

26
00:01:12,080 --> 00:01:14,360
Speaker 3: instruments are highly liquid, and it makes it so that

27
00:01:14,400 --> 00:01:18,120
Speaker 3: they have ready access to the you know, an investable

28
00:01:18,200 --> 00:01:20,679
Speaker 3: vehicle in this space. So we're excited to be their partner.

29
00:01:20,760 --> 00:01:24,160
Speaker 1: There are some sort of cerebral, somewhat academic debates about bitcoin,

30
00:01:24,200 --> 00:01:28,040
Speaker 1: in particular about whether it is a risk asset and

31
00:01:28,120 --> 00:01:32,320
Speaker 1: asset class. If it is not, is it a store value?

32
00:01:33,120 --> 00:01:37,040
Speaker 1: Is the NASDAC approach that this development kind of moves

33
00:01:37,160 --> 00:01:41,679
Speaker 1: towards a deeper focus on crypto as an asset class.

34
00:01:41,720 --> 00:01:43,240
Speaker 2: I think I have delivered a little differently.

35
00:01:43,240 --> 00:01:46,360
Speaker 3: You know, we have we have ETFs that reflect lots

36
00:01:46,400 --> 00:01:50,880
Speaker 3: of different instruments and asset classes, whether it's commodities or equities, bonds,

37
00:01:51,360 --> 00:01:54,720
Speaker 3: other forms of you know, OTC instruments, as long as

38
00:01:54,760 --> 00:01:57,360
Speaker 3: they are liquid and they have a solid underlying price

39
00:01:57,400 --> 00:02:01,480
Speaker 3: discovery mechanism, which now the SEC is saying the Bitcoin ETF,

40
00:02:01,720 --> 00:02:05,920
Speaker 3: the underlying the underlying market provides price discovery for the ETF,

41
00:02:05,920 --> 00:02:07,920
Speaker 3: and they're approving the ETF. So I think that that's

42
00:02:08,200 --> 00:02:11,119
Speaker 3: an interesting signal. But I also would say that that's

43
00:02:11,160 --> 00:02:13,680
Speaker 3: our job is to provide create index products. We have

44
00:02:13,720 --> 00:02:16,400
Speaker 3: about five hundred billion dollars of assets center management in

45
00:02:16,440 --> 00:02:19,200
Speaker 3: our own indexes, and then to be the listing exchange

46
00:02:19,280 --> 00:02:22,920
Speaker 3: for those index provider products that allow investors to invest

47
00:02:22,919 --> 00:02:26,560
Speaker 3: in all sorts of tradable instruments, including now bitcoin.

48
00:02:27,520 --> 00:02:31,079
Speaker 1: Okay, final question on this subject. Let's go back twenty

49
00:02:31,080 --> 00:02:36,040
Speaker 1: four hours al most an sec x account posts. We

50
00:02:36,200 --> 00:02:39,320
Speaker 1: now know that it was an unauthorized post, it was

51
00:02:39,360 --> 00:02:44,959
Speaker 1: a hack. We are looking into it. But Twitter, your

52
00:02:45,400 --> 00:02:49,399
Speaker 1: X formulas have explained what they believed happen, just as

53
00:02:49,440 --> 00:02:52,440
Speaker 1: the CEO of the leading exchange just explains to me

54
00:02:52,919 --> 00:02:56,040
Speaker 1: what it was like for you that madness of yesterday afternoon.

55
00:02:56,240 --> 00:02:59,080
Speaker 1: Given our Bloomberg audience had a very similar experience.

56
00:02:59,240 --> 00:03:03,480
Speaker 3: Well, I think the behaviors in the markets really came

57
00:03:03,560 --> 00:03:06,680
Speaker 3: from looking at anything that was related to bitcoin itself,

58
00:03:06,720 --> 00:03:09,240
Speaker 3: so the underlying bitcoin markets, and then sort of any

59
00:03:09,280 --> 00:03:11,800
Speaker 3: sort of public companies that had that kind of underlying

60
00:03:11,800 --> 00:03:15,320
Speaker 3: asset classes part of their business. But I think for us,

61
00:03:15,400 --> 00:03:17,359
Speaker 3: it's really a matter of making sure that we think

62
00:03:17,360 --> 00:03:20,639
Speaker 3: about more generally what protections we put in place. Is

63
00:03:20,720 --> 00:03:24,240
Speaker 3: more technologies used to drive trading, but also as more

64
00:03:24,280 --> 00:03:27,800
Speaker 3: information is being used in real time to direct people investors,

65
00:03:27,800 --> 00:03:30,080
Speaker 3: and we look at it more from our protection perspective.

66
00:03:30,720 --> 00:03:31,400
Speaker 2: We first of.

67
00:03:31,320 --> 00:03:34,119
Speaker 3: All want to think about as AI comes more into

68
00:03:34,160 --> 00:03:37,120
Speaker 3: the markets, how do we regulate that appropriately? And I

69
00:03:37,120 --> 00:03:39,520
Speaker 3: think both the SEC and the CFTC have expressed that

70
00:03:39,520 --> 00:03:41,240
Speaker 3: there are going to be interested in that. What kind

71
00:03:41,240 --> 00:03:43,480
Speaker 3: of smart regulation compunity to put in place? But also

72
00:03:43,560 --> 00:03:45,760
Speaker 3: what protections do we have if something were to come

73
00:03:45,760 --> 00:03:46,520
Speaker 3: into the market.

74
00:03:46,720 --> 00:03:48,720
Speaker 2: We have our circuit breakers, We have the.

75
00:03:48,640 --> 00:03:52,520
Speaker 3: Ability to also cut off any particular and market participant

76
00:03:52,560 --> 00:03:54,600
Speaker 3: that may be acting in an unusual way, and we

77
00:03:54,640 --> 00:03:57,520
Speaker 3: can obviously use great technology to do that. But then

78
00:03:57,560 --> 00:03:59,920
Speaker 3: also we have to make sure that as AI becomes

79
00:04:00,040 --> 00:04:02,360
Speaker 3: a bigger part of the ecosystem, how do we make

80
00:04:02,400 --> 00:04:04,840
Speaker 3: sure we protect we protect investors in the process.

81
00:04:04,920 --> 00:04:09,200
Speaker 1: For our Bloomberg Radio and technology and television audience worldwide,

82
00:04:09,200 --> 00:04:11,040
Speaker 1: I've got technology on the brain all the time. We

83
00:04:11,080 --> 00:04:14,400
Speaker 1: are speaking with the Diana Friedman Casio of nasdak Okay,

84
00:04:15,280 --> 00:04:18,640
Speaker 1: Nasdaq is a technology company, true or false?

85
00:04:18,800 --> 00:04:19,280
Speaker 2: True?

86
00:04:20,440 --> 00:04:20,680
Speaker 1: Why?

87
00:04:20,880 --> 00:04:21,560
Speaker 2: Okay?

88
00:04:21,320 --> 00:04:25,520
Speaker 3: So we obviously have this wonderful foundation as a market operator,

89
00:04:25,680 --> 00:04:27,560
Speaker 3: and we are really, really proud of that, and we

90
00:04:27,640 --> 00:04:31,240
Speaker 3: are obviously leveraged very advanced technology to manage were talking.

91
00:04:31,040 --> 00:04:33,240
Speaker 1: About AI principally at the moment.

92
00:04:33,279 --> 00:04:37,359
Speaker 3: Right but as we've broadened our scope, we provide great

93
00:04:37,400 --> 00:04:41,400
Speaker 3: technology that really enhances liquidity, transparency and integrity. In fact,

94
00:04:41,600 --> 00:04:44,640
Speaker 3: we provide market technology to one hundred and thirty markets

95
00:04:44,680 --> 00:04:48,080
Speaker 3: around the world, including many markets in Asia. We provide

96
00:04:48,120 --> 00:04:51,520
Speaker 3: also risk management and regulatory technology to banks and brokers

97
00:04:51,560 --> 00:04:54,760
Speaker 3: around the world, and then we also provide anti financial

98
00:04:54,800 --> 00:04:57,000
Speaker 3: crime technology to banks around the world. And I think

99
00:04:57,040 --> 00:04:59,039
Speaker 3: that as we've been looking at the use of AI,

100
00:05:00,160 --> 00:05:03,279
Speaker 3: really are focused on how can the technology AI be

101
00:05:03,440 --> 00:05:06,599
Speaker 3: used to protect markets more effectively, to protect the financial

102
00:05:06,640 --> 00:05:10,840
Speaker 3: system more effectively, root out criminal actors, and use large

103
00:05:10,880 --> 00:05:13,240
Speaker 3: language models as well as very large data sets in

104
00:05:13,320 --> 00:05:16,560
Speaker 3: termini of transactions across banks to be more effective and

105
00:05:17,480 --> 00:05:18,920
Speaker 3: improving the integrity of the system.

106
00:05:18,960 --> 00:05:21,239
Speaker 1: Can we go into detail on the large language models

107
00:05:21,320 --> 00:05:24,240
Speaker 1: or the underpinnings of what you're doing. Are you building

108
00:05:24,240 --> 00:05:27,040
Speaker 1: the LLM to yourself or who are you working with?

109
00:05:27,080 --> 00:05:30,160
Speaker 3: If you are not, we are not building lms ourselves,

110
00:05:30,200 --> 00:05:32,800
Speaker 3: so we are working with the large language.

111
00:05:32,680 --> 00:05:33,880
Speaker 2: Models that exist today.

112
00:05:33,960 --> 00:05:37,080
Speaker 3: So we have certain products that we are working on

113
00:05:37,120 --> 00:05:40,080
Speaker 3: with Anthropic, which with our claud model and certain products

114
00:05:40,080 --> 00:05:42,840
Speaker 3: our capabilities of we're working on with Microsoft and open

115
00:05:42,880 --> 00:05:46,360
Speaker 3: AI most notably as we think about also using technology

116
00:05:46,400 --> 00:05:48,159
Speaker 3: on our business, so it's one thing to put it

117
00:05:48,160 --> 00:05:50,840
Speaker 3: in our products, so we have workflow tools that will

118
00:05:50,880 --> 00:05:53,880
Speaker 3: become much more efficient with AI. We have also, as

119
00:05:53,880 --> 00:05:55,800
Speaker 3: I said, our Anti financial Crime suite, where they use

120
00:05:55,839 --> 00:05:57,359
Speaker 3: algorithmic AI to root.

121
00:05:57,200 --> 00:05:59,440
Speaker 2: Out very specific criminal behaviors.

122
00:05:59,640 --> 00:06:01,640
Speaker 3: A trial trafficker is going to behave differently in the

123
00:06:01,680 --> 00:06:04,800
Speaker 3: banking system than someone in a terrast network, so we

124
00:06:04,880 --> 00:06:08,360
Speaker 3: have very specific models that we use to predict out

125
00:06:08,520 --> 00:06:12,920
Speaker 3: predict potential criminal behavior. I think that generally though, when

126
00:06:12,960 --> 00:06:15,120
Speaker 3: we look at on the business, there's so many co

127
00:06:15,240 --> 00:06:17,880
Speaker 3: pilots now that are available and obviously could hub cope

128
00:06:17,880 --> 00:06:20,479
Speaker 3: pilot and other copilot capabilities are going to be what

129
00:06:20,520 --> 00:06:21,680
Speaker 3: we were really focused on.

130
00:06:21,800 --> 00:06:24,600
Speaker 1: We took a really broad look at financial and capital

131
00:06:24,680 --> 00:06:27,479
Speaker 1: markets in twenty twenty four. On stage, we talked quite

132
00:06:27,480 --> 00:06:29,960
Speaker 1: a lot about North America and I wondered if, particularly

133
00:06:30,000 --> 00:06:34,200
Speaker 1: in Asia, but our markets moving at the same speed globally,

134
00:06:34,520 --> 00:06:36,800
Speaker 1: are there themes that are unique to any markets? You

135
00:06:36,880 --> 00:06:38,480
Speaker 1: see this year different from others.

136
00:06:39,360 --> 00:06:42,200
Speaker 3: Well, actually, I think that one thing, one common thing

137
00:06:42,200 --> 00:06:45,040
Speaker 3: we've seen across markets and market operators is that they

138
00:06:45,120 --> 00:06:48,320
Speaker 3: want to have access to the most advanced technology available.

139
00:06:48,400 --> 00:06:50,960
Speaker 3: So we've been very focused on moving more of our

140
00:06:51,040 --> 00:06:53,440
Speaker 3: capabilities into cloud. We've been working with a lot of

141
00:06:53,440 --> 00:06:56,320
Speaker 3: market operators on how they can think about moving their

142
00:06:56,360 --> 00:06:59,320
Speaker 3: markets to cloud. We just moved our second options market

143
00:06:59,400 --> 00:07:02,359
Speaker 3: to a WS outposts, and we now are working with

144
00:07:02,440 --> 00:07:04,919
Speaker 3: other markets that are actually deploying markets in the cloud

145
00:07:05,760 --> 00:07:08,600
Speaker 3: using our technology, or that they're thinking about a similar

146
00:07:08,600 --> 00:07:10,920
Speaker 3: model to what we have with our AWS partnership. So

147
00:07:11,360 --> 00:07:14,800
Speaker 3: it is definitely a big trend how to modernize the markets,

148
00:07:14,840 --> 00:07:17,480
Speaker 3: how to leverage their data more effectively, how to bring

149
00:07:17,520 --> 00:07:20,560
Speaker 3: AI into that to be could be more innovative within

150
00:07:20,600 --> 00:07:23,040
Speaker 3: their own markets. And then of course in terms of

151
00:07:23,160 --> 00:07:26,040
Speaker 3: companies coming to market, it depends on the economy. You know,

152
00:07:26,040 --> 00:07:28,640
Speaker 3: there's certain very vibrant economies that are going to see

153
00:07:28,680 --> 00:07:32,000
Speaker 3: I think a better IPO environment this year, including NASAC,

154
00:07:32,480 --> 00:07:34,800
Speaker 3: including the US, But I also think that you know,

155
00:07:34,840 --> 00:07:36,680
Speaker 3: every economy is a little different in that regard.

156
00:07:36,760 --> 00:07:39,600
Speaker 1: We just have thirty seconds summarize twenty twenty four for

157
00:07:39,640 --> 00:07:41,440
Speaker 1: me from Adena Freeman's perspective.

158
00:07:41,080 --> 00:07:44,360
Speaker 2: I would say cautiously optimistic. Cautious is a complex world.

159
00:07:44,520 --> 00:07:47,480
Speaker 3: Optimistic, a lot of the economic unknowns are more known.

160
00:07:47,520 --> 00:07:51,280
Speaker 3: We've got, you know, falling inflation, hopefully falling rates. Over time,

161
00:07:51,680 --> 00:07:54,120
Speaker 3: investors feel more ready to put risk capital to work.

162
00:07:54,160 --> 00:07:56,560
Speaker 1: This year, Adena Friedman has been great spending time with

163
00:07:56,600 --> 00:08:00,360
Speaker 1: you here in Las Vegas at ces Nasdeka Technology Company.

164
00:08:00,400 --> 00:08:03,480
Speaker 1: Adina Freeman there as I said, President and CEO of

165
00:08:03,560 --> 00:08:04,000
Speaker 1: NADAC