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The New Era of the Stock Market with Nasdaq CEO Adena Friedman | All-In Summit 2025 Podcast Episode Description
(0:00) Introducing Adena Friedman
(1:16) Nasdaq’s business, expanding beyond a stock exchange
(2:44) Big announcement! Nasdaq will offer tokenized securities, crypto going mainstream, the 24/5 trading schedule
(7:21) How the IPO market can change to help companies go public faster
(13:37) Evolution of markets: predictions, options, SPVs, secondaries
(18:18) State of the stock market, role at the NY Fed, data issues at the Fed
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The New Era of the Stock Market with Nasdaq CEO Adena Friedman | All-In Summit 2025 Podcast Episode Top Keywords
The New Era of the Stock Market with Nasdaq CEO Adena Friedman | All-In Summit 2025 Podcast Episode Summary
Based on the provided context, the phrase “has joined the group” refers to someone becoming a member of a group, band, club, or team. Throughout the conversation, there are multiple references to joining various groups, inviting members, and welcoming new people. Specific examples include:
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The New Era of the Stock Market with Nasdaq CEO Adena Friedman | All-In Summit 2025 Podcast Episode Transcript (Unedited)
Speaker: 0
00:00
Over the last year to date, up 14%. Over the last year, Nasdaq shares up 40%. Over the five year period, more than doubled up over a 100%. You’ve been on a real tear.
Speaker: 1
00:10
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She is often on the list of not just the most influential women in finance, but just the most influential.
Speaker: 2
00:16
Adena transformed Nasdaq into a global tech powerhouse.
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00:19
Adena is a deal maker at her core. Nasdaq is in the business of deals.
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00:24
We are here to advance economic progress for all.
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00:29
Ladies and gentlemen, please welcome Nasdaq CEO, Adena Friedman. Welcome. Hey,
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00:42
Jason. How are you?
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00:43
Coming. Hi, Thomas.
Speaker: 3
00:44
Good to
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00:44
see you.
Speaker: 3
00:44
It’s great to see you. How you doing? Hi, Dina. Ai. It’s great to be here.
Speaker: 4
00:47
Welcome. Thanks for coming out.
Speaker: 3
00:49
What a day you’ve been having.
Speaker: 4
00:51
Yeah. So you caught some of the action earlier today. Right?
Speaker: 3
00:54
I did. I did. I’ve been watching from behind the scenes. It’s been amazing to watch. Ai You’ve
Speaker: 1
00:58
been hanging backstage. Did you have a favorite moment or speaker?
Speaker: 3
01:02
Oh, I I I never like to pick favorites. At Nasdaq, we don’t pick favorites. We have great companies. But ai, Renee is a wonderful Nasdaq company that and I’ve had to know him very well with Arya. Yeah. So I would say always have great conversations.
Speaker: 4
01:15
You’ve been a sorry. But Vatsal more than a market. I think I wanted to start with this real important question because when when we were talking, I didn’t realize that Nasdaq was more than just the Nasdaq market that we all know. Maybe just for the for the audience, you could just share a little bit more about the broader business.
Speaker: 3
01:29
Sure. Thank you. Yeah. Well, so first of all, we are really proud of our foundation as a market. But as we started to grow and expand the business, first of all, you know, when I became CEO, we had about 2 and a half million billion dollars in revenue. Today or as of the end of last year, we had a little over 2 and a half billion dollars of EBITDA.
Speaker: 3
01:46
So we’ve grown and expanded the business quite dramatically. And how we’ve done that is taking our core as a market and saying, what more can we do for our clients? So we are an architect of modern markets. We provide our technology to our 17 markets and we sell it to a 135 other markets around the world.
Speaker: 3
02:01
So market infrastructure is our business and we do that globally. Then the second is really being powering that innovation economy, like companies like Renee, you know, Arya and other great companies. So, we’ve expanded that. So our index business now has about $700,000,000,000 of assets under management that are tied to those great innovators in addition to creating better abilities for companies to navigate the public markets and investors to ai, find investments.
Speaker: 2
02:27
And you had a big announcement today.
Speaker: 3
02:28
And then the third is is also building trust in the across the financial system and that is anti financial crime technology, market surveillance technology, other technologies that the banking industry and the and the broker dealer industry really need to manage their lives in the markets. And you’re right, we had a big invest we had a big, a big announcement today.
Speaker: 2
02:47
Which was Vlad foreshadowed before you actually. Yeah.
Speaker: 3
02:50
The And and actually it goes right back to that first pillar being, you know, being the architect of modern markets.
Speaker: 2
02:54
You don’t tell people what
Speaker: 3
02:55
You think we should? Yeah.
Speaker: 2
02:56
Yeah.
Speaker: 3
02:56
Okay. So, so this morning we announced that, we’re going to be bringing tokenization into our arya. So making sure that equities are tokenized and traded on market, in the markets, not in a side a side sleeve, but actually in the the core arya.
Speaker: 2
03:12
So the eventual goal or is it today? 24 by seven, three sixty five equities just let it rip constantly?
Speaker: 3
03:19
I mean, I think we are all moving in that direction. We announced several months ago that we’re moving to twenty four ai. Sai we’re
Speaker: 2
03:25
Twenty four five. Moving
Speaker: 3
03:26
that way.
Speaker: 2
03:26
So Saturday and Sunday not?
Speaker: 3
03:28
Not not for equities yet. I think that, you know, we have to we’re we’re walking before we run. But I think that getting to twenty four five is a major advancement for The US equities markets. And then on top of that, now with tokenization, if we can introduce that also into the markets, it allows us to really think about streamlining the post trade processing, bringing and modernizing elements of the markets that have a lot of friction.
Speaker: 3
03:51
You know, we we are hyper resilient and we’re ai scaled. You know, we manage like today, we had 95,000,000,000 messages come into our systems systems today and we had a median, you know, return time of twenty microseconds on from order to trade. We handle ai 3,000,000 messages a second. It’s hugely scaled. But then at the same time, you know, once that trade occurs, there’s a different process.
Speaker: 3
04:11
And then the post trade process, as we know, is an area where tokenization really ai. And really cutting down the friction, managing capital flows across the global ecosystem and really bringing that capability into the market is gonna be the next arya. Ai sana I meh
Speaker: 2
04:25
your reaction to this. You know there’s this very famous curve which is like you get this early font of insanity and then there’s the trough of disillusionment and then you grow through and it’s, is it, does it seem like crypto is actually a blockchain? It’s just, it’s finally real. It’s like there’s real companies doing real things, stable coins, what Sachs did with the Genius Act.
Speaker: 2
04:46
It’s
Speaker: 3
04:46
Well, I Ai actually sana point to that because, you know, honestly, having regulators who want to to work on bringing it into the mainstream and wanna create the rules of the road is such a refreshing thing because I think that it allows us all to understand how we can operate within a world where there are tenants of investor protection. The technology is gonna have things we can and can’t do, but also being forward thinking and forward leaning in how the technology is gonna be applied is gonna be critical.
Speaker: 3
05:15
So we’re very excited about the fact that we finally have this convergence of regulatory of regulation between the traditional markets, the digital markets. How do we bring it all together to frankly advance all arya. And we’re very very excited about that.
Speaker: 1
05:28
And and I don’t mean this to be glib or anything, but wasn’t there ai a concept around the markets having an end of the day at 04:00, allowing people to have a life and to sleep and to not have this ai? Are we all sana live in a world where we have to check our stocks at two in the morning or some crazy event happens in the world, God forbid, a terrorist attack or a hack or something?
Speaker: 1
05:51
And now we’ve all gotta wake up at three in the morning and decide do we trade or not? Was that the resistance to this? And then how do you justify it, like, hey, it’s gonna be worth the fact that none of us are ever gonna sleep again?
Speaker: 3
06:03
Yeah. So so I think first of all Ai been at I started at Nasdaq in 1993 and back in the nineties we had a vision to go to twenty four seven markets and we just couldn’t achieve it both technologically, it wasn’t the technology wasn’t there to do it, but also, regulatorily. And and part of a big part of that was that resistance from the industry saying, I like to be able to finish my day and go home.
Speaker: 3
06:26
And actually, we need those points in the day. I mean, the market open and the market close will continue to exist in a world of 24, five arya. But you’ll have, like, a US trading day and you’ll have non US trading day. And so and we already our systems turn on at four and they turn off at 08:00 at ai, four in the morning at 08:00.
Speaker: 3
06:43
Trading occurs during that entire period of time, but the official trading days in The United States are nine thirty four. I don’t anticipate that changing because we have to have those moments for, like, the NAVs to be set for mutual funds and things like that. But have allowing the entire world to trade these securities, I mean, we have the Nasdaq itself, we have the top seven companies in the world listed on Nasdaq.
Speaker: 2
07:05
So
Speaker: 3
07:05
Those companies are global. Investors have global interest. The Nasdaq 100 is one of the most traded products in the world. The futures trade twenty four ai, so why shouldn’t the ai? So that’s how we look at those non US trading hours and then the trading hours and trying to find that confluence in
Speaker: 2
07:20
the way it will work.
Speaker: 1
07:21
There’s a lot of, hand wringing about the number of companies that have gone public, the weight of being a public company, the stay private longer moment took Uber 11, Stripe is private now, close to fifteen years, SpaceX. Sai, and and we have some folks who maybe think things should run differently. We had Spotify go, public in a direct listing. You have Chamath experimenting with SPACs.
Speaker: 1
07:46
What should the IPO market look like and how can we make it now that we have a government that’s maybe a little more engaged, let’s say, and less napping as administration. How should the IPO market change and that process change to encourage people to maybe not stay private so long because all the gains are being captured by the elites, by the qualified purchasers.
Speaker: 1
08:11
The accredited investors can barely get in and let alone the public. By the time the public gets in, it does feel ai, oh, I’m getting into Instacart and it’s sana go sideways for a year or two or three.
Speaker: 3
08:23
Yeah. So Ai meh, first of all, I think it’s really good to remind all of our, you know, all of us why the public markets are so important for the economy. When a company goes public, they get access to billions of investors, and every citizen in this country gets the chance to become an owner in the economy.
Speaker: 3
08:41
And when we look at just the performance of the Nasdaq 100 over forty years of its existence, the average return on the Nasdaq one hundred over those forty years is a 14.25% annual return.
Speaker: 1
08:52
So that’s double the bryden market. Yeah.
Speaker: 3
08:54
An incredible return. Yeah. If if if come you know, if individuals have access to these great companies, as you know, I saw your your pod a few weeks ago showing the performance of the public arya. It’s it’s such an important part of our economy to engage the population in the economy and the growth of the economy and the success of the economy.
Speaker: 3
09:11
So I’ve always believed in the balance between public and private markets. I think there are reasons for them both to thrive and be great great for everyone but the public market experience has become this massive, you know, burden and I think that we call it like you have to cross the Rubicon to become public and it’s become very daunting for com for CEOs and companies to to take that decision.
Speaker: 3
09:34
So we have talked very closely with the Sai and others about what can we do to lighten the load to make it so that it’s not such a huge change. We’ve we’ve advocated for changes in disclosure reforms, proxy reform, litigation reform, all of those things. They’re such a different existence. It shouldn’t be so different.
Speaker: 2
09:54
Does the burden actually improve the quality of the companies that are public? Does it improve the fraud rates? Is it It’s
Speaker: 3
10:00
a good question and I actually do think that you will find that there is really good valid reasons for certain disclosures. I think disclosure is a cleansing, you know, as a as a cleansing event. But and so having the but there’s sai they have to disclose so much more than that’s actually necessary for an investor to make a smart investment decision.
Speaker: 2
10:18
But what I find strip
Speaker: 3
10:19
that away and get back to the core disclosures and then offering different ways to actually enter the public markets. We think the direct listing, we’ve actually worked closely with Bill and others on a direct listing with the capital raise. Like, why not have that? We have that ability today. And so and then SPACs are another another avenue to public markets.
Speaker: 3
10:37
ICOs over time, we’d like to kinda bring that as a that to me is frankly a direct listing, a tokenized direct listing. So how do we bring all those capabilities into the markets and make them available and make these companies feel like it’s sai?
Speaker: 1
10:50
Well, that requires the Sai holder.
Speaker: 4
10:52
Just sort
Speaker: 1
10:52
of one follow-up if I may. That requires the SCC to take a a little bit more risk and they seem like an organization that is incredibly risk off and, you know, very conservative in their approach. Did they need to change their approach to be a little bit more forward thinking in your mind?
Speaker: 3
11:10
Well, I First of all, I would say that, Chair Atkins is Ai first meeting with him was just amazing.
Speaker: 2
11:16
He’s great.
Speaker: 3
11:17
You know, he is forward leaning. He wants to create change. He wants to make IPOs great again. He wants to to really support the public markets ai also, frankly, looking at elements of the market structure in the established markets and saying, does this all need to exist? Because there’s a lot of there’s a lot of that too.
Speaker: 3
11:34
And then also really embracing the crypto ecosystem to sai, what elements of this could be brought in that regulatory convergence is real? You know, how can we create a a regulatory road for crypto markets? How can we actually create a regulatory road for tokenized securities markets?
Speaker: 3
11:51
How do these things kind of convert? Well, can I
Speaker: 2
11:52
can I ask you?
Speaker: 3
11:53
He’s a he’s he’s a great I mean, I would say he’s off to a great start.
Speaker: 2
11:56
Outside of the equity markets the biggest liquid pools that are trading right now, whether it’s the actual tokens or perps or what have you or the crypto markets themselves, it would seem relatively logical that you guys or others would want to play in that game and, why don’t you?
Speaker: 3
12:14
Yeah. I ai, yeah. I think what’s held us back is the lack of regulatory clarity. I I say that Nasdaq is really good at operating regulated markets And so you ask us to go into a completely unregulated speak, that’s a pretty different existence. The risk tolerance is much higher. We want to make I mean, we are always investor protection first, always.
Speaker: 3
12:35
So how do we make sure that we create the right structure with fairness and equality for for investors ai also being really big innovators? You know, we’ve moved our markets to cloud. We’ve kind of really brought forth a lot of modern technology into arya, but we also operate best when we have the rules of the road.
Speaker: 3
12:52
What’s happening now in Washington is the potential for rules of the road and that gives us an opportunity to participate in a market that really has not been available to us.
Speaker: 2
13:00
And is that something that if the federal government just creates that clarity, you know, you could compete with Coinbase, you can compete with Binance, you can compete with OKEx, you can compete with the decentralized?
Speaker: 3
13:09
I I would say that what we would sana do is really work with our institutional clients because they also have not been able or willing to play in the arya. Their risk tyler sai had we have a similar profile. So if we can actually bring the institutional ecosystem into crypto assets, we bring tokenization into securities assets.
Speaker: 3
13:26
So you That’s a really interesting way for us to play a role in in really helping evolve these markets and and bring them to the mainstream. And whether, you know, Ai many flowers will bloom in that in that ecosystem.
Speaker: 4
13:37
You you today all of your markets are equities. These are securities that have secured interest in an in an underlying business asset. There’s a business that’s buying and selling stuff and has employees and Yeah. Does stuff. But much of what we see the volume today in prediction markets and crypto markets, there aren’t underlines.
Speaker: 4
13:57
These are there’s there’s a there’s a point of view on some value of, for example, in the prediction arya sai event. And historically, you’d have to figure out a way to play that event with some equity trade. Does that do the prediction markets actually kind of create a new way to express investment pieces that are kind of sana perhaps be a superset of the way we trade equities?
Speaker: 4
14:21
Or are these just fundamentally different that owning an interest in a business is different than having a point of view on a thesis?
Speaker: 3
14:27
I meh, I I have to say the options markets are as much a prediction market as, as the other prediction markets. So we own and operate the largest options marketplace in The United Ai. And so we are really, you know, we’re very engaged in looking at how do you think about you you are making a decision as to with the direction of travel in an in an underlying equity, but you’re not actually trading in the underlying equity.
Speaker: 3
14:50
So options are, I think, a great reflection of a prediction market. The difference though is that in a prediction market it’s a binary yes no versus an option market you’re laying you’re layering in your bets across multiple price points and different durations. There’s, by the way, a million and a half strikes in the in the options markets today.
Speaker: 3
15:10
But so it’s I think that in in some ways, the prediction markets make these types of, these types of bets, you know, more accessible to more people because the options markets are quite complex. Prediction markets are a little bit more simple. So there is an opportunity, and I I think it’s also good that the Sai and the CFTC, by the way, are joining forces to think about these markets much more comprehensively.
Speaker: 3
15:33
Because if we can bring that regulatory paradigm across the markets and make more more of these tyler of asset classes more accessible, I think that’s good for everyone.
Speaker: 1
15:41
Maybe you could talk about private, markets and the secondary sales that are occurring. There’s an SPV boom. We heard, Vlad talk earlier today about tokenizing OpenAI and SpaceX. And I know when Masayoshi sana wanted to buy a bunch of, Uber when it was a private company, they did that through Nasdaq, and I guess saloni market.
Speaker: 3
16:07
Nas Yeah. Nasdaq private market.
Speaker: 1
16:08
Nasdaq private markets, which came through the acquisition for second market. That’s right. Yeah. If I remember my history correct.
Speaker: 3
16:14
That’s pretty good.
Speaker: 1
16:15
So how do you think about those opportunities and aggressively going after them? Right now, I I I take it you are invited into those and people hire you to do that, but what about making markets for an OpenAI share or SpaceX shares or Stripe shares?
Speaker: 3
16:32
So I think the first thing we focus on in Nasdaq private market is being issuer first in how we work with work with these private companies. So, you know, they are private companies and they’re private for a reason. They wanna have control over their shareholder base. And yet they wanna create liquidity for their employees, their early investors, etcetera. And there is a second market that is created on the back of the private shares.
Speaker: 3
16:54
So how do we work with them to allow that to happen in a fair way to make it so that we can introduce them to other other investors that they sana have in their cap table? SPVs are a way to do that. You can roll up a lot of wealth interest in a company and create an SPV through a known institution and so the institution becomes the owner.
Speaker: 3
17:13
Meh, the the, you know, the wealth clients are not actual owners of the shares. They’re owners of the SPV that are owners of the shares. But letting the issuer have the dis the ultimate decision on whether or not they invite those issue those investors in, I think is actually really important in the private context.
Speaker: 3
17:28
You know. And that’s that’s kind of part of, I I believe is what makes Nasdaq private market different than other providers in the private speak is we always partner with the issuer.
Speaker: 1
17:38
Because they’re going rogue basically. They’re going around the backs of the CFO and CEO of those companies at times and it does piss them
Speaker: 3
17:46
off. Yeah. I I think it’s important always to realize that, you know, the the issue where the companies, especially private companies, are being very mindful of who they have as owners. Let’s let them continue to do that as private companies. Once you enter the public market, then you’ve got public investors and that’s a different it is a different responsibility.
Speaker: 3
18:02
Mhmm. And there is different risk that that’s involved in opening the aperture to billions of people. But I think, and there should be disclosures also provided as a result of that. So in this, in that private marketplace, let’s make sure that we we keep some controls in place around that.
Speaker: 2
18:18
Yeah. The stock market has mostly flipped from individual stock pickers to just an absolute abundance of index funds. It kind of compresses returns in some way. It’s hard to find like a lot of alpha in the market. You have an enormous concentration with the top seven, eight or nine companies as a percentage of the overall market.
Speaker: 2
18:41
When you see these kinds of structural things, what does it tell you about the moment of the cycle because you’ve seen it now for thirty years.
Speaker: 3
18:49
Yeah, yeah, I have. Well first of all Sai think that the rise of index investing is making investing more accessible in general. It’s a very, very inexpensive, very accessible, and very liquid way to have a view into a sector or a return profile or a theme and not have to pick stocks.
Speaker: 3
19:08
And, you know, as as as retail investors, it’s hard to sit there and be a stock picker. It takes a lot of time. I tried to I worked with my son when he was a teenager. He really wanted to do it. So I had to teach him how to read an s one or a 10 k. It’s That’s tough. You speak some time on it. Yeah.
Speaker: 3
19:22
But but indexes gives makes I think investing much more accessible. However, I also agree with you that you also have to balance it with active management. You have to have active investors. I mean, at the end of the day, I always say that there’s a balance between the passive and and active world within the arya.
Speaker: 3
19:37
And whenever it skews towards the passive, what happens is that that creates, arbitrage opportunities for the active. If the herd really kind of starts to move the socks in a certain direction, the active managers should step in and take advantage of that argument.
Speaker: 2
19:49
Arya be on in the end.
Speaker: 3
19:50
But the the real foundation of it though, Chamath, is just that the, you know, the Nasdaq one hundred or these innovative companies are they are performing the way they’re performing for a reason. And it becomes very difficult to beat the index because these companies are so very hard. It’s hard to find companies that deliver a better return than they do.
Speaker: 3
20:08
And I think that’s where active management has has, struggled just because they are trying to beat a benchmark but that benchmark is so such an attractive benchmark.
Speaker: 4
20:17
Let me ask a question unrelated to Nasdaq. Your role on the board of the New York Fed ram where you sit and and and your role in capital markets, do you think that there is a trend of de dollarization underway? There’s a report that just came out on vatsal bank holdings that have shown dollar denominated, I think it was treasuries ai from 60 to 40%, gold going from 10 to 20% over just the last decade with some acceleration perhaps underway.
Speaker: 4
20:49
Obviously, Ai selling down treasuries. What’s your view on where we are, with respect to spending, with respect to central bank interest in in in dollar denominated assets and what that implies for our arya?
Speaker: 3
21:01
Yeah. I mean, I think first of all, I am a huge believer in dollar as a reserve currency. Sana in fact, we will be persistent as a reserve currency over a long period of time. I think our economy is just is such a powerhouse. I think that the rule of law and the stability that we have and that we deliver to the world is going to continue to provide that anchor for for the dollar to be the reserve currency.
Speaker: 3
21:25
But, you know, investors will express themselves if they see certain risks starting to manifest. I do think as we’ve you guys talk about a lot, you know, the amount of debt that we have in the country is something that is we’re starting to see manifest itself in the arya. And we’ll make it so that they look for alternatives if they feel like the return characteristics of a of a treasury are different than what they could get in another the risk weighted returns versus other currencies or other treasuries.
Speaker: 3
21:49
They’re they’re going to express themselves. I I believe in The US. I feel like I believe in the power of The US economy to work its way through this. I believe that you guys talking about it a lot is actually gonna help us make ourselves work our way through it.
Speaker: 2
22:02
Does the Fed?
Speaker: 3
22:03
And the Fed I think the Fed is a staunch believer in the reserve currency. I don’t think that they have any, you know, at least my experience with them is that they don’t have any significant concerns that have arisen from what you talked about.
Speaker: 2
22:14
Do you think that there’s a data issue at the Fed? You know, I’ve talked about this before. I just I worry that, you know, sort of bad inputs, bad decisions, and they don’t necessarily benefit from the best of what’s available. And ai frankly, the best of what’s available is, you know, held close by certain companies and not really shared broadly because that, they think, is their edge.
Speaker: 2
22:33
So I’m just curious how enabled the Fed is to actually see the tea leaves and actually see what’s actually happening on the field.
Speaker: 3
22:41
I I can only say I mean, I I can just speak from my own experience. The the Fed is very data driven. They get sources of data, private source of data, public sources of data. They’ll get private databases of information that they’re not gonna disclose or they’re not gonna share with others as an input.
Speaker: 3
22:58
But there are many, many inputs that they take into consideration and they share every 10 we go through and understand a market update and ai update to help us understand and frame what’s happening in the economy and they use that data. They’re, you know, they’re quite wedded to understanding the data. But they’ll take in new sources.
Speaker: 3
23:15
If new sources become available or they find something that could be useful, they will absolutely take that into consideration. But it won’t supplant everything else that they’re looking at.
Speaker: 1
23:23
Do you have concerns about the Meh remaining independent? We’ve seen a bit of pressure, from this administration. We’ve seen it from other administrations in the past. But what are your thoughts broadly on the Fed and independence and the importance of that and their mandate?
Speaker: 3
23:37
Yeah. I mean, I know there’s a a debate, you know, even in Healthy
Speaker: 2
23:40
debate. Yeah.
Speaker: 3
23:40
A health debate, I would say, on that point. I do have a point of view. I do think that the Meh we’ve benefited for almost two hundred fifty years on having Fed independence. I think that it’s important to to have allow the Fed to think long term. And that’s why the term of the Fed chair is six years.
Speaker: 3
23:56
Like, to think longer term than through an individual political cycles and to be data dependent. And I agree, Thomas, like there should be new sources of data that are made available to allow the Fed to continue to make those smart decisions. But and I think in terms of the decision making within the Fed, that independence allows them to to look through a lot of different noise in the economy and to think longer term.
Speaker: 3
24:20
Are they gonna make perfect decisions every time? No. Are they political? With twenty twenty hindsight we could all look back and say, meh, sure. Would have done it differently.
Speaker: 1
24:27
Are they a political politically driven organization in your experience?
Speaker: 3
24:31
Yeah. My purse my perspective and my experience is that it is a very data driven, very apolitical. I meh, the New York Fed has been very very focused on just looking at the economy, looking at the market
Speaker: 1
24:43
ai in that, I take it.
Speaker: 3
24:44
A huge amount of pride in that. And they have, you know, there’s definitely I mean, we’ve they’ve gone through some very different political cycles. I’ve I’ve been there for almost six years. And and yet it’s been a very steady process of evaluating the monetary policy, very steady.
Speaker: 3
25:00
While they also do a lot to operate the economy, it’s pretty cool.
Speaker: 2
25:04
Yeah. Do you think that, we need to think more about the underlying leverage that the Fed enables in market participants and specifically, you know, I’ve said this, I worry that we financialise so much of the economy that, you know, hedge funds, They can take on so much leverage that even if you have, you know, $6,070,000,000,000 you’re running a trillion long and, you know, a trillion is not what it used to be but it’s still a lot of money where you can really screw up the infrastructure of America if you blow up or if, you know, things go wrong.
Speaker: 2
25:38
And there just doesn’t seem to be this robust check and balance anymore meh again. I mean, we had it for a few years coming out of the GFC because we, everybody was so burned by it. But I think that all these risk measures, if you look at them, many of them say, you know, a lot of these folks, are running very levered.
Speaker: 2
25:58
So I don’t know if you see that from your vantage point or if you have ai
Speaker: 3
26:01
point of view. I mean certainly NASDAQ, as the CEO of NASDAQ we do see it in, not so much in our specific ecosystem, although there are, you know, highly levered, let’s say, ETFs and other things like that. Certainly ai the regulated markets in the crypto space, there’s a lot of leverage there too. In the derivatives markets, there is.
Speaker: 3
26:18
But so but at the same time, I think there are a lot of checks and balances within the securities ecosystem that, that forces us to go back towards a meh, and there is an oversight that the SEC has on what levered products are at least brought into the public markets. In terms of the Meh and looking at levered, I think that the way that they focus it is what really truly creates systemic risk.
Speaker: 3
26:38
And
Speaker: 2
26:40
the GFC detail kind of Yeah.
Speaker: 3
26:42
The GFC really introduced the fact that the there are certain banks that introduced systemic risk by capitalizing the banks the way they have. They feel like they’ve addressed a lot of that. And, yes, some of that activity moves off outside the banking system that they don’t necessarily have complete control over.
Speaker: 3
26:57
But their view is that it’s distributed enough that it doesn’t necessarily create systemic risk or having a too big to fail hedge fund for instance.
Speaker: 2
27:04
Right.
Speaker: 3
27:05
But that’s that’s that’s how they kind of manage that that risk. Ai, you know, leverage is not part of the system but we also I think there’s a responsibility we all have to think about how meh.
Speaker: 4
27:14
Where do you see the biggest risk in the arya today? All arya.
Speaker: 2
27:17
So All markets. This
Speaker: 4
27:18
there’s a lot of talk about climbing defaults in commercial real estate and the catalyzing effect that may result from delinquency rates starting to climb. Where private credit
Speaker: 3
27:28
Can I just meh I’ve heard about this now for several years? Right. And I also would say that the banks, you know, to the extent they have a lot of real estate in their portfolio, they’ve been working through that. I do think that as we start to be in an environment where we can start to see rates come down, I think that there’ll be a lot of pressure that’s eased off of some of those those concerns.
Speaker: 3
27:48
And, you know, people are also coming back to work. Like, you know, commercial real estate’s going through a ai, but it’s not it’s it’s gonna go through a different cycle. So but I do think that a lot of banks have been working through those issues and have been managing actually quite well.
Speaker: 3
28:02
We have over 5,000 banks in this country sai it’s also again, it’s pretty distributive risk.
Speaker: 4
28:07
So I’m gonna go buy stocks tomorrow.
Speaker: 3
28:08
I think that’s a
Speaker: 2
28:09
great idea.
Speaker: 4
28:10
Ai we were saying and thanking Tina Friedman for being here today.
Speaker: 3
28:14
Thank you. Thanks. Sounds
Speaker: 2
28:16
great. Thank you. Yeah. Thank you.