Sector: Financials | Focus: Financial Exchanges & Data
HQ: New York City, New York
Financial Risks
Nasdaq faces market risks (interest rate and foreign currency fluctuations), credit risk from customers and counterparties, and potential losses from clearing member defaults. Regulatory capital requirements, operating covenants, and changes in market conditions could affect funding availability. Litigation and regulatory proceedings, including a CFTC inquiry, pose uncertain outcomes and potential fines. Fluctuations in interest rates on debt and commercial paper, and potential adverse currency movements, also present risks.
Financial Upside
Nasdaq's Index business saw record ETP AUM. Strong U.S. listings leadership and increased U.S. equity derivative trading revenue are positive signs. Growth in SaaS revenues from Financial Technology and Capital Access Platforms segments is noted. Share repurchases and dividend payments demonstrate a commitment to shareholder return. Synergies from the Adenza acquisition are expected to generate operational efficiencies.
