Direct Listings Will Have a Niche But Won't Take Over Market, Robert Greifeld Says

The transcript covers discussions on international exchange consolidations, the differences between IPOs and direct listings, and the potential impact of curtailing US-China investments. Bob Greifeld, former Chairman and CEO of NASDAQ, shares insights on the economic and regulatory factors influencing these topics. He highlights the importance of technology in exchanges, the niche role of direct listings, and the need for Chinese companies to meet high disclosure standards in US markets.

What was a major factor that prevented Kong exchange from acquiring the London Stock Exchange?

• Regulatory approval issues

• Technological limitations

• Incorrect pricing

• Lack of interest from London Stock Exchange

What is a key advantage of direct listings over IPOs?

• Less regulatory scrutiny

• Higher initial capital raised

• Avoiding the need to set an initial stock price

• Guaranteed stock price increase

Why might public markets be better at price discovery compared to private markets?

• Public markets are less volatile

• Public markets have more participants

• Private markets have better technology

• Private markets have more regulations

What is a significant concern regarding US investments in Chinese companies?

• Different accounting and auditing standards

• Limited market access

• Lack of interest from US investors

• High transaction costs

Why do Chinese companies desire to list in the US?

• To gain technological advantages

• To access the deepest and most liquid capital markets

• To reduce operational costs

• To avoid Chinese regulations