Market Safeguards Will Prevent Another Flash Crash: Nasdaq CEO
Nasdaq OMX CEO Bob Greifeld says he thinks the steps the SEC has taken since the so-called Flash Crash will prevent another market meltdown from happening.
"You have to give compliments to the SECand the other exchanges for the rules that have been put in place since May 6, he told CNBC in an exclusive interview on Thursday.
"So we have circuit breakers in place today and that will be the priority stop before something like May 6 happens again."
Still, some fear another crash is inevitable as the markets have become more fragmented and more automated. One thing is certain, the Flash Crash only further hurt the confidence of individual investors.
A new CNBC/AP poll showed 87 percent of respondents think the markets are unfair to small investors, though, say the market is fair to big investment banks and professional traders.
Greifeld says the exchanges have a responsibility to communicate better with investors and believes the markets are fair to everyone.
"One of the things we have to recognize is the markets today are actually more transparent. The bid-offer spread is narrowerer than it has ever been all throughout history. What the means for an investor, the cost of transacting in the market is lower than it ever has been."
Greifeld also told CNBC it is possible to answer to equally to both shareholders and investors. "We have a responsibility to run a fair market. We run a fair market we'll have more people involved in the market, we do that and we do that well, obviously our investors will benefit from that. So that guides our principle."