What instantly comes to mind when you hear those four letters … NYSE? Do you instantly imagine the hectic grind that is that “floor” in New York? People yelling and screaming at the top of their lungs? Actually, that is only a small percentage of the New York Stock Exchange (NYSE) and the most common misconception about the company.Duncan Niederauer, brand new president and Co-CEO of NYSE, explained to Market News First (MN1) host Steve Kanaval that he believes sometimes the market doesn’t understand what the exchange really does.
“There really is no other animal like us,” the CEO explained. “We are the first multi-product global exchange, yet the main focus when people hear NYSE is the trading floor in New York. That’s what they see, that’s what they feel like they can touch. It’s not insignificant, but it is a fairly small part of our revenue base for the combined company.”
The fact is, a major misconception about the NYSE comes from the revenue stream. Most people wouldn’t believe that only 10 percent of the revenue stream comes from U.S. cash. Derivatives make up 22 percent, with Euro cash making up 16 percent.
Niederauer has only been with the company for eight weeks, making the move from Goldman Sachs. Vowing that he wouldn’t go and work for another firm in the industry, he explained that joining NYSE really wasn’t a hard decision at all.
“When I looked inside myself and said ‘it is time for a career change,’ this was a pretty easy decision and probably the only call I would have taken,” Niederauer commented.
In his short time with the company, Niederauer already understands the major goals of the company in a 12-month period.
“What we’re trying to accomplish in the next 12 months is the integration of the technology platforms between here and Europe,” he explained. “We’ve sort of committed to the marketplace that the three technology platforms we are running now in the U.S. and Europe will become one.”
“In a year’s time, we also hope to have a clearer understanding of what the Asian landscape looks like as well,” Niederauer added.
The best way to better inform people about NYSE and the actual goals for the company is the same things that Niederauer labeled the hardest thing for him to do.
“The thing that’s the hardest to get used to is the media focus. You aren’t used to being out front very much, but know it is very important,” he concluded.