In line with Nasdaq’s continued effort to demonstrate the power of our Execution Platforms, Carl Slesser and Scott Richard presented on the topic of Technology as a Differentiator at the TradeTech FX conference in Miami. With Nasdaq’s next-generation market capabilities, buy-side and sell-side firms can better navigate the rigorous regulatory, reliability and security standards of the financial industry.
Richard took a moment to echo the sentiment of Nasdaq’s CEO, Adena Friedman, stating that “Nasdaq is no longer a financial firm that offers technology. We are a technology firm that offers financial services.” This ideation has helped shape the growth of Nasdaq’s Execution Platforms business over the last several years by re-writing what it means to be a financial exchange.
The tandem of Slesser and Richard outlined the key challenges that firms are facing in regard to remaining competitive in an increasingly data-driven world. In a survey distributed to heads of trading and technology at sell-side firms, Nasdaq found that 82% of respondents believed that technology is a key competitive differentiator, and 100% felt that regulation is a key driver in changing the trading industry. This revelation is demonstrative of the pressing concerns in the trading technology industry. While firms are concerned about the cost of remaining competitive, defining their future course, and the complexity of their existing trading stack, Nasdaq is offering comprehensive solutions to a wide variety of industries.
When Goldman Sachs expressed its woes with their in-house equities platform, Sigma X2, Nasdaq was able to provide a top-to-bottom solution for their competitive struggles. At the time, Goldman Sachs equities platform was ranking 16th in overall market share, so it became clear that it was time for a technology overhaul. Nasdaq was able to take full control over the ATS on its behalf by providing Goldman with services from trading and execution to compliance and regulatory reporting. This partnership allowed Goldman to focus on its revenue-generating activities and has helped them to jump to number 4 in overall market share since its inception.