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Exchanging Profits

What's the trade as volatility increases in the global markets?

Nasdaq CEO Bob Greifeld joins the panel for this conversation. Following is a synopsis of his main points.

How intense are the volumes?

“We’ve set volume records on multiple days this year,” says Greifeld. “Clearly the volatility has been great for the Nasdaq and we’re enjoying it while it lasts.”

What’s your expectation going forward?

“When volumes are high there’s a flight to quality and we’re known for having the best systems in the world,” replies Greifeld. “We expect the volumes to continue through this unsettled time.”

How do you think the Nymex deal plays out?

“I don’t see any other likely bidders and I can tell you we’re not bidding for it,” Greifeld replies. “We have 4 deals on our plate that we’re looking to close in the next 3 months and we’re going to focus on integrating them into the Nasdaq operation.”

He adds, “We had great news from the Swedish government. They are going to tender their shares into our OMX deal and we hope to close that in the middle part of February and we think Boston will close around the end of March and Philadelphia in early April.”

In the last bear market for how long did volume spike?

“One of the hidden secrets of volume is that it never seems to go down,” says Greifeld. ”Even with the bursting of the dot-com bubble we only saw a moderation. We expect the same set of circumstances here.”

Do you have to change your infrastructure for volume?

“We think about that every day and we always look to have 2 to 2.5 times the capacity of the previous spike in the market,” Greifeld explains. “On the day after MLK holiday the US equity market did 11 billion shares and our systems performed without any issues, whatsoever.”

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Trader disclosure: On Jan 31, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (EMC), (INTC), (ATVI); Najarian Owns (BR), (C), (CSCO), (EMC), (MS), (MSFT), (YRCW); Najarian Owns (EBAY) Calls, (CMC) Calls, (GOOG) Calls, (YHOO) Calls; Finerman Owns (GS); Finerman's Firm Owns (PZN), (TSO), (VLO), (YHOO), (BR); Finerman's Firm And Finerman Own (CROX); Finerman's Firm Is Short (SPY), (IYR), (IJR), (MDY), (CME), (WFC), (COF); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts

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