The New York Stock Exchange: A Beacon of Resilience and Innovation
In a world where financial markets are constantly in flux, the words of Henry Ford ring true: “The only real security that a man can have in this world is a reserve of knowledge, experience and ability.” As the president of the New York Stock Exchange (NYSE), I have witnessed firsthand the recent volatility in global financial markets and the importance of having a strong foundation of knowledge and experience to weather the storm.
The NYSE, with its 233-year history, remains the cornerstone of the global financial system. As the faces of our trading floor grace the front pages of newspapers and our real-time market data is broadcasted across television news and social media, it is evident that the NYSE is at the forefront of market activity.
Having engaged with investors of all sizes, from retail traders to large asset managers, I understand the challenges posed by recent market turmoil. However, amidst the ups and downs, one thing remains certain: the infrastructure and operational practices of our markets are unparalleled and have successfully navigated the recent volatility.
The roots of the U.S. markets trace back to humble beginnings, with the NYSE founded in 1792 under a buttonwood tree by a group of stockbrokers. From the days of shouting “buy” and “sell” to the present blend of human judgment and cutting-edge technology, the evolution of our markets is a testament to our resilience.
In response to recent market volatility, our designated market makers have taken manual control of opening and closing auctions at a rate double the norm to mitigate extreme volatility. This flexibility has encouraged greater participation from market participants, with trading activity exceeding $32 billion per day.
Moreover, trades are settling and clearing more efficiently than ever before, with the industry reducing trade settlement time from two days to one following the Covid-19 market sell-off. This increased certainty and reduced risk have been crucial in managing the dramatic swings in major indices.
The NYSE has set records for trade volume three times in the past seven days, with over 30 billion shares exchanged on April 9 alone. Processing over 1 trillion incoming orders in a single day with a median processing time of 30 microseconds showcases the speed and accuracy of our market infrastructure.
In times of uncertainty, the U.S. markets provide investors with the freedom to make informed decisions and execute trades with unparalleled efficiency. This success is a result of over two centuries of investment in technology, innovation, and crisis preparedness.
At the NYSE, our guiding principle is to protect the integrity of the market infrastructure. By leveraging our knowledge and experience, we ensure the strength and resiliency of the market, solidifying the U.S.’s position as the largest and most robust financial market in the world.
In conclusion, as we navigate the complexities of risk management and market operations, the words of Henry Ford resonate: “The only real security that a man can have in this world is a reserve of knowledge, experience and ability.” The NYSE stands as a beacon of resilience and innovation, embodying these principles in every aspect of our operations.
