- Disruptive technology in the area of clearing, Blockchain Technology is lower risk
- Regulation must be a 2-way street
- Sustainability should have reporting requirements
- NASDAQ was one of the initial signatures to the SSE
INTERVIEW TRANSCRIPTS: Meyer “Sandy” Frucher, Vice Chairman of NASDAQ and David Nelson
David Nelson – Show Host, Traders Network Show: 00:00
Welcome back. I’m David Nelson for the Traders Network Broadcasting worldwide from the New York Stock Exchange for iHeart radio and Equities.com. We’re here for an event being hosted by the United Nations Sustainable Stock Exchanges Initiative. My next guest is Sandy Frucher, Vice Chairman of the NASDAQ. Sandy, welcome.
Sandy Frucher – Vice Chairman, NASDAQ: 00:20
Thank you so much. Nice to see you again.
David Nelson – Show Host, Traders Network Show: 00:23
Thank you. Sandy, you’re the Vice Chairman of one of the most prestigious exchanges in the world today, but you’re also on the cutting edge of technology and all of us in investing really understand that. What do you think is the next breakthrough or innovation that you’re going to bring forth over the next couple of years?
Sandy Frucher – Vice Chairman, NASDAQ: 00:39
I would say that the next innovation and change training is going to be a disruptive technology in the area of clearing. It’ll probably be in blockchain technology like Bitcoin, that’s right. The big point technology being used as clearer because it would have virtually instantaneous clearing, which would lower the risk in clearing and the certainty of a trade. So I think that that’s probably the most important innovation that’s going to be happening in the listed markets or clearing markets world.
David Nelson – Show Host, Traders Network Show: 01:09
You had a number of things that you pointed out to the audience today and I, and I found that very interesting. You were talking about honesty and transparency from corporations. I also heard the term like maybe moving from quarterly reporting to something else. Can you talk about that?
Sandy Frucher – Vice Chairman, NASDAQ: 01:23
Well, I can give you a personal point of view rather than a corporate point of view on that. But the answer is that I believe that regulation has to be a two way street. You can’t continuously add regulation. What you need to do in this world is look at what’s effective and what isn’t. There were additional areas like sustainability that should have reporting requirements associated with it. But in order to be able to provide a rational regulatory structure, you have to look at things that aren’t or aren’t as important as other things. For example, in the area of quarterly reporting England has had a semi-annual reporting and some places like Switzerland has an annual reporting. Recognizing the companies are always required in any regulatory schema to release information regarding events, important events material events so investors get the information they need. But quarterly reporting in my personal view, has very serious limitations and some very negative side effects. And you could take away that burden and put it in directed towards area. They would have more value to the investors such as sustainability reporting.
David Nelson – Show Host, Traders Network Show: 02:39
You said two things that really struck me at the lunch, and you said you were both proud and frustrated by the process. Could you expand on that?
Sandy Frucher – Vice Chairman, NASDAQ: 02:48
Well we signed the contract for five years ago. We were one of the initial NASDAQ was one of the initial signatories to the Sustainable Stock Exchange Initiative. I signed it for NASDAQ in Rio at the climate conference. We finally have a resolution before the World Federation of Exchanges saying that sustainability is an important thing and people should start moving towards it on a voluntary basis. So I’m frustrated that it’s taken four years. I’m very proud of the fact that we’ve gotten here.
David Nelson – Show Host, Traders Network Show: 03:15
Okay. Let me bring it back to the conference again. How does the sustainable stock exchanges initiative and its activities over the next couple of years, how will that integrate with what you’re doing at NASDAQ?
Sandy Frucher – Vice Chairman, NASDAQ: 03:27
Well, NASDAQ has worked very, very hard to be an exemplar for our companies and sustainability. We move, we have a lot of our areas are carbon neutral, ruining to get the whole country company to be carbon neutral. We have a very good record on diversity both in terms of the board and the board structure and our governance structure. How we treat employees, all of the various positive attributes that are part of the sustainable ecosystem for companies and for exchanges. And I think we’re a leader in that we’ve taken a lead in in all of this. So I’m very happy and as I said, proud to be part of a company that makes itself an exemplar and is trying to be a leader in this area.
David Nelson – Show Host, Traders Network Show: 04:10
Do you have any, any parting words you’d like to say to the UN and SSC with regards to the Sustainable Development Goals initiative?
Sandy Frucher – Vice Chairman, NASDAQ: 04:17
I think they should look at talking to their friends at IASCO and try to get some global universal standards so that this is an issue that is arbitrage. This is an issue that’s universal.
David Nelson – Show Host, Traders Network Show: 04:29
Wow. Sandy, thank you so much for being with us. That was Sandy Frusher, Vice Chairman of the NASDAQ. By the way, a quick thank you goes out to 1-800-PublicRelations for all their PR and media support. Thanks for joining. I’m David Nelson.
Guest: Sandy Frucher
Event: Sustainable Stock Exchange Initiative (NYSE)
Show: Traders Network Show, An equities news original show