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NYSE CEO Duncan Niederauer on the closing of the exchange and its electronic-trading counterpart.
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Talent and that is the CEO of the New York Stock Exchange Duncan Niederauer Duncan -- you with us and Charlie can you hear me I can -- -- Why the 180 when I spoke to yesterday around mid day you were very confident you can open the the electronic exchange known as -- -- closed -- floor people be protected.
Things should should work pretty swimming obviously you want the markets to be open isn't as low as much as possible why the 180 later in.
Today.
I think it was really is gathering more information from all the market participant that was made clear to us pretty quickly afterward.
That we put -- announced the decision that.
That we realized staying open even electronically was going to but others -- -- though we.
Decided to work with the industry collectively last night that changed that the -- we're at the markets closed apparently.
That think the banks it really expressed concern not only have there.
People being racist -- they were gonna have to mobilize even if the market through electronic -- they'll have to get people work they also express some concerns over.
This being the first time that we were using our content that the technology and production.
And while -- -- -- -- -- forward none of them are really interacted -- -- production before and I think -- that was just too much state bird you know you're.
Give dumping -- you're an amazing diplomat you're also a really Smart guy I just can't imagine that you -- appetite going in.
Didn't I mean might my good guess is this if the brokers are your competitors -- your customers they hope they they operate their own dark pools which are private stock exchange.
Isn't this a -- didn't they did and they go ballistic as we -- first report on Fox Business voices opposition also probably to the regulators did they do that.
Because they wanna compete with you if you guys were open they would have had to -- -- because they don't have demand their staffs they could just saw there floating you.
I don't yeah I don't I don't think that this Charlie LB out of Citi guys doing it if it's certainly within spirited debates.
And as spirited discussion but it I think the bottom line is that I think what we underestimated because you know what our goal being to try to keep the market opens today.
I was impressed is that whether it had to do with them being nervous about having to mobilize that they have to.
Go to that its infancy right out -- you're gonna have to use or whether they would just genuinely concerned about the safety of their people are both.
It was definitely impressed by announced that it would it would that they would greatly appreciated if we would -- that they would rather not be open that they -- using that have been.
Who -- did the did he could be did you regulators the securities exchange commission impress this upon him.
Found no one really -- -- -- I think what we did was that they -- it was a spirited discussion but it was.
I think -- been.
You know where I didn't get any -- at any time where people we're trying to say.
Look who we hope you guys close that we can they -- right and it's about competition there was really not have that I can I can assure you that.
With the SEC involved in the discussions yet -- SBC was involved related that they -- -- -- we thought it was important become the -- but the consensus that the -- first right.
And then kind of report are consensus that the SP -- And then the -- became back -- -- -- after caucusing a bit on their side saying that we support the industry's decision it's probably the paper thing to do so that's what happened to.
So let's just be clear because this is this is news the FTSE did make that blip last minute called you about about expressing that they support what the industry wanted basically a close.
Yet but I would I would -- may be understating it so despite the -- we we present to the SEC is an industry first that that -- The brokers banks the F barrows better at at -- -- the FS BC.
This is the conclusion we've come to is that as an industry what do you think.
They confirmed our decision that we made Vietnam OK late last night the close of collecting the important thing for your viewers naturally going forward as the world watching the -- report.
That you guys are watching -- your your previous guess was certainly pretty sobering in terms of what might happen here the next 24 hours.
We will be making the decision much earlier today with the same you know consensus driven approach.
About tomorrow's market and if even half of what your prior guest talked about is true.
I would anticipate that if the markets will be closed again tomorrow right we we are already working at the industry.
Took the think ahead to Wednesday.
Keeping in mind they think it mentioned yesterday if it's a month then -- -- so it's it's going to be pretty important for the market to be opened in some shape or form.
And we'll picture -- -- close touch with you and everybody else about what we're -- You know yeah yeah yesterday's that you would we would receive some pressure to open where that pressured to opt for -- Wednesday Opel where that pressure come from.
I think the pressure is gonna come from the broader industry because if it's one thing to be closed for safety reasons -- that they -- -- We're not getting a lot of biking dancing -- -- decision especially if these the footage of what's going on -- in the -- New York area.
But I I I think at a certain point when people realize this likely will that pass through.
You know by tomorrow evening.
I think the expectation is going to be.
That we're gonna need to reopen on Wednesday morning.
People don't expect this to be open on what they've morning it is month that they've got their they've got options positions to worry about they've got -- been trading to worry about.
But it's going to have to figure pretty serious situation in my opinion for the market not to be open -- what.
You know let me ask you this though this gets to your technology.
Did you have the technology.
To run -- and run a market that would be orderly did you believe that.
Yep we sure -- -- -- is that plan that I think you and I've thought about this before this contingency plan which did exist prior divide seems arrival.
Was approved you know nine by the SP -- if there's been broadly communicated that and the street has been -- -- recently as this spring.
But I think what happened is you know there's suddenly became a reality that a hypothetical this weekend right and that.
So I'm confident that we could handle it.
Do I think you know running things all electronic all the time at the high quality of market know.
But it emerged in these situations you don't always get the luxury of having all your options available.
You're you you're worried about a FaceBook situation -- I don't I don't think so at all well one less question don't get your you busy and I just wanna make it clear to our viewers.
The markets are likely to be close -- -- you haven't made that decision.
Correct right -- -- they are likely to be closed we have the industry calls coming up for the next couple of hours.
I will -- all of view that we will communicated a lot earlier in the day that we were able to yesterday.
Other were about be -- back -- -- -- like it was yesterday.
I think that the the bias going in that these called.
Is that listening to the experts we are operating under the assumption that a close tomorrow was likely.
But it is not definitive will make that announcement as an industry a couple of hours would be with the approval because and it and it opened Wednesday.
I think we are going to be leaning heavily towards finding a way to open when they absolutely but what we we will -- we will over communicate -- but that's okay.
-- -- thank you -- your time and do you do we have blue -- question here.
Now I was just nice and Connell.
That's okay sorry -- stuff -- thank you and -- they safe.
-- just talk about -- so that that we got a lot of information out of that I Charlie and -- terms of when the markets will be -- when the -- close I think what was interesting is that you mentioned the SEC he's of these diplomat very Smart -- involved the regulators I think put -- -- -- what I it is might as my takeaways from that interview he will you disagree with that date and I -- -- he can do that but listen to what he said.
There was interest and they were involved every step of the way.
