What are NASDAQ's plans for tokenization and trading hours?

NASDAQ is actively bringing tokenization into its markets, enabling equities to be tokenized and traded in the core markets. They are also moving towards 24/5 trading for US equities, viewing it as a significant advancement to serve global investors and align with the 24/7 nature of futures trading.

How is NASDAQ adapting the IPO market?

NASDAQ is working to lighten the burden of becoming a public company by advocating for reforms in disclosure, proxy, and litigation. They are exploring and supporting alternative entry methods like direct listings with capital raises and tokenized direct listings to make the public market experience less daunting and more exciting for companies.

What is NASDAQ's stance on entering the crypto market?

NASDAQ's entry into crypto markets has been held back by a lack of regulatory clarity. However, with potential rules of the road emerging from Washington, they see an opportunity to participate, ideally by working with institutional clients to bring tokenization and crypto assets into a regulated framework they can operate within.

How does NASDAQ Private Market facilitate liquidity for private companies?

NASDAQ Private Market prioritizes working with issuers, helping private companies create liquidity for employees and early investors while maintaining control over their shareholder base. They facilitate this through methods like SPVs, allowing wealth clients to invest indirectly and issuers to decide on investor onboarding.

What are the implications of the shift towards index funds?

The rise of index investing makes the market more accessible and inexpensive. However, it can compress returns and lead to high concentration in top companies. Adena Friedman believes a balance between passive and active management is crucial, as passive skewing can create arbitrage opportunities for active investors.

What is the outlook for the US dollar as a reserve currency?

Adena Friedman is a strong believer in the US dollar's persistent role as a reserve currency, citing the strength of the US economy, rule of law, and stability. While acknowledging that investors may seek alternatives due to risks like national debt, she believes the US economy will navigate these challenges.

How independent is the Federal Reserve, and how does it use data?

Friedman emphasizes the Fed's independence, which allows for long-term thinking beyond political cycles. She describes the Fed as highly data-driven, utilizing both public and private data sources. While decisions are data-dependent, they are made with a focus on making smart, apolitical judgments for the economy.

Nasdaq CEO Reveals the Next Era Of The Stock Market - Adena Friedman | All-In Summit

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Sep 9, 2025|93,353 views|1,578|103

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Key Moments

TL;DR

Nasdaq CEO Adena Friedman discusses market evolution, tokenization, crypto's mainstreaming, IPO reforms, and the Fed's role.

Key Insights

Nasdaq is expanding beyond its traditional stock exchange role into technology solutions, market infrastructure, and financial crime prevention.

Nasdaq will integrate tokenized securities into its core markets, moving towards 24/5 trading and streamlining post-trade processing.

The IPO market needs reforms to reduce burdens on companies, encouraging them to go public faster and making gains more accessible to the public.

Regulatory clarity is crucial for Nasdaq and institutional clients to participate more fully in the burgeoning crypto and tokenized securities markets.

While index investing offers accessibility, a balance with active management is needed, and strong performing companies like those on Nasdaq 100 make outperformance difficult.

The US dollar is expected to remain the dominant reserve currency due to economic strength and the rule of law, despite potential short-term investor concerns about debt levels.

REDIFINING NASDAQ'S BUSINESS MODEL

Adena Friedman explains that Nasdaq has evolved significantly beyond its origins as a stock exchange. The company now positions itself as an architect of modern markets, providing technology infrastructure to 135 markets globally. They also power the innovation economy through their index business, managing $700 billion in assets, and build trust across the financial system with anti-financial crime and market surveillance technologies. This strategic expansion aims to offer more value to clients and advance economic progress.

EMBRACING TOKENIZATION AND 24/5 TRADING

A major strategic move announced is Nasdaq's integration of tokenized securities into its core markets. This initiative aims to streamline post-trade processing and reduce friction in financial transactions. Friedman also confirmed Nasdaq's move towards a 24/5 trading schedule, a significant advancement for US equities markets. While not immediately for equities, this transition acknowledges the global nature of investments and the need for more continuous market access, aligning with the increasing demand for 24/7 financial operations.

REFORMING THE IPO MARKET FOR ACCESSIBILITY

The conversation highlighted concerns about the increasing difficulties and burdens associated with going public, leading companies to stay private longer. Friedman stressed the importance of public markets for economic growth, providing citizens opportunities to own stakes in companies. To address this, Nasdaq advocates for reforms in disclosure, proxy, and litigation, aiming to simplify the public market entry process. Innovations like direct listings with capital raises and tokenized direct listings are being explored to make the IPO experience more manageable and appealing.

NAVIGATING THE CRYPTO AND DIGITAL ASSET LANDSCAPE

Regulatory clarity is identified as the primary barrier for Nasdaq and institutional clients to fully engage with crypto and tokenized securities markets. Friedman emphasized that Nasdaq thrives in regulated environments and requires clear rules of the road to participate. The goal is to work with institutional clients to bring them into crypto assets and tokenization, evolving these markets by providing familiar structures and investor protection frameworks, and moving them towards mainstream acceptance.

THE EVOLUTION OF MARKET STRUCTURES AND INVESTING

Friedman discussed the shift towards index investing, acknowledging its role in making markets more accessible and cost-effective for retail investors. However, she also highlighted the necessity of active management to balance the market. The concentration of gains in a few large companies, like those on the Nasdaq 100, makes outperforming indices challenging for active managers. She also touched upon prediction markets, drawing parallels with options markets and noting the potential for new ways to express investment theses, albeit with a need for regulatory oversight.

THE US DOLLAR'S ENDURANCE AND THE FED'S ROLE

Regarding the US dollar's status as a reserve currency, Friedman expressed strong confidence in its long-term persistence, citing the strength of the US economy and its rule of law. While acknowledging potential investor concerns about the national debt, she believes the US economy can navigate these issues. She also addressed the Federal Reserve's independence, data-driven approach, and role in maintaining market stability. Friedman views the Fed as apolitical and crucial for long-term economic planning, ensuring decisions are based on data rather than short-term political cycles.

MANAGING LEVERAGE AND SYSTEMIC RISK

The discussion touched on the prevalence of leverage within financial markets, including in ETFs and the crypto space. Friedman noted that while leverage is a component of the system, Nasdaq operates within regulated markets that have checks and balances. The focus for systemic risk, particularly for the Fed, lies in activities that could pose a 'too big to fail' scenario. While acknowledging that some activities move outside traditional banking oversight, the current distribution is not seen as creating immediate systemic risk.

ASSESSING CURRENT MARKET RISKS AND OUTLOOK

When asked about the biggest risk in the market, Friedman pointed to potential defaults in commercial real estate and private credit, which have been discussed for some time. However, she expressed optimism, anticipating that a potential decrease in interest rates could ease pressure on these concerns. She also noted that banks have been managing real estate exposure effectively and that the distributive nature of risk across over 5,000 US banks mitigates broad systemic impact. The return to work is also seen as a positive factor for commercial real estate cycles.

Mentioned in This Episode

●Products

●Companies

●Organizations

●Concepts

●People Referenced

Navigating Modern Markets: Key Takeaways

Practical takeaways from this episode

Do This

Embrace tokenization to streamline post-trade processing.

Consider 24/5 trading to align with global market demands.

Explore alternative public market entry methods like direct listings and SPACs.

Leverage index investing for accessibility and broad market exposure.

Recognize the importance of active management to identify arbitrage opportunities.

Support the independence and data-driven approach of the Federal Reserve.

Be mindful of leverage and systemic risk within financial markets.

Avoid This

Avoid outdated market structures that create friction.

Don't underestimate the importance of regulatory clarity for new markets.

Resist the trend of companies staying private excessively long.

Do not solely rely on passive investing; balance with active management.

Underestimate the stability and power of the US dollar as a reserve currency.

Overlook the risks associated with high leverage without robust checks and balances.

Common Questions

NASDAQ has expanded significantly beyond its stock market roots. It now serves as an architect of modern markets, providing technology to 17 of its own and 135 other global markets. It also powers the innovation economy through its index business and provides crucial anti-financial crime and market surveillance technologies for the banking and broker-dealer industries.

Topics

NASDAQ 24/7 Trading Public Markets Market Leverage

Mentioned in this video

companySecond Market

The previous name of NASDAQ Private Market, acquired by NASDAQ.

companyRene

Mentioned as a wonderful NASDAQ-listed company that Adena Friedman has gotten to know well.

personAdena Friedman

CEO of NASDAQ, discussing the company's strategies, market trends, and the future of finance, including tokenization, 24/5 trading, the IPO market, crypto, and the role of the Federal Reserve.

concepttokenization

NASDAQ is bringing tokenization into its markets, aiming to tokenize equities and trade them in core markets to streamline post-trade processing and reduce friction.

concept24/5 trading

NASDAQ is moving towards 24/5 trading for US equities markets, seeing it as a major advancement and aligning with the global nature of listed companies and investor interests.

companySachs

Mentioned in relation to the 'Genius Act' and its involvement in the evolving crypto space.

companyNASDAQ Private Market

NASDAQ's platform for private markets, focusing on issuer-first principles and facilitating liquidity for employees and early investors while maintaining issuer control over shareholder bases.

conceptSPVs

Special Purpose Vehicles are discussed as a method within private markets to roll up wealth interests in a company, allowing institutions to own shares indirectly.

personChair Atkins

The current SEC Chair, described by Adena Friedman as forward-leaning, eager to create change, and supportive of making IPOs great again.

conceptcrypto ecosystem

The importance of embracing the crypto ecosystem and creating regulatory clarity for its integration into financial markets is discussed.

conceptcommercial real estate

Discussed as a potential area of risk due to climbing defaults and delinquency rates, though Friedman suggests falling rates and return-to-office trends could ease pressure.