From the World Economic Forum in Davos, Switzerland, New York Stock Exchange President Lynn Martin discussed market volatility and the SEC’s concern surrounding lack of IPO deals on “Mornings with Maria” Tuesday.
“What you’re seeing in the markets right now really represents the uncertainty that’s weighing on consumers’ minds,” Martin told FOX Business’ Maria Bartiromo. “Worries about inflation, higher gas prices, higher food prices, worries about US economic policy in terms of interest rate raises. It’s causing some pressure on the market.”
On Monday, stocks jumped across the board following a selloff on Wall Street last week briefly forcing the S&P into bear market territory and the Dow seeing its worst day since 2020. The NYSE president explained the rebound.
“Buyers are meeting sellers, and sellers are meeting buyers and are doing it in a really efficient fashion,” Martin said. “Our job at the New York Stock Exchange is to ensure that, particularly in times of volatility, that our markets stay open, transparent, have tremendous amounts of liquidity, and that our systems remain robust and can handle the demand in messaging that we’ re seeing across our platforms.”
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The president also confirmed that SEC Chair Gary Gensler and his team are “very actively at work” on the slowdown of IPOs to the market.
“We really appreciate his collaborative dialog associated with a pretty complex issue that he’s trying to solve at the moment,” Martin noted. “At the end of the day, what we’re really hopeful that comes out of this is a unification of ruleset across the dark pools and the lit exchanges.”
While Martin admitted she can’t forecast Gensler’s ultimate decision, the president assured the IPO pipeline remains “strong.”
“What they’re waiting for at the moment, though, is the right timing,” Martin said. “Volatility is going to slow down companies coming to market, and that’s something we’ve seen in the past, too.”
“We are working with a tremendous amount of pipeline of companies that are looking just for the right time to come to market,” she continued.
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But the Wall Street exec did provide some “good news” regarding the US market.
“You’re seeing the phenomenon of investors voting with their dollars here,” Martin explained, “so you do see more and more companies, large caps definitely, moving into the medium cap, and even some of the small caps starting to disclose their environmental, social and governance risks because at the end of the day, that is where the money is being driven. There is investment dollars coming into those firms who have sustainable practices.”
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