>> Maria: WELCOME BACK. WORLD WAR II, 9/11, AND NOW
COVID-19.
COVID-19. MAJOR EVENTS FORCING THE
NEW YORK STOCK EXCHANGE TO CLOSE
ITS FLOOR TRADING PIT THAT IS
WHERE WE FIND OURSELVES TODAY.
THAT’S THE DEAL BEGINNING
MONDAY.
MONDAY. ABOUT THE EXCHANGE WILL BE OPEN
FOR ELECTRONIC TRADING.
HOW IS IT GOING TO IMPACT EVERY
DAY INVESTORS?
DAY INVESTORS? WE TALK WITH THE PRESIDENT OF
THE NEW YORK STOCK EXCHANGE,
STACEY CUNNINGHAM.
STACEY CUNNINGHAM. THANK YOU FOR JOINING ME ONCE
AGAIN.
AGAIN. THIS IS A BIG DEAL, CLOSING THE
TRADING FLOOR FOR A PERIOD OF
TIME PAIRED WHAT ARE YOUR
EXPECTATIONS?
EXPECTATIONS? >> IT IS A BIG DEAL MARIA.
WE HAVEN’T CHOSE CLOSED THE TRAD
DOORS.
DOORS. WHAT IS DIFFERENT ABOUT THIS
TIME IS THAT ELECTRONIC TRADING
WILL CONTINUE.
WILL CONTINUE. SO THAT IS PART OF IT.
WE RUN MULTIPLE MARKETS, FIVE
EQUITY EXCHANGES, MANY OF THEM
DREADFULLY ELECTRONICALLY.
DREADFULLY ELECTRONICALLY. THE NEW YORK STOCK EXCHANGE
INTRODUCES THAT HUMAN JUDGMENT
ELEMENT ON TOP OF STOCK TRADING.
THAT LEADS TO DAMPENING
VOLATILITY DURING TIMES OF
STRESS.
STRESS. AS WE HAVE SEEN LATELY THAT
MARKETS HAVE BEEN PRETTY
VOLATILE.
VOLATILE. WE ARE HANGING ON TO TRY TO GIVE
THAT EXTRA ADDED PROTECTION INTO
THE MARKET.
THE MARKET. BUT I GOT TO A POINT WHERE WE
WERE JUST CONCERNED.
WE CANNOT GUARANTEE THAT PEOPLE
ARE GOING TO BE ABLE TO BE
PROTECTED.
PROTECTED. WHILE WE ARE SEEING HOW THE
VIRUS UNFOLDS AND STEPS THAT WE
CAN CONTINUE TO TAKE, WE ARE
TEMPORARILY SHIFTING UNTIL WE
GET MORE CLARITY AROUND THAT
SITUATION.
SITUATION. >> Maria: SO WHAT ARE YOUR
EXPECTATIONS IN TERMS OF HOW
LONG THIS LAST?
STACY, WHEN WE SPOKE EARLIER
THIS WEEK ON FOX BUSINESS ON UP
ABOUT MORNINGS WITH MARIA," WE
NEED HUMAN INTERACTION, WE NEED
THAT EXTRA BUYING OR SELLING TO
BALANCE OUT A TRADE, WE HAVE IT
HERE ON THE FLOOR OF THE NYC.
ARE YOU WORRIED THAT YOU WILL
NOT HAVE THAT COMPONENT NOW WITH
ELECTRONIC TRAINING ONLY?
>> LAST FRIDAY WHEN THE
PRESIDENT ANNOUNCED THAT HE WAS
GOING TO FILL THE OIL RESERVES,
IT WAS JUST A FEW MINUTES BEFORE
THE CLOSING AUCTION.
WE SAW MASSIVE BUYING ORDERS
COMING INTO THE MARKET.
THE TRADERS HERE ON THE FLOOR
WERE ABLE TO SOLICIT OFFSETTING
SELL ORDERS SO THEY COULD DAMPEN
THAT VOLATILITY.
THAT VOLATILITY. THAT IS AN IMPORTANT FUNCTION
THAT THEY ARE ABLE TO DELIVER.
WHEN WE GO FULLY ELECTRONIC, YOU
DON’T SEE THAT SAME EFFECT.
YES, I THINK IT’S GOING TO ADD
TO A LITTLE BIT OF ADDITIONAL
VOLATILITY IN AN ALREADY
VOLATILE.
VOLATILE. BACK ON TIME.
AS CONCERNING FROM AN OPERATIONS
PERSPECTIVE.
PERSPECTIVE. STOCKS WILL STILL OPEN AND
CLOSE.
CLOSE. TRADERS WILL STILL BE ABLE TO
SEND THEIR INTEREST IN.
AND THINGS WILL TRADE NORMALLY.
I JUST EXPECT YOU ARE GOING TO
SEE ADDITIONAL VOLATILITY AROUND
THE EDGES.
THE EDGES. THAT IS UNFORTUNATE GIVEN HOW
THE MARKETS ARE ALREADY DEALING
WITH SO MANY THINGS.
>> Maria: LET ME MOVE AWAY
FROM THE OPERATIONS OF THIS
BECAUSE WE CLEARLY UNDERSTAND
WHY YOU’RE CLOSING THE TRADING
FLOOR FOR A TEMPORARY.
KNOCKOUT TIME.
KNOCKOUT TIME. YOU’VE GOT WHAT?
ONEA COUPLE HUNDRED PEOPLE ON TH
FLOOR?
FLOOR? >> THIS IS A PRETTY PATRIOTIC
GROUP.
GROUP. THEY LOOKING TO COME BACK AS
SOON AS POSSIBLE.
THEY WANT TO DO THEIR PART.
THEY UNDERSTAND THE VALUE THEY
PROVIDE TO INVESTORS.
>> Maria: AS WE ALL DO.
AND OF COURSE.
BUT THAT ASIDE FOR A MOMENT.
I WANT TO ASK YOU ABOUT
SENTIMENT BECAUSE YOU HAVE BEEN
ON THE FLOOR FOR YEARS BEFORE
YOU HAD THIS ROLE OF PRESIDENT,
YOU ARE THERE ANY CHANGES ON THE
FLOOR OF THE EXCHANGE.
WHAT IS YOUR TAKE ON SENTIMENT
PARTICULARLY TODAY AS THE
PRESIDENT STARTED TALKING ABOUT
VACCINES, TALKING MORE ABOUT
CURES AND ABOUT THERAPIES TO
TREAT CORONAVIRUS?
TREAT CORONAVIRUS? WE SAW THE MARKET CHANGE
DIRECTION.
DIRECTION. WE SAW THE MARKET ACTUALLY TRADE
UP AND FINISH UP 188 POINTS ON
THE DOW JONES INDUSTRIAL
AVERAGE.
AVERAGE. ABOUT 1%.
ABOUT 1%. TO FEEL A CHANGE IN SENTIMENT ON
THE FLOOR?
THE FLOOR? BECAUSE WE HAVE LOST $7 TRILLION
IN MARKET VALUE.
I’M WONDERING WHERE THE
SENTIMENT GOES NOW, STACEY.
>> YES, MARKETS REACT TO
UNCERTAINTY AS YOU KNOW WELL.
WHAT WE’VE BEEN TRYING TO
UNDERSTAND IS, HOW IS THIS VIRUS
PANDEMIC GOING TO CONTINUE TO
UNFOLD?
UNFOLD? WHAT IS THE LONG-TERM IMPACT
GOING TO BE ON AMERICANS AND
THEIR EVERYDAY LIVES?
I THINK WHAT WE’RE SEEING IS THE
GOVERNMENT RISING TO THE
OCCASION TO ANSWER SOME OF THESE
QUESTIONS.
QUESTIONS. THESE ARE THE THINGS THEY ARE
GOING TO DO.
I’VE HAD THE OPPORTUNITY OVER
THE PAST COUPLE OF WEEKS TO TALK
TO THESE FEDERAL ADMINISTRATION,
TO THE TREASURY DEPARTMENT, TO
THE HOUSE FINANCIAL SERVICES
COMMITTEE TO OUR REGULATORS, TO
LOCAL CITY AND STATE GOVERNMENT.
AND ALL OF THEM ARE VERY FOCUSED
ON HELPING THOSE IN NEED.
I THINK THAT YOU WILL SEE
THROUGH THE STIMULUS PACKAGE AN
ANNOUNCEMENT THAT
ANNOUNCEMENT THAT PRESIDENT CONTINUES TO MAKE,
THERE’S A LOT OF INTEREST IN
ADDRESSING THE SHORT TERM PAIN
THE ECONOMY.
THE ECONOMY. AND SO THAT IS WHERE I THINK YOU
ARE SEE MARKET REACTION.
IT’S A CHANGING MOMENT AND VERY
FLUID.
FLUID. EVERY SINGLE DAY WE GET NEW
NEWS.
NEWS. PEOPLE ARE REACTING TO THAT IN
REAL TIME.
REAL TIME. >> Maria: YEAH, REAL QUICK,
STACEY.
STACEY. DO YOU WANT TO SEE IN OTHER
CHANGES IN TERMS OF REGULATIONS
OVER FINANCIAL SERVICES OVER THE
NEW YORK STOCK EXCHANGE?
THE PRESIDENT IS DOING FAST
TRACK AT THE FDA.
IS THERE ANY CREATING A MORE
EFFECTIVE TRADING SITUATION FROM
WALL STREET THAT YOU WOULD LIKE
TO SEE FROM A TRADING STANDPOINT
REAL QUICK?
REAL QUICK? >> ONE THING I WILL HIGHLIGHT
BECAUSE IT HAS BEEN RUMORED THAT
THERE IS TALK OF SHEDDING THE
MARKET DOWN TO STOP THE MARKET
DECLINE.
DECLINE. I HAVE NOT HAD THAT CONVERSATION
WITH ANY OF THOSE GROUPS I
TALKED ABOUT.
TALKED ABOUT. IF THEY ARE CONSIDERING IT.
AT THE TREASURY AT CONGRESS, ANY
OF THOSE AREAS.
I THINK THAT UNDERSTANDING THAT
THAT IS NOT THE CASE WOULD BE
ACTUALLY HELPFUL TO INVESTOR
SENTIMENT.
SENTIMENT. IF PEOPLE HERE THAT THE MARKET
MIGHT BE CLOSE, THEY MAY BE MORE
INCLINED TO SELL.
I THINK HEARING A CLEAR
STATEMENT -- WHICH WE HAVE HEARD
FROM SECRETARY MNUCHIN.
THEY HAVE NO PLANS TO CLOSE THE
MARKET.
MARKET. YOU’RE HEARING IT FROM ME.
THE MARKETS ARE STAYING OPEN PIT
WE ARE NOT TALKING ABOUT CLOSING
THE MARKETS.
THE MARKETS. WE ARE NOT TALKING ABOUT
SHORTENING THE TRADING DAY.
REPEATING THAT MESSAGE I THINK
IS REALLY IMPORTANT FOR EVERYONE