NASDAQ’S BLOCKCHAIN AND THE

ENABLEMENT OF COMPETITIVE ADVANTAGE

APAC BLOCKCHAIN CONFERENCE

Peter Jessup, SVP of Global Technology, NasdaqMarch 7, 2017

WHO WE ARE Over the past decade, Nasdaq has transformed its business from a U.S.-based equities exchange to a diversified global FinTech

company. Today, the company is firmly established as a leading provider of trading, exchange technology, information and public

company services across 6 continents.

Applied Technology

Growth

Innovation

Resiliency

Total Shareholder Return

2

WHAT WE DOWe provide the infrastructure, tools and strategic insight to help our customers navigate the complexity of global capital markets

and realize their capital ambitions. The four pillars of our business are:

3

Tech Intel ListTrade

TECHNOLOGY TRENDS SHAPING FINANCIAL SERVICES?

MICROSERVICES

QUANTUM

COMPUTINGCRYPTOGRAPHY

AUGMENTED

REALITY /

VIRTUAL

REALITY

BLOCKCHAINCLOUD

SERVICESSMARTPHONE

ECOSYSTEM

BIG DATA

MACHINE

INTELLIGENCE

Innovations Advancing The FinTech Landscape

4

INTELLIGENT/

PERSONAL

VIRTUAL

ASSISTANT

INTERNET

OF THINGS

DIGITAL

MONEY

SECURE DATA STOREOnly parties who should

access it, can access it.

STABILITY THROUGH

DECENTRALIZED CONSENSUSInput is guaranteed / validated through

decentralized consensus.

CRYPTOGRAPHY ENSURES INTEGRITYData remains consistent,

once written it cannot be modified.

WHAT IS THE BLOCKCHAIN?

FOUNDATIONAL TECHNOLOGYIt is not a financial asset,

it is not a business.

GROWTHPotential enabler for cost savings but also

for growth, new business models and market

structures.

INNOVATIONPart of Nasdaq’s larger tech innovation

portfolio.

SECURITY. INTEGRITY. CONSENSUS. FOUNDATIONAL. GROWTH. INNOVATION.

5

COMPLEX WEB OF THIRD PARTY INTERMEDIATION

6

CSD

Investor InvestorBroker Dealer / Clearing Member

Global Custodian

Sub-Custodian

Sub-Custodian

Global Custodian

Broker Dealer

Marketplace

CCP Clearing Member

Government Corporation Central Bank

CAPITAL MARKETS ON BLOCKCHAIN

7

Investor InvestorMarketplace

Government

Corporation

Asset and Cashledger(s)

Central Bank

Agile business extensibility building upon a strong

foundation

Shared services to be leveraged by business

applications

CORE SERVICESBUSINESS

APPLICATIONS

Open, deterministic, high speed communication,

operations and resiliency layer

NASDAQ CORE

BUILT FOR CHANGE INTEGRATION ROBUSTNESS INNOVATIONGUIDING PRINCIPLES FOR DEVELOPMENT:

CORE

BLOCKCHAIN SERVICEPART OF THE NEW NASDAQ FINANCIAL FRAMEWORK

NFF BLOCKCHAIN SERVICE

9

DEFINED PARADIGM

Strong Architectural Separation

Defined design constructs

Flexible Data Model

LEDGER AGNOSTIC

Multiple Integrations

Native Language Bindings

Flexible Connectivity Options

DESIGN FEATURES

Bare Metal and Cloud Support

Stand-alone or Integrated Service

HSM Integration

COMMON API

Asset Definition

Asset Issuance

Account Creation

Asset Transfer

Account Query

3 BLOCKCHAIN USE CASES

10

eVoting NEW MARKETS

LINQ

ESTONIA VOTING APPLICATION

11

VOTING SERVICECreated to provide a uniform method of developing secure voting applications.

First generation powered by Chain Smart Contract Scripts developed jointly by Nasdaq and Chain.

Second generation powered by Trusted Oracles developed by Nasdaq.

BLOCKCHAINBallot Record of Truth

VOTING APPLICATIONCreated to manage the voting life-cycle for the Estonia Proxy Voting Proof of Concept.

Built using the Voting and Blockchain Services and supports:Creation of Voter and Administration AccountsIssuance/Transfer/Rescinding of Voting RightsCreation of Voting Token(s)Registration To Vote/Cast VoteViewing Voting Results

VOTING SERVICE TOKEN STATE DIAGRAM

12

VOTING SERVICE TOKEN STATE DIAGRAM

APPENDIX

14

BLOCKCHAIN SERVICE MODEL

ConfirmedBlocks

Confirmed Blocks

Transactions Transactions

Auditor Application

NFF

Issuer Application

NFF

Issuer Application

NFF

Account Manager

Application

NFF

Account Manager

Application

NFF

Trading Application

NFF

Blockchain Node

Blockchain Node

Blockchain Node

Blockchain Node

Blockchain Node

Blockchain Node

Generator

NFF BLOCKCHAIN SERVICE

Abstracts and provides access to blockchain platforms.

Presents a uniform and consistent method to access a blockchain.

Allows for the definition and issuance of digital assets, creation of digital wallets and transference

of assets.

Provides a common interface to supported blockchain stacks.