The altitude of Stacey Cunningham to president of the NYSE Group represents a full circumnavigate for one of the few women who have worked on the exchange floor.
Cunningham is well-known to sellers. She started her career on the floor in 1994 as an intern with specialist unyielding Murphey, Marseilles, Smith & Nammack but started full time in 1996 for JJC Connoisseur, which was a division of Quick & Reilly. She became COO in 2015, not long after Intercontinental Swap acquired the Big Board.
Since then, she has played a crucial role in revamping NYSE’s trading operations, including the rollout of Pillar, an integrated profession platform that connects all the NYSE’s markets. While there father been some glitches and delays in the rollout, it has been the most greedy technology overhaul the NYSE or any global exchange has ever done. She has also avoided modernize the floor by expanding trading to stocks listed on the Nasdaq and NYSE American.
She is also NYSE’s key woman to be president. Her new job starts Friday and comes at a time when the concern of the exchanges is increasingly competitive:
1. Listing fees. About 9 percent of ICE’s profits comes from listing fees, which generally are higher at the NYSE than at Nasdaq. NYSE has day by day engaged its listing members on what they view as the main advantageously of listing there: access to designated market makers.
2. Initial purchasers offerings. NYSE and Nasdaq are fiercely competitive for new listings, and while the NYSE has cut into Nasdaq’s habitual dominance in tech IPOs in the last few years, that rivalry has not vilipended. A bigger problem looms. Many firms are reluctant to go public as regulatory oppresses have increased and as private equity has successfully locked up many of the newer companions, particularly tech “unicorns.” How to get more companies to go public will be an spread issue for Cunningham and her successor as COO, John Tuttle, who is currently NYSE’s far-reaching head of listings.
3. Transaction fees and dark pools. Only upon 5 percent of ICE’s revenue comes from fees on trading activity in the U.S. fair play markets, according to Sandler O’Neill. Fragmentation is an increasingly important problem for all the exchanges. About 40 percent of U.S. trading is done off-exchange in recondite pools. The NYSE and its competitors want to move more of that encourage to the “lit” exchanges, which would mean more revenue.
4. Market text. As growth has been slower in listing and transaction fees, market statistics fees have become the growth area. ICE gets about 44 percent of its take by charging for market data, and at Nasdaq it’s about 26 percent. As peddle data has become a more important source of revenue, and as the exchanges cause charged more, there has been some push-back from Irritate Street. “The industry has been vocal about their resistance to at price increases,” Sandler O’Neill’s Rich Repetto told me. The SEC recently not allowed a fee increase in the organization that handles the consolidated feed for the exchanges.