1. Blockchain initiatives
nasdaq post trade
Blockchain initiatives
ACSDA General Assembly May 16-18, Buenos Aires

2. Post trade industry trends and challenges

3. Business Diversification Ownership and Governance
Drivers to change
Regulations
Collaboration
Standardization
Changing Business Model
Business Diversification
Competition
Ownership and Governance
Nasdaq blockchain - ACSDA GM - Buenos Aires

4. Industry challenges Business Complex business
Pressure to introduce nrevenue streams
Regulatory cost with no ROI
Introduction of new structures such as CCP
Globalization requires collaboration
Cyber crime
Operations and technology
Cost of operations and IT
Long Time-To-Market
Replacing current technology, investing in blockchain and Machine IQ
Cost of new systems
Business and operational standardization
Nasdaq blockchain - ACSDA GM - Buenos Aires

5. Nasdaq and blockchain

6. How is blockchain different?
Assets are issued onto a network that spans organizations
Entities control asset movement by directly interacting with the
network’s shared ledger
LEDGER
All transactions are enabled and secured by cryptography
Source: chain.com
Nasdaq blockchain - ACSDA GM - Buenos Aires

7. $ How is blockchain different?
Transaction finality: eliminates clearing, reconciliation, errors; a single source of truth provides perfect auditability $
Instant, direct value transfer; 24/7
Flexible, digital rails enable user-friendly apps and interoperability
Programmable
“smart contracts” enable complex transactions
Source: chain.com
Nasdaq blockchain - ACSDA GM - Buenos Aires

8. How IS NASDAQ APPROACHING THIS space?
Top-Down Approach to Blockchain Innovation
MARKET
MARKET
APPLICATION
PLATFORM
LEDGER
Nasdaq blockchain - ACSDA GM - Buenos Aires

9. Pillars of interest REGULATORY TRANSPARENCY OPERATIONAL EFFICIENCIES
Regulatory Reporting
Cheaper Operations
Reduced Reconciliation
REGULATORY TRANSPARENCY
OPERATIONAL
EFFICIENCIES
EFFICIENCIES
CAPITAL
Faster Processes
Cross border Solutions
Provenance
Nasdaq blockchain - ACSDA GM - Buenos Aires

10. Where can distributed ledgers be useful?
Distributed ledgers are good at keeping track of possession of digital assets.
DEEDS OF OWNERSHIP
SECURITIES
VOTES
INTELLECTUAL PROPERTY
MONEY
Nasdaq blockchain - ACSDA GM - Buenos Aires

11. Overview of nasdaq public initiatives
Linq - Nasdaq Private
Market (NPM)
Proxy voting
Dec. 30th Nasdaq Linq enables Issuer to Document Private Securities Issuance with blockchain technology
Issuers are able to complete and record private securities transactions
Collaborated with Chain.com, an inaugural Nasdaq Linq user and blockchain developer
“Blockchain applied to the private market is innovation built on top of innovation, and carries with it the opportunity to forever alter the future of financial services infrastructure.” -Bob Greifeld, CEO
Blockchain-based e-voting service to allow shareholders of companies listed on Nasdaq’s Tallinn Stock Exchange to vote in shareholder meetings from remote locations.
Shareholders who are Estonian or Estonian e-residents authenticates them to use the solution.
Blockchain technology will allow votes to be quickly and securely recorded, streamlining a proxy voting process that has historically been labor-intensive and fragmented.
The pilot is aimed to launch in 2016.
Nasdaq blockchain - ACSDA GM - Buenos Aires

12. Linq architecture Auditor Node
TECHNICAL INNOVATION IN UNREGISTERED SECURITIES
Issuers
Investors
User Features leverage the underlying infrastructure and provide value-added services including ledger visibility, contract management, investor communication and order management.
Linq API enables management of issuance, allocations, corporate actions, auctions, transactions and settlement through integration with paying agent.
Blockchain Enabled Ledger provides data provenance, immutability, protection from double-spend and distribution of record keeping.
Issuer Node
Manager Node
Block Generator
Auditor Node
Nasdaq blockchain - ACSDA GM - Buenos Aires

13. From industry challenges to opportunities with blockchain
Transparency and access
Instant market linking.
Blockchain interoperability
ChangingBusiness Model
Regulations
Standardization
Competition
Ownership and Governance
Business Diversification
Collaboration
Increasing operational efficiency and access.
Robust and secure.
Flexibility to introduce new customer segments, asset classes and service setups on the fly
Competitive strategy supported by technology
Quick time-to-market.
Low TCO, agile and decoupled architecture
enabling blockchain.
Transparency and immutability.
Customer control.
Nasdaq blockchain - ACSDA GM - Buenos Aires

14. the NASDAQ Financial framework – post trade
Multi asset Clearing
Settlement instructor
Real time Risk
Collateral mgmt
OTC
Workflow mgmt
THE CORE
BLOCKCHAIN
DATA STORE
MACHINE INTELLIGENCE
Packaged clearing
Pricing
Reporting
Analyzer
Regulator
Brokers
Banks
Members
In-house systems
External Application
CSD suite

15. Thank you