• Jan
  • 02
  • 2009
  • 12:46 PM

NYSE Euronext CEO Duncan Niederauer on 2008: Volatile, Orderly...and Tiring!

By: Ray Pellecchia
File Under: Bonds, ETFs / Indexes, Liffe derivatives, NYSE, NYSE Amex, NYSE Arca, NYSE Euronext, Options

NYSE Euronext CEO Duncan Niederauer spoke briefly with Bloomberg TV's Cris Valerio on Wednesday afternoon about 2008 and what's ahead. Here's the link to the video (note, you have to click on "video".)

Some key takeaways:

• It might not have seemed like it given 2008's price volatility, but trading on the New York Stock Exchange was pretty orderly. Traders and investors retreated to the sidelines and that exacerbated the volatility, but on the NYSE by and large, the members and the technology did their respective jobs.

• It's difficult to forecast trading volumes, but here are some factors to consider: President-elect Obama is bringing with him new hope and optimism, people have a fresher outlook, and there remains money on the sidelines. On the other side of the ledger, until confidence comes back and volatility returns to more-normal levels, Duncan doesn't think that derivatives volumes will return to the levels of two or three months ago.

• His message to regulators is that last year's experience shows that transparent, regulated markets work. Using these markets to bring more sunlight and liquidity to opaque, less regulated securities would be preferable to writing reams of new regulations.

• Best quip: in response to being asked what it was like to head NYSE Euronext during the past year, he says with a smile, "In a word, tiring."

Comments

Good Post Ray. I still believe that having stocks trade in five cent increments is the real answer to extreme market moves as well as adding real liquidity. This would create depth on the bid/offer side and add jobs in the industry also. When you enhance the profits this creates more well paying jobs to the overall industry. Many in the business feel the same way. Why not try a 100 stock pilot programme as Mr. Maguire suggested? Have certain stocks below 10 bucks trade in pennies and others above trade in nickels. Happy New Year Ray, thanks again for the great blog.

by tony dey on January 3, 2009 8:59 PM

Tony -- Thanks for the suggestion, and as always, thanks for writing. Happy 2009 to you too!

by Ray Pellecchia on January 4, 2009 7:47 AM

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