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-- -- -- Okay reports now claiming that the tweet that -- the US markets into a brief tailspin.
Was very dramatic and look at this what we put together was how quickly -- -- removed and then recovered.
Okay it then definitely recovered but it leads to the question.
What are we gonna do what an un friendly.
Country -- hackers situation is finally successful and it takes us much longer to figure out that it was -- Yesterday's was the work of the Syrian.
Electronic group this army thing that they call themselves but there -- millions of these guys out there now.
Who didn't get bitten by this the Chicago Mercantile Exchange the world's largest derivatives.
And futures trading floor in as a set the world little redundant they're -- you deserve it Terry Terry Duffy.
Is the executive chairman of the C have made good to be -- -- how things years and Fox Business exclusive thank you and I was like to hear from you guys.
What happens when you heard about the situation because you've got massive amounts of trading going on every single second.
No we do -- is is actually a couple bucks with an exchange when the local university is giving a speech is some students and professors and you know obviously the phone -- offered a way and so there was a blip in the market and the market went down roughly 1% or sixteen.
Index points as far as -- S&P goes and it came right back and it was basically.
On -- tweets.
That was a bogus tweet from a piece saying that bill there was a bombing at the White House and the president been hurt.
So you -- obviously those are things that we live with in this world today here in in the world the social media in the world of automation.
These are some of the of the downsides that you have with that -- was the executive chairman what was the first thing -- get.
I want to make certain that all our trades -- -- want to look at the market activity so we look at our market activity what was interesting about this was.
You showed in a moment ago about how the markets one dollar recovered very quickly but if you look at the five minute period with the tweet came out actually the market went down about.
The biggest move -- saw want to overtime was about an index point and -- half so we didn't see a big percentage move under way down it went down 1% but didn't just go -- You know 1577.
On the S and -- 1557.
That it went it went down methodically and then came back up Rebecca so.
I think that was one of the things I want to look at because these are things in a market because get to decide how are you good.
Is your air trade policy coming up Brisinger -- trade policy come and a place.
Of which none of that happened that -- -- -- I was gonna say no trading limits as we understood it yesterday were triggered in CME products does that still -- Yes it does I mean we we've we've got you're not changing any nicer not enough canceling -- Hillary it's not enough.
I know we coordinate within.
With the stock exchanges around the world are percentages are you know lives but the -- or 7%.
Thirteen and 20% intraday and -- this was a small percentage down a problem as.
This wasn't so much about the market movements it goes to what you said earlier this is about what made the market move which was an erroneous tweet.
That put up some fairly scary information that the world panic that now obviously there's.
Program -- that one and a place and people Bibby fouled on -- that tweet and there's others that didn't you know obviously the human.
Probably -- participated well.
Then again with this brings us to the open outcry system but I'm more -- -- the fact that we now have.
High frequency traders and companies that use algorithmic trading that actually troll.
All kinds of web sites and Twitter and -- computer systems make decisions as to whether to buy or sell on what they perceive to read it.
Whether it's been confirmed or denied on Twitter and how dangerous is that Terry how long before something like that takes down our markets for -- I don't know.
But based on Americans was I'm not convince -- the case because you when you look at our market structure.
These there's participants that are in the market that are looking for directional -- everybody is not a high frequency -- The hallmark of -- high frequency was so if they see a blip in the market -- -- go one direction there's people buying that activity -- people showing that activity.
So the people that stood and -- market yesterday because they want to have exposure to a marketplace and not pay attention to that tweet.
Actually quite well and -- it was a traders sold the market down precipitously.
They got filled -- a lot of orders it probably wouldn't got -- out of the wasn't financially.
So that those are some of the the things happened when you have these high frequency trades you know -- Course that Bloomberg began and by the way for those you don't know these Bloomberg terminal some of the top trading course most of them have these terminals with a lot of data coming in ago.
Bloomberg recently started putting Twitter up as part of their data and sifting.
-- of the state.
You know I I can't speak for Bloomberg if it's a mistake or not what does that mean that's separatists -- -- I think I'll I mean this is not the way we disseminate our guard quote systems around the world that -- very important we don't do it via Twitter.
You know we spend a lot of money in our market did in the majors disseminated around the world.
In the most cost effective way for us but the same time in the most expeditious way for the clients if you are the CF.
-- seal or the head of the SEC which you're not but if you work.
Which you do something to make sure that unfriendly governments and hacking attempts who knows what like these.
That there is some type of stop gap or some preventative measure to take now.
I would love that there's just a citizen of the United States right don't -- I think that would like to have those.
Safety guards put in place but I'm not quite certain he can do that -- I mean it's a big world out there we're all relying on social media for different information throughout -- day.
Twitter and FaceBook and the rest of we're all part of that social media and sometimes is erroneous information about it.
So I think it's up to the participant is using that to to say what's really real and what's not.
So in the end I'd like to point out that neither through the Lehman implosion.
Through the flash crash there any of this the CME.
Has not stumbled you guys have not stumble during these points what's the secret.
We don't take any short cuts -- we we believe in doing things the right way.
In doing them methodically we invest in our company we don't invest further a week a month three year we invest for a hundred years and then also looking for traders to keep the open outcry system -- and I think that's -- depending upon the way the markets are going as you know other dominantly electronically traded we try to replicate.
A lot of our electronic systems the way the participants used to do it in -- in the -- open outcry method but again.
We have high frequency traders are markets we have a lot of people that need to -- were -- -- transfer our markets.
Higher frequency provides a lot of liquidity so the people that need to do risk transfer for their -- products interest rates.
Banking products and be there for that liquidity so close all good things on behalf of our clients.
It's a good thing to have you here thank you very much -- -- for Terry Duffy CME group executive chair and president started many decades ago can.
And as a trader joy they had six adults are you know every level of the thank you Terry you close.
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