NASDAQ

NASDAQ enjoys market leadership amongst US stock exchanges in terms of listings and proceeds raised from company flotations. Away from traditional exchange activity, the opportunity to provide services to the estimated $4 trillion of financial and cybercrime prevention activity is huge and NASDAQ can play a lead role in this, being able to pull data from 2,500 banks representing trillions of dollars of assets.

NASDAQ’s traditional listings and exchange business also retain a market leadership position, with higher valuation metrics often achieved by companies listed on its exchanges. 

We expect management to deliver on its strategy of expanding into what it calls solutions, particularly in financial and regulatory crime monitoring, as well in as ESG performance data.

A strong balance sheet and excellent cash generation facilitate acquisition activity and a progressive dividend policy.

Handling sensitive financial information makes Nasdaq a potential target for cyberattacks, which could disrupt operations, lead to regulatory penalties, and damage its reputation.

While Nasdaq’s environmental footprint is relatively low, its data centres and infrastructure consume substantial energy, raising concerns over carbon emissions and resource use. There is increasing pressure to improve energy efficiency and expand renewable energy sourcing.

Social risks include the need to foster diversity and inclusion within the workforce and uphold fair, transparent market practices. Governance challenges relate to compliance with evolving financial regulations and maintaining robust oversight to prevent market abuse and fraud.

Additionally, reputational risks arise from the listing of companies involved in activities outside of our exclusionary screen.