Fireside Chat, Interview, Conference Presentation
Nasdaq CEO Reveals the Next Era Of The Stock Market - Adena Friedman | All-In Summit
- NASDAQ plans to integrate tokenization to facilitate equities trading within core markets, with an intermediate target of 24/5 operations (Monday through Friday) and a long-term goal of 24/7/365 trading, while maintaining traditional 9:30 AM to 4:00 PM hours to accommodate mutual fund Net Asset Value calculations.
- The exchange advocates for regulatory reforms in disclosure, proxy voting, and litigation to reduce the burdens of going public, specifically proposing tokenized direct listings as a new market entry avenue.
- NASDAQ anticipates the SEC will adopt a forward-leaning regulatory approach to establish a framework for tokenized securities, emphasizing that the exchange will only engage in crypto markets where clear rules of the road exist to ensure institutional participation and investor protection.
- Regarding capital formation, NASDAQ intends to collaborate with private issuers via Special Purpose Vehicles (SPVs) to allow issuers to retain ultimate control over their cap table and the invitation of investors.
- Market dynamics are expected to see active managers arbitrage against passive investment trends, while the U.S. dollar is projected to remain a persistent reserve currency over a long period, though potential shifts in treasury return characteristics may drive investors toward alternatives.
- Monetary policy is expected to incorporate new data sources to gauge the economy, although these will supplement rather than replace existing metrics.
- Significant risks identified include the potential for excessive leverage by hedge funds to destabilize infrastructure and pressure in commercial real estate and private credit, which are anticipated to ease as interest rates decline with risks distributed across over 5,000 banks.