'We just don't think all electronic all the time is the right answer.'

By: Ray Pellecchia

File Under: NYSE

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For anyone who missed it last night: Nightly Business Report has posted a transcript and video of the interview with our CEO Duncan Niederauer. Here is co-anchor Susie Gharib's blog post on the same subject, as well as my related post from last night, which has drawn a couple of good comments.

Excerpt from the transcript:

GHARIB: Duncan, how do you plan to deal with the intense competition, not only from the NASDAQ but so many start-up exchanges in the U.S. and Europe?

NIEDERAUER: We need to get closer to the customers, roll out the functionality they're looking for, try to remind ourselves that even though the liquidity is fragmented, we can still be a very, very meaningful player in some of the markets where before are we going to have market share that we had three or four years ago? No. But there is a lot of other new areas where we can get a lot better.

GHARIB: As you know, the momentum is towards electronic trading. I know this is a touchy subject here at the exchange, but don't you have to accelerate that move into electronic trading just to stay competitive?

NIEDERAUER: We have embraced technology here. I think people think because we still have a floor we're somehow resistant to the changes. We know that's where the market is going. We just don't think all electronic all the time is the right answer. And we think the markets over the past few months have proven that, that if you're all electronic all the time and there's no opportunity for price discovery, all that does is maximize volatility at the time when you least want that volatility.

Happy Thursday, folks. On the historical trivia front:

Today in NYSE History(NYSE.com)
10 April 1792 -- The New York State legislature passed an act "to prevent the pernicious Practice of Stock-Jobbing," placing restrictions on certain classes of stock transactions.

Good word, pernicious. Have to read up on "stock-jobbing."

Also in the annals of the pernicious, in more recent history:

Financial Flashback (WSJ.com)
April 10, 2002 -- New York State Attorney General Eliot Spitzer said he wants major structural changes in the way Wall Street firms provide stock research. Other firms may be in for the same public flogging Merrill received Monday.