WEBVTT - NYSE President Lynn Martin

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>IPOs are making a comeback this summer, with the latest

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<v Speaker 2>Figma share surging more than two hundred and fifty percent

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<v Speaker 2>in its debut last week. So excited for this conversation.

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<v Speaker 2>Joining us now is Nicey President Lynn Martin Lind, Good morning,

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<v Speaker 2>Thanks for joining.

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<v Speaker 1>Us, Thanks for having me. So you told John.

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<v Speaker 2>Leson myself in May that you saw quote unprecedented levels

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<v Speaker 2>of volume following the April second Liberation Day, but for

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<v Speaker 2>the IPO landscape, you were optimistic, but the timeline.

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<v Speaker 1>Was shifted out. Where are we now in that timeline,

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<v Speaker 1>in that pipeline?

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<v Speaker 3>Well, I think as a result of the successful deals

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<v Speaker 3>we've been able to bring to market, really starting in

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<v Speaker 3>that end of May timeframe, but most manifestly over the

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<v Speaker 3>last two weeks when we had seven IPOs, I think

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<v Speaker 3>it's fair to say that the markets are open for IPOs.

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<v Speaker 4>Our market's open for all IPOs. Though, do we still

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<v Speaker 4>need to be selective among those that are being brought

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<v Speaker 4>in and they need to be tech companies for example,

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<v Speaker 4>or can we start to see some of the smaller

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<v Speaker 4>midcaps come back too.

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<v Speaker 3>Yeah, we've seen a variety of sizes and companies across

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<v Speaker 3>different sectors come to market. In the last few months,

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<v Speaker 3>tech in particular has, as you point out, had a

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<v Speaker 3>great reception in the market. You know, in the last

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<v Speaker 3>two weeks we saw Nils and i Q, we saw

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<v Speaker 3>McGrath hill, we saw Figma as you just had the

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<v Speaker 3>screen up, and then a couple months ago we saw

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<v Speaker 3>a Circle come to market, also Hinge Health and Mountains.

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<v Speaker 3>So some really tech led companies, but mostly pretty much

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<v Speaker 3>all sectors.

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<v Speaker 4>The market's right a bit of a split screen though, Lin,

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<v Speaker 4>because you start to have some IPOs coming back, and

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<v Speaker 4>at the same time you have these private equity players

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<v Speaker 4>coming up with liquidity solutions that just allows companies to

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<v Speaker 4>be private for longer, be it secondary funds, be it

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<v Speaker 4>perpetual capital. And their argument is companies just don't want

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<v Speaker 4>to be public, and we're giving the option not to

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<v Speaker 4>be longer term. Does that hinderpos.

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<v Speaker 3>Well, I think what it means is that the companies

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<v Speaker 3>that come to market are better companies. You look at

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<v Speaker 3>the companies that have come to market, it's not the

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<v Speaker 3>first time that they've been in the news about an IPO.

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<v Speaker 3>Look at Circle, for example, they were talking about going

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<v Speaker 3>public back in twenty twenty one when they came to market, though,

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<v Speaker 3>they're a better company. They have a more refined strategy,

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<v Speaker 3>a more refined P and L, a story for the

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<v Speaker 3>investors that generates a tremendous amount of excitement. And I

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<v Speaker 3>think what you're seeing with the reception of the companies

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<v Speaker 3>that have come to market is that pent up demand

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<v Speaker 3>in the public markets, that pent up excitement in the

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<v Speaker 3>public markets for new issues to come to market. It's

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<v Speaker 3>something that I talk with long only investors, something I

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<v Speaker 3>talk with retail about how they really want to see

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<v Speaker 3>these new names, these growth companies come to market to

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<v Speaker 3>add to their portfolio.

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<v Speaker 2>That pent up demand was it being held back because

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<v Speaker 2>of regulation in Washington.

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<v Speaker 3>It was really being held back because of volatility and

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<v Speaker 3>uncertainty in markets. You know, there've been a variety of

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<v Speaker 3>events that have occurred over the last three three and

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<v Speaker 3>a half years, wars, geopolitical uncertainty that have fueled that volatility.

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<v Speaker 3>Now that there is more certainty, more certainty around the

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<v Speaker 3>geopolitical landscape, more certainty around the market and the trajectory

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<v Speaker 3>of the market, that's why you're seeing these companies finally

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<v Speaker 3>come to market.

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<v Speaker 1>How has the change in regulatory leadership.

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<v Speaker 2>Though the SEC regulates the nicey, how has that potentially

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<v Speaker 2>changed your business going forward?

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<v Speaker 3>We're very optimistic. We had a great relationship with the

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<v Speaker 3>past administration and the past SEC. But we're very excited about.

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<v Speaker 1>Blackinso's very different than Gerrigance.

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<v Speaker 3>He is he is, and we've had a long relationship

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<v Speaker 3>with Paul Atkins. This isn't Paul akins first time in

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<v Speaker 3>the SEC, and we had a very productive working relationship

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<v Speaker 3>and ship with him. We've already had a very productive

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<v Speaker 3>working relationship in the short time that he's been chair,

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<v Speaker 3>and a lot of the modifications that he's looking to

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<v Speaker 3>make I think are going to benefit the public markets.

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<v Speaker 4>So we have a moment where public market volatility has

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<v Speaker 4>started to add. But even so, you have the rebirth

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<v Speaker 4>of memestocks, and you have these weird things happening where

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<v Speaker 4>you have open Door, for example, on one day, can

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<v Speaker 4>account for ten percent of all equity trading volume. What

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<v Speaker 4>do you make of just the health of these markets

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<v Speaker 4>at this moment is some of that starts to bubble up?

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<v Speaker 3>I think the markets are incredibly healthy. I mean, our

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<v Speaker 3>markets are the envy of the world. The breath, the depth,

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<v Speaker 3>the liquidity, the trade certainty. Any one day, though there

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<v Speaker 3>could be excitement about a different name. I think what

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<v Speaker 3>you're seeing is a lot of the pent up demand

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<v Speaker 3>looking for the new issues and new things to treat.

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<v Speaker 4>It's very different though, than twenty twenty one, where those

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<v Speaker 4>retail investors had all the money to go.

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<v Speaker 1>So when you look at that, you're like, Okay, this

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<v Speaker 1>is just.

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<v Speaker 4>A temporary phenomenon, or do we just need to get

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<v Speaker 4>used to single names getting this wind sweep of various

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<v Speaker 4>excitement built up online and that's just the new normal

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<v Speaker 4>we live in.

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<v Speaker 3>No, I really can't speak to what's driving a stock

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<v Speaker 3>on any given day. Certainly, the social media and the

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<v Speaker 3>conversation around stocks overall, I think is actually a good thing.

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<v Speaker 3>It means that people aren't interested in investing, they're interested

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<v Speaker 3>in adding to their portfolio. They're also interested in diversifying

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<v Speaker 3>their portfolio.

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<v Speaker 1>Speaking of diversification.

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<v Speaker 2>On Thursday, at and T says they're going to have

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<v Speaker 2>this dual listing in the ICY in Texas.

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<v Speaker 1>What's the business like in Texas?

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<v Speaker 3>Yeah, Well, we're very supportive of all of the changes

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<v Speaker 3>that Governor Abbott has rolled out in the state of

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<v Speaker 3>Texas to really foster that pro growth environment. Since we

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<v Speaker 3>announced NYS Texas and launched the exchange, which was the

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<v Speaker 3>end of March this year, we've added a twenty new

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<v Speaker 3>list things to the exchange. So we're very optimistic and

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<v Speaker 3>grateful for a governor abbit for really leading the way

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<v Speaker 3>on pro business atmosphere.

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<v Speaker 1>Do you see more money leaving New York though.

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<v Speaker 3>You know, I don't really, I don't know. I don't

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<v Speaker 3>think so. I think New York's always going to be

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<v Speaker 3>an important at the center for markets. But I think

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<v Speaker 3>it's interesting the pro business moves and then ultimately what

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<v Speaker 3>the pro business moves in Texas will lead to on

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<v Speaker 3>the federal level. More than anything, Lynn, thanks so much.

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<v Speaker 1>For your time.

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<v Speaker 2>Thanks for having great insight, Nicey President Lynn Martin