In an interview with “Axios on HBO”, the chairman of the New York Stock Exchange, Stacey Cunningham, rejected comparisons between investment in the stock market and gambling.
Between the lines: Senator Elizabeth Warren said recently that “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.
As Cunningham replied:
“Markets are not a casino. They are highly regulated and supervised … We are managing a market that offers opportunities for investors to come, invest in the companies they believe in, believe they will grow in, and then share this creation of wealth … This is what made this country so great, is that a dreamer, an entrepreneur with an idea can start this business and make it grow by making others invest and share in its success. “
Cunningham also said NYSE officials were not asked to testify at upcoming House or Senate hearings about last month’s headline volatility, although GameStop, AMC and several other “meme stocks” are traded on the NYSE.
About the problems: Cunningham is vehemently opposed to a financial transaction tax that has been launched as a way to improve even the investor field, even threatening to remove the NYSE from New York if that tax were passed at the state level.
- She believes, however, that regulators should take a “new look” at the requirement for more transparency regarding hedge fund short positions.