$2.75 billion Verafin acquisition and has made the business a key pillar of its corporate structure, which last quarter was split into three divisions - anti-financial crime (AFC), market platforms and capital access platforms.
The exchange operator, which already has around 2,500
banks and credit unions using its AFC cloud-based platform to
help detect, investigate, and report money laundering and
financial fraud, said it signed up its first big Tier 1 bank,
which holds over $1 trillion in assets, in April.
"Getting to that first Tier 1 win has been a very important milestone for us because now that we can prove ourselves there, it will make it easier for other banks to say, 'Okay, I'm not taking a risk here, I'm actually taking a proven solution,'" Nasdaq Chief Executive Adena Friedman said on an analysts' call.
Revenue from the AFC unit jumped nearly 17% from a year earlier to $84 million.
Net trading services revenues rose 1% to $267 million as rising interest rates, persistently high inflation and the banking crisis boosted volatility and trading levels.
Revenue from Nasdaq's indexes, which are widely referenced by exchange-traded products and provide the company with licensing fees, slumped 9.8% to $110 million. Excluding one-time items, Nasdaq earned 69 cents per share, three cents above analysts' mean estimate, according to Refinitiv data.
Nasdaq's main exchange hosted 40 IPOs in the quarter, versus 70 a year earlier, as market volatility kept private companies on the sidelines.
Net revenue, excluding transaction-based expenses, rose 2% to $914 million. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ IPOs on Nasdaq Exchange plunged on market turmoil ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by John McCrank in New York and Siddarth S in Bengaluru; Editing by Shilpi Majumdar and Deepa Babington)
223-6643; Reuters Messaging: john.mccrank.thomsonreuters.com@reuters.net))