Enforcement Release: Nasdaq, Inc.

Date issued: Dec. 08 2023

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TURBOFAC Commentary (846 words)

Notes:

1) TRADING PLATFORM OPERATION AS A SERVICE

The Nasdaq case is precedential/notable for a number of reasons. First, note that it is probably not a coincidence that the enforcement release comes right after Enforcement Release: Binance Holdings, Ltd., in which, for the first time ever, OFAC penalized an entity that operates an asset exchange in connection with trades involving sanctioned persons. In Binance, however, the operator of the platform was not subject to U.S. jurisdiction, the transactions were settled by the person operating the platform, and the basis for liability as that the non-U.S. operator “caused” U.S. persons to export services to sanctioned persons when they were algorithmically matched for trades with sanctioned persons.

Here, the facts are a bit different, since the trades were not actually settled on the platform at issue, the trades did not involve and U.S....