Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's turn to the IPO market. Mountain and Hinge how
Speaker 2: making strong trading debuts on the NICE last week, both
Speaker 2: pricing at the top of their ranges and seeing strong
Speaker 2: demand despite ongoing uncertainty around tariffs and consumer health. Joining
Speaker 2: us now, the President of the New York Stock Exchange,
Speaker 2: Lynn Martin. Lynn is going to see you.
Speaker 1: Great to be here.
Speaker 2: Before we get to these trading debuts and maybe some
Speaker 2: IPOs coming through, I just want to talk to you
Speaker 2: about the amount of volume that's come through your business
Speaker 2: through the year so far. Just walk us through it.
Speaker 1: Yeah. If I look back on this year, it's been
Speaker 1: a year unlike any other, both from the demands on
Speaker 1: our system and the liquidity in our system manifesting itself
Speaker 1: in trading volumes. Now, if you look at that period
Speaker 1: between Liberation Day and the pause, we saw records in
Speaker 1: terms of messaging traffic hitting around one point two trillion
Speaker 1: incoming order messages that we processed with thirty microseconds median
Speaker 1: response time on two of those days. And then if
Speaker 1: you look at the amount of transactions that occurred on
Speaker 1: our platform and the equity markets as a whole, I mean,
Speaker 1: in average days around sixteen billion trades, and now during
Speaker 1: that period we have thirty billion. It's just unprecedented. It's
Speaker 1: more than two times the amount of volume both from execution,
Speaker 1: from actual trades as well as from messaging then we
Speaker 1: saw during COVID. Now you remember how active COVID was.
Speaker 1: There's been a variety of reasons why we've seen that.
Speaker 1: I think, do.
Speaker 2: You think it's something we take for grants it the
Speaker 2: infrastructure hold again and the way it has done.
Speaker 1: I think it's something that we at the NYS spend
Speaker 1: a tremendous amount of time thinking about and planning for.
Speaker 1: We hope you take it for granted because that means
Speaker 1: we're doing our job. Our job is to ensure that
Speaker 1: the markets are open and efficient so you can manage risk,
Speaker 1: particularly during those incredibly uncertain times like we saw in April.
Speaker 3: We saw an incredible amount of volume on the second
Speaker 3: markets of existing companies that have existing shares. This was
Speaker 3: supposed to be the year of IPOs, of deals, of
Speaker 3: all sorts of capital markets activity. Where are we in that.
Speaker 3: Are we seeing a revival of that as people get
Speaker 3: a little bit more confidence around trade or is it
Speaker 3: still really kind of being iced.
Speaker 1: Yeah, So initially this year when I was with you
Speaker 1: both in Davos, I was incredibly excited. You know, I
Speaker 1: still am really excited about the IPO markets. I think
Speaker 1: Mountain and Hinge last week going and doing so incredibly well,
Speaker 1: both pricing at the high end of the range, both
Speaker 1: up significantly over their IPO prices just in their first
Speaker 1: two days of trading. Are the sign of what I
Speaker 1: was talking about with you both in Davos, and that
Speaker 1: there's a tremendous amount of demand for new issuance in
Speaker 1: the market. Portfolio managers I talk to long only funds
Speaker 1: I talk to, they want new issues in the market.
Speaker 1: So I think you're starting to see these companies now
Speaker 1: come to market now that the vis has come back
Speaker 1: to earth, come back to that twenty ish level, and
Speaker 1: you're not seeing as much of the intra day swings
Speaker 1: as a result.
Speaker 3: Can you you talked about Davos, I'm just wondering the
Speaker 3: enthusiasm you have, then, can you give a sense of
Speaker 3: how much lower the volume.
Speaker 2: Of IPOs or deals you expect.
Speaker 3: To be for the remainder of this year now, then
Speaker 3: say in January, based on the uncertainty and based on
Speaker 3: what hasn't gotten done over the first half the year.
Speaker 1: I'm actually still optimistic that the same amount of IPOs
Speaker 1: will go. It's just shifted out. If I look in
Speaker 1: the case of Mountain and Hinge, they were targeting early April.
Speaker 1: You've seen StubHub flip You've seen clarin a flip circle
Speaker 1: when on the road this morning, which is an IPO
Speaker 1: we're incredibly excited about happening just next week. So I
Speaker 1: think you're starting to see that group of companies that
Speaker 1: was public market ready get out of the gates. So
Speaker 1: I'm optimistic. I'm optimistic that the second half of this
Speaker 1: year is going to be when you start to see
Speaker 1: these bigger names come to market.
Speaker 2: Do we need clarity on the policies in Washington first?
Speaker 2: And how disruptive has that been for your business? I
Speaker 2: remember the President on the stock exchange floor alongside you.
Speaker 2: This is not what we all expected. This has been
Speaker 2: chaotic for a lot of people. Do we need some
Speaker 2: clarity on those issues to see the Canada plant and
Speaker 2: the way that you expect.
Speaker 1: So I think there's just been some uncertainty in the market.
Speaker 1: You can't you can't argue that if you're a good company. Though,
Speaker 1: if you're a company that has made the plans to
Speaker 1: go public, which many have their public company ready, I
Speaker 1: think they can go in any market, particularly when you
Speaker 1: look at certain sectors. Crypto is certainly a sector where
Speaker 1: there's a lot of optimism. Still, some companies are still
Speaker 1: trying to weigh the benefits or the issues associated with tariffs,
Speaker 1: and that's going to be a movable feast throughout the
Speaker 1: course of the year.
Speaker 2: Everyone around this table is incredibly pro America. You and
Speaker 2: I run a panel together. You mentioned DeVos, and we've
Speaker 2: been talking about American exceptionalism, and then all of a
Speaker 2: sudden people are talking about peak American exceptionalism and the
Speaker 2: rest of the world. Can we have a final word
Speaker 2: from you on that the future of America and American exceptionalism.
Speaker 1: There's nothing that beats our capital markets. There's no substitute
Speaker 1: for our capital markets. They're the deepest, most liquid in
Speaker 1: the world. They continue to be the envy of a world.
Speaker 1: The geopolitical situation, though, is a conversation. I think that's
Speaker 1: where I'll leave it.
Speaker 2: That's a diplomatic way of putting bit good to see you,
Speaker 2: good to see you being Carelyn Martin There, the president
Speaker 2: of the New York Stock Exchange,