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FBN’s Charlie Gasparino with NYSE Euronext CEO Duncan Niederauer on losing Facebook’s listing to Nasdaq, plus his rivalry with Nasdaq’s Robert ...
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CEO Duncan Niederauer at his first interview since FaceBook decided to go with an NASDAQ over the 94 its market debut Charlie taken away.
And you know I -- until Melissa my first question I think he got the cut off my finger.
-- significant part of my body.
It's not going to be that difficult but I do have to ask you that you fought hard for the FaceBook listing we did people on the floor were very just what do they want to that order flow.
How big of a loss was.
And it -- real disappointed you like to would have all right.
I think if there's a silver lining to that I'm proud -- we put forward we viewed that as a great partnership and co branding opportunity.
I think -- -- discussion that we would have been in the frame on a few years ago.
And I think we made it a really tough decision for them.
And I'm really proud of we've accomplished in the tech sector overall the last few years here but -- that would have been -- nice from the -- that about it what did you look for.
I don't think we wish you get into too many details I will tell you it was a pretty comprehensive proposal.
As -- said we viewed it as an opportunity that there were a lot of things there was a lot of common DNA between them running the largest social network.
And -- running the largest business network and we thought there was a lot of ways to bring that together.
That's a sort of like like across platforms and partners he and I thought you know if if your FaceBook a lot of the customers.
You'd like to get.
You know using the social media platforms more part of the consumer brands that are listed here so we were trying to pick up on our community a lot but.
-- -- -- -- -- -- -- -- -- -- That's one less thing.
I mean we've gone from zero to sixty in terms of I know in -- in the in the text based in the last five years and you know we'll keep fighting.
And last week he would TD Ameritrade Mellencamp -- just came over.
Do you think that you think you -- -- -- legitimate shot at FaceBook because there's lots of reasons why did go to the NASDAQ you know with apple -- with Google.
Yeah I -- I think they're used to date.
It was easier for companies that sort of choose their exchange and I think what we've tried to change the last four -- five years -- to say.
We may have advocated that technology sector few years ago let's get in there and fight hard for everyone I think the results you see.
A Lincoln coming here -- coming here -- -- media coming here and exact target coming here pandora coming here.
Track records pretty good lately but that -- that was a big what's that about -- you gonna continue to compete for.
We don't yet instead anywhere would be a 60% of us here today so well line -- -- -- wonder what's interesting is that there is of this amazing rivalry between -- between you.
At the New York Stock Exchange.
And Bob -- filled at the NASDAQ.
Is it a personal rivalries and I get the feel from seeing you guys.
Kind of don't like -- I mean I think that's pretty much overstated someone gave me rates for the third quarter dispose of -- analysts -- -- should that apparently.
Someone gave me great sports announcer the other day they said it's like pitino and -- -- right thank you ladies showed they've they've though they don't hate each other commodity.
They they fight every day over the same -- it's their fight to win the hearts and minds -- can have Kentucky basketball fans.
And -- we're gonna fight really hard on the field with the same time I think we've got some common interest you look at what's going on the market right now.
The two of us do run the largest exchanges in the US.
We have -- -- pass any problem in the markets forget the fragmentation.
I think the bigger issue there were only starting to talk more about is almost 40% of the market isn't getting to his exchange or -- So I think the two of us have a lot more in common wish you were -- -- just heat up question -- should you ever so he's trying to that I job -- -- -- -- -- eight.
Did you see a combination between the NASDAQ and it -- stock exchange.
Ever remember he tried to -- Truckee try to do hostile I think I think the regulators are pretty clear on -- when I -- common interest I mean.
It should be in the collective interest of regulated exchanges in this country.
To work with the regulators to figure out if there's a way to create a more level playing field because I don't think it's good for investors or anybody else forget about whether it's good for us.
It's not good for the markets or investors for this much of the market to be trading I didn't but I did it.
I -- more support into the market I I don't think so I don't think you can force anyone -- you can't create.
This equilibrium right I think we have to think about is.
What were the intended consequences of the changes that were made in the last decade over the unintended consequences in other ways to level playing field that's -- I.
It's been a pretty typical past twelve months and -- hostile takeover by by right filled the -- Like I put -- -- right now as we don't expect OK -- there was the filled Deutsche Boerse deal.
And then there was the FaceBook IPO -- -- listing.
-- -- -- It's it's interesting those -- those are certainly.
Three highlights of the last twelve months but I think that's far from all that happened here right so right.
So you know earnings and and even -- 20% last year the team here did a fantastic job last year.
The record in listing speak for itself whether it's on the IPO -- the transfer front.
And I -- say give up to -- them -- but realistically you're not gonna winnable I agree it out there have been moments where I thought you know.
That I -- read the tea leaves on TD deal I have that it probably until the regulatory environment is not alone that I.
I really did Charlie I think -- we've -- the calculus -- Venice as intellectually straight up as we could be.
We've looked at the precedents there -- clear precedents out there given the deals that have been approved you know over here.
We looked at everything the EC and the EU has done in terms of defining the market.
And I must confess -- UN the and the viewers -- never occurred to me that the EU would come out with.
They completely contradictory definition of the market.
And if they hadn't the deal would've gotten approved that's -- in the big city move on again you gotta move forward.
Which you know we know that you're doing your divested its try to cut costs and investing from some small -- -- -- -- argue put a bidding for the London mercantile exchange.
But -- -- effect will the New York Stock Exchange in the next say three to five years ever do it and try to do another transformational deal and so.
So much changes in five years she would never say never but if you said to me do I think we could do another transformational.
Complicated cross border merger in the next twelve to 24 months.
I think that's hard not only for us but for anybody in the industry -- so -- no because -- Ayatollah I guess I just think whatever is going on around us in an industry that should scale globally.
The regulators and the powers that -- -- saying you know maybe not right now so it then becomes our job to find other ways to grow intelligently.
The -- -- good potential example of that.
You know in sourcing are clearing business is a good example of that growing our technology business is a good example of that -- our industries had a tougher time -- is can you grow organically.
We all got bailed out by volumes for -- while the ones getting bailed out by -- -- efforts -- another question is that the stock since you've been here now is obviously not all your -- you took.
Took the Helm right in 2007 and the 2009 of the -- at the beginning of the financial crisis stock's down like 70% since then.
We tell investors.
So I think that that the question is like that's from the moment I took the jobs of today.
-- -- we went back -- this time three years ago in the stock was in the mid teens right so you just have to come in everyday and you set to execute.
Right I mean that we can't control the volume environment we can't control the macro environment.
-- -- I realized at the time I came and given that was in front of the crisis.
Not difficult to predict what was gonna happen right most that's the first twelve to fifteen months have -- in the crisis was coming I don't think that was -- -- conducted.
