NYSE Euronext CEO Duncan Niederauers biggest worry is the looming possibility of a transaction tax. I dont think anything could more clearly harm liquidity, he says during a speech to the Financial Womens Association on December 15.
Further, the tax would harm the USs reputation as a financial capital he says, especially if other countries do not implement a transaction tax.
The executive is not out of touch with popular sentiment regarding the financial industry, or unaware of the zeal of legislators he simply wants to move on and get back to business.
Lets learn what were going to learn, apply regulation intelligently, and lets move on, Niederauer says.
As the financial industry, and everyone else, moves on from the economic crisis, it remains to be seen whether the recent market recovery is sustainable and if and when it will spill over into job creation.
Niederauer says that historically, between six and nine months after a major market rally, like the one that has recently been seen, there is a robust economic recovery on the back of that.
However, he continues if this is meant to be a consumer-led rally in 2010, many consumers no longer have the jobs they had 12 or 18 months ago.
A bright spot on the horizon, he says, is that most of the economic stimulus money has not yet been spent, so its impact has not been felt. There is also little chance that Democrats will back off pressure to spend the stimulus money before the upcoming midterm elections.
In his capacity as CEO, Niederauer has four goals for the company, in order to position it for long-term planning and success; change the organizations culture, flatten its hierarchical structure to improve adaptability, reinvest in and upgrade technology, and diversify revenue sources.
The NYSE Euronext of the future will not look like other exchanges, Niederauer says, adding that it will transition to being more of an applied technology company rather than buying more exchanges.