NYSE Euronext CEO Niederauer Blames Electronic Markets

May 8, 2010 1:00pm by Barry Ritholtz

The NYSE CEO blamed non NYSE markets — his market competitors. He claims their “thinly traded electronic markets” as poor liquidity pools.

While that might be some truth to that, blaming his competitors is not exactly the basis for objective analysis.

My friend Paul Kedrosky says this about Niederauer’s claims:

“the NYSE was “going slow” because of market action, so trading briefly moved off-NYSE to electronic market, which were too thin to handle clearing all the orders. Result: Big drops.

Fine. So if this is a market feature, not a bug, why are we wiping out all the errant trades by runaway algorithms and market battle bots?

Niederauer’s CNBC video is after the jump:

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