Lynn Martin, president of the New York Stock Exchange, talks to Cheddar News about the bounceback of the IPO market, the future of artificial intelligence, and the strength NYSE continues to command in the world of investing.

<div class="block">Lynn Martin, president of the New York Stock Exchange, talks to Cheddar News&#39; Kristen Scholer about the bounceback of the IPO market, the future of artificial intelligence, and the strength NYSE continues to command in the world of investing.</div>

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NYSE President Lynn Martin on IPO Bounceback, Artificial Intelligence, and the Strength of the Stock Exchange

Recognized globally as the world's largest stock Exchange. The New York Stock Exchange lists many shares that you might invest in and welcomes global leaders to the iconic trading floor in the financial district of lower Manhattan every weekday. So joining me now is the president of the New York Stock Exchange, Lynn Martin Lyn. Thanks for joining. It's so great to be here with you Kristen. Well, it's such an honor to have you here on the floor of the Stock Exchange. We usually see you up there on the podium celebrating the opening and the closing bells and we're just about halfway through the year. How's business? You know, I've been characterizing business as green shoes, green shoots everywhere, particularly for the IP O market. We had a tremendous first half of the year. Um particularly Q two where we, our companies raised over $6 billion in in proceeds as they came to the market. The thing that really encouraged me is you saw IP OS across sector, both domestic and international. So everyone dipping their toe in to the market, we were just talking about obviously, as the bell rang, interest rates at a 22 year high in inflation in 2022. That was an impetus obviously for the market and I think a lot of companies had somewhat cold feet. Have you seen that confidence come back in a way that you feel like these ipos can continue in the pipeline in the coming months? Yes. In 2022 what you saw was interest rate really influencing volatility in the stock market. You remember those days where you'd be reporting and I'd be on a bell podium where the Dow was down 1300 points, 1400 points or up 13 or 1400 points. You saw a lot of volatility and that's really what inhibited companies in our backlog from going. It wasn't so much the day of it was more the week after things of that nature they were worried about, you know, what their stock was going to do. I think you've seen volatility come down. The key indicator that I always look at is the vix. The vix has been under 20 now for a sustained period of time. So that's why you're starting to see those companies come out into the market because the volatility has, has been tamed. Right? And certainly trier. A Tik Tok rival said to make its debut here at the New York Stock Exchange relatively soon. How does this stock exchange assists investors in taking these companies public to make sure that they get the right price? So you know, our job at the Stock exchange is really a couple. Number one, we're the gold standard of rules and regulations. So companies that list on the New York Stock Exchange are just have a higher standard in terms of minimum amount of shareholders market caps. You know, all of those types of good hygiene. Our systems have really been home to be the most resilient, most efficient allowing investors to get the best price they possibly can. On an IPO day, you see all of the folks behind you, they have an important job on IPO day. But then in the weeks days, months, years following when a company comes live on the New York Stock Exchange for the Open and the close, these guys are really focused at taming volatility, taking the other side of imbalances in the market. And that's why you see companies that list on us have two times less volatility open, three times less volatility at the close, right? So obviously there is a competition between the Stock Exchange and the NASDAQ at times for some of these listings. But the human touch down here is I think what makes it unique? Yes, you know, I think that any tech forward organization, you need a human element. So it's really how the human interacts with the technology. You can't let technology just run amok without having guard rails on it. So that's really what our humans are here designed to do. Help make sense of the noise. And importantly, when there are anomalies handle those anomalies. So put the human intelligence behind the state of the art technology. Let's talk about this state of the art technology, the evolution of it, the term artificial intelligence, the term that we've heard since about January 1st, it's the term of 2023. All all people are talking about this. Absolutely. So how is, how will technology innovations assist the traders down here over time? How do you foresee that happening? Yeah. So if I look at our systems, our systems handle about half a trillion incoming order messages a day, incoming order messages being a buy a sell a trade, whatever the case may be, the human element is the one that is able to make sense of all of those messages and toss out or disregard the garbage that exists because there's a ton of data and half a trillion messages that come in every day. Some of it is good. There are some bits on, you know, I look at the tail that aren't as good and that's where the human intelligence comes in. But in terms of large language models and technology, you know, it's something that we've been embracing for about a decade now, not just at, but at our parent company Ice and we've had a product in production, which is actually at the Ice parent level helping drive some of our energy volumes at the moment, which knows if I'm chatting with you about, you know, the floor and what's going on or knows if I'm chatting with you about a trade idea. If it detects that trade idea, it's going to pop in some fair value, some analytics to give you the and a more informed view of the market. And then allow you to efficiently submit that to our exchanges and our clearing houses. And of course, your background is in data. And so you get the bread and butter of this. How crucial is this data to the business of the stock exchange? Data is incredibly important to all businesses. I would say, not just the business of the stock exchange, you know, data has always been important. It's just data has evolved from you and I talking to, you know, machine readable forms and it continues to evolve on that spectrum of technology driven evolution. What else can we expect the rest of the year at the Stock exchange? You know, it is never a dull moment. I see you almost every day. It's never a dull moment here. So it's great that we have a tremendous amount of people coming into the building. You know, 11 wall continues to be, I'd say the epicenter for conversation for dialogue around such important issues, not just with our list of companies connecting with investors, but also you've seen a variety of folks from DC make their way through. In the last six months, we had Secretary Romano, we had Secretary Yellen, we had House Speaker mccarthy, we had Senator Manchin. So, you know, I would expect a continued dialogue to continue at 11. Well, we appreciate your time, Lynn Martin, the president of the New York Stock Exchange where we broadcast from every day, Lynn. Thank you so great to be here.