Tom Farley

NYSE President Tom Farley: New York Stock Exchange Seen As Safe Haven

In an interview on FOX Business Network’s (FBN) Mornings with Maria (weekdays, 6a-9a/ET), New York Stock Exchange President Tom Farley discussed the Brexit vote last week. Farley said, the next morning there was “a lot of anxiety and angst.” When asked whether we are going to see a global recession Farley said, “the markets have recovered to a great extent, and in fact some indices are all the way back to where they were pre-Brexit.”  Farley went on to say, “perhaps we’re better off and we look back five years from now and we say, hey, we found a way to get through this with greater GDP growth, higher quality of life around the world.”

Tom Farley

NYSE President Tom Farley on following the Brexit vote:

“That next morning was — it was intense and you remember it from the floor of the New York Stock Exchange — walking in that morning.  There was a lot of — you could just sense it — a lot of anxiety and angst. To some extent, the world does look to New York Stock Exchange, particularly in a volatile moment like that, but then the open was very, very smooth and orderly, certainly on the New York Stock Exchange, but really among all exchanges.  And the opens on the New York Stock Exchange were particularly smooth, half as volatile as other exchanges, and so everyone was able to take a – kind of take a deep breath around about 10 a.m. last Friday and say, okay, we are going to be okay.  It’s a busy day, Brexit obviously has made the world a little bit more volatility.”

Tom Farley on whether we are going to see a global recession:

“Well, if you just look at the markets, the markets have recovered to a great extent, and in fact some indices are all the way back to where they were pre-Brexit.  In addition, volatility has subsided dramatically this week.  So those are both very good things.  They also auger well for the IPO market. I think, if I can just kind of give you my personal view, I am an optimist generally, I mean, let’s face it, European Union growth had been anemic for the last decade and my hope, while I didn’t expect this nor was I rooting for a leave vote, but my hope is everyone goes about the negotiation in a very mature way and perhaps we’re better off and we look back five years from now and we say, hey, we found a way to get through this with greater GDP growth, higher quality of life around the world.”

Tom Farley on where he sees business from around the globe:

“You know, one of the – one of the silver linings, I hesitate to use that term because I know a lot of areas around the world are struggling right now, but a silver lining, at least from the respect of the NYSE is, when other areas of the world are having a tough time or there is a lot of uncertainty, the U.S. and the New York Stock Exchange are safe haven. So we do get more global IPOs.  In fact, there is a company called Line, which is a Japanese messaging app, essentially — best way to describe it is if you’re 30 years or under in Japan, you use Line and that is how you communicate with all your friends. ..It’s a really interesting company and they have said — they have issued a press release actually saying they are going to be going public on the New York Stock Exchange, what is expected to be a very large IPO, on July 14th.  So that is a case and point of a really good global company choosing to come list with us.”

Tom Farley on the strategy in terms of data services:

“Yeah.  There’s two things going on.  One, the amount of data in the world is growing exponentially, continues to grow exponentially, and has for a decade.  You keep hearing about big data, well customers need firms to help make — you know, service providers to help make sense of all that data…We have the data and so we’re finding new and valuable ways to deliver data to customers in a form they can digest it and they can make more informed decisions. The other thing going on is  exchanges.  Historically, you know, think of it, you walk into a McDonald’s and historically exchanges just sold you the Happy Meal.  Over time, exchanges are now unbundling and they’re selling you individually the hamburger and – and the french fries and the soda. So now exchanges are charging for market data, they’re charging for the actual trading and they’re doing it in a very transparent way, the customers can make an informed choice about what is a valuable service and what isn’t a valuable service.  And we are finding that customers are really going for the – the market data offerings.”

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