In an interview with “Axios on HBO,” New York Stock Exchange president Stacey Cunningham dismissed comparisons between stock market investing and gambling.
Between the lines: Senator Elizabeth Warren recently said that “large and small investors treat 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:
“Markets are not a casino. They are highly regulated and supervised … We run a market that gives investors opportunities to enter, to invest in the companies they believe in, they believe they will grow, and then participate 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 develop it by getting others to invest and participate in their success. “
Cunningham also says NYSE officials have not been asked to testify at future House or Senate hearings on last month’s volatility, even as GameStop, AMC and a few other “meme stocks” trade on the NYSE.
Regarding the issues: Cunningham strongly opposes a financial transaction tax that has been paid as a way to improve even the realm of investors, even threatening to withdraw the NYSE from New York if there were such a state-adopted tax.
- However, she believes that regulators should take a “new look” at the need for greater transparency regarding short positions held by hedge funds.