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PlatformLabSeminar - StanfordUniversity

TheFutureofMarketsTomFay,SVPEnterpriseArchitectureDomPaniscotti,VPEnterpriseArchitecture

November28,2018

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MarketsEverywhereConceptualOverviewandStrategy

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NasdaqStrategicVision

MigrateexistingNasdaqsystemsandNasdaqMarketTechnologyclientstothecloud.

Developandmonetizenewbusinessopportunitiesunlockedthebycloud.

M a r k e t S o l u t i o n P a r t n e r

Collaboratewithrelevantpartnersandleveragetheirexpertize andexperiencetoelevateofferingsandreducerisk

Te c h n o l o g y P r o v i d e r

Nasdaqisaworldleaderandtrustedtechnologyvendorforbothpointandplatformsolutions

M ar k e t Op e r a t o r

LeverageNasdaq’sexpertizeandexperiencewithoperations,surveillanceandinfrastructure

EnableTheWorld’sMarketsthroughthefrictionless discoveryandexchangeofanyassetbyanyproducerorconsumertherebycreatingvalueforallparticipants.

Buildanecosystemthatallowsparticipantsto:• DiscoverMarkets• AccessOrderEntry&MarketData• Runtheircomputeco-residentw/Market(s)• DeployExchangeServicesOn-Demand• PerformdataanalyticsandengageAI/ML• Interactbilaterallywithotherclients• Accesspost-tradefacilities

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TheNasdaqFinancialFrameworkANewParadigmforPoweringTomorrow’sMarkets

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NasdaqFinancialFrameworkEco-systemConcept

RealTimeRisk

IndexCalc

MarketSurveill-ance

Multi-AssetClearingEngine

CollateralMgmt

Pre-TradeRiskMgmt

MatchingEngine

Visualizer

ExternalPriceCalc

ExternalSettlementInstructor

THE

CORETHE

COREBusiness

ApplicationAnalyzer

NASDAQFINANCIALFRAMEWORK

OpenArchitecture PromotesCommonality ModularandExtensible CloudEnabled

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MarketsEverywhereEnablingTechnologies

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COMPLIANT

InCountryLocationsand

AdherencetoDataGovernanceRules

SCALABLE

DedicatedandPartitionedComputing

Environments

SECURE

WorldClassSecurityControls

andToolsResiliencyDesignsExceedTraditional

Datacenters

RESILIENT MODERN

Well-StructuredAPIs,Architected

aroundMicroservices

CloudforMarketsAFoundationforInnovation

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MiddleEastandAfricaMICROSOFTAZURE• CapeTown• Johannesburg

ASIAPACIFIC

AWS

MICROSOFTAZURE

GoogleCloud• Mumbai• Singapore

• Beijing• Mumbai• Seoul• Singapore

• Beijing• Chennai• HongKong• Mumbai• Tokyo

• Pune• Osaka• Shanghai• Singapore• NewS.Wales

• Victoria• Osaka• Seoul• Busan• Canberra

• Sydney• Tokyo• Osaka• China

• Beijing• Ningxia

• Tokyo• Taiwan

GlobalPresenceMap

CloudprovidersareestablishingpresenceinmanyNasdaqandNasdaqclientlocations.

EUROPEAWS• Frankfurt• Ireland

MICROSOFTAZURE

GOOGLE CLOUD• Belgium• Netherlands• London

AMERICASAWS

MICROSOFTAZURE

GOOGLE CLOUD

• California• Illinois• Iowa• QuebecCity• Washington

• Wyoming• SãoPaulo• Texas• Toronto• Virginia

• N.California• Oregon• Ohio

• N.Virginia• SãoPaulo• Canada

• Iowa• Oregon

• S.Carolina• N.Virgina• Montreal

• Netherlands• Ireland

• Cardiff• Frankfurt• Magdeburg• Ireland• Netherlands• Paris

• London• Paris

• Marseille• London• Germany• Zurich• Geneva

• Frankfurt• Finland

• Abu Dhabi• Dubai

• Sydney

Amazon/AmazonAWS Microsoft/MicrosoftAzure Google/GoogleCloudPlatformLEGEND:

Newoverthelast1-2years

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RealizingaFabricofMarketsRegionalBuildingBlocks

BusinessCapabilities

On-Prem Services

CloudServices

DataLake

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CreationofaGlobalEco-systemBornofCollaborationandPlatformInnovation

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DLT- TokenizedMarketSolution

v Targetspotmarketsof fungible assetswithimmediatesettlement andconfigurable marketmodels

v Initialfocus onun-regulated marketsandassets

v Support theentiretransaction valuechain

v Issuance, settlementandcustody performed onDLT

v Support theDLTuniverse (1toN, public/private DLTs)

v UseDLTforgolden source ofreferencedata

v Smartsecurities toautomatecorporateactions

Marketplace(s)(Exchange,OTC)

DLTPostTradeUniverse

Investors InvestorsCash(FIAT)

Asset

Crypto(Currency)

Issuers

Anytypeofassetcanbetradedandsettledi.e.anyassetcanbetokenized

Issuance,SettlementandCustody

Pricediscovery,Execution,

Trades

Private

Public

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MarketsEverywhereFutureTech

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CRYPTOGRAPHY

Quantumcomputersarefamousforcodebreaking,buttheirrealpowermaylieinmakingcloud

computingmoresecure.

MODELING&OPTIMZATION

AQuantumcomputermimicsthecomputingstyleofnature,allowing

ittosimulate,understandandimproveuponnaturalthings.

MACHINELEARNING&PREDICTION

Researchindicatesthatquantumcomputingcouldsignificantlyacceleratemachinelearninganddataanalysistasks.

SEARCHINGBIGDATA

Amachinethatcansearchtheever-growingamountofdatabeingcreated,andlocate

connectionswithinit,couldhavetremendousimpactacrossmany

industries.

QuantumComputingandFinTech

“Natureisn'tclassical,dammit,andifyouwanttomakeasimulationofnature,you'dbettermakeitquantummechanical,andbygollyit'sawonderfulproblem,becauseitdoesn'tlooksoeasy.”- RichardFeynman.

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WhyShouldWeCare?

Cryptography

•HardenedEncryptionTechniques•EnhanceDataPrivacy•AccelerateEncryptionAlgorithms•Blockchainatscale

Mod

eling&Optimiza

tion

• SimulateMarketEvents• OptimizeMarketBehavior• PortfolioOptimization• DynamicPortfolioManagement• RiskAnalysis

MachineLearning&Prediction • FindAlpha

• Predicttheaffectofchanges tomarketstructure

• DynamicIndicativePricing

• BetterFraudDetection Se

archingBigDa

ta

• CreditScoring• AML• PatternRecognition• “Real-time”historicalsearch•Matchingordersisasearchproblem.

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MarketsEverywhereAndOneMoreThing…

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Location,Location,Location…“Where”Matters

Performance

• OrderEntry• MarketData• Determinism

Regulatory

• Fairness• Transparency• Compliance

DataGovernance

• Sovereignty• Privacy• Integrity

Highlysynchronizedclocksareformativeinaddressingtheseconcerns.

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ThankYou.