1 00:00:02,520 --> 00:00:07,520 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,760 --> 00:00:10,960 Speaker 2: The outlook for corporates gets harder, American Airlines and Pepsi 3 00:00:11,039 --> 00:00:13,920 Speaker 2: joining a growing list of companies trimming or pulling forecast 4 00:00:13,960 --> 00:00:17,279 Speaker 2: you to trade uncertainty, NASDAK hoping to provide stability in 5 00:00:17,280 --> 00:00:19,880 Speaker 2: this volatile environment, and the nast next Sea. Dana Friedman 6 00:00:19,920 --> 00:00:21,439 Speaker 2: joined us now for more. Diana, good morning, good to 7 00:00:21,440 --> 00:00:21,720 Speaker 2: see you. 8 00:00:21,760 --> 00:00:23,279 Speaker 3: It's great to see you, great to be here. 9 00:00:23,360 --> 00:00:25,720 Speaker 2: Can you describe the last month for us if you can, 10 00:00:25,880 --> 00:00:28,400 Speaker 2: just how busy have things been described to volume, the 11 00:00:28,640 --> 00:00:30,840 Speaker 2: activity going through your business? 12 00:00:31,160 --> 00:00:32,519 Speaker 3: Well, thanks, thanks for having me. 13 00:00:32,800 --> 00:00:35,040 Speaker 4: First of all, we just announced earnings yesterday, so I 14 00:00:35,080 --> 00:00:37,320 Speaker 4: think that shows a little bit of what. 15 00:00:37,159 --> 00:00:38,599 Speaker 3: We've been what we've been working with. 16 00:00:38,920 --> 00:00:40,760 Speaker 4: We had twelve and a half percent revenue growth. We 17 00:00:40,840 --> 00:00:43,920 Speaker 4: had double digit growth in each of our three divisions, 18 00:00:44,479 --> 00:00:45,560 Speaker 4: and a couple of highlights. 19 00:00:45,760 --> 00:00:46,959 Speaker 3: One is within. 20 00:00:46,760 --> 00:00:49,880 Speaker 4: Our Capital Axis Platforms division, our index business grew twenty 21 00:00:49,880 --> 00:00:51,120 Speaker 4: six percent in the first. 22 00:00:51,000 --> 00:00:52,760 Speaker 3: Quarter because of inflows. 23 00:00:52,920 --> 00:00:55,240 Speaker 4: We had twenty seven billion dollars of inflows in the quarter. 24 00:00:55,680 --> 00:00:57,800 Speaker 4: Very strong futures volumes as well in our NAS like 25 00:00:57,800 --> 00:01:00,600 Speaker 4: one hundred franchise. And then we look at our Fintech 26 00:01:00,600 --> 00:01:03,120 Speaker 4: division that grew ten percent, and one of the highlights 27 00:01:03,120 --> 00:01:06,000 Speaker 4: there is our anti financial crime business grew twenty one percent, 28 00:01:06,800 --> 00:01:09,440 Speaker 4: and that's an important key grower for US. And then 29 00:01:09,480 --> 00:01:12,400 Speaker 4: within our market services division, which is our trading business, 30 00:01:12,640 --> 00:01:14,920 Speaker 4: that grew nineteen percent in the first quarter because of 31 00:01:14,959 --> 00:01:17,320 Speaker 4: record volumes in the first quarter, and we continue to 32 00:01:17,360 --> 00:01:21,080 Speaker 4: see those volumes persist and actually grow into April. The 33 00:01:21,160 --> 00:01:23,640 Speaker 4: first ten days of April, we had five of the 34 00:01:23,680 --> 00:01:27,039 Speaker 4: top six trading days ever in US equities, four of 35 00:01:27,040 --> 00:01:30,120 Speaker 4: the top six trading days ever in options, and in 36 00:01:30,160 --> 00:01:32,679 Speaker 4: one of the days, like we also measured message traffic 37 00:01:32,680 --> 00:01:35,480 Speaker 4: because that's how how many messages our systems handling during 38 00:01:35,520 --> 00:01:38,440 Speaker 4: a given day. On the peak day, which was April seventh, 39 00:01:38,520 --> 00:01:40,880 Speaker 4: we had five hundred and fifty billion messages flow through 40 00:01:40,880 --> 00:01:44,000 Speaker 4: our systems on that single day. So it has been 41 00:01:44,040 --> 00:01:46,480 Speaker 4: an incredible period of time from a trading perspective. 42 00:01:46,880 --> 00:01:48,040 Speaker 3: And the one thing. 43 00:01:47,960 --> 00:01:50,160 Speaker 4: To note, because we talked about this earlier, you know, 44 00:01:50,480 --> 00:01:52,440 Speaker 4: you don't get necessarily credit for this, but the fact 45 00:01:52,560 --> 00:01:55,480 Speaker 4: is that the plumbing within the markets, all of the 46 00:01:55,480 --> 00:01:59,640 Speaker 4: markets has done really, really well, hyper resilient. I think 47 00:01:59,640 --> 00:02:02,440 Speaker 4: we've all been able to manage this volume extraordinarily. Well, 48 00:02:02,640 --> 00:02:04,880 Speaker 4: we're very proud of that at NASAC, and I can 49 00:02:04,920 --> 00:02:07,560 Speaker 4: tell you that our markets have done quite well in 50 00:02:07,600 --> 00:02:09,359 Speaker 4: this period of heightened volatility. 51 00:02:09,480 --> 00:02:11,000 Speaker 2: We don't thank you when it goes right, but we'd 52 00:02:11,040 --> 00:02:12,720 Speaker 2: be very quick to criticize you when it goes wrong. 53 00:02:12,800 --> 00:02:15,760 Speaker 2: That's for sure. You've handled a lot of volume volatility good. 54 00:02:15,800 --> 00:02:17,800 Speaker 2: When does volatility become bad? 55 00:02:18,160 --> 00:02:20,600 Speaker 4: Well, I think the one thing to recognize is volatility 56 00:02:20,639 --> 00:02:22,600 Speaker 4: in short term volatility. 57 00:02:22,200 --> 00:02:23,600 Speaker 3: That then can resolve itself. 58 00:02:24,080 --> 00:02:26,959 Speaker 4: I think that's something that we've seen, frankly multiple. 59 00:02:26,680 --> 00:02:28,280 Speaker 3: Times over the last five years. 60 00:02:28,440 --> 00:02:31,400 Speaker 4: I think the concern is, of course, is if we 61 00:02:31,480 --> 00:02:34,519 Speaker 4: cannot have some certainty in the markets. You know, investors 62 00:02:34,600 --> 00:02:37,079 Speaker 4: like certainty, and right now it's a very uncertain environment, 63 00:02:37,360 --> 00:02:39,920 Speaker 4: so they tend to take a risk off and attitude 64 00:02:39,919 --> 00:02:42,720 Speaker 4: about that. And as we know, we are hoping to 65 00:02:42,760 --> 00:02:44,799 Speaker 4: see more companies go public this year. 66 00:02:44,800 --> 00:02:46,040 Speaker 3: We did have forty five. 67 00:02:45,880 --> 00:02:49,160 Speaker 4: IPOs in the first quarter, raising five billion dollars. One 68 00:02:49,240 --> 00:02:52,200 Speaker 4: little side fact also, as we had seven companies switched 69 00:02:52,200 --> 00:02:55,360 Speaker 4: from New York to NASACK in the first quarter, and 70 00:02:55,400 --> 00:02:58,720 Speaker 4: we crossed three trillion dollar threshold of companies that have 71 00:02:58,800 --> 00:03:01,720 Speaker 4: switched to NASAK since we starter switch program twenty years ago. 72 00:03:02,440 --> 00:03:04,359 Speaker 4: But I also would say though we have a lot 73 00:03:04,360 --> 00:03:06,440 Speaker 4: of companies that are looking to go public this year, 74 00:03:06,919 --> 00:03:10,120 Speaker 4: and we and right now, of course, investors are not 75 00:03:10,240 --> 00:03:12,239 Speaker 4: really in a mode of underwriting a lot of risks, 76 00:03:12,280 --> 00:03:15,160 Speaker 4: so we're seeing them take a weight and see attitude 77 00:03:15,880 --> 00:03:18,120 Speaker 4: in terms of how to tap the public markets and 78 00:03:18,160 --> 00:03:19,639 Speaker 4: when to tap the public markets this year. 79 00:03:19,680 --> 00:03:22,200 Speaker 5: That was a very subtle but well placed a shot 80 00:03:22,240 --> 00:03:23,720 Speaker 5: over at the New York's Act Exchange. 81 00:03:23,720 --> 00:03:25,440 Speaker 3: I'm sure that they will be listening. 82 00:03:25,480 --> 00:03:27,840 Speaker 5: I am curious about what that pipeline looks like now 83 00:03:27,840 --> 00:03:30,320 Speaker 5: and how much smaller it is now in terms of 84 00:03:30,360 --> 00:03:32,920 Speaker 5: IPOs than it was earlier in the year. You know, 85 00:03:32,919 --> 00:03:34,840 Speaker 5: there's this big question how much of deal has been 86 00:03:34,880 --> 00:03:36,400 Speaker 5: sort of put on hold and how much have they 87 00:03:36,480 --> 00:03:37,760 Speaker 5: just been scrapped altogether. 88 00:03:37,920 --> 00:03:39,520 Speaker 3: Do you have a sense of that. I think there 89 00:03:39,520 --> 00:03:40,600 Speaker 3: are more being put on hold. 90 00:03:40,680 --> 00:03:42,800 Speaker 4: I mean, we have not seen companies something to decide 91 00:03:42,800 --> 00:03:43,680 Speaker 4: they're not going to go public. 92 00:03:43,720 --> 00:03:45,760 Speaker 3: It's really a matter of they've gotten themselves. 93 00:03:45,360 --> 00:03:49,080 Speaker 4: Ready, They've gotten approval, all the approvals they need. It's 94 00:03:49,120 --> 00:03:50,800 Speaker 4: really now a matter of just having a weight and 95 00:03:50,840 --> 00:03:53,119 Speaker 4: see attitude, and they should be, you know, in terms 96 00:03:53,160 --> 00:03:56,600 Speaker 4: of thinking about how can they maximize value for their shareholders, 97 00:03:57,280 --> 00:03:59,040 Speaker 4: how can they make sure that they're entering the markets 98 00:03:59,080 --> 00:04:02,000 Speaker 4: in an environment that's well welcoming, and that could be 99 00:04:02,080 --> 00:04:05,400 Speaker 4: you could find windows and pockets of time throughout the 100 00:04:05,480 --> 00:04:07,280 Speaker 4: year to be able to do that, and we did, 101 00:04:07,400 --> 00:04:09,440 Speaker 4: as I said, still have forty five IPOs in the 102 00:04:09,440 --> 00:04:11,880 Speaker 4: first quarter. So it wasn't like the markets are shut. 103 00:04:11,920 --> 00:04:14,800 Speaker 4: It's just a matter of finding those windows of opportunity 104 00:04:14,880 --> 00:04:16,240 Speaker 4: within a more volatile environment. 105 00:04:16,360 --> 00:04:19,240 Speaker 5: Do you see companies trying to decide are having a 106 00:04:19,240 --> 00:04:22,480 Speaker 5: harder time deciding whether to IPO in New York or 107 00:04:22,520 --> 00:04:24,800 Speaker 5: in the United States and the deepest markets of the 108 00:04:24,800 --> 00:04:28,440 Speaker 5: world versus somewhere else base the turmoil that we've seen. 109 00:04:29,040 --> 00:04:32,200 Speaker 4: Well, we are really the home to global companies as 110 00:04:32,200 --> 00:04:37,400 Speaker 4: well as American companies. The conversations continue to be very constructive, robust, 111 00:04:38,520 --> 00:04:41,160 Speaker 4: they're they're very they're very interested in coming and tapping 112 00:04:41,160 --> 00:04:43,920 Speaker 4: the American investor and frankly the global investor base. 113 00:04:44,160 --> 00:04:45,159 Speaker 3: I mean the United States. 114 00:04:45,160 --> 00:04:47,159 Speaker 4: We are the most liquid markets in the world, We 115 00:04:47,279 --> 00:04:51,599 Speaker 4: have the most the most variety of investors, we have 116 00:04:51,640 --> 00:04:54,320 Speaker 4: the deepest pools of liquidity. I think those things are, 117 00:04:54,800 --> 00:04:57,600 Speaker 4: you know, constant attractions. In terms of companies who want 118 00:04:57,640 --> 00:04:58,920 Speaker 4: to go public again. 119 00:04:58,760 --> 00:05:00,000 Speaker 3: It's really more a matter of time. 120 00:05:00,040 --> 00:05:01,800 Speaker 4: I mean that it's more a matter of when than 121 00:05:01,839 --> 00:05:04,479 Speaker 4: if they want to come and tap the public markets 122 00:05:04,520 --> 00:05:05,280 Speaker 4: in the United States. 123 00:05:05,400 --> 00:05:07,920 Speaker 1: I was here during Trump's inauguration while you were speaking 124 00:05:07,960 --> 00:05:09,720 Speaker 1: to John and Lisa over in Davos, and you are 125 00:05:09,800 --> 00:05:12,320 Speaker 1: very constructive on the incoming administration when it came to 126 00:05:12,360 --> 00:05:16,000 Speaker 1: the excitement around IPOs, also deregulation. You're pushing for this 127 00:05:16,080 --> 00:05:19,920 Speaker 1: regulation overhaul. Are you seeing what you were expecting back 128 00:05:19,960 --> 00:05:22,160 Speaker 1: in Davos from this administration now in their first one 129 00:05:22,240 --> 00:05:22,839 Speaker 1: hundred days. 130 00:05:22,920 --> 00:05:27,039 Speaker 4: From a regulatory perspective, we are very excited about the 131 00:05:27,040 --> 00:05:30,520 Speaker 4: fact that we can work constructively with the regulators that 132 00:05:30,560 --> 00:05:34,560 Speaker 4: are coming into with the positions. With Chair Atkins coming 133 00:05:34,600 --> 00:05:37,880 Speaker 4: into the SEC, he has deep understanding of the markets. 134 00:05:37,920 --> 00:05:40,760 Speaker 4: He has a deep understanding of US capital markets and 135 00:05:40,880 --> 00:05:43,520 Speaker 4: also the need for companies to have a good public 136 00:05:43,520 --> 00:05:46,360 Speaker 4: company experience and how important that is in terms of 137 00:05:46,440 --> 00:05:49,720 Speaker 4: giving citizens access to the growth of our economy. So 138 00:05:50,080 --> 00:05:52,640 Speaker 4: we are looking forward to engaging with him. We just 139 00:05:52,640 --> 00:05:55,880 Speaker 4: put out a white paper on the need for reform 140 00:05:56,120 --> 00:06:00,080 Speaker 4: in the regulatory landscape for public companies to have to 141 00:06:00,120 --> 00:06:02,480 Speaker 4: be able to have a life as a public company, 142 00:06:02,560 --> 00:06:05,479 Speaker 4: not have it be oh gosh moment, but more I 143 00:06:05,480 --> 00:06:07,960 Speaker 4: can't wait moment, And so I think that that's something that. 144 00:06:07,960 --> 00:06:09,680 Speaker 3: We're really looking forward to engaging. 145 00:06:09,720 --> 00:06:12,360 Speaker 1: Chair Atkins on how big is the tone shift from 146 00:06:12,360 --> 00:06:15,120 Speaker 1: the Biden administration and Gary Gensler to Chair Atkins. 147 00:06:15,200 --> 00:06:17,520 Speaker 4: Well, he just came into office, so we are going 148 00:06:17,600 --> 00:06:20,320 Speaker 4: to introduce ourselves to him. We actually do know him 149 00:06:20,320 --> 00:06:22,159 Speaker 4: from when he was a commissioner many years ago, but 150 00:06:22,240 --> 00:06:25,520 Speaker 4: reintroduce ourselves to him, and we'll look forward to engaging 151 00:06:25,520 --> 00:06:26,880 Speaker 4: with him as he gets going. 152 00:06:26,680 --> 00:06:27,920 Speaker 3: In his new seat. 153 00:06:28,160 --> 00:06:30,120 Speaker 2: You've been through a lot of different market right, James, 154 00:06:30,480 --> 00:06:32,640 Speaker 2: How would you describe this one? How unique is it? 155 00:06:33,800 --> 00:06:34,839 Speaker 3: Well, you know, it's funny. 156 00:06:35,000 --> 00:06:39,520 Speaker 4: I have actually been part of many, many market events. 157 00:06:39,680 --> 00:06:41,440 Speaker 3: I've been at NASSAC started a Nazek. 158 00:06:41,200 --> 00:06:43,080 Speaker 4: Thirty two years ago, so I've seen a lot and 159 00:06:43,600 --> 00:06:45,400 Speaker 4: this is every single one of them is different. I 160 00:06:45,440 --> 00:06:48,320 Speaker 4: have to say, there's no two situations where you see 161 00:06:48,360 --> 00:06:51,039 Speaker 4: a lot of volatility that are exactly the same in 162 00:06:51,120 --> 00:06:53,599 Speaker 4: terms of the causes of volatility. What we've seen in 163 00:06:53,640 --> 00:06:56,680 Speaker 4: terms of the reactions from investors is pretty consistent. You know, 164 00:06:56,720 --> 00:06:58,839 Speaker 4: when they know the thing, as I mentioned before, is 165 00:06:58,839 --> 00:07:01,960 Speaker 4: that they the thing that they like the least is uncertainty. 166 00:07:02,400 --> 00:07:04,560 Speaker 4: And in any period of time where you suddenly have 167 00:07:05,400 --> 00:07:08,799 Speaker 4: a big moment of uncertainty, they take the same attitude, 168 00:07:08,800 --> 00:07:11,280 Speaker 4: which is a risk off attitude. I'm going to take 169 00:07:11,480 --> 00:07:13,520 Speaker 4: take someone positions out of the market. I'm going to 170 00:07:13,520 --> 00:07:15,560 Speaker 4: sit and wait and understand what's happening, and then I'm 171 00:07:15,560 --> 00:07:16,880 Speaker 4: going to re engage in. 172 00:07:16,840 --> 00:07:17,560 Speaker 3: A smart way. 173 00:07:18,040 --> 00:07:21,040 Speaker 4: That's a very consistent reaction, but the causes of every 174 00:07:21,080 --> 00:07:23,920 Speaker 4: single period of market relativity have been different. 175 00:07:23,960 --> 00:07:25,400 Speaker 3: Actually over the last thirty two years. 176 00:07:25,480 --> 00:07:27,840 Speaker 2: Sunny fils unique this moment, that's for sure. Danta, thanks 177 00:07:27,880 --> 00:07:29,720 Speaker 2: for dropping by, Thanks you for the time, Thanks for. 178 00:07:29,640 --> 00:07:30,080 Speaker 3: Being with us. 179 00:07:30,080 --> 00:07:30,680 Speaker 2: A data freightman. 180 00:07:30,720 --> 00:07:30,920 Speaker 3: There. 181 00:07:31,040 --> 00:07:32,960 Speaker 2: The chair and CEO of Nasdaq