Nasdaq is always looking to provide data and transparency in new markets and two years ago the exchange launched an index to track cannabis stocks. Since then the legal cannabis market has developed in the U.S. and Canada and Nasdaq is now also providing data on cannabis across asset classes and publishing monthly analysis on the market.
Patrick Mahoney, a data product manager with Nasdaq’s information services, said the legal cannabis market has become more normalized after a few years of unprecedented growth and some early inflated valuations.
“We are now seeing growth from more sophisticated investors entering the space,” he added. “A well-rounded report on the cannabis market is more critical to decision making than ever before.”
As a result Nasdaq this year launched ‘Cannabis Market Insights’, a monthly report on the legal cannabis industry in Canada and the U.S. in partnership with Cannabis Benchmarks, a division of New Leaf Data Services. In addition, three of Cannabis Benchmarks’ proprietary Canada cannabis spot price indexes are being distributed through the Nasdaq Global Index Data Service.
Mahoney explained that Cannabis Benchmarks collects a plethora of data on the legal cannabis and hemp markets. Cannabis Benchmarks cover the vast wholesale cannabis market in Canada, and also offer insight into the retail business.
The report incorporates data from commodities, equity and exchange-traded fund markets, as well as historical snapshots and commentary on key indicators.
“This gives investors a unique, all-encompassing picture of both the wholesale and retail market,” he added. “A picture that proves extremely useful when making well-informed investing decisions.”
Sofia Saravia, a manager with Nasdaq’s global indexes, continued that the company combines data from Cannabis Benchmarks with the Nasdaq Yewno Cannabis Equity Index (NQNACE), the broader commodity benchmark, and ETF data when compiling the report.
She said: “The wholesale data from Cannabis Benchmarks includes information such as the number of stores opened, and medical and non-medical sales.”
The Nasdaq Yewno North America Cannabis Economy Index was introduced in 2018 to track the legal cannabis market in equities in Canada and the U.S.
“The new report allows us to expand into other asset classes by also providing data on cannabis as a commodity and increasing transparency,” added Saravia.
Mahoney said the data could expand across geographies as more markets become legal on a federal level, or into hemp as the data becomes more mature. “Nasdaq is always looking to bring transparency to new asset classes. We are organising virtual conferences with our partners, Trade Talks and educational webinars.”