WHEN: Today, Tuesday, May 27th
WHERE: CNBC's "Closing Bell"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Tom Joyce, former Knight Capital Chairman & CEO. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000279118
All references must be sourced to CNBC.
JOYCE ON "FLASH BOYS" AUTHOR MICHAEL LEWIS
HE COULDN'T BE FURTHER FROM THE TRUTH. IN POINT OF FACT, HE'S DEAD WRONG. LET ME ASK YOU A QUESTION. WHO IS RIGGING THE MARKET? IS THE S.E.C. RIGGING IT? I DOUBT IT. IS DUNCAN NIEDERAUER RIGGING THE MARKET? I DOUBT IT. DUNCAN HAS MORE INTEGRITY THAN MOST PEOPLE HAVE IN THEIR ENTIRE FAMILY UNIT. BOB GREIFELD. WAS HE RIGGING THE MARKET?
JOYCE ON THE RETAIL INVESTOR
THE RETAIL INVESTOR SHOULD HAVE NO CONCERNS AT ALL ABOUT HIGH FREQUENCY TRADERS. HIGH FREQUENCY TRADERS, ASSUMING THEY ARE NOT DOING ANYTHING NEFARIOUS LIKE FRONT-RUNNING OR GETTING FAVORED TREATMENT, HIGH FREQUENCY TRADERS JUST HAVE A DIFFERENT TIME HORIZON THAN ANYBODY ELSE.
JOYCE ON UNIFORM TESTING STANDARDS
I DON'T THINK THERE'S ANYTHING WRONG WITH IT IN THE LEAST. UNIFORM TESTING STANDARDS APPLIED ACROSS THE INDUSTRY WILL MAKE SURE EVERYBODY IS ON THE SAME PAGE. I THINK IN GENERAL THAT IS A WORTHY THING TO PURSUE.
JOYCE ON FRONT RUNNING
MAYBE SOME PEOPLE DO FRONT RUN LIQUIDITY, AND I CAN TELL YOU WHAT, IF ANYBODY IS FRONT RUNNING ANYTHING THEY ARE BREAKING THE LAW. AND IF YOU FRONT RUN SWIFTLY OR IF YOU FRONT RUN SLOWLY, YOU ARE BREAKING THE LAW, AND THOSE PEOPLE SHOULD BE PROSECUTED. BUT I CAN'T GET TOO TWISTED ABOUT SOME PEOPLE WHO GET THEIR PhDs IN APPLIED MATHEMATICS OR PHYSICS AND INSTEAD OF PURSUING A JOB AT BOEING OR GOOGLE, THEY DECIDE TO APPLY THEIR SKILLS TO THE STOCK MARKET. HOW COULD YOU FIND ANY FAULT IN THAT?
JOYCE ON THE CURRENT STRUCTURE OF THE STOCK MARKET
THE RETAIL INVESTOR HAS NEVER BEEN BETTER SERVED. PRICES ARE TIGHTER FOR THEM. THE SURETY OF EXECUTIONS HAVE NEVER BEEN BETTER AND THERE HAVE BEEN DOZENS IF NOT HUNDREDS OF ACADEMIC STUDIES THAT BUTTRESS THAT. THE RETAIL INVESTOR HAS IT AS GOOD OR BETTER THAN THEY HAVE EVER HAD IT.
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