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(Bloomberg) – Nasdaq is focusing on technology that protects against financial crime as demand grows to thwart sophisticated bad actors, Chief Executive Officer Adena Friedman said.
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“We’re investing in this technology in a very meaningful way,” Friedman said Wednesday at the Consumer Technology Association conference in Las Vegas. The company’s financial crime prevention business is also the fastest growing on Nasdaq, up about 20% from a year ago, he said.
He said Nasdaq is enhancing its anti-crime services with artificial intelligence, which can identify criminal activity and predict and speed up the process of rooting out bad actors in the industry. The company is working with banks, other exchanges, and brokerages that can use this software to eliminate threats.
“This is just the next phase of our growth,” said Friedman, 54.
Since becoming CEO in 2017, Friedman has helped Nasdaq evolve beyond its roots as an exchange. Over time, he has shifted resources to products with more predictable revenue streams, rather than relying solely on income from trading and market volatility. Last year, the company completed its largest acquisition ever, acquiring software provider Adenza for $10.5 billion to help transform the trading and markets company into a full-fledged financial services company.
Read more: Nasdaq focuses on technology to become more than just an exchange
Friedman also discussed Wednesday’s approval of a Spot Bitcoin ETF by the Securities and Exchange Commission. Nasdaq is one of many exchanges that have applied to list the new product. He said that because the ETF offering is regulated and liquid, it can provide more access to Bitcoin without directly owning it.
“This makes certain asset classes more accessible,” Friedman said.
Friedman said he expects to see a “more active” backdrop for initial public offerings in 2024 across the broader capital markets, adding: “We remain cautiously optimistic.” Told. Last year, in a year of low dealmaking, the Nasdaq surpassed the New York Stock Exchange for the most listings.
Friedman said activity could accelerate even though the cost of capital remains high.
“There are some great companies looking to exit,” including in the biotech sector, she said. AI may also be here, and some companies are demonstrating how to leverage the technology as a way to differentiate their businesses.
The number of public offerings brought to market also depends on the economic environment.
In a separate interview with Bloomberg TV, Friedman said inflation is likely to fall and interest rates may fall over time, adding that “a lot of the unknowns in the economy are becoming more known.” . “Investors feel ready to put more money into this year,” he said.
(Updates with CEO’s comments from TV interview in final paragraph.)
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