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Speaker 1: Bloomberg Audio Studios, podcasts, radio news, Miami International Holdings making

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Speaker 1: its public market debut this hour. The training gives i'm

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Speaker 1: my AX a market value around two and a half

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Speaker 1: billion dollars. So let's bring in Thomas Gallagher, the company's

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Speaker 1: chair and CEO, life from the New York Stock Exchange

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Speaker 1: and for discisial purposes. Part of collaboration, Bloomberg and my

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Speaker 1: AX intend to launch futures and options and we'll have

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Speaker 1: a dedicated studio on the exchange floor later this year.

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Speaker 1: That's the Miami Exchange floor. Tom, congratulations, IPO price is

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Speaker 1: twenty three dollars. You went public and open for trading

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Speaker 1: at thirty one sixty five. Bouncing around now, but essentially

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Speaker 1: you raise three hundred and forty five million dollars. Are

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Speaker 1: you happy enough?

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Speaker 2: I'm very happy. I'm very happy. I'm happy to how

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Speaker 2: the stock opened, I'm happy about the way the whole

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Speaker 2: road show went, and I'm happy about the opportunity that

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Speaker 2: being a publicly traded exchange gives us.

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Speaker 3: So I'm very excited to today.

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Speaker 1: Bonnie, Now, you did get a nice bomb. For any

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Speaker 1: concerns that you might have left some money on the table.

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Speaker 3: No, no, concerns at all.

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Speaker 2: You know, we've raised a lot of capital prior to

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Speaker 2: going public, and I want our shareholders to enjoy some

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Speaker 2: upside in our stock. So I was very pleased with

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Speaker 2: the pricing, and I think that we got fair value

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Speaker 2: this morning. So I'm very excited and particularly excited about

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Speaker 2: what having this capital on our balance sheet does for us.

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Speaker 1: Now you have Emerald Sapphire Perl so many different securities

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Speaker 1: and derivative exchanges. Talk to us a little bit about

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Speaker 1: how you plan to broaden your reach, because right now

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Speaker 1: you really do have a nice portion of the derivatives,

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Speaker 1: and it's the options trading if you like, But when

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Speaker 1: it comes to equities and maybe other products, you could

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Speaker 1: do more.

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Speaker 2: Yes, you know, I'm very proud of the fact that

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Speaker 2: literally in less than a dozen years, we've become the

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Speaker 2: fourteenth largest derivatives exchange operator in the world, and in

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Speaker 2: December of twenty twelve, we didn't exist.

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Speaker 3: So what I plan to do is to leverage.

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Speaker 2: The technology, the people, and the relationships with market participants

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Speaker 2: like Citadel and move into other asset classes like futures.

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Speaker 2: And I'm so excited about the long term exclusive licensing

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Speaker 2: agreement that we signed last summer with Bloomberg.

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Speaker 3: So we're going to launch the.

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Speaker 2: B five hundred futures on my ex Futures Exchange and

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Speaker 2: also right on the heels of opening up our brand

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Speaker 2: new trading platform on August excuse me, on July first.

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Speaker 2: So we have a whole new acid class in futures

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Speaker 2: and the anchor for this relationship is Bloomberg.

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Speaker 3: I'm so excited about that.

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Speaker 2: And then once we get done with the B five

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Speaker 2: hundred futures and options, we're going to move to the

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Speaker 2: B one hundred. So we're really excited about this long

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Speaker 2: term partnership with Bloomberg, particularly the ability to not only

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Speaker 2: have the securities relationship, but also that you folks will

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Speaker 2: be down in Miami with us and have a broadcast facility.

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Speaker 3: Really exciting.

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Speaker 1: Hey, listen, I like the sound of that. You are

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Speaker 1: planning on having a piss right, It's going to be

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Speaker 1: the first pit that we've seen since essentially, you know,

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Speaker 1: the last remaining pit cosed in New York a couple

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Speaker 1: of years ago.

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Speaker 2: Yeah, you know, having a trading floor, we're coming full circle.

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Speaker 2: Some of my team closed trading floors, but the reason

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Speaker 2: we opened the trading floor in Miami is our member

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Speaker 2: firms wanted us to do it. You know, in nineteen

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Speaker 2: eighty eight, there was two phone companies that dominated the

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Speaker 2: flip flows.

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Speaker 3: It was Motorola and it was Nokia.

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Speaker 2: Who would have thought twenty years later that the Apple

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Speaker 2: iPhone would become so ubiquitous. So what we've done over

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Speaker 2: the last eighteen months, I put people on the floors

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Speaker 2: of various exchanges see the workflow, and we've automated things

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Speaker 2: even on a manual trading floor that haven't been changed

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Speaker 2: in thirty years. So I'm really excited. The other thing

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Speaker 2: is Miami. Miami is a great place to conduct business.

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Speaker 2: What started as a pandemic relocation, you know, starting in

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Speaker 2: March of twenty twenty, is now a full fledged exodus

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Speaker 2: from some of the major cities to go into Miami.

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Speaker 2: So to be the first national exchange in the history

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Speaker 2: of our country to open up in Miami, I'm so excited,

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Speaker 2: and to be in partnership with Bloomberg Trump.

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Speaker 1: Really eating volume has increased three hundred percent from before

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Speaker 1: the pandemic. How much of this is retail, how much

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Speaker 1: of it is like literally Jane Street.

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Speaker 2: Well, the the real focus of our business is with

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Speaker 2: the people that interact with the retail flow. So in

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Speaker 2: terms of the retail flow, it's very important to the

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Speaker 2: options business. And one of the things that's really leading

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Speaker 2: to this explosive growth is the low cost trading that's

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Speaker 2: happening all around us with people like Robinhood, Wee Bull,

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Speaker 2: and Ninja, where the customers can trade for free. So

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Speaker 2: what I'm really excited about is leveraging these relationships that

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Speaker 2: we have in multi listed options and moving into futures

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Speaker 2: products like the B five hundred with the Bloomberg team.

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Speaker 2: So and then with that futures exchange that we have,

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Speaker 2: I think we can get that wave of retail futures

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Speaker 2: engagement with the best technology in the world that was

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Speaker 2: only launched thirty days ago.

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Speaker 1: Tom the exchange area has quite a few players. Now

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Speaker 1: you know Memes obviously, you know nicely where you you

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Speaker 1: are in the NASAC and so on. You know, are

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Speaker 1: some of the older ones. How do you compete? Do

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Speaker 1: you compete on price? Is there a time when it

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Speaker 1: will get saturated?

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Speaker 2: You know, in the beginning, I competed on price, I

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Speaker 2: competed on access fees, trying to be a low operator

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Speaker 2: because it was all about getting market share the rocket

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Speaker 2: fuel for an exchange's market share.

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Speaker 3: Unless your exchange.

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Speaker 2: Group gets the five, six, seven, eight, nine, ten percent

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Speaker 2: of market share, no one wants to connect to you.

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Speaker 2: But once you get them here, My whole idea was

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Speaker 2: get them into our exchange group, get them comfortable, have

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Speaker 2: a great experience, and now I'm not competing.

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Speaker 3: I'm not competing on price.

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Speaker 2: I'm not competing because we have equity ownership by some

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Speaker 2: of the largest market makers. When I'm competing on is technology.

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Speaker 2: Everything changed for us on March thirteenth, twenty twenty, when

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Speaker 2: the pandemic hit. President Trump goes out in the Oval Office,

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Speaker 2: comes out on the lawn and say, this is a

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Speaker 2: national pandemic.

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Speaker 3: Well, guess what.

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Speaker 2: The market's exploded on March sixteenth. Volatility was all over

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Speaker 2: the place. Well, I built the church for Easter Sunday.

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Speaker 2: We had the infrastructure in place where that volatility was

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Speaker 2: going to hit. The difference between our customers interaction and

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Speaker 2: some of our competing exchanges was game change. From that

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Speaker 2: day to today, we've grown dramatically. In fact, from the

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Speaker 2: second half of twenty the first half of twenty sixteen

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Speaker 2: to the first half of this year, we've grown over

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Speaker 2: one thousand basis points of market share, and guess who

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Speaker 2: the donors were? The Big three, Nasdaq, Cibo, and some

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Speaker 2: from the New York Stock Exchange. Although I'm so proud

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Speaker 2: to be listening today on the New York Stock Exchange,

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Speaker 2: I have a lot of respect for Lynn Martin. She's

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Speaker 2: been a graciss host today and that's how competition should be.

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Speaker 2: Should be fierce, but it can be friendly. And I'm

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Speaker 2: very gratified to be here today.

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Speaker 1: Well, Tom, the Halls of Commerce, thank you so much

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Speaker 1: for granting us your time and congratulations once again. That

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Speaker 1: is Thomas Gallagher, Miami International Holdings Chairman and CEO,