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CME Executive Chairman Terry Duffy on the impact of MF Global and how the exchange helps companies minimize risk.
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Now let's get to Cedras that she's with a man at that held by the CNB.
Terry Duffy.
Executive chairman president this seems Terry -- joining me live in Chicago are not Terry answered trying to send -- thank -- -- appreciate you -- what you multiple.
-- and thank you.
-- yeah we consider much yet he -- -- act crucial day for the markets are standing for the S&P 500 trading -- -- the -- -- debt crisis continues to escalate US economy still struggling.
Out of a very large corporation publicly traded company what are you doing to grow your business right now.
Well I just think it plays into CME's -- here because what we do is help people manage risk.
And there's a lot of risk out there throughout the world and we are probably one the most cost effectively -- -- -- -- that Christie is very typical for corporations.
The -- that risk and a -- today and that inherent problem Gerald so what they do intern is use our products and diversified and -- up some of -- -- From our standpoint being a global exchange and over a hundred countries.
We can help multiple companies to brits but the -- That being said a lot of what happened in the products are treated -- -- you can tell us about what's gonna happen in the future whether it's the bond market the treasury market watching the S&P 500.
Anything you're seeing as far as customer order flow and volume that you indicate something about the future that you can see -- right.
I would say the biggest thing -- the currency market we're seeing record open interest in our foreign exchange complex.
And most people are saying that's due to European prices so people are -- our currency our foreign exchange complex to mitigate risk relates to the -- -- -- currency.
Are very global competitive environment -- if you look at -- stock it's.
Up about 10% so far this year took a little bit ahead on the MF global I situation but it is coming back you're trying to attract more investors.
I do you think that you're gonna be entered shareholder value in such a -- environment -- company.
Well we did a split of our stock analysts and not to see if we create.
Economic value we didn't create.
More liquidity and we had about a 66 million -- How old are slow to our stock being out there and it was held -- of the largest institutions.
We feel it's better we do get more diversified.
And more liquidity is better it's credible we do reliving it right well our liquidity so let's see more liquidity and arrow stuck so that -- are doing so.
And speaking at the hit that -- -- take -- MF global I can't.
Not bring that up is obviously headlines every day.
All day -- that situation -- odds in recent reports out this week you know it's specifically stating -- -- MF global.
I'm -- we're not exactly doing their job I mean how would you -- -- situation as it is right.
Now well I mean there -- reports -- referring to -- came out this week one from trusted Gideon's -- -- and then Luc Frieden on the grow your side.
And what is important about those reports is there's nothing -- that reflected anything to see immediate law.
And I think that's very very important and what they basically focused on was elected controls that were internal in MF global.
So whether that is price Waterhouse Coopers and anybody -- that's -- modern health controls along with the employs them global that's kind of what those reports really pilot.
But you instead today saying that -- stilted.
What you -- yeah.
Absolutely do without question CME you know fulfilled all its obligations as -- -- One last question on that we just -- the trading environment the trading community has moved on this -- or do you still think it's a dark cloud hanging over.
You know it's hard to say I'm sure some have moved on some have not -- mean we're looking at roughly 72 cents to eighty cents and dollar being returned to all traders.
And participants in the marketplace traitors you know.
They are all about what is the next trade so sometimes they have to get this behind them -- -- it could affect your judgment under Q2 trades flooding a lot of -- Are trained to be Sargent -- wanted to -- where it involved in -- -- -- -- ought to align principally focused on is what's next he can't well on the test.
And that being -- that I'm always fighting the but good fight that -- and -- when it comes as speculation.
You know a lot of unwarranted criticism coming from not only.
You know individual -- -- -- that don't necessarily completely understand what speculators do and they valuable option they serve in the market also received criticism from politicians.
Do you think you're making any headway on showing that.
Well I think there's always troops and applauding because.
You know fundamentally if you look at the overall equity market -- -- month from -- Sandra.
It basically broke 900 to a thousand help points at the same time crude oil one from a 110 dollars a barrel to 82 dollars a barrel.
At the exact same time it is basically showing you that the market is reflecting what the future demand.
And supply is going to be it has nothing to do expect it is is being with like and what the sentiment of the world's going to be.
I'm after -- up several Baraka question how mr.
-- imagine let me see I'd just ago is doing great he's got a New York W -- -- tomorrow to send the conference so I'll be joining mr.
-- -- there is doing fabulous.
Economic surely get amount that is -- do an interview with you.
Read and let me literally before we get up and up our -- little isn't the day the bigger your friends and political.
Okay right there aren't as they say hello hello product think that they can't leave that's and it's I can't even pick on him about the -- -- -- now I'm not really not.
Nineteen winning streak number one and we're always in management some little -- and it.
Well what's not to cause that all of that you guys are traitors you know both these guys have -- traded back and speaking up for trade we need -- hear defensive traders without traders.
This academy would not be working at all sometimes ago lot of -- dumped on them but they don't deserve it -- thank you for standing up for good to see it.
December you can written about the Blackhawks -- okay.
