NASDAQ JA UUSIEN TEKNOLOGIOIDEN HYÖDYNTÄMINEN PALVELUTARJONNASSA

Henrik Husmantoimitusjohtaja, Nasdaq Helsinki &Vice President, Cash Equities Products, Nasdaq Nordic

Danske Annual Conference 24.10.2017

NASDAQ NORDIC

MIHIN PÖRSSEJÄ TARVITAAN?

• Suomi tarvitsee talouskasvua ja työpaikkoja

• Yritykset tarvitsevat pääomaa kasvuun ja työpaikkojen luomiseen

• Sijoittajat tarvitsevat vaurastumisen mahdollisuuksia

• Nasdaq Nordiciin kuuluvat pörssit ovat sitoutuneet tähän tärkeään tehtävään kaikilla markkinoillaan.

NASDAQ IN THE NORDICS AND BALTICS

MORE THAN 1,200 EMPLOYEESSweden 686 Norway 36Finland 51 Estonia 25Denmark 39 Latvia 26Iceland 24 Lithuania 324

IN 8 COUNTRIES

WE OPERATE7 equity exchanges1 commodities exchange1 clearing house (CCP)2 CSDs (in 4 countries) 1 investment firmIN THE NORDICS AND BALTICS

NASDAQ STOCKHOLM• Our Nordic HQ• Home of Nasdaq’s global

Market Technologydivision

• The largest office withinNasdaq

• Home to more than 600 listed companies

WE SUPPORTmore than 90 marketplaces in 50 countriesaround the world with our leading Market Technology services

SOME MILESTONES1808 – The Copenhagen Stock Exchange opens1863 – The Stockholm Stock Exchange opens1912 – The Helsinki Stock Exchange opens1985 – OM is founded by Olof Stenhammar1987 – OM becomes the first exchangelisted on a stock exchange1994 – OM first exchange in Europe to accept remote members2003 – OM and Helsinki Stock Exchange merges to become OMX2004 – Introduction of same trading platform for all Nordic exchanges2005 – OMX acquires Copenhagen Stock Exchange2006 – Nasdaq First North is launched2007 – Nasdaq acquires OMX

MAAILMAN JOHTAVAT BRÄNDIT LISTAUTUVAT MEILLE

94Uusia listautumisia

2016

7.9Kerätty pääoma 2016,

Mrd. euroa

90Uusia listautumisia

2017

2.5Kerätty pääoma 2017,

Mrd. euroa

*2017: tilanne 18.10.2017

2017*

2016

… POHJOISMAIHIN

5

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Source: Credit Suisse & Nasdaq Market research. All indicies are based on time series from (1966 - 2016)

POHJOISMAISET PÖRSSIT OVAT VAHVOJATOP 20

Rank Country Annual return %

1 Sweden 8,62%

2 Finland 8,60%

3 South Africa 7,59%

4 Denmark 7,35%

5 U.K. 6,53%

6 Netherlands 6,43%

7 Norway 6,40%

8 Ireland 6,16%

9 Europe 5,86%

10 Australia 5,79%

11 Germany 5,62%

12 Belgium 5,57%

13 France 5,56%

14 New Zealand 5,55%

15 Switzerland 5,45%

16 USA 5,41%

17 World-ex U.S. 5,27%

18 World 4,96%

19 Canada 4,69%

20 Spain 4,45%

Osakesijoitusten keskimääräinen tuotto 1966-2016 (51 vuotta)

OSAKESIJOITUSTEN TUOTTO, % HELSINGIN PÖRSSISSÄ 1913-2016

Vuosina 1913-2016 nimellinen vuosituotto 17,47 % ja reaalinen vuosituotto 9,84 %. Lähde: Nyberg, Peter – Vaihekoski, Mika (2010): A new value-weighted total return index for Finnish Stock Market.” Päivitetyt luvut 1/2017.

-100

-50

0

50

100

150

200

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013

% c

han

ge

OMX Helsinki Gross Index Annual Return 1913-2016

8

NASDAQ HELSINGIN YHTIÖIDEN VASTUULLISUUS-RAPORTOINTI MAAILMAN HUIPPUA – TUORE TULOS 27.9.2017

55 pörssin kansainvälinenvastuullisuusraportointivertailu

NASDAQIN PAINOPISTEALUEET EUROOPASSA

FOCUS AREAS IN EUROPE

10

Nasdaq operates at the intersection of the capital markets and the economy. We work closely on a national level as well as on an EU level with officials and regulators to ensure key principles of well-functioning markets.

MiFID II Sustainability FinTech Tomorrow Markets

Participating in the creation of a more just, sustainable, and inclusive world• ESG Reporting Guide• Sustainable Bonds

Solutions and services for market participants to remain good actors, help protect investors and continue to create better markets with a new regulatory framework for Europe

Innovation is in our DNA: • Nasdaq was the first all-

electronic exchange 40 years ago

• Powers more than 90 marketplaces in 50 countries

• Home of technology: 71% of all tech companies in the U.S. are listed on Nasdaq

Work for well-functioning capital markets to support the economy • Fair, transparent

stock markets with strong returns (also on IPOs)

NASDAQ, INC.

NASDAQ - MORE THAN A STOCK EXCHANGE OPERATOR

MARKET SERVICES• NFX• ISE• Canadian

Equities• eSpeed Elect

MARKET TECHNOLOGYLISTING SERVICES

• NPM Private Company Offering

• Private Equity Solutions

• ALTs

• IR Insight• Board Portal• PR Services

CORPORATE SOLUTIONS

• Blockchain Enabled Solutions

• Holistic Surveillance• SMARTS• BWise eGRC• NPM & Linq

Platform

INFORMATION SERVICES• Smart Beta• Analytics• Machine

Intelligence Applications

M a r k e t p l a c e E c o n o m y Increasingly commerce is being

transacted via electronic marketplaces and financial institutions are seeking to digitize processes to gain efficiencies.

D a t aE x p l o s i o n A “trillion sensor” economy creates new

real-time data sources, new investment processes and analytic capability.

E v o l u t i o n ofI n v e s t m e n tM a n a g e m e n t

EVOLUTION OF INDUSTRY CREATES OPPORTUNITIES

Alternative investment and financing options are becoming more accessible, creating new opportunities and challenges.

Op

po

rtu

nit

ies

Pro

gre

ss

1 2 3

NASDAQ 2017 EXECUTION PRIORITIES

Enhance Competitive Positioning

Complete Integration of Acquisitions

Commercialize Disruptive Technologies

Market Services:• Increased share in US Options, Equities• NFX: 1H17 ADV 212k, +115% YoY, OI 3.0M

Information Services:• Launched Analytics Hub• $147B Index AUM at 6/30/17, +36% YoY

Corporate Services:• Nordic IPOs on recordpace

Market Technology:• Strong sales of NFF

Blockchain:• Capabilities imbedded in Nasdaq

Financial Framework• Announced providing DLT MVP for SIX

Swiss Exchange’s OTC structured productsbusiness

• Nasdaq Linq integrated payment solution with Citi

Cloud:• Utilize across CorporateSolutions• Utilize in Nasdaq PrivateMarket

Machine Intelligence:• AnalyticsHub• Corporate Solutions

Market Services:• Nordic Equities Auction On Demand

Information Services:• Expanding Analytics Hub offering

Market Technology:• Buy-side Smarts offering

Corporate Services:• NPM Alternatives

Market Services• Completed CX Canada and ISE

migrations successfully• Delivering efficiencies tocustomers

Corporate Services• Integrated Marketwired/

GlobeNewswire

Financial Targets:• Achieved $60m YE2017 targetahead

of schedule

Market Services:• Nasdaq CXC exchange license

Corporate Services:• Integrate board portalplatforms

Financial Targets:• $10-$20m in additionalsynergies

identified for 2016 acquisitions

Cloud:• NFF as a cloud solution

Machine Intelligence:• eComms buyside compliance and

holistic surveillance• Voice command in CorporateSolutions

CAPITAL MARKETS – 10 YEAR OUTLOOK Behavioral Shifts Influencing Capital Markets

15

2027 (Future)2017 (Present)2007 (Past)

Corporates

Will Seek Best Value Combination with Greater Choice (Private vs.

Public)Increased Retail Participation

More Transparent & Liquid Marketplace

Accessing PE/Venture FundingConsolidating Earlier

Sought Capital Via Public Markets

Banks / Brokers

Consolidating - Concentrating Power Seeking Lower Costs - More Open to

Outsource/PartnerWealth Accumulation

Connected, “Coopetive” Ecosystem

Closed,Proprietary SystemsTransaction Focused

Buy-Side

Super Alpha“M.I.” Driven Investment Strategies

Automation for Retail Investment GoalsPassive continues to grow

Seek Alternative ClassesPreparing for Active to Passive

Combination of Funds and ETPs

Order Flow ManagementAdvise the InvestorPrimary Fund as Vehicle

Exchanges / Regulators

Accelerated Adoption of Next Gen TechOutsourced to Technical PartnersIntegrated Data & Tech Offerings

Multi-Asset Classes

Outsourcing – Seek EfficiencySeeking Data & Clearing

OpportunitiesGlobal

Internal TechnologyPrimarily Equity FocusedRegional

Note: Timing of client behavior shifts are represented by blue shading

FINTECH

NASDAQ PIONEERING ELECTRONIC

TRADING SINCE 1971

Document Title16

• Trading Innovative Asset Classes

• Emerging Technologies – what is Nasdaq doing?

17

THE EXCHANGE INDUSTRY NOW

TRANSFORMATIVE TECHNOLOGY IS IN OUR DNAOUR HERITAGE

World’s largest exchange technology provider

1st exchange to use Blockchain Technology

Machine Intelligence - internal and external

Relationship with Silicon Valley, Denver, Austin, Stockholm, Tallinn, India and other emerging tech centres

Academic / Think tank Partnerships: Berkeley, KTH Royal Institute Technology, MIT, Yale, IDEO CoLab

18

CONFIDENTIAL – ALL RIGHTS RESERVED

NASDAQ ONBLOCKCHAIN

PILLARS OF INTEREST

PO

ST T

RA

DE

PLU

MB

ING

REL

ATIO

NSH

IP

ISSU

ERS/

INV

ESTO

RS

REG

ULA

TOR

Y TR

AN

SPA

REN

CY

Cheaper Operations

Faster Processes

Provenance

Regulatory Reporting

Reduced Reconciliation

Cross border Solutions

Alternative Business-and Market Models

20

Linq, proxy voting,

establishing clearing and settlement

partners

2015

2013

Nasdaq recognizes applicability of

blockchain technology to Financial Technology

Nasdaq Linq enables first-ever Private

Securities Issuance documented with

blockchain technology

Nasdaq R&D –Blockchain tuned to

handle the U.S. equities trading

volume -1st Nasdaq patent filed investment in

chain.com

MT Design Studies

2016

Design studiesand Proof of

Concepts(POCs) with Market Technology customers

R&D

Blockchain products

Commercialize blockchain. Linq Issuance & Settlement

framework. eProxyVoting product

2017

NASDAQ’S BLOCKCHAIN JOURNEY

4 FOCUS AREAS FOR 2017TO BUILD COMMERCIAL OFFERINGS AND PUT SOLUTIONS INTO PRODUCTION

22

NASDAQ FINANCIAL

FRAMEWORKeProxyVoting

ISSUANCE AND SETTLEMENT

CLOUD ENABLEMENT

EXECUTED BLOCKCHAIN PROJECTS

23

ASSET ISSUANCE AND SETTLEMENT –

LINQ

• A Blockchain-enabled platform for managing electronic records of ownership in digitized assets

• Issuance and immediate transfer of shares without CSD or CCP

• Complete historical record, increased auditability

• Cap table management

• Support payments through integration with Citi

eProxyVoting

• Streamlined service for proxy voting

• Votes will be tracked, stored in the immutable ledger

• Digital authentication to onboard users

• Issue and record votes on the blockchain

LATEST BLOCKCHAIN ANNOUNCEMENTS

BUILDING COMMERCIAL OFFERINGS AND PUTTING SOLUTIONS INTO PRODUCTION

24

NASDAQ / CITI PAYMENT SOLUTION

• A new integrated payment solution

• Enables straight through payment processing

• Automates reconciliation by using a distributed ledger to record and transmit payment instructions

• Integrates Nasdaq and Chain blockchain technology with Citi’s global financial network

LATEST BLOCKCHAIN ANNOUNCEMENTSBUILDING COMMERCIAL OFFERINGS AND PUTTING SOLUTIONS INTO PRODUCTION

25

• Issuance and settlement of structured products through a DLT solution, including management of payments.

• Solution deployed fully in a cloud environment, built on the Linq and Nasdaq Financial Framework.

• Initial MVP phase with member testing, followed with move into production and further enhancements for automating corporate actions processing

Issuance and Settlement if

Structured Products

NYIAX aims to transform ad inventory into

standardized and durable securities

A blockchain-enabled media trading platform

running in the cloud and powered by Nasdaq

PROPRIETARY DATA ACROSS THE VALUE CHAIN

LISTING TRADING CLEARING SETTLEMENT CUSTODY

Company financials Market updatesInvestment prospectus

Order/Quotes e.g.Order size, Trader IDExecutions methodsOrder book data e.g. Spread, Depth, Order distribution, Matched orders e.g. price, volumes etc.

Cleared trades e.g. Counterparties, Clearing member ID Margin Calculations e.g. positions / exposure, Nettings Deposited Collateral e.g. type and amount of deposited collateral

Adding other internal and external data sources = additional value and new opportunities to monetize

Settlement instructione.g. security movements, failed settlementSettlement records of security ownerships etc.

Account level data

Securities Servicing

Funds with asset allocations

MACHINE INTELLIGENCE

MACHINE LEARNING

NATURAL LANGUAGE PROCESSING (NLP)

Algorithms that find highly consistent patterns in data used

to take actions in the future. Allows the data to speak

in an unbiased way.

Ability of a computer program to understand human language

including speech as it is spoken.

COGNITIVE COMPUTINGCombines multiple machine

intelligence methods to extend and magnify human expertise, thought

and experimentation resulting in higher levels of cognition.

EXPERT SYSTEMSUse rules and the thought

processes of experts coupled with access to massive amounts of data,

more than any human could process, to solve complex

problems.

MACHINE INTELLIGENCEECOSYSTEM

28

Global Information

Service

Market Technology

Global Trading & Markets Services

ListingsCorporate Solutions

Provider of financial data, analytics, and insights

Target asset mangers and RIAs through investment research platform and Smart Beta offerings

Advanced market surveillance modules

Help exchanges monetize their data by providing a data and insights platform

Reduce operational costs through automation

Offer contextual relevant insights to IR, PR, and Governance users using MI

Make better market model / pricing decisions via MI

Dynamic pricing

Direct Access Customer churn prediction based on trading behavior

IPO Simulations

29

CURRENT OPPORTUNITIESFOR EACH OF NASDAQ'S BUSINESS LINES

2017 FINTECH-ALOITTEITA 16 May 2017: Nasdaq launched Analytics Hub The Nasdaq Analytics Hub platform provides the buy side with investment signals that are derived from structured and unstructured data sets, from both proprietary sources and collaboration with third-party partners.

22 May 2017: Nasdaq and Citi’s Blockchain Enabled Payment SolutionNasdaq and Citi announced the launch of a blockchain-enabled system that tightly integrates Nasdaq’s Linq Platform (for private securities) with Citi’s global banking and payments systems. The solution enables straight-through payment processing and automates reconciliation for private company securities transactions on Nasdaq Private Market. A distributed ledger creates a two-way communication channel between Nasdaq and Citi.

25 July 2017: Nasdaq acquired Sybenetix, UK technology companyNasdaq acquired Sybenetix, a leading surveillance provider that combines behavioral analytics and cognitive computing with financial markets expertise in July 2017. Sybenetix’s technology offering is designed to solve key surveillance challenges facing the asset management industry.

2017 FINTECH-ALOITTEITA

31

3 Aug 2017: Nasdaq signed an agreement with SIX Swiss Exchange to implement a distributed ledger technology based solution for the OTC structured products business from SIX, highlighting further commercialization of blockchain with the Nasdaq Financial Framework.

5 Sep 2017: Nasdaq acquired eVestment (Atlanta, GA, USA)

• Industry leading content and analytics provider used by asset managers, investment consultants and asset owners to help facilitate institutional investment decisions.

• The deal will further expand Nasdaq’s position in the surveillance space and make it a leading provider to the buy-side industry, as well as deepen its adoption and application of behavioral science technology.

2017 FINTECH-ALOITTEITA

32

6 Sep 2017: Nasdaq Launches New Machine Learning Technology for Surveillance Efforts on Nordic MarketsNasdaq's SMARTS, in collaboration with the Nasdaq Nordic Market Surveillance team, has implemented machine learning within its surveillance technology to analyze abnormal market events and their subsequent categorization by surveillance analysts across the Nordic markets.

27 Sep 2017: SEB and Nasdaq to Build Blockchain for Swedish Mutual Fund MarketSEB, the Nordic financial services group, and Nasdaq, Inc. announced a joint project to test a developed prototype for a mutual fund trading platform based on blockchain technology. The aim is to increase efficiency in the processing of purchases and sales of fund units and to create a unit ledger - an area which today is largely characterized by manual routines, long settlement cycles and paper driven processes.

KIITOS