NYSE president: "The markets are not a casino"
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In an interview with "Axios on HBO," New York Stock Exchange president Stacey Cunningham rejected comparisons between stock market investing and gambling.
Between the lines: Sen. Elizabeth Warren recently said "investors big and small are treating the stock market like a casino," in response to last month's situation with GameStop, Reddit and Robinhood. Cunningham says Warren is wrong.
How Cunningham replied:
"The markets are not a casino. They are highly regulated and they're highly overseen ... We are running a market that provides opportunities for investors to come in, invest in the companies they believe in, they believe that are gonna grow, and then share in that wealth creation ... That's what made this country so great, is that a dreamer, an entrepreneur with an idea can start that business and grow it by getting others to invest and share in their success."
Cunningham also says that NYSE officials have not been asked to testify at upcoming House or Senate hearings on the last month's headline-making volatility, even though GameStop, AMC and several other "meme stocks" trade on the NYSE.
On the issues: Cunningham is strongly opposed to a financial transaction tax that's been floated as a way to better even the investor field, even threatening to pull NYSE out of New York were there to be such a tax passed at the state level.
- She does, however, believe regulators should take a "fresh look" at requiring more transparency around short positions held by hedge funds.
