LIZ: IN CASE YOU MISSED
YESTERDAY'S STOCK TALK THE FIRST
TIME WE SHOWED YOU, LET'S REPLAY
THE NIGHTMARE.
THE S&P LOST 2%, THE NASDAQ DOWN
NEARLY 3%.
ANYONE WHO THOUGHT THE END OF
MIDTERM ELECTIONS MEANT THE END
OF VOLATILITY WAS CLEARLY WRONG.
LET'S TAKE YOU LIVE TO "WALL
STREET JOURNAL" TECH-D LIVE
CONFERENCE IN LAGUNA BEACH WITH
SUSAN LI, SOMEONE WHO HAS NO
PROBLEM DEALING WITH MARKET
VOLATILITY, STACY CUNNINGHAM.
TAKE IT AWAY, LADIES.
REPORTER: ALL RIGHT, LIZ.
SO STACY, GREAT SEEING YOU HERE
AT THE TECH CONFERENCE ON A DAY
WHERE MARKETS ARE JUST MOVING UP
AND DOWN.
I THINK WE'RE DOWN A FEW HUNDRED
POINTS COMING OFF THE 600 POINT
LOSS YESTERDAY.
TALKING TO INVESTORS, YES, WE
ARE AT A TECHNOLOGY CONFERENCE
BUT THEY SAY TECH IS THE REASON
WHY WE ARE SEEING SUCH BIG
VOLATILITY.
IT'S THE ALGORITHMS AT PLAY.
>> I THINK IT'S LESS ABOUT THAT,
MORE JUST MARKET REACTION TO
NEWS AND UNCERTAINTY OUT THERE.
WE HAVE BEEN IN UNCHARACTERISTIC
WE HAVE BEEN IN UNCHARACTERIST C
UNCHARACTERISTICALLY LONG PERIOD
OF LOW VOLATILITY, NOW WE ARE
JUST SEEING THE MARKETS BEHAVING
MORE NORMALLY COMPARED TO THE
WAY THEY USED TO.
THE MARKETS REACT TO NEWS AND
THAT'S WHAT'S HAPPENING RIGHT
NOW.
REPORTER: SO FOR FOLKS HERE AT
THE EVENT, WHEN THEY COME UP AND
SAY WHAT'S GOING ON WITH THE
MARKETS, WHAT DO YOU SAY?
>> I THINK THEY ARE ACTING THE
WAY THEY TYPICALLY WOULD ACT.
WHEN YOU LOOK AT 2017, THERE WAS
A REALLY QUIET, UNDERSTATED
REACTION FROM THE MARKET ON ANY
TIME THERE WAS NEWS OUT, WHETHER
IT WAS GLOBAL NEWS OR ANY KIND
OF MARKET CONDITIONS THAT
TYPICALLY WOULD LEAD TO A MARKET
REACTION, WE WEREN'T SEEING
THAT.
NOW WE ARE ACTUALLY SEEING
INVESTORS ABSORB NEWS AND THE
MARKETS REACT MUCH MORE QUICKLY
BECAUSE THEY ARE USING
TECHNOLOGY TO REACT.
SO YOU SEE REACTIONS HAPPEN AND
YOU SEE THEM GO UP AND DOWN AND
I THINK IT'S REALLY IMPORTANT
JUST TO MAKE SURE THEY ARE
OPERATING SMOOTHLY BECAUSE
PRESERVING INVESTOR CONFIDENCE
THROUGH THAT IS SO CRITICAL.
REPORTER: I THOUGHT LIZ WAS
GOING TO ASK A QUESTION BUT I
WILL SNEAK ANOTHER ONE IN THERE.
LIZ, ARE YOU THERE?
YOU WANT ME TO FIRE ANOTHER ONE?
LIZ: I AM RIGHT HERE.
I THINK INVESTORS ARE VERY
THIRSTY FOR ONE THING, MORE NEW
LISTINGS, MORE IPOs.
HOW DO YOU GET THE EDGE,
ESPECIALLY WHEN I KNOW THAT SOME
OF THE BIGGEST STARTUPS ARE
RIGHT THERE AT THAT CONFERENCE
INCLUDING THE CEO OF UBER, DARA
KHOSROWSHAHI.
THERE'S ALWAYS A STEEL CAGE
MATCH GOING ON BETWEEN YOU AND
THE NASDAQ TO NAB THESE
LISTINGS.
WILL YOU BE HITTING UP SOME OF
THESE STARTUPS THERE?
>> I THINK THE MOST IMPORTANT
THING IS MAKING SURE COMPANIES
OUT THERE REALIZE AND SEE THE
BENEFITS OF THE PUBLIC MARKETS
BECAUSE IT'S NOT JUST BETWEEN
THE NEW YORK STOCK EXCHANGE AND
NASDAQ.
THERE IS ALSO A LOT OF PRIVATE
CAPITAL THAT'S AVAILABLE IN THE
WORLD.
THAT'S WHY YOU ARE SEEING MANY
OF THESE UNICORNS WAIT TO COME
TO THE PUBLIC MARKETS UNTIL MUCH
LATER IN THEIR PUBLIC -- THE
COMPANY LIFE CYCLE.
IT'S IMPORTANT THEY SEE THAT THE
BENEFITS OF PUBLIC MARKETS
DELIVER THAT UNPARALLELED
LIQUIDITY THAT'S OUT THERE, THE
VISIBILITY AND BRAND THEY CAN
LEVERAGE TO ATTRACT CUSTOMERS
AND INVESTORS IS SO CRITICAL.
ONE, WE WANT TO MAKE SURE THEY
SEE THAT AND KEEP THAT IN
BALANCE, THEN THEY WILL GET DOWN
TO THE MARKET DIFFERENTIATORS
BETWEEN THE PUBLIC EXCHANGES.
LIZ: ONE OF THE THINGS THEY SHY
AWAY FROM IS QUARTERLY GUIDANCE
BECAUSE SOMETIMES IT'S VERY HARD
TO HAVE THAT KIND OF VISIBILITY.
WHERE DO YOU STAND ON THAT?
YOU HAVE WARREN BUFFETT AND
JAMIE DIMON SAYING GET RID OF
THE QUARTERLY GUIDANCE THAT'S
REQUIRED OF SO MANY COMPANIES.
>> I THINK THERE ARE TWO
DIFFERENT CONTRIBUTING FACTORS
TO THE TALK ABOUT QUARTERLY
EARNINGS REPORTING.
ONE OF THEM IS JUST THE WORK
THAT GOES INTO PRODUCING THOSE
DOCUMENTS AND IS THERE A WAY WE
CAN STREAMLINE SOME OF THAT DOWN
SO THAT COMPANIES CAN HAVE A
MORE EFFICIENT WAY TO
COMMUNICATE WITH THEIR INVESTORS
AND STILL CARRY THE SAME AMOUNT
OF INVESTOR PROTECTION BUT JUST
LIMIT SOME OF THE WORK THAT GOES
WITH THAT.
THE SECOND PART IS ADJUSTING THE
INVESTOR VIEW OF A SHORT-TERM
OUTLOOK FOR A COMPANY VERSUS A
LONG-TERM OUTLOOK.
WE WANT TO MAKE SURE INVESTOR
PROTECTIONS ARE COUPLED
APPROPRIATELY WITH GIVING
COMPANIES THE FLEXIBILITY TO
LEAD THEIR COMPANIES FOR THE
LONG TERM, NOT JUST THE
QUARTERLY RESULTS.
THAT'S SOMETHING WE ENGAGE VERY
FREQUENTLY WITH OUR ISSUERS ON
AS WELL AS WITH THE REGULATORS
AND SEE IF THERE'S A WAY TO
STRIKE THAT RIGHT BALANCE.
REPORTER: THANK YOU.
IT'S GREAT TO SEE YOU HERE AT
THE "WALL STREET JOURNAL" LIVE
EVENT.
I KNOW YOU ARE HEADING TO SAN
FRANCISCO FOR MORE TECH TALK,
I'M SURE.
IT'S GREAT TO SEE YOU.
LIZ, WISH YOU WERE HERE.
BACK TO YOU.