Nasdaq Inc at Morgan Stanley US Financials, Payments & CRE Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Cyprys - Morgan Stanley Research - Analyst : <_ALACRA_META_ABSTRACT>So why don't we start with just a little bit of a quick intro of your background, Tal, it's quite interesting. You've been at Nasdaq eight years now. Before that, you served as CEO of Chi-X and Equities Exchange. What brought you to Nasdaq? And how has your role and responsibilities evolved along the way? Maybe you could also touch upon where you're spending most of your time these days?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : So you have a lot of things under your belt these days. Just how are you allocating your time between all these different parts of the business? And a global business, mind you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 7:15PM, NDAQ.OQ - Nasdaq Inc at Morgan Stanley US Financials, Payments & CRE Conference

Question: Michael Cyprys - Morgan Stanley Research - Analyst : Well, if you're spending most of your time there, why don't we spend most of our time there, and let's talk about the fintech division. Let's dig in. You've outlined your path for growth ahead. We've done a series of acquisitions. You outlined aspirations to grow the fintech business 10% to 14% on an annual basis. That's your medium-term target. Talk about what underpins the confidence in that growth outlook and maybe help break that down for us by the different businesses within the fintech division?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : And then how do you think about that driving the 10% to 14% growth for the fintech division? Arguably, that does include Verafin, which is fastest-growing piece at Nasdaq. Maybe you could just help us break down some of the under piece -- underlying growth drivers as you see it?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : What is that seven-year partnership look like? Are they giving you ideas of how to enhance the product set?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : Now with the acquisition of Adenza, you're targeting about $100 million of revenue synergies. So maybe you can update us on how that's progressing, talk about the cross-sell, what it takes to get there and how you're approaching it.

Question: Michael Cyprys - Morgan Stanley Research - Analyst : The example you gave on the 15c3 margin requirement because that sounds really interesting. Just curious what the uptake has been. What the uptake has been from customers from other existing customers or even new customers?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : Great. Now as you look across the fintech segment, I guess, more broadly, how do you ensure you've optimized the go-to-market strategy with so many different offerings, but also brands, too.

Question: Michael Cyprys - Morgan Stanley Research - Analyst : Maybe zooming out to the broader Nasdaq business. You've been a leader in cloud adoption, migrating three markets to the cloud. How is that progressing? And more broadly, just talk about some of the cloud-enabled offerings that you have in place across the business? And what's next as you look ahead?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : I want to shift gears over to the market side. Options market seeing significant strength, a lot of activity there. In particular, in the zero-day-to-expiry option, 0DTEs. Also excitement, more broadly in the marketplace around potentially rolling that out to single names. So just curious your views on that. What you see happening? How much growth potential do you see left in the option space? And then we also look ahead, there's also potential for the recently approved Bitcoin and Ether ETFs to eventually develop a derivative ecosystem around that, too, that could even further accelerate growth of the options market. So how is Nasdaq participating and all this excitement around the option space, where do you see scope to innovate and lead in more aggressively?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : And Bitcoin and Ether ETFs eventually developing an ecosystem (multiple speakers) Yes, that's something --

Question: Michael Cyprys - Morgan Stanley Research - Analyst : Final question, we're just almost out of time here. Let's touch on Verafin. I know that's run by Brendan Brothers, as you mentioned before. But just given that it falls under the fintech division, and it's the fastest-growing business at Nasdaq. I just wanted to dig in a little bit here on some of the success that you've had moving up market and also across geographies. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 7:15PM, NDAQ.OQ - Nasdaq Inc at Morgan Stanley US Financials, Payments & CRE Conference If we look back to the first quarter of this year, I know that Verafin did not sign any large Tier 1, Tier 2 bank wins, but revenue growth is still well over 20% year on year. So what's driving the underlying strength and how can we see potential upside from larger mandate wins from here?

Question: Michael Cyprys - Morgan Stanley Research - Analyst : I'm afraid we'll have to leave it there. Tal, thank you so much for joining us today. Really appreciate your time and insights.