Adena Friedman

It's great to be here, Clark. Thank you so much. This is fantastic.

It's great to be here, Clark. Thank you so much. This is fantastic.

We're at this inflection point in the economy, in the world, but in technology, and also in the world, meaning the broader climate and other things that are happening, the externalities that we're facing.

We're at this inflection point in the economy, in the world, but in technology, and also in the world, meaning the broader climate and other things that are happening, the externalities that we're facing.

So we've done some work with some firms that have estimated that there's probably an $80 trillion investment that needs to be made in order to really bring every society and every economy forward to face the realities of the world that we're living in today. So that can be

So we've done some work with some firms that have estimated that there's probably an $80 trillion investment that needs to be made in order to really bring every society and every economy forward to face the realities of the world that we're living in today. So that can be

climate change and an energy transition and unleashing the power of technology and AI, the redefining what will AI really mean for every business, for every part of society. But there's an enormous amount of opportunity to unleash if we can find the capital to deploy. And that's, of course, what capital markets do.

climate change and an energy transition and unleashing the power of technology and AI, the redefining what will AI really mean for every business, for every part of society. But there's an enormous amount of opportunity to unleash if we can find the capital to deploy. And that's, of course, what capital markets do.

And it's also what the broader banking system and VC investors, investment, that's what we're here to do is to really put capital to work in these defining moments to catalyze growth or to catalyze change.

And it's also what the broader banking system and VC investors, investment, that's what we're here to do is to really put capital to work in these defining moments to catalyze growth or to catalyze change.

And at the same time, we have to recognize the fact that we have another moment, which is we have been putting more and more obligations on those companies and banks and brokers that are the ones that are going to be the drivers of that change. And we have to rethink that.

And at the same time, we have to recognize the fact that we have another moment, which is we have been putting more and more obligations on those companies and banks and brokers that are the ones that are going to be the drivers of that change. And we have to rethink that.

So we do think that this notion of smart regulation, reframing what regulations there to achieve, outcome oriented, getting rid of regulations that are no longer relevant, Changing the mindset of the regulators from tick-the-box, input-driven regulation to output, what am I actually trying to drive towards regulation, will unleash an enormous amount of capital into the system.

So we do think that this notion of smart regulation, reframing what regulations there to achieve, outcome oriented, getting rid of regulations that are no longer relevant, Changing the mindset of the regulators from tick-the-box, input-driven regulation to output, what am I actually trying to drive towards regulation, will unleash an enormous amount of capital into the system.

So we actually did this study with the banks. And we said, even if you could just take down the risk and compliance function of the global banks by 10% to 20%, it actually allows them to retain 20%. 25 to 50 billion more in earnings.

So we actually did this study with the banks. And we said, even if you could just take down the risk and compliance function of the global banks by 10% to 20%, it actually allows them to retain 20%. 25 to 50 billion more in earnings.

And if they then leverage that and go out to and drive that into the market, that's 500 billion to a trillion dollars of incremental capital that they could bring into the markets just by making them more efficient. So that's the use of technology, changing the regulatory framework, and then unleashing that technology to allow us to deploy more capital into the market.

And if they then leverage that and go out to and drive that into the market, that's 500 billion to a trillion dollars of incremental capital that they could bring into the markets just by making them more efficient. So that's the use of technology, changing the regulatory framework, and then unleashing that technology to allow us to deploy more capital into the market.

So it's a pretty exciting moment, but it's a moment where we have to grasp it and we have to take hold of it.

So it's a pretty exciting moment, but it's a moment where we have to grasp it and we have to take hold of it.

Well, I think first you have to listen.

Well, I think first you have to listen.

So what are their problems? What are their needs? How are they navigating those problems? But also what new capabilities can be brought to change the trajectory of how they manage those problems? The second is, and then you listen to your employees and you listen to regulators and you listen to legislators.

So what are their problems? What are their needs? How are they navigating those problems? But also what new capabilities can be brought to change the trajectory of how they manage those problems? The second is, and then you listen to your employees and you listen to regulators and you listen to legislators.

It's super important to engage the ecosystem to understand them so that you can understand their motivations, their incentives, their worries, all of that. And you then bring that back in and say, okay, well, how do we then frame out a solution? And we are a solutions provider and we do sit at the center of the capital market, certainly, and now the broader system. So

It's super important to engage the ecosystem to understand them so that you can understand their motivations, their incentives, their worries, all of that. And you then bring that back in and say, okay, well, how do we then frame out a solution? And we are a solutions provider and we do sit at the center of the capital market, certainly, and now the broader system. So

how can we then leverage that technology, change the way that they think about that regulatory obligation, hopefully help steer, but recognizing we're an influencer, in some cases we're a driver. When it comes to technology and what we can control, we're driving the industry down a road. But we also have to recognize that they deal with stakeholders too.

how can we then leverage that technology, change the way that they think about that regulatory obligation, hopefully help steer, but recognizing we're an influencer, in some cases we're a driver. When it comes to technology and what we can control, we're driving the industry down a road. But we also have to recognize that they deal with stakeholders too.

So if you drive too fast and you drive too hard, tissue rejection. Right. So you have to kind of think about how do you pace it? How do you explain it? How do you communicate it? How do you then find those first steps that make them trust you and then start to go a little faster?

So if you drive too fast and you drive too hard, tissue rejection. Right. So you have to kind of think about how do you pace it? How do you explain it? How do you communicate it? How do you then find those first steps that make them trust you and then start to go a little faster?

It is a fun story because I got so lucky. I mean, how often do you get to go and join a company right out of college or right out of university and then suddenly end up spending your whole career here? By the way, my father did that. So he also joined T. R. Price out of business school and spent his entire career there. So I did see that. I think that probably did influence me a little bit.

It is a fun story because I got so lucky. I mean, how often do you get to go and join a company right out of college or right out of university and then suddenly end up spending your whole career here? By the way, my father did that. So he also joined T. R. Price out of business school and spent his entire career there. So I did see that. I think that probably did influence me a little bit.

Well, first, I would say on that last point, in terms of those firms that are trying to compete, they're also our largest clients.

Well, first, I would say on that last point, in terms of those firms that are trying to compete, they're also our largest clients.

But recognize, binary thinking doesn't work in the financial industry. There's a lot of shades of gray between they're a competitor versus they're a client versus they're a partner. There's a lot of opportunity for you to partner with firms that might compete in one space and partner in another. So we are very much a view of, let's be multidimensional.

But recognize, binary thinking doesn't work in the financial industry. There's a lot of shades of gray between they're a competitor versus they're a client versus they're a partner. There's a lot of opportunity for you to partner with firms that might compete in one space and partner in another. So we are very much a view of, let's be multidimensional.

Yeah, or we call it coopetition. So I like that better because it's a little more optimistic. But at the same time, so that's just something to point out. But as a disruptor, so we were truly a disruptor when NASDAQ started in 1971. All trading occurred in a manual format in one building. And so, and with some firms piped in, we said, okay, so how do you, there's two ways we disrupted.

Yeah, or we call it coopetition. So I like that better because it's a little more optimistic. But at the same time, so that's just something to point out. But as a disruptor, so we were truly a disruptor when NASDAQ started in 1971. All trading occurred in a manual format in one building. And so, and with some firms piped in, we said, okay, so how do you, there's two ways we disrupted.

Number one, how do you allow more companies to tap public investors if they're not profitable? So we changed the listing rules and allowed unprofitable companies to come public. Never had been happened before. So that was like a hard line that the markets had. And we said, let's change that. So that's number one.

Number one, how do you allow more companies to tap public investors if they're not profitable? So we changed the listing rules and allowed unprofitable companies to come public. Never had been happened before. So that was like a hard line that the markets had. And we said, let's change that. So that's number one.

And that unleashed the ability for all these tech companies, innovators to come to market and seek public capital. The second was how do you engage more of the what we call democratized access to the public markets by becoming a network instead of having it in a building, use technology.

And that unleashed the ability for all these tech companies, innovators to come to market and seek public capital. The second was how do you engage more of the what we call democratized access to the public markets by becoming a network instead of having it in a building, use technology.

And this is in 1971 and use network technology to go out and allow anyone in the country to connect into our exchange. and operate within the market successfully. And we did, it was technologically really, really groundbreaking. So that was how we started, but we didn't have anything to lose, right?

And this is in 1971 and use network technology to go out and allow anyone in the country to connect into our exchange. and operate within the market successfully. And we did, it was technologically really, really groundbreaking. So that was how we started, but we didn't have anything to lose, right?

We were just, there's a difference in how you disrupt when you were just a startup and you're just trying to disrupt and you have nothing really to lose. Today, we are the steward of the capital markets around the world. So we have a lot of responsibility and obligation on resilience. So being hyper resilient is just table stakes for us, but you can still disrupt on top of that.

We were just, there's a difference in how you disrupt when you were just a startup and you're just trying to disrupt and you have nothing really to lose. Today, we are the steward of the capital markets around the world. So we have a lot of responsibility and obligation on resilience. So being hyper resilient is just table stakes for us, but you can still disrupt on top of that.

So what we thought about is for instance, markets have always operated inside of data center, our own data centers. Every market around the world operates inside their own data centers or defined data centers. How do we disrupt that and say cloud technology is the future of the world, how are we going to make sure we can operate in the future of the world?

So what we thought about is for instance, markets have always operated inside of data center, our own data centers. Every market around the world operates inside their own data centers or defined data centers. How do we disrupt that and say cloud technology is the future of the world, how are we going to make sure we can operate in the future of the world?

How do you take markets from a fixed data center-centric world to a cloud world? And we rewrote our entire trade lifecycle technology, microservice architected, cloud native, And we then partnered with a cloud provider, AWS, to say, how do we actually bring first cloud technology into our data center, but then also push as much of our workloads out of our data center into cloud?

How do you take markets from a fixed data center-centric world to a cloud world? And we rewrote our entire trade lifecycle technology, microservice architected, cloud native, And we then partnered with a cloud provider, AWS, to say, how do we actually bring first cloud technology into our data center, but then also push as much of our workloads out of our data center into cloud?

So we've been doing that for many years. And now with AI, we're well positioned to play offense on AI, We had a new AI-driven order type that came into the markets last year. It actually more than doubled the volume in that particular order type. We've launched GenAI co-pilots across our solutions in the software space.

So we've been doing that for many years. And now with AI, we're well positioned to play offense on AI, We had a new AI-driven order type that came into the markets last year. It actually more than doubled the volume in that particular order type. We've launched GenAI co-pilots across our solutions in the software space.

There you go. But I started as an intern because I wanted to be in the financial industry, but I wanted to be a product manager. When I was in business school, I loved product management, but I also liked finance. And I had this rare opportunity to become an intern at NASDAQ to write product plans for their trading products.

There you go. But I started as an intern because I wanted to be in the financial industry, but I wanted to be a product manager. When I was in business school, I loved product management, but I also liked finance. And I had this rare opportunity to become an intern at NASDAQ to write product plans for their trading products.

And so because we've been willing to, frankly, take a risk, help our clients take risks, we're now deploying that, by the way, that trade lifecycle technology across the markets in the world. We're moving markets to cloud. It's super cool. It actually is allowing us to be not a disruptor, but a leader, I would say, in helping them manage to the future. And that's how we see our role today.

And so because we've been willing to, frankly, take a risk, help our clients take risks, we're now deploying that, by the way, that trade lifecycle technology across the markets in the world. We're moving markets to cloud. It's super cool. It actually is allowing us to be not a disruptor, but a leader, I would say, in helping them manage to the future. And that's how we see our role today.

Yeah. Well, first, we are extremely fortunate to have a lot of long-tenured talent here. And it's really special. So I think the first thing is... We are a mission-driven company and we want people who believe. So we say we want missionaries, not mercenaries, right?

Yeah. Well, first, we are extremely fortunate to have a lot of long-tenured talent here. And it's really special. So I think the first thing is... We are a mission-driven company and we want people who believe. So we say we want missionaries, not mercenaries, right?

So we want people who really believe in the mission of what Nasdaq does in terms of economic progress, being the trusted fabric to the world's financial system is our vision. And we want everyone to believe in that and be a part of that. And we live it every day. So they do feel that they're part of something important. The second thing is we have global talent.

So we want people who really believe in the mission of what Nasdaq does in terms of economic progress, being the trusted fabric to the world's financial system is our vision. And we want everyone to believe in that and be a part of that. And we live it every day. So they do feel that they're part of something important. The second thing is we have global talent.

So we are not wedded to a country or a city. We have talent across the US, across all of the world. We have talent in I think more than 50 countries, but we have defined centers of excellence around the world that allow us to draw talent from around the world. And that I think is obviously hugely beneficial. And we know how to do that at scale.

So we are not wedded to a country or a city. We have talent across the US, across all of the world. We have talent in I think more than 50 countries, but we have defined centers of excellence around the world that allow us to draw talent from around the world. And that I think is obviously hugely beneficial. And we know how to do that at scale.

And then I think that also we really believe in that culture of bringing diverse points of view and diverse backgrounds together in a performance culture and allowing people to stand up and come up with ideas and be a challenger, but also in a respectful way, let's make sure we channel that into decisions and we go forward as a team. So that's kind of the culture we also bring here too.

And then I think that also we really believe in that culture of bringing diverse points of view and diverse backgrounds together in a performance culture and allowing people to stand up and come up with ideas and be a challenger, but also in a respectful way, let's make sure we channel that into decisions and we go forward as a team. So that's kind of the culture we also bring here too.

Yeah. So I think everything starts with the client. I have always said that if you only look to the left and the right and you look at what your competitors are doing, you're not actually reaching your full potential. Because they may not be very good at what they do.

Yeah. So I think everything starts with the client. I have always said that if you only look to the left and the right and you look at what your competitors are doing, you're not actually reaching your full potential. Because they may not be very good at what they do.

Let's hope so if you're going to win. Right. So the first thing you have to start with is the client. If you really understand the client deeply and you understand what their challenges are, what their needs are, they may not know exactly... what they need or how they need to achieve it, but they do know what their challenges are and what their needs are.

Let's hope so if you're going to win. Right. So the first thing you have to start with is the client. If you really understand the client deeply and you understand what their challenges are, what their needs are, they may not know exactly... what they need or how they need to achieve it, but they do know what their challenges are and what their needs are.

And Nasdaq was at an interesting time because they were owned by the National Association of Securities Dealers. So they were owned by a membership not-for-profit organization, but they were a for-profit business inside that shop.

And Nasdaq was at an interesting time because they were owned by the National Association of Securities Dealers. So they were owned by a membership not-for-profit organization, but they were a for-profit business inside that shop.

And if you listen to those deeply, and then you are there to help them meet those needs, exceed those needs, make sure that you're driving those capabilities into the future with them, a lot of the rest of it kind of takes care of itself. Now, we are hyper competitive though. And we want to win every single deal, every listing, every new client.

And if you listen to those deeply, and then you are there to help them meet those needs, exceed those needs, make sure that you're driving those capabilities into the future with them, a lot of the rest of it kind of takes care of itself. Now, we are hyper competitive though. And we want to win every single deal, every listing, every new client.

But we do make sure that people understand it's in a constructive environment, meaning we want to win everything. If we don't win, what can we learn from it? We don't beat people down for it. We just say, what can we learn from that to get better? How do we talk to the client and find out why we lost? Because it's actually, again, comes back to the client. What is it that we should be rethinking?

But we do make sure that people understand it's in a constructive environment, meaning we want to win everything. If we don't win, what can we learn from it? We don't beat people down for it. We just say, what can we learn from that to get better? How do we talk to the client and find out why we lost? Because it's actually, again, comes back to the client. What is it that we should be rethinking?

And then complacency is the killer of every great company. So you just have to make sure you never get complacent about what your capabilities are.

And then complacency is the killer of every great company. So you just have to make sure you never get complacent about what your capabilities are.

Well, I love to learn and I learn by talking to people. I mean, I certainly, you know, listen to podcasts and other things like that I read. But I find that my most effective way of learning is learning from the experience of others. And I do get super lucky because I have this incredible community of clients who are the greatest innovators of our day. Right. So I get to go talk to them.

Well, I love to learn and I learn by talking to people. I mean, I certainly, you know, listen to podcasts and other things like that I read. But I find that my most effective way of learning is learning from the experience of others. And I do get super lucky because I have this incredible community of clients who are the greatest innovators of our day. Right. So I get to go talk to them.

I'll see them at conferences or events, or they might come here. And I'll have a moment just to ask, what are you working on? And how are you thinking about things differently? And they will engage with us because we are a partner to them and they see us as a partner. But I then also go to a couple of events a year where I don't have any of my clients there.

I'll see them at conferences or events, or they might come here. And I'll have a moment just to ask, what are you working on? And how are you thinking about things differently? And they will engage with us because we are a partner to them and they see us as a partner. But I then also go to a couple of events a year where I don't have any of my clients there.

And I get invited to this one that's just amazing. And it's all about the future of technology. But I'm talking about like 20 years into the future.

And I get invited to this one that's just amazing. And it's all about the future of technology. But I'm talking about like 20 years into the future.

So they were trying to figure out, how do we build commercial muscles around these trading products or data products or things that they owned and start to think differently about being a product company? And so I got to come in and they said, oh, you went to business school. You know how to write product plans. And I was like, oh, sure. I had no idea. Yeah. But I got in there.

So they were trying to figure out, how do we build commercial muscles around these trading products or data products or things that they owned and start to think differently about being a product company? And so I got to come in and they said, oh, you went to business school. You know how to write product plans. And I was like, oh, sure. I had no idea. Yeah. But I got in there.

Academics and people who are thinking very differently about what's possible. And I just go there and listen and learn. And I take copious notes. And then I come back to the team and I say, this is what I learned. So I try to do that at least once or twice a year to go somewhere where I'm not actually meeting with clients. I'm just learning. And that makes a huge difference. It's so energizing too.

Academics and people who are thinking very differently about what's possible. And I just go there and listen and learn. And I take copious notes. And then I come back to the team and I say, this is what I learned. So I try to do that at least once or twice a year to go somewhere where I'm not actually meeting with clients. I'm just learning. And that makes a huge difference. It's so energizing too.

Well, I think first it's important to, when you're choosing to go to a company, you're not just going for the job that you're walking into, but you're going for the opportunity that could be there. And so you have to understand the company you're going into. Do you believe in what they do? Do you like the people around you?

Well, I think first it's important to, when you're choosing to go to a company, you're not just going for the job that you're walking into, but you're going for the opportunity that could be there. And so you have to understand the company you're going into. Do you believe in what they do? Do you like the people around you?

Have you done enough research to know if they have opportunity in front of them? Are you there to fix something? Are you there to drive something? Are you there to make change? But recognizing that there's an opportunity that you're walking into. So what is that opportunity in front of you? And so once you're there, the first thing to do is do a great job on your job.

Have you done enough research to know if they have opportunity in front of them? Are you there to fix something? Are you there to drive something? Are you there to make change? But recognizing that there's an opportunity that you're walking into. So what is that opportunity in front of you? And so once you're there, the first thing to do is do a great job on your job.

So that's the first thing. A lot of other, everything else kind of, it makes everything easier if you're doing a great job at what you do. The second thing to do is to think, okay, in five years, where would I want to be in this company? So don't think about where you wanna be somewhere else. Where would you wanna be in this company?

So that's the first thing. A lot of other, everything else kind of, it makes everything easier if you're doing a great job at what you do. The second thing to do is to think, okay, in five years, where would I want to be in this company? So don't think about where you wanna be somewhere else. Where would you wanna be in this company?

And if you see jobs that you find really compelling in five years that you would wanna have, then figure out a path to get there. Talk to your manager, talk to your peers, understand what skills you need to develop to position yourself to be in that role in five years. And then 10 years, and then 20. Like you can really...

And if you see jobs that you find really compelling in five years that you would wanna have, then figure out a path to get there. Talk to your manager, talk to your peers, understand what skills you need to develop to position yourself to be in that role in five years. And then 10 years, and then 20. Like you can really...

But if you look forward in five years and you're in a company and you go, I don't want any of those jobs. I don't find any of them compelling. Not that you don't see a path, but you just don't want it. That's when you start to say, well, maybe this isn't where I should be. And I should start to look elsewhere. But recognize that don't do it out of a myopic view of you.

But if you look forward in five years and you're in a company and you go, I don't want any of those jobs. I don't find any of them compelling. Not that you don't see a path, but you just don't want it. That's when you start to say, well, maybe this isn't where I should be. And I should start to look elsewhere. But recognize that don't do it out of a myopic view of you.

Look at it as an expansive view of, OK, maybe I don't know what those other jobs are. Let me learn about them before I come to a conclusion I do or don't want them. Make sure you're curious enough to really think ahead. Define your goals. They can change, but at least have them. And then know you're going to find that there's going to be a point at which you go, OK,

Look at it as an expansive view of, OK, maybe I don't know what those other jobs are. Let me learn about them before I come to a conclusion I do or don't want them. Make sure you're curious enough to really think ahead. Define your goals. They can change, but at least have them. And then know you're going to find that there's going to be a point at which you go, OK,

Yeah, either that goal isn't achievable or attainable or I don't want it. And so I've got to have to go and find it somewhere else. And that's when you start to look around.

Yeah, either that goal isn't achievable or attainable or I don't want it. And so I've got to have to go and find it somewhere else. And that's when you start to look around.

Okay.

Okay.

I learned it quickly. I helped them write some product plans. And then they hired me on permanently. And ultimately, I became a product manager in the trading division. And then they reorganized NASDAQ into three divisions. They peeled the data business out of the trading business. And they took a big risk on me when I was about 30, 31 years old. And they made me the head of the data business.

I learned it quickly. I helped them write some product plans. And then they hired me on permanently. And ultimately, I became a product manager in the trading division. And then they reorganized NASDAQ into three divisions. They peeled the data business out of the trading business. And they took a big risk on me when I was about 30, 31 years old. And they made me the head of the data business.

The Washington Commanders.

The Washington Commanders.

Well, when I was in college, I learned how to fly. Oh, there you go. Yeah, I became a private pilot in college.

Well, when I was in college, I learned how to fly. Oh, there you go. Yeah, I became a private pilot in college.

Well, okay. So not how I make decisions, but one thing I have in my office on a big piece of wood is knock on wood. So I'm a big believer. And if you're going to say a statement, you better knock on wood and make sure you feel like I'm a little superstitious.

Well, okay. So not how I make decisions, but one thing I have in my office on a big piece of wood is knock on wood. So I'm a big believer. And if you're going to say a statement, you better knock on wood and make sure you feel like I'm a little superstitious.

Well, ultimately, honestly, I can say that my father probably had the biggest impact on me. But if I look out and look at the mentors, I had more than one. But I would put Bob Reifeld as both a sponsor and a mentor who had a huge impact on me.

Well, ultimately, honestly, I can say that my father probably had the biggest impact on me. But if I look out and look at the mentors, I had more than one. But I would put Bob Reifeld as both a sponsor and a mentor who had a huge impact on me.

OK, so what I really liked about working with Bob is every year he would give me a performance review. And every year he'd say, you know what you're good at. Let me tell you what you can get better at. OK, so what I really liked about that was he knew I had confidence in myself to understand what I was doing well. And if I didn't have confidence, he would have told me, I think.

OK, so what I really liked about working with Bob is every year he would give me a performance review. And every year he'd say, you know what you're good at. Let me tell you what you can get better at. OK, so what I really liked about that was he knew I had confidence in myself to understand what I was doing well. And if I didn't have confidence, he would have told me, I think.

But he was always focused on how I could get better. And he did it in such a way that it made me want to listen. And that is the best thing he could have done for me because I did become a better executive with every lesson he shared.

But he was always focused on how I could get better. And he did it in such a way that it made me want to listen. And that is the best thing he could have done for me because I did become a better executive with every lesson he shared.

I'm too early in my tenure to say what my legacy is going to be.

I'm too early in my tenure to say what my legacy is going to be.

Thanks, Clark. It's great to be here. So thank you.

Thanks, Clark. It's great to be here. So thank you.

on the back of being that product manager. That was one of the great, you know, one defining moment. I think that then we had a new CEO come in in 2003 and he was very different, came from the technology industry. He was not coming from the banking side.

on the back of being that product manager. That was one of the great, you know, one defining moment. I think that then we had a new CEO come in in 2003 and he was very different, came from the technology industry. He was not coming from the banking side.

He was coming from the software side and it was fantastic because he really changed the way that we thought about our business, but it was all about product. So I think that definitely played to my strengths. He then made me head of strategy and head of data and then ultimately CFO. I then went to Carlisle. I came back as president and then became CEO eight years ago.

He was coming from the software side and it was fantastic because he really changed the way that we thought about our business, but it was all about product. So I think that definitely played to my strengths. He then made me head of strategy and head of data and then ultimately CFO. I then went to Carlisle. I came back as president and then became CEO eight years ago.

So it's been a wonderful journey here. I've been really, really fortunate.

So it's been a wonderful journey here. I've been really, really fortunate.

So we are a technology provider to the entire financial industry. We start with our own markets and our own markets are incredible and we have incredible technology that underpin our markets. But we made a decision a long time ago to also wanna provide that technology to other markets. So we now provide core critical infrastructure technology to 130 marketplaces around the world.

So we are a technology provider to the entire financial industry. We start with our own markets and our own markets are incredible and we have incredible technology that underpin our markets. But we made a decision a long time ago to also wanna provide that technology to other markets. So we now provide core critical infrastructure technology to 130 marketplaces around the world.

So we are really, we underpin a lot of markets in terms of trading, clearing, settlement technology. We also provide a whole suite, a very complete suite of trade operations as well as risk management and anti-financial crime technology to banks and brokers all over the world. We have 3,800 customers. who leverage our technology for that purpose.

So we are really, we underpin a lot of markets in terms of trading, clearing, settlement technology. We also provide a whole suite, a very complete suite of trade operations as well as risk management and anti-financial crime technology to banks and brokers all over the world. We have 3,800 customers. who leverage our technology for that purpose.

And then we also provide amazing data analytics that help corporates and investors find each other more successfully and build investment strategies around our index business in ways that really help redefine the investor experience. So we have data analytics, we have software, and then we have our core markets. And that's how we've kind of

And then we also provide amazing data analytics that help corporates and investors find each other more successfully and build investment strategies around our index business in ways that really help redefine the investor experience. So we have data analytics, we have software, and then we have our core markets. And that's how we've kind of

organized us we are ultimately though the foundation of us as a market you know we have these great corporate relationships investor relationships broker-dealer relationships and we um really uh center around three themes liquidity how do we drive more liquidity across markets in the world and into our markets how do we drive more transparency to transparency how do we make the entire financial system more transparent

organized us we are ultimately though the foundation of us as a market you know we have these great corporate relationships investor relationships broker-dealer relationships and we um really uh center around three themes liquidity how do we drive more liquidity across markets in the world and into our markets how do we drive more transparency to transparency how do we make the entire financial system more transparent

And then third, of course, is integrity. How do we drive integrity across the financial system? And all three of those key themes are really the underpinning of us as a market.

And then third, of course, is integrity. How do we drive integrity across the financial system? And all three of those key themes are really the underpinning of us as a market.

I would say that this strategy has been, there have been pieces of the strategy that have developed when I was head of strategy. Bringing it all together into this comprehensive, thematic way of thinking about our business and really driving at scale us as a technology provider to the entire industry has been much more the journey as a CEO.

I would say that this strategy has been, there have been pieces of the strategy that have developed when I was head of strategy. Bringing it all together into this comprehensive, thematic way of thinking about our business and really driving at scale us as a technology provider to the entire industry has been much more the journey as a CEO.

But we certainly, there were definitely pieces of the strategy that were already coming up through the organization as head of strategy.

But we certainly, there were definitely pieces of the strategy that were already coming up through the organization as head of strategy.

There actually was a defining moment for me, and it's not going to be... I had a couple of key moments in my career, like becoming the head of data, becoming the head of strategy, and then joining Carlyle. I would say those three things, and of course, becoming CEO. But there was a project that I want to talk about, because there was this project that...

There actually was a defining moment for me, and it's not going to be... I had a couple of key moments in my career, like becoming the head of data, becoming the head of strategy, and then joining Carlyle. I would say those three things, and of course, becoming CEO. But there was a project that I want to talk about, because there was this project that...

allowed me to exercise a lot of muscles that allowed me to develop myself as a leader, accomplish something really important for the company, and build trust with the CEO, who was Bob Breyfeld. So he was new as CEO. And so this was in 2003. He'd come into NASDAQ. He was making a lot of change inside the company.

allowed me to exercise a lot of muscles that allowed me to develop myself as a leader, accomplish something really important for the company, and build trust with the CEO, who was Bob Breyfeld. So he was new as CEO. And so this was in 2003. He'd come into NASDAQ. He was making a lot of change inside the company.

And then we had kind of this external force that came in and said, that really made it so that we had to rethink how we closed the market every day. So up until this moment, we closed the market every day by just taking the last trade that was reported to the market. And then we would just shut the system and say, we're done.

And then we had kind of this external force that came in and said, that really made it so that we had to rethink how we closed the market every day. So up until this moment, we closed the market every day by just taking the last trade that was reported to the market. And then we would just shut the system and say, we're done.

And the problem with that is it really was a very gameable way to close the market. And as indexers were coming up and becoming more prevalent and mutual funds at that time were so big, they were using that closing price as the price that determined the value of their fund or the value of the indexer.

And the problem with that is it really was a very gameable way to close the market. And as indexers were coming up and becoming more prevalent and mutual funds at that time were so big, they were using that closing price as the price that determined the value of their fund or the value of the indexer.

And that was making it so that trillions and trillions of dollars were dependent on that price to be the right price, to really be a good reflection of the market. And the result of that was we just weren't keeping up with the times. And so we said, OK, it's time for us to build an auction to close the market. But we'd never built an auction before at NASDAQ, ever.

And that was making it so that trillions and trillions of dollars were dependent on that price to be the right price, to really be a good reflection of the market. And the result of that was we just weren't keeping up with the times. And so we said, OK, it's time for us to build an auction to close the market. But we'd never built an auction before at NASDAQ, ever.

And today, of course, auctions are a huge part of markets. But at the time, we had none. And I raised my hand and I said, Bob, I really want to work on this project. I want to lead this project. And I was the head of data, not the head of trading. But I really wanted it. Some skepticism in that moment, perhaps?

And today, of course, auctions are a huge part of markets. But at the time, we had none. And I raised my hand and I said, Bob, I really want to work on this project. I want to lead this project. And I was the head of data, not the head of trading. But I really wanted it. Some skepticism in that moment, perhaps?

Well, it was more like, well, and look, this is actually a huge transparency opportunity. We're going to build data. It's going to be a critical component of this. Please, can I take this project? And he gave it to me. And there was a big time commitment, meaning we had to get it done within a certain period of time.

Well, it was more like, well, and look, this is actually a huge transparency opportunity. We're going to build data. It's going to be a critical component of this. Please, can I take this project? And he gave it to me. And there was a big time commitment, meaning we had to get it done within a certain period of time.

Because every year in June, there's the largest closing event of the year, which is the Russell rebalance. And at that time, it was a huge event. And a couple of years earlier, we'd actually had a problem on that day. And so we knew that we had to execute this thing flawlessly and we needed to get it live and we needed to get it proven before that day occurred.

Because every year in June, there's the largest closing event of the year, which is the Russell rebalance. And at that time, it was a huge event. And a couple of years earlier, we'd actually had a problem on that day. And so we knew that we had to execute this thing flawlessly and we needed to get it live and we needed to get it proven before that day occurred.

So it was an opportunity for me to build a team take an idea and turn it into reality to figure out how to code it, to engage the industry, the buy side and the sell side, to figure out how does this work for everyone, to have the best talent inside of Nasdaq come with me to help define what this looks like. I had incredible people on the team working with us.

So it was an opportunity for me to build a team take an idea and turn it into reality to figure out how to code it, to engage the industry, the buy side and the sell side, to figure out how does this work for everyone, to have the best talent inside of Nasdaq come with me to help define what this looks like. I had incredible people on the team working with us.

And then we had to build it and deploy it and deploy it at scale. So flash forward to the Russell rebalance, the big day. And I remember I was in our market watch division, which is where we kind of watch everything happen as we get to the close. And we actually had, I believe, 500 million shares trade in the close that day, in the closing auction. And that happened in two seconds.

And then we had to build it and deploy it and deploy it at scale. So flash forward to the Russell rebalance, the big day. And I remember I was in our market watch division, which is where we kind of watch everything happen as we get to the close. And we actually had, I believe, 500 million shares trade in the close that day, in the closing auction. And that happened in two seconds.

right and it was both pins and needles excitement you know anxiety and it was just wonderful and it worked so well and i think that that whole project got me much closer to bob got much closer to the entire technology division really helped me develop my skills as a leader and an influencer and engage the industry um and so it on at that moment bob then made me the head of strategy right after that there you go yeah that was my defining moment so safe to say

right and it was both pins and needles excitement you know anxiety and it was just wonderful and it worked so well and i think that that whole project got me much closer to bob got much closer to the entire technology division really helped me develop my skills as a leader and an influencer and engage the industry um and so it on at that moment bob then made me the head of strategy right after that there you go yeah that was my defining moment so safe to say

Yes.

Yes.

A lot of visibility and pressure.

A lot of visibility and pressure.

Yeah, because if it did not go well, that would have been good in Bob's first year.

Yeah, because if it did not go well, that would have been good in Bob's first year.

It was a big, I had to succeed.

It was a big, I had to succeed.

Exactly. That's exactly right. And I did raise my hand and ask for it, too. I didn't wait for him to choose. I think that was important, too.

Exactly. That's exactly right. And I did raise my hand and ask for it, too. I didn't wait for him to choose. I think that was important, too.

Well, it's interesting because they have different purposes. So in NASDAQ, if we're choosing to bring a company to become part of NASDAQ, it's a forever decision. And so it's a very different framework to use to determine whether that company is the right fit for you. Because number one, you start with the strategy. First, you should have a strategy as a company.

Well, it's interesting because they have different purposes. So in NASDAQ, if we're choosing to bring a company to become part of NASDAQ, it's a forever decision. And so it's a very different framework to use to determine whether that company is the right fit for you. Because number one, you start with the strategy. First, you should have a strategy as a company.

And then you start to say, okay, to me, M&A should be a means to an end, not an end itself, right? So you're saying, here's my strategy. And you take your shareholders on the journey to say, here's how we want to define our future.

And then you start to say, okay, to me, M&A should be a means to an end, not an end itself, right? So you're saying, here's my strategy. And you take your shareholders on the journey to say, here's how we want to define our future.

Here's how this company fits into that future, how they can add to your capabilities, add to your distribution, get to put you into a new market, whatever it is that's really defined within the strategy. Then you say, okay, well, how financially does this fit in to the picture of NASDAQ as well? You know, does one plus one equal more than two?

Here's how this company fits into that future, how they can add to your capabilities, add to your distribution, get to put you into a new market, whatever it is that's really defined within the strategy. Then you say, okay, well, how financially does this fit in to the picture of NASDAQ as well? You know, does one plus one equal more than two?

And that's super important, but it's both in the near term and the long term. Because in the near term, the shareholders are expecting a return that's within the framework of their own return environment. But then also you have to know 10 years, 20 years later that you've got this business that's really defining the future of the company.

And that's super important, but it's both in the near term and the long term. Because in the near term, the shareholders are expecting a return that's within the framework of their own return environment. But then also you have to know 10 years, 20 years later that you've got this business that's really defining the future of the company.

So that's the way we view M&A within being an operating company buying another operating company. Inside of a private equity firm, they have a very defined process. And for them, as soon as they're thinking about buying a company, it's not a strategic decision necessarily. It's a financial decision. They also have a very defined exit timeframe.

So that's the way we view M&A within being an operating company buying another operating company. Inside of a private equity firm, they have a very defined process. And for them, as soon as they're thinking about buying a company, it's not a strategic decision necessarily. It's a financial decision. They also have a very defined exit timeframe.

So usually they try to say, well, what can we do with this company over five years? And then the most important question is, how do we exit? Right. So they are not a forever owner. They're a redefining owner.

So usually they try to say, well, what can we do with this company over five years? And then the most important question is, how do we exit? Right. So they are not a forever owner. They're a redefining owner.

They're taking this company, redefining it, turning it into something better than it was, and then making sure that they know how to land it somewhere else, either in the public markets or with another buyer. That's a very different investment thesis. But when I was at Carlyle and I watched them, and I actually had to evaluate all the internal rates of return on every single investment at Carlyle,

They're taking this company, redefining it, turning it into something better than it was, and then making sure that they know how to land it somewhere else, either in the public markets or with another buyer. That's a very different investment thesis. But when I was at Carlyle and I watched them, and I actually had to evaluate all the internal rates of return on every single investment at Carlyle,

It really was great for me to see the discipline that they took on that financial analysis and what they used as their framework. So I was able to bring a lot of that thinking back to NASDAQ, but with a different context.

It really was great for me to see the discipline that they took on that financial analysis and what they used as their framework. So I was able to bring a lot of that thinking back to NASDAQ, but with a different context.

Or want to go public.

Or want to go public.

Yes. Okay. So I actually, first I would just frame it out. So there was a study that was done and in 2023, there was $112 trillion in the public markets and $15 trillion in the private markets. So the public markets still are an enormous, enormous driver of wealth creation, economic growth, and frankly, just drivers of the economy. But the private markets are growing a lot faster.

Yes. Okay. So I actually, first I would just frame it out. So there was a study that was done and in 2023, there was $112 trillion in the public markets and $15 trillion in the private markets. So the public markets still are an enormous, enormous driver of wealth creation, economic growth, and frankly, just drivers of the economy. But the private markets are growing a lot faster.

So I think there was like 3% growth in the public capital, 15% growth in the private capital. So it's a different trajectory. So I do think it's important to point that out. But the fact of the matter is companies have a lot more choice today. And they can stay private longer.

So I think there was like 3% growth in the public capital, 15% growth in the private capital. So it's a different trajectory. So I do think it's important to point that out. But the fact of the matter is companies have a lot more choice today. And they can stay private longer.

The private equity industry and the VC industry are changing their fund structures to make it so that they can keep private companies longer.

The private equity industry and the VC industry are changing their fund structures to make it so that they can keep private companies longer.

Right, yes, permanent capital vehicles, other things. And so it's going to be increasingly important that we demonstrate why being a public company is actually the best next step for a company. And I look at it not as a destination, but as a next step. And I think I've said this to you before, Clark. I know I said it when I was at Carlisle.

Right, yes, permanent capital vehicles, other things. And so it's going to be increasingly important that we demonstrate why being a public company is actually the best next step for a company. And I look at it not as a destination, but as a next step. And I think I've said this to you before, Clark. I know I said it when I was at Carlisle.

Going from being a private company to a public company is like going from driving on a country road where you're winding your way through. You know where your destination is, but you don't quite know how you're gonna get there and you might take a turn or two along the way. But you can also pick your speed. There's a lot of different elements to driving on a country road.

Going from being a private company to a public company is like going from driving on a country road where you're winding your way through. You know where your destination is, but you don't quite know how you're gonna get there and you might take a turn or two along the way. But you can also pick your speed. There's a lot of different elements to driving on a country road.

And then being public is like getting onto that four lane highway. And you have a lot more rules. You're going a lot faster. You have to make sure you're looking left and right. You have to know you probably have a better sense of what that next turn is going to be. So I think that that's just a different way of running your company. But being a public company can make you go faster.

And then being public is like getting onto that four lane highway. And you have a lot more rules. You're going a lot faster. You have to make sure you're looking left and right. You have to know you probably have a better sense of what that next turn is going to be. So I think that that's just a different way of running your company. But being a public company can make you go faster.

It gives your clients a sense of permanence in terms of who you are as a company. Are you going to be there to serve me over the next 10 years, not just the next five? Right. When we've bought companies out of private equity and brought them into NASDAQ, the clients are so happy because they know they have a forever owner. And we're there to drive the business over the long term.

It gives your clients a sense of permanence in terms of who you are as a company. Are you going to be there to serve me over the next 10 years, not just the next five? Right. When we've bought companies out of private equity and brought them into NASDAQ, the clients are so happy because they know they have a forever owner. And we're there to drive the business over the long term.

We can make 10-year decisions for that business. And it's a very different investment thesis for the clients. So there's a lot of benefit to being in a public company, but there's also a lot of obligation. And we have to look at that and say, is the obligation getting kind of out of whack with the benefits?

We can make 10-year decisions for that business. And it's a very different investment thesis for the clients. So there's a lot of benefit to being in a public company, but there's also a lot of obligation. And we have to look at that and say, is the obligation getting kind of out of whack with the benefits?

And that's where we have to engage regulators, legislators, and make sure they understand you can't just pile a bunch of obligations on just by the fact they're public companies. You have to focus those obligations on what shareholders really need to know in order to make an informed decision. And we're working on that right now. I think there's an opportunity to recalibrate that right now.

And that's where we have to engage regulators, legislators, and make sure they understand you can't just pile a bunch of obligations on just by the fact they're public companies. You have to focus those obligations on what shareholders really need to know in order to make an informed decision. And we're working on that right now. I think there's an opportunity to recalibrate that right now.

It's great to be here, Clark. Thank you so much. This is fantastic.

We're at this inflection point in the economy, in the world, but in technology, and also in the world, meaning the broader climate and other things that are happening, the externalities that we're facing.

So we've done some work with some firms that have estimated that there's probably an $80 trillion investment that needs to be made in order to really bring every society and every economy forward to face the realities of the world that we're living in today. So that can be

climate change and an energy transition and unleashing the power of technology and AI, the redefining what will AI really mean for every business, for every part of society. But there's an enormous amount of opportunity to unleash if we can find the capital to deploy. And that's, of course, what capital markets do.

And it's also what the broader banking system and VC investors, investment, that's what we're here to do is to really put capital to work in these defining moments to catalyze growth or to catalyze change.

And at the same time, we have to recognize the fact that we have another moment, which is we have been putting more and more obligations on those companies and banks and brokers that are the ones that are going to be the drivers of that change. And we have to rethink that.

So we do think that this notion of smart regulation, reframing what regulations there to achieve, outcome oriented, getting rid of regulations that are no longer relevant, Changing the mindset of the regulators from tick-the-box, input-driven regulation to output, what am I actually trying to drive towards regulation, will unleash an enormous amount of capital into the system.

So we actually did this study with the banks. And we said, even if you could just take down the risk and compliance function of the global banks by 10% to 20%, it actually allows them to retain 20%. 25 to 50 billion more in earnings.

And if they then leverage that and go out to and drive that into the market, that's 500 billion to a trillion dollars of incremental capital that they could bring into the markets just by making them more efficient. So that's the use of technology, changing the regulatory framework, and then unleashing that technology to allow us to deploy more capital into the market.

So it's a pretty exciting moment, but it's a moment where we have to grasp it and we have to take hold of it.

Well, I think first you have to listen.

So what are their problems? What are their needs? How are they navigating those problems? But also what new capabilities can be brought to change the trajectory of how they manage those problems? The second is, and then you listen to your employees and you listen to regulators and you listen to legislators.

It's super important to engage the ecosystem to understand them so that you can understand their motivations, their incentives, their worries, all of that. And you then bring that back in and say, okay, well, how do we then frame out a solution? And we are a solutions provider and we do sit at the center of the capital market, certainly, and now the broader system. So

how can we then leverage that technology, change the way that they think about that regulatory obligation, hopefully help steer, but recognizing we're an influencer, in some cases we're a driver. When it comes to technology and what we can control, we're driving the industry down a road. But we also have to recognize that they deal with stakeholders too.

So if you drive too fast and you drive too hard, tissue rejection. Right. So you have to kind of think about how do you pace it? How do you explain it? How do you communicate it? How do you then find those first steps that make them trust you and then start to go a little faster?

It is a fun story because I got so lucky. I mean, how often do you get to go and join a company right out of college or right out of university and then suddenly end up spending your whole career here? By the way, my father did that. So he also joined T. R. Price out of business school and spent his entire career there. So I did see that. I think that probably did influence me a little bit.

Well, first, I would say on that last point, in terms of those firms that are trying to compete, they're also our largest clients.

But recognize, binary thinking doesn't work in the financial industry. There's a lot of shades of gray between they're a competitor versus they're a client versus they're a partner. There's a lot of opportunity for you to partner with firms that might compete in one space and partner in another. So we are very much a view of, let's be multidimensional.

Yeah, or we call it coopetition. So I like that better because it's a little more optimistic. But at the same time, so that's just something to point out. But as a disruptor, so we were truly a disruptor when NASDAQ started in 1971. All trading occurred in a manual format in one building. And so, and with some firms piped in, we said, okay, so how do you, there's two ways we disrupted.

Number one, how do you allow more companies to tap public investors if they're not profitable? So we changed the listing rules and allowed unprofitable companies to come public. Never had been happened before. So that was like a hard line that the markets had. And we said, let's change that. So that's number one.

And that unleashed the ability for all these tech companies, innovators to come to market and seek public capital. The second was how do you engage more of the what we call democratized access to the public markets by becoming a network instead of having it in a building, use technology.

And this is in 1971 and use network technology to go out and allow anyone in the country to connect into our exchange. and operate within the market successfully. And we did, it was technologically really, really groundbreaking. So that was how we started, but we didn't have anything to lose, right?

We were just, there's a difference in how you disrupt when you were just a startup and you're just trying to disrupt and you have nothing really to lose. Today, we are the steward of the capital markets around the world. So we have a lot of responsibility and obligation on resilience. So being hyper resilient is just table stakes for us, but you can still disrupt on top of that.

So what we thought about is for instance, markets have always operated inside of data center, our own data centers. Every market around the world operates inside their own data centers or defined data centers. How do we disrupt that and say cloud technology is the future of the world, how are we going to make sure we can operate in the future of the world?

How do you take markets from a fixed data center-centric world to a cloud world? And we rewrote our entire trade lifecycle technology, microservice architected, cloud native, And we then partnered with a cloud provider, AWS, to say, how do we actually bring first cloud technology into our data center, but then also push as much of our workloads out of our data center into cloud?

So we've been doing that for many years. And now with AI, we're well positioned to play offense on AI, We had a new AI-driven order type that came into the markets last year. It actually more than doubled the volume in that particular order type. We've launched GenAI co-pilots across our solutions in the software space.

There you go. But I started as an intern because I wanted to be in the financial industry, but I wanted to be a product manager. When I was in business school, I loved product management, but I also liked finance. And I had this rare opportunity to become an intern at NASDAQ to write product plans for their trading products.

And so because we've been willing to, frankly, take a risk, help our clients take risks, we're now deploying that, by the way, that trade lifecycle technology across the markets in the world. We're moving markets to cloud. It's super cool. It actually is allowing us to be not a disruptor, but a leader, I would say, in helping them manage to the future. And that's how we see our role today.

Yeah. Well, first, we are extremely fortunate to have a lot of long-tenured talent here. And it's really special. So I think the first thing is... We are a mission-driven company and we want people who believe. So we say we want missionaries, not mercenaries, right?

So we want people who really believe in the mission of what Nasdaq does in terms of economic progress, being the trusted fabric to the world's financial system is our vision. And we want everyone to believe in that and be a part of that. And we live it every day. So they do feel that they're part of something important. The second thing is we have global talent.

So we are not wedded to a country or a city. We have talent across the US, across all of the world. We have talent in I think more than 50 countries, but we have defined centers of excellence around the world that allow us to draw talent from around the world. And that I think is obviously hugely beneficial. And we know how to do that at scale.

And then I think that also we really believe in that culture of bringing diverse points of view and diverse backgrounds together in a performance culture and allowing people to stand up and come up with ideas and be a challenger, but also in a respectful way, let's make sure we channel that into decisions and we go forward as a team. So that's kind of the culture we also bring here too.

Yeah. So I think everything starts with the client. I have always said that if you only look to the left and the right and you look at what your competitors are doing, you're not actually reaching your full potential. Because they may not be very good at what they do.

Let's hope so if you're going to win. Right. So the first thing you have to start with is the client. If you really understand the client deeply and you understand what their challenges are, what their needs are, they may not know exactly... what they need or how they need to achieve it, but they do know what their challenges are and what their needs are.

And Nasdaq was at an interesting time because they were owned by the National Association of Securities Dealers. So they were owned by a membership not-for-profit organization, but they were a for-profit business inside that shop.

And if you listen to those deeply, and then you are there to help them meet those needs, exceed those needs, make sure that you're driving those capabilities into the future with them, a lot of the rest of it kind of takes care of itself. Now, we are hyper competitive though. And we want to win every single deal, every listing, every new client.

But we do make sure that people understand it's in a constructive environment, meaning we want to win everything. If we don't win, what can we learn from it? We don't beat people down for it. We just say, what can we learn from that to get better? How do we talk to the client and find out why we lost? Because it's actually, again, comes back to the client. What is it that we should be rethinking?

And then complacency is the killer of every great company. So you just have to make sure you never get complacent about what your capabilities are.

Well, I love to learn and I learn by talking to people. I mean, I certainly, you know, listen to podcasts and other things like that I read. But I find that my most effective way of learning is learning from the experience of others. And I do get super lucky because I have this incredible community of clients who are the greatest innovators of our day. Right. So I get to go talk to them.

I'll see them at conferences or events, or they might come here. And I'll have a moment just to ask, what are you working on? And how are you thinking about things differently? And they will engage with us because we are a partner to them and they see us as a partner. But I then also go to a couple of events a year where I don't have any of my clients there.

And I get invited to this one that's just amazing. And it's all about the future of technology. But I'm talking about like 20 years into the future.

So they were trying to figure out, how do we build commercial muscles around these trading products or data products or things that they owned and start to think differently about being a product company? And so I got to come in and they said, oh, you went to business school. You know how to write product plans. And I was like, oh, sure. I had no idea. Yeah. But I got in there.

Academics and people who are thinking very differently about what's possible. And I just go there and listen and learn. And I take copious notes. And then I come back to the team and I say, this is what I learned. So I try to do that at least once or twice a year to go somewhere where I'm not actually meeting with clients. I'm just learning. And that makes a huge difference. It's so energizing too.

Well, I think first it's important to, when you're choosing to go to a company, you're not just going for the job that you're walking into, but you're going for the opportunity that could be there. And so you have to understand the company you're going into. Do you believe in what they do? Do you like the people around you?

Have you done enough research to know if they have opportunity in front of them? Are you there to fix something? Are you there to drive something? Are you there to make change? But recognizing that there's an opportunity that you're walking into. So what is that opportunity in front of you? And so once you're there, the first thing to do is do a great job on your job.

So that's the first thing. A lot of other, everything else kind of, it makes everything easier if you're doing a great job at what you do. The second thing to do is to think, okay, in five years, where would I want to be in this company? So don't think about where you wanna be somewhere else. Where would you wanna be in this company?

And if you see jobs that you find really compelling in five years that you would wanna have, then figure out a path to get there. Talk to your manager, talk to your peers, understand what skills you need to develop to position yourself to be in that role in five years. And then 10 years, and then 20. Like you can really...

But if you look forward in five years and you're in a company and you go, I don't want any of those jobs. I don't find any of them compelling. Not that you don't see a path, but you just don't want it. That's when you start to say, well, maybe this isn't where I should be. And I should start to look elsewhere. But recognize that don't do it out of a myopic view of you.

Look at it as an expansive view of, OK, maybe I don't know what those other jobs are. Let me learn about them before I come to a conclusion I do or don't want them. Make sure you're curious enough to really think ahead. Define your goals. They can change, but at least have them. And then know you're going to find that there's going to be a point at which you go, OK,

Yeah, either that goal isn't achievable or attainable or I don't want it. And so I've got to have to go and find it somewhere else. And that's when you start to look around.

Okay.

I learned it quickly. I helped them write some product plans. And then they hired me on permanently. And ultimately, I became a product manager in the trading division. And then they reorganized NASDAQ into three divisions. They peeled the data business out of the trading business. And they took a big risk on me when I was about 30, 31 years old. And they made me the head of the data business.

The Washington Commanders.

Well, when I was in college, I learned how to fly. Oh, there you go. Yeah, I became a private pilot in college.

Well, okay. So not how I make decisions, but one thing I have in my office on a big piece of wood is knock on wood. So I'm a big believer. And if you're going to say a statement, you better knock on wood and make sure you feel like I'm a little superstitious.

Well, ultimately, honestly, I can say that my father probably had the biggest impact on me. But if I look out and look at the mentors, I had more than one. But I would put Bob Reifeld as both a sponsor and a mentor who had a huge impact on me.

OK, so what I really liked about working with Bob is every year he would give me a performance review. And every year he'd say, you know what you're good at. Let me tell you what you can get better at. OK, so what I really liked about that was he knew I had confidence in myself to understand what I was doing well. And if I didn't have confidence, he would have told me, I think.

But he was always focused on how I could get better. And he did it in such a way that it made me want to listen. And that is the best thing he could have done for me because I did become a better executive with every lesson he shared.

I'm too early in my tenure to say what my legacy is going to be.

Thanks, Clark. It's great to be here. So thank you.

on the back of being that product manager. That was one of the great, you know, one defining moment. I think that then we had a new CEO come in in 2003 and he was very different, came from the technology industry. He was not coming from the banking side.

He was coming from the software side and it was fantastic because he really changed the way that we thought about our business, but it was all about product. So I think that definitely played to my strengths. He then made me head of strategy and head of data and then ultimately CFO. I then went to Carlisle. I came back as president and then became CEO eight years ago.

So it's been a wonderful journey here. I've been really, really fortunate.

So we are a technology provider to the entire financial industry. We start with our own markets and our own markets are incredible and we have incredible technology that underpin our markets. But we made a decision a long time ago to also wanna provide that technology to other markets. So we now provide core critical infrastructure technology to 130 marketplaces around the world.

So we are really, we underpin a lot of markets in terms of trading, clearing, settlement technology. We also provide a whole suite, a very complete suite of trade operations as well as risk management and anti-financial crime technology to banks and brokers all over the world. We have 3,800 customers. who leverage our technology for that purpose.

And then we also provide amazing data analytics that help corporates and investors find each other more successfully and build investment strategies around our index business in ways that really help redefine the investor experience. So we have data analytics, we have software, and then we have our core markets. And that's how we've kind of

organized us we are ultimately though the foundation of us as a market you know we have these great corporate relationships investor relationships broker-dealer relationships and we um really uh center around three themes liquidity how do we drive more liquidity across markets in the world and into our markets how do we drive more transparency to transparency how do we make the entire financial system more transparent

And then third, of course, is integrity. How do we drive integrity across the financial system? And all three of those key themes are really the underpinning of us as a market.

I would say that this strategy has been, there have been pieces of the strategy that have developed when I was head of strategy. Bringing it all together into this comprehensive, thematic way of thinking about our business and really driving at scale us as a technology provider to the entire industry has been much more the journey as a CEO.

But we certainly, there were definitely pieces of the strategy that were already coming up through the organization as head of strategy.

There actually was a defining moment for me, and it's not going to be... I had a couple of key moments in my career, like becoming the head of data, becoming the head of strategy, and then joining Carlyle. I would say those three things, and of course, becoming CEO. But there was a project that I want to talk about, because there was this project that...

allowed me to exercise a lot of muscles that allowed me to develop myself as a leader, accomplish something really important for the company, and build trust with the CEO, who was Bob Breyfeld. So he was new as CEO. And so this was in 2003. He'd come into NASDAQ. He was making a lot of change inside the company.

And then we had kind of this external force that came in and said, that really made it so that we had to rethink how we closed the market every day. So up until this moment, we closed the market every day by just taking the last trade that was reported to the market. And then we would just shut the system and say, we're done.

And the problem with that is it really was a very gameable way to close the market. And as indexers were coming up and becoming more prevalent and mutual funds at that time were so big, they were using that closing price as the price that determined the value of their fund or the value of the indexer.

And that was making it so that trillions and trillions of dollars were dependent on that price to be the right price, to really be a good reflection of the market. And the result of that was we just weren't keeping up with the times. And so we said, OK, it's time for us to build an auction to close the market. But we'd never built an auction before at NASDAQ, ever.

And today, of course, auctions are a huge part of markets. But at the time, we had none. And I raised my hand and I said, Bob, I really want to work on this project. I want to lead this project. And I was the head of data, not the head of trading. But I really wanted it. Some skepticism in that moment, perhaps?

Well, it was more like, well, and look, this is actually a huge transparency opportunity. We're going to build data. It's going to be a critical component of this. Please, can I take this project? And he gave it to me. And there was a big time commitment, meaning we had to get it done within a certain period of time.

Because every year in June, there's the largest closing event of the year, which is the Russell rebalance. And at that time, it was a huge event. And a couple of years earlier, we'd actually had a problem on that day. And so we knew that we had to execute this thing flawlessly and we needed to get it live and we needed to get it proven before that day occurred.

So it was an opportunity for me to build a team take an idea and turn it into reality to figure out how to code it, to engage the industry, the buy side and the sell side, to figure out how does this work for everyone, to have the best talent inside of Nasdaq come with me to help define what this looks like. I had incredible people on the team working with us.

And then we had to build it and deploy it and deploy it at scale. So flash forward to the Russell rebalance, the big day. And I remember I was in our market watch division, which is where we kind of watch everything happen as we get to the close. And we actually had, I believe, 500 million shares trade in the close that day, in the closing auction. And that happened in two seconds.

right and it was both pins and needles excitement you know anxiety and it was just wonderful and it worked so well and i think that that whole project got me much closer to bob got much closer to the entire technology division really helped me develop my skills as a leader and an influencer and engage the industry um and so it on at that moment bob then made me the head of strategy right after that there you go yeah that was my defining moment so safe to say

Yes.

A lot of visibility and pressure.

Yeah, because if it did not go well, that would have been good in Bob's first year.

It was a big, I had to succeed.

Exactly. That's exactly right. And I did raise my hand and ask for it, too. I didn't wait for him to choose. I think that was important, too.

Well, it's interesting because they have different purposes. So in NASDAQ, if we're choosing to bring a company to become part of NASDAQ, it's a forever decision. And so it's a very different framework to use to determine whether that company is the right fit for you. Because number one, you start with the strategy. First, you should have a strategy as a company.

And then you start to say, okay, to me, M&A should be a means to an end, not an end itself, right? So you're saying, here's my strategy. And you take your shareholders on the journey to say, here's how we want to define our future.

Here's how this company fits into that future, how they can add to your capabilities, add to your distribution, get to put you into a new market, whatever it is that's really defined within the strategy. Then you say, okay, well, how financially does this fit in to the picture of NASDAQ as well? You know, does one plus one equal more than two?

And that's super important, but it's both in the near term and the long term. Because in the near term, the shareholders are expecting a return that's within the framework of their own return environment. But then also you have to know 10 years, 20 years later that you've got this business that's really defining the future of the company.

So that's the way we view M&A within being an operating company buying another operating company. Inside of a private equity firm, they have a very defined process. And for them, as soon as they're thinking about buying a company, it's not a strategic decision necessarily. It's a financial decision. They also have a very defined exit timeframe.

So usually they try to say, well, what can we do with this company over five years? And then the most important question is, how do we exit? Right. So they are not a forever owner. They're a redefining owner.

They're taking this company, redefining it, turning it into something better than it was, and then making sure that they know how to land it somewhere else, either in the public markets or with another buyer. That's a very different investment thesis. But when I was at Carlyle and I watched them, and I actually had to evaluate all the internal rates of return on every single investment at Carlyle,

It really was great for me to see the discipline that they took on that financial analysis and what they used as their framework. So I was able to bring a lot of that thinking back to NASDAQ, but with a different context.

Or want to go public.

Yes. Okay. So I actually, first I would just frame it out. So there was a study that was done and in 2023, there was $112 trillion in the public markets and $15 trillion in the private markets. So the public markets still are an enormous, enormous driver of wealth creation, economic growth, and frankly, just drivers of the economy. But the private markets are growing a lot faster.

So I think there was like 3% growth in the public capital, 15% growth in the private capital. So it's a different trajectory. So I do think it's important to point that out. But the fact of the matter is companies have a lot more choice today. And they can stay private longer.

The private equity industry and the VC industry are changing their fund structures to make it so that they can keep private companies longer.

Right, yes, permanent capital vehicles, other things. And so it's going to be increasingly important that we demonstrate why being a public company is actually the best next step for a company. And I look at it not as a destination, but as a next step. And I think I've said this to you before, Clark. I know I said it when I was at Carlisle.

Going from being a private company to a public company is like going from driving on a country road where you're winding your way through. You know where your destination is, but you don't quite know how you're gonna get there and you might take a turn or two along the way. But you can also pick your speed. There's a lot of different elements to driving on a country road.

And then being public is like getting onto that four lane highway. And you have a lot more rules. You're going a lot faster. You have to make sure you're looking left and right. You have to know you probably have a better sense of what that next turn is going to be. So I think that that's just a different way of running your company. But being a public company can make you go faster.

It gives your clients a sense of permanence in terms of who you are as a company. Are you going to be there to serve me over the next 10 years, not just the next five? Right. When we've bought companies out of private equity and brought them into NASDAQ, the clients are so happy because they know they have a forever owner. And we're there to drive the business over the long term.

We can make 10-year decisions for that business. And it's a very different investment thesis for the clients. So there's a lot of benefit to being in a public company, but there's also a lot of obligation. And we have to look at that and say, is the obligation getting kind of out of whack with the benefits?

And that's where we have to engage regulators, legislators, and make sure they understand you can't just pile a bunch of obligations on just by the fact they're public companies. You have to focus those obligations on what shareholders really need to know in order to make an informed decision. And we're working on that right now. I think there's an opportunity to recalibrate that right now.