Lynn Martin, president of the New York Stock Exchange (NYSE), emphasized that "when the securities market is transparent, stable, and trusted, capital flows to the most productive places." He noted that despite numerous challenges faced by global capital markets in recent years, the NYSE has maintained investor confidence by combining technology with human judgment to enhance market stability.
Martin made these remarks on August 10 during a seminar titled 'Advancing South Korea's Capital Markets and Enhancing Global Competitiveness,' hosted by Democratic Party lawmaker Kim Nam-jun at the National Assembly. The event aimed to discuss legislative and policy tasks for market stability, investor protection, and increasing global long-term capital investment in the South Korean market amid heightened global market volatility.
He pointed out that the global capital market has experienced significant changes in recent years due to the pandemic, interest rate cycles, geopolitical shocks, and the emergence of technologies that alter market operations. Despite considerable volatility and increased trading volumes resulting from geopolitical uncertainties, the NYSE's trading platform has operated reliably.
Martin attributed this stable operation to the NYSE's system, which integrates technology and human judgment. He stated, "We continuously invest in the NYSE Pillar system to ensure it operates reliably even during high volatility and large trading volumes. However, technology alone is not enough; we assign a Designated Market Maker (DMM) to every security listed on the NYSE." The DMM is a designated dealer that facilitates trades based on the quotes provided, leading to a quote-driven trading structure. Martin explained that as a result of DMM assignments, NYSE-listed companies have shown better performance across all sectors, with lower volatility and narrower spreads.
Regarding technological innovations such as 24-hour trading and tokenized securities, he stressed that stability must come first. He explained, "Infrastructure, rules, and market integrity must be established before technological innovation can follow. When the market is transparent, stable, and trusted, capital flows to the most productive places, businesses grow, and the economy expands."
Martin also introduced the NYSE's plan to extend trading hours, which aims to increase the current 16-hour trading period to 23 hours, five days a week. He noted, "There are 19 different securities markets operating in the U.S. To protect investors and ensure the best prices are executed at any time across these markets, it is necessary to maintain interconnectivity among them for 23 hours."
He also opened the door to potential collaboration between the U.S. and South Korean capital markets, stating, "South Korea is experiencing tremendous innovation in this era of digital transformation. We aim to facilitate capital raising for companies domestically while also enabling them to tap into the abundant pool of investors in the U.S. when they are ready to do so."
* This article has been translated by AI.
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