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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC’S MARIA BARTIROMO SITS DOWN WITH NASDAQ OMX GROUP INC. CHIEF EXECUTIVE OFFICER ROBERT GREIFELD TODAY AT 4PM ET

WHEN: TODAY, WEDNESDAY, JUNE 6TH AT 4PM ET

WHERE: CNBC’S “CLOSING BELL WITH MARIA BARTIROMO

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Nasdaq OMX Group Inc. Chief Executive Officer Robert Greifeld today at 4PMET on CNBC’s “Closing Bell with Maria Bartiromo.” This is Greifeld’s first interview since the Facebook IPO.

All references must be sourced to CNBC.

Video: Nasdaq’s Greifeld: We Have Been ‘Embarrassed’

MARIA BARTIROMO

: AND I AM COMING TO YOU RIGHT NOW FROM NASDAQ MARKET SITE. I'M WITH BOB GREIFELD THE CEO AND PRESIDENT. BOB, THANK YOU FOR SITTING DOWN WITH US.

BOB GREIFELD: MY PLEASURE, MARIA.

BARTIROMO: IT'S BEEN A TOUGH COUPLE OF WEEKS. HOW ARE YOU FEELING? ARE YOU EMBARRASSED?

GREIFELD: WELL WE HAVE BEEN EMBARRASSED AND CERTAINLY APOLOGIZE TO THE INDUSTRY BUT THE IMPORTANT THING WE HAVE TO DO IS FOCUS ON THE FUTURE AND MAKE SURE THAT WE MAKE OURSELVES A BETTER, STRONGER ORGANIZATION AS A RESULT OF THIS.

BARTIROMO: THAT'S WHAT YOU TRIED TO DO TODAY WITH THIS $40 MILLION FUND, I WANT TO GET INTO IT IN JUST A MOMENT. THERE WAS CONFUSION, DISARRAY AT THE OPEN ON MAY 18th WHEN YOU FIRST STARTED TRADING FACEBOOK. THIS WAS A HUGE DEAL. WE ALL ANTICIPATED IT TO BE A HUGE DEAL. BEFORE WE GET INTO THE LOGISTICS AND WHAT HAPPENED IN TERMS OF YOUR FUND, TELL US WHAT HAPPENED THAT MORNING.

GREIFELD: WELL, CERTAINLY WE KNEW IT WAS A LARGE DEAL AND WE HAD TESTED EXTENSIVELY FOR THIS VOLUME THAT WE SAW. BUT THIS TESTING DID NOT REVEAL REALLY A DESIGN FLOOR IN OUR OPENING CROSS. SO WE HAD TO REALLY DO A FIRE DRILL TO GET THE CROSS TO GO OFF AT 11:30. SO TRADING DIDN'T START UNTIL 11:30. IT REALLY SHOULD HAVE STARTED AT 11:11. TRADING WENT OFF AT 11:30. WE GOT THE PRINT UP FOR THE 17 MILLION SHARES TO THE TAPE AND THEN THE CONFIRMATION ASSOCIATED WITH THAT PRINT DID NOT GO UP UNTIL 1:50. CONTINUOUS MARKET TRADING STARTED AT 11:30 AND WENT THROUGH UNTIL 4 O’CLOCK INCLUSIVE WITH THE CLOSING CROSS.

BARTIROMO: YOU'RE TAKING US THROUGH A TIMELINE. IT'S A LITTLE COMPLICATED FOR PEOPLE WHO DON'T UNDERSTAND THIS KIND OF JARGON AND CROSS. LET ME BE STRAIGHTFORWARD AND BASIC. THERE ARE RETAILERS INVESTORS OUT THERE THAT THOUGHT THEY WERE BUYING AT $38. THEY NEVER GOT THE CONFIRMATION THEY ACTUALLY BOUGHT AT $42. THERE ARE OTHER RETAIL INVESTORS, ALL THEY WANTED WAS 1,000 SHARES, AND THEY GOT 3,000 SHARES. ANOTHER GUY THAT WANTED $1.2 MILLION HE GOT THE WHOLE $1.2 MILLION. WHAT HAPPENED? WHAT DO YOU WANT TO SAY TO THOSE INVESTORS?

GREIFELD: WELL, WE CAN ONLY SPEAK TO OUR MEMBER CUSTOMERS. MARIA, AS YOU KNOW, AS AN EXCHANGE, WE HAVE REGISTERED BROKER DEALERS AS OUR CUSTOMERS. THE REGISTERED BROKER DEALERS HAVE THE RETAIL AND THE INSITUTIONAL INVESTORS AND SO AS WE LOOK TO OUR ACCOMODATION POLICY WE'RE NOT PRIVY TO WHAT HAPPENED AT THE RETAIL LEVEL. SO WE CAN OBVIOUSLY ONLY FOCUS ON WHAT WE SEE AND THAT’S OUR TRANSACTIONS WITH OUR MEMBER CUSTOMERS.

BARTIROMO: SO THOSE MEMBER CUSTOMERS, A LOT OF THE WHOLESALERS, THEY ARE WORKING ON BEHALF OF THE RETAIL CUSTOMER?

GREIFELD: YES.

BARTIROMO: LIKE A KNIGHT TRADING, LIKE EVEN A CITADEL, UBS SO BASICALLY YOU ARE TALKING TO THE INVESTOR, THE RETAIL INVESTOR CAUSE YOU ARE TALKING TO THE WHOLESALE TRADERS. CAN YOU TAKE US THROUGH A BIT OF A TIME LINE FROM THE LAST COUPLE OF WEEKS? BECAUSE THE STOCK, EVEN THOUGH YOU HAD THIS DELAYED OPENING, IT SEEMED STABLE ON THAT FRIDAY WHEN IT FIRST STARTED TRADING UNTIL 10 MINUTES TILL 2:00. AT THAT TIME, YOUR SYSTEM RELEASED 12 MILLION SHARES OF FACEBOOK ON TO THE MARKET WITHOUT CONFIRMS. A LOT OF PEOPLE SAYING THIS GAVE THIS ILLUSION THAT THERE WERE ALL OF THESE BIG SELLERS. RIGHT AT THAT MOMENT THE PRICE DROPPED FROM 41.60 TO $40.25 A SHARE. IS IT FAIR TO SAY WHAT HAPPENED NEXT THE PROBLEMS THAT FACEBOOK EXPERIENCED WAS PARTLY DUE TO NASDAQ?

GREIFELD: LET ME GO BACK ON A COUPLE OF POINTS. ONE IS, WE HAVE A RELATIONSHIP WITH THE MEMBER CUSTOMERS. THE CUSTOMERS THEN HAVE A RELATIONSHIP WITH THE RETAIL INVESTORS. THOSE CUSTOMERS THEN KNOW HOW THEY WANT TO HANDLE THOSE CUSTOMER ENVIRONMENTS, WHICH WE ARE NOT PRIVY TO. WHEN WE LOOK AT OUR TRANSACTION, THE CROSS, WE HAVE TO FOCUS ON ONLY THE DATA THAT WE CAN SEE AND THAT'S FROM OUR INVESTOR CUSTOMERS. WITH RESPECT TO WHAT HAPPENED, A LITTLE CLARIFICATION ON THE FACTS, AT 11:30, THE 70 MILLION SHARES ASSOCIATED WITH THE OPENING CROSS WENT TO THE TAPE. THE CONFIRMATIONS FOR THOSE 70 MILLION SHARES CAME OUT AT 1:50 IN THE AFTERNOON. THE CONTINUOUS MARKET FROM 11:30 TO 1:50 OPERATED AS THE CONTINUOUS MARKET WOULD. THE ACTUAL CONFIRMATION OF THE CROSS WENT UP AT 1:50 BUT THE DATA ASSOCIATED WITH THE CROSS, THE 70 MILLION SHARES AT $42 WENT UP AT 11:30.

BARTIROMO: BUT I WANT TO TALK ABOUT YOUR PROPRIETARY SORT OF TRADING THERE. A LOT OF PEOPLE SAY YOU FOUND THIS SALE, THIS $10 MILLION SHARE ORDER TO SALE AND YOU DECIDED THAT WAS NASDAQ TRADES RATHER THAN SAY WELL MAYBE THIS IS ONE OF YOUR CUSTOMER TRADES. THEY ARE SAYING, YOUR CUSTOMERS THE KNIGHTS OF THE WORLD THE CITADELS THE UBS WHY DID YOU MAKE THE STREET LONG WHEN IN FACT YOU MADE MONEY ON THAT IN TERMS OF A PROPRIETARY OWNING AND THEN YOU DID THROUGH MERRILL LYNCH. YOU HAD THEM COVER THAT SHORT.

GREIFELD: YES THAT’S A GOOD POINT AS A RESULT OF THE DELAY IN THE CROSS, WE LANDED UP WITH A POSITION, EXACTLY WHERE WE DON'T WANT TO BE. WE GAVE THAT ORDER TO MERRILL LYNCH AND THEY TRADED OUT OF THAT. WE LANDED WITH A $10.7 MILLION PROFIT. WE WERE EXPLICIT ON THAT ON THE SUNDAY AFTER MAY 18th. AS PART OF OUR ACCOMMODATION, OUR CUSTOMERS WILL GET THAT OUR MEMBER CUSTOMERS WILL GET THAT $10.7 MILLION DISTRIBUTED BACK TO THEM IN CASH. AS SOON AS WE GET APPROVAL FROM THE S.E.C. THE COMPONENTS OF THE ACCOMMODATION IS WE GET $3 MILLION ON THEIR EXISTING POLICY AND 10.7, CUSTOMERS GET THAT IN IMMEDIATE CASH AS SOON AS WE GET APPROVAL FROM THE S.E.C.

BARTIROMO: I WANT TO ASK YOU ABOUT THIS $40 MILLION FUND IN A MOMENT. BUT LET ME GET THIS FROM YOU BOB WHERE WERE YOU AT THIS POINT? BECAUSE PEOPLE ARE SAYING WHO IS IN CHARGE HERE? YOU WERE IN CALIFORNIA. WE SAW SHOTS OF YOU AT THE OPENING BELL WITH ALL OF THE FACEBOOK PEOPLE. YOU'RE SECOND IN CONTROL YOUR DEPUTY ERIC KNOLL, HE WAS IN PHILADELPHIA. THIS WAS THE BIGGEST IPO IN YOUR HISTORY. WHO WAS IN CHARGE WHERE WERE YOU

GREIFELD: WELL CERTAINLY PEOPLE WHO RUN THE OPERATION DAY TO DAY WERE IN CHARGE. IT IS IMPORTANT TO RECOGNIZE WE HAVE SEVERAL OPEN LINES GOING. ONE IS AN OPEN LINE TO OUR CUSTOMERS, A SEPARATE OPEN LINE INTERNALLY TO NASDAQ AND THERE WAS RAMPANT COMMUNICATION GOING ON THROUGH BOTH LINES. THAT WAS THE WAY TO DO IT. UNDERSTAND, IT'S IMPORTANT TO NOTE, THIS IPO, WE'VE RUN IT 450 TIMES BEFORE QUITE SUCCESSFULLY OBVIOUSLY NOT WITH THE VOLUME WE SAW WITH FACEBOOK. BUT THE TECHNOLOGY PEOPLE HAD TO MAKE SOME REAL DECISIONS AND THE SENIOR MANAGEMENT IS NOT IN A POSITION TO QUESTION THE INFORMATION OF THAT DECISION, TO SAY IS THIS CROSS GOING TO RUN WHEN THEY SAIDAT 11:15 WE HAVE THIS TO RUN AND THEY SAID YES. WE SAID, LET'S RUN IT, IN FACT, IT DID RUN AT 11:30. THE PROBLEM WAS THE CONFIRMATION DID NOT COME OUT UNTIL LATER IN THE DAY.

BARTIROMO: WAS THIS A SYSTEM THAT WAS UNTESTED?

GREIFELD: NO IT HAD RUNNING FOR. THE HARD PART HERE, MARIA --

BARTIROMO: BUT THE CORRECTION, THE SECOND TIME YOU LOOKED AT IT AND SAID, OK WAS THAT A SYSTEM THAT WAS UNTESTED?

GREIFELD: IT'S INTERESTING HERE. WE WENT BACK TO THE LOGIC THAT WE HAVE FOR THE OPEN AND THE CLOSE THAT WE USE ALL DAY EVERY DAY FOR EVERY SINGLE STOCK. SO THE SYSTEM WAS VERY TESTED. WE HAD ADDITIONAL CAPABILITY IN OUR IPO CROSS WHICH WAS CAUSING THE PROBLEMS. WE HAD TO REVERT BACK TO A SIMPLER CODE BASE TO MAKE IT HAPPEN.

BARTIROMO: WHERE WERE YOU PHYSICALLY? WERE YOU ON A PLANE BACK TO NEW YORK?

GREIFELD: NOT AT THAT TIME AT 11:30 WE OBVIOUSLY DID THE OPENING WHICH YOU'VE POINTED ON AND THEN WE WERE ON AN OPEN CALL. AND AT 11:30 WHEN IT WAS HAPPENING I WAS OBVIOUSLY ON THE PHONE.

BARTIROMO: NOW, TODAY YOU'RE ANNOUNCING THIS $40 MILLION FUND. BUT WHEN I'M DOING THE MATH, THERE'S A LOT OF CLAIMS THAT GO WELL BEYOND THAT. SO KNIGHT TRADING, FOR EXAMPLE, SAYS IT IS OWED 30-35 MILLION, CITADEL SAID ITS OWED 35 UBS ADMITS TO 25. CITI, 20. MORGAN STANLEY 10 GOLDMAN, 5 MILLION. THE NUMBERS ARE ADDING UP.

GREIFELD: RIGHT.

BARTIROMO: WHY WOULD YOU SAY $40 MILLION WHEN PEOPLE ARE THINKING IT'S CLOSER TO $200 MILLION?

GREIFELD: THAT'S A GOOD QUESTION. AND HERE'S I THINK IS THE SOURCE OF THE DIFFERENCE. WHAT WE HAD TO DO IS OBVIOUSLY NOT BE EMOTIONAL AND FOCUS ON THE FACTORS AND WE HAD TO ISOLATE THE VARIABLE. WE HAD TO SEE THE ORDERS THAT WERE TRYING TO COME INTO OUR CROSS AND WE HAD TO MAKE COMPENSATION FOR THOSE ORDERS THAT ARE NOT PROPERLY EXECUTED IN THE CROSS. WE COULD NOT TAKE RESPONSIBILITY FOR TRADING DECISIONS THAT OTHER FIRMS MADE. WE LOOKED AT WHAT WAS HAPPENING IN OUR MARKET AND THE BEAUTY OF OUR MARKET IS WE HAVE ALL THE DATA WE'VE HAD THE ABILITY TO RERUN THE CROSS AS IF IT SHOULD HAVE RUN, YOU KNOW, ON MAY 18th. SO WE KNOW EXACTLY WHAT TRANSPIRED.IN THAT ACCOMMODATION POLICY, WE BROKE IT DOWN TO THREE CLASSES. THREE CLASSES OF OUR MEMBER CUSTOMERS THAT WERE IMPACTED. AND THIS IS CLEAR, IT'S CLINICAL, AND IT'S OBJECTIVE AND DATABASED.

BARTIROMO: LET ME GET YOUR TAKE ON WHAT JAMES GORMAN SAID FROM MORGAN STANLEY. DID YOU REACH OUT TO THE CEOS OF ANY OF THE BIG FIRMS?

DID YOU CALL JAMES GORMAN?

GREIFELD: I'VE SPOKE TO A LOT OF CEOs OF LISTED FIRMS AND MEMBER FIRMS AND I'M NOT GOING TO COMMENT ON INDIVIDUAL CONVERSATIONS.

BARTIROMO: LET ME GET YOUR TAKE ON WHAT JAMES GORMAN SAID IN TERM OF THOSE OPENING HOURS. LISTEN TO THIS, CEO OF MORGAN STANLEY.

JAMES GORMAN: IT WAS CLEAR THAT THE EXCHANGE HANDLING THE ISSUE, NASDAQ, WAS HAVING PROBLEMS. AND THOSE PROBLEMS WERE BEING --WE WERE BEING UPDATED EVERY COUPLE OF MINUTES AND DELAYED EVERY FEW MINUTES AND EVENTUALLY THEY DECLARED A GO, EVERYBODY COULD GO AND WE COULD START PROCEEDING WITH THE TRANSACTION. WITH THAT, OVER THE NEXT COUPLE OF HOURS, THERE RAINED ENORMOUS CONFUSION. THAT CONFUSION AND FRANKLY IN A DEAL OF ALMOST UNPRECEDENTED SIZE AGAINST THE MACRO BACKDROP OF EVERYTHING GOING ON IN GREECE AND SO ON CREATED A POTENT ELIXIR THAT REALLY SET THIS THING AFLAME.

BARTIROMO: DO YOU AGREE WITH THAT?

GREIFELD: WELL, CERTAINLY WE ACKNOWLEDGE BETWEEN 11:11 AND 11:30 WE HAD TROUBLE GETTING THE CROSS TO OPERATE. 11:30 THE CROSS RAN, CROSS WENT TO THE TAPE, BUT THE CONFIRMATION DID NOT GO OUT UNTIL 1:50. FROM 11:30 ON THE CONTINUOUS RAN AND BETWEEN 11:30 AND 12:00 WE TRADED ANOTHER 150 MILLION SHARES IN THE CONTINUOUS MARKET. THE CONTINUOUS MARKET WAS DEEP. IT WAS LIQUID. THE PRICE FORMATION WAS QUITE ORDERLY. IN TERMS OF GENERIC COMMENTS WITH RESPECT TO THE PSYCHOLOGY OF THE MARKET, I CAN'T RESPOND TO THAT. EVERYBODY ENTITLED TO THEIR OWN OPINION. BUT CLEARLY WE DID WHAT WE HAD TO DO AT 11:30 TO GET THE CROSS OFF. AT 1:50 THE CONFIRMATIONS WERE OUT. AND THEN WE HAD COMPLETED OUR ROLE IN THE PROCESS OBVIOUSLY NOT IN THE WAY WE WANTED TO AS I SAID WE APOLOGIZE TO THE INDUSTRY FOR THAT BUT WE HAD GOT THE CONFIRMATIONS OUT BY 1:50 AND THE IMPORTANT THING TO RECOGNIZE, GOING BACK TO THIS ACCOMMODATION POLICY. WHAT WE'RE SAYING IS IF YOU PUT AN ORDER INTO THE CROSS AND -- TO SELL AND YOU DID NOT GET EXECUTED, WE'RE MAKING AN ACCOMMODATION. IF YOU PUT AN ORDER INTO THE CROSS AND GOT YOUR EXECUTION AT 1:50, AT THE WRONG PRICE, WE'RE MAKING AN ACCOMMODATION. IF YOU PUT AN ORDER INTO THE CROSS TO BUY AND YOU GOT FILLED AT $42 AND YOU DIDN'T QUITE KNOW UNTIL 1:50 THAT YOU GOT FILLED, THEN WE'RE MAKING AN ACCOMMODATION. SO WE'RE LOOKING AT THIS IN A VERY CLINICAL WAY AND IT'S IMPORTANT TO RECOGNIZE AS AN EXCHANGE WE'RE BREAKING NEW GROUND HERE BECAUSE MANY EXCHANGES AROUND THE PLANET HAVE HAD ISSUES AROUND THE WORLD AND YOU'VE HEARD OF THEM. THIS IS THE FIRST TIME THAT AN EXCHANGE IS COMING THROUGH AND EVEN THOUGH IT'S NOT PART OF OUR ACCOMMODATION POLICY, IN RESPECT TO CUSTOMER RELATIONS WE'RE GOING TO STEP FORWARD, ASSUMING THE S.E.C. WILL APPROVE IT, IS ABOVE AND BEYOND WHAT ANY EXCHANGE HAS DONE BEFORE.

BARTIROMO: YOU SAY YOU'RE GOING TO GO ABOVE AND BEYOND ANY EXCHANGE HAS EVER DONE. BUT THE NEW YORK STOCK EXCHANGE HAS A PROBLEM WITH THIS. THEY HAVE ALREADY COME OUT WITH THE STATEMENT THEY ARE BASICALLY SAYING, LOOK, IF YOU ARE GOING TO SAY YOU'RE GOING TO CUT FEES AS PART OF THIS ACCOMMODATION, THEY HAVE A PROBLEM WITH THAT. BECAUSE THAT'S AFFECTING THE COMPETITIVE LANDSCAPE. SO YOU MESS UP AND THEN YOU SAY WE'RE GOING TO CUT FEES SO YOU GET MORE MARKET SHARE. WHY ARE YOU GETTING MORE MARKET SHARE BECAUSE YOU CUT FEES AS A RESULT OF A MESS-UP.

GREIFELD: WELL WE’RE NOT. WE CUT FEES AND THE PEOPLE WILL GET THE REDUCED FEES. THEY DON'T HAVE TO GIVE US ANY MORE MARKET SHARE. OUR MARKET SHARE COULD BE CONSTANT OR IT ACTUALLY COULD DECLINE AND PEOPLE WILL GET PAID. IT'S JUST A MISUNDERSTANDING OF THE FACT THERE. WE ARE OFFERING THIS TO OUR CUSTOMERS THAT TRANSACT WITH US EVERY DAY. THEY DO NOT HAVE TO GIVE US ONE INCREMENTAL SHARE FOR THEM TO EARN THIS PAYMENT. I WANT TO GO BACK TO THE FIRST POINT IT'S IMPORTANT TO RECOGNIZE THAT I THINK ALL OF THE EXCHANGES AROUND THE WORLD ARE PROBABLY NOT HAPPY WITH THE POSITION WE ARE TAKING BECAUSE WE'VE SET A PRECEDENCE THAT OTHERS WILL LOOK TO AND OTHER CUSTOMERS WITH RESPECT TO WHEN THEY HAVE ISSUES IN THE FUTURE.

BARTIROMO: LET ME ASK YOU THIS A LOT OF PEOPLE ARE SAYING $40 MILLION FUND IT IS TOO LITTLE TOO LATE. HOW MUCH IS THIS REALLY GOING TO COST YOU, BOB?

GREIFELD: THIS IS CLINICAL. WE HAVE LOOKED AT THIS FOR THE PAST TWO WEEKS. WE HAVE TAKEN THE TIME TO DO A THOROUGH OBJECTIVE ANALYSIS. EVERY ORDER THAT CAME INTO THE CROSS THAT WANTED TO SELL AT $42 IS GETTING ACCOMMODATED. EVERY ORDER THAT CAME INTO THE CROSS THAT WANTED TO SELL AND GET EXECUTED AT A DIFFERENT PRICE IS GETTING ACCOMMODATED AND IF YOU BOUGHT AT $42 AND DIDN'T KNOW THE CONFIRMATION UNTIL 1:50 THAT’S ACCOMODATED, EVERYBODY WHO TOOK A DIRECT ACTION TO INTERACT WITH OUR MARKET PLACE THAT’S WHAT WE ARE SPEAKING TO. WHAT YOU ARE GETTING AT IS THE QUESTION OF DID OTHER ORGANIZATION HAVE DECISIONS THAT THEY MADE TO MAKE THEIR CUSTOMERS WHOLE OR DID THEY TAKE A TRADING POSITION THAT WORKED AGAINST THEM? WE ARE NOT TAKING OBLIGATIONS FOR THAT. DID THEY HAVE A SYSTEM PROBLEM THAT CAUSED OTHER ISSUES? THAT IS THEIR SET OF ISSUE. WE ARE LOOKING VERY CLEARLY AT OUR SET

BARTIROMO: BOTTOM LINE HERE, IS THIS GOING TO COST YOU MORE THAN $100 MILLION AND DO YOU HAVE INSURANCE TO COVER IT?

GREIFELD: NO. THIS IS THE POLICY THAT WE'RE PUTTING FORWARD. UNDERSTAND THIS IS VOLUNTARY ON THE PART OF THE BOARD OF NASDAQ OMX. THEY LOOKED AT A NUMBER OF DIFFERENT INPUTS. WE HAVE A $3 MILLION LIABILITY UNDER CURRENT POLICY THAT IS ALL THAT’S APPROVED BY THE S.E.C. WE LOOKED AT THE FACT THAT WE HAD THE $10.7 MILLION IN THE ACCOUNT. WE LOOKED AT THE FACT WHAT IS THE FACEBOOK REVENUE TO NASDAQ OVER THE NEXT FIVE YEARS AND THAT’S ABOUT $7 MILLION THEY TOOK THAT INTO ACCOUNT THEY THEN LOOKED AT THE CLINICAL ANALYSIS AND THAT OBVIOUSLY WAS THE PREDOMINANT WAY THEY CAME UP WITH THE DECISION ANDTHIS IS A VOLUNTARY DECISION SUBJECT TO S.E.C. APPROVAL. AND THAT’S WHAT WE ARE STANDING BY.

BARTIROMO: YOU ALSO HAVE SHAREHOLDER LAWSUITS. DO YOU HAVE INSURANCE TO COVER THIS?

GREIFELD: WELL, I WOULD SAY FIRST AND FOREMOST WE HAVE INSURANCE POLICIES BUT THE KEY THING TO RECOGNIZE --

BARTIROMO: WHERE IS THIS MONEY COMING FROM?

GREIFELD: WHAT’S THAT. THE $40 MILLION IS COMING FROM THE NASDAQ OMX BALANCE SHEET. 10.7 OF IT IS FROM THE ACCOUNT. SO TO BE CLEAR WITH THAT. WITH RESPECT TO INVESTOR LAWSUITS, THEY ARE NOT OUR CUSTOMERS. OUR CUSTOMERS ARE THE MEMBER BROKER DEALER IN TERMS OF WHO WE RELATE TO.

BARTIROMO: I UNDERSTAND THAT, BOB, BUT YOU HAVE PEOPLE VERY UPSET HERE.

GREIFELD; BUT THAT'S WHY WE'RE ADDRESSING EVERY SINGLE LEGITIMATE ISSUE WITH RESPECT TO OUR CROSS. THOSE ORDERS THAT CAME INTO OUR CROSS. WE CAN'T BE MORE CLINICAL, MORE OBJECTIVE ABOUT THAT. IF I GET INTO THE WOULD HAVE, SHOULD HAVE, IT'S A LONG TALE. SO THESE ARE KNOWN ORDERS THAT CAME INTO OUR CROSS THAT DID NOT EXECUTE AND WHAT WE'VE BEEN ABLE TO DO IS RERUN THE CROSS WITH ALL OF THE ORDERS IN AS IT RAN PERFECTLY ON MAY 18th. AND THAT’S THE FACTUAL ITEMS WE ARE USING TO GUIDE OUR JUDGEMENT.

BARTIROMO: I GUESS ONE ISSUE IS, SOME PEOPLE SAY ANYBODY WHO THOUGHT THAT THEY WOULD BECOME A MILLIONAIRE OR BILLIONAIRE FROM THE FACEBOOK IPO SHOULDN'T HAVE BEEN IN THE GAME IN THE FIRST PLACE. SO WE SPOKE TO JAMES GORMAN ABOUT THIS I WANT TO GET YOUR TAKE ON WHETHER OR NOT PEOPLE WERE NAIVE. LISTEN TO WHAT THE HEAD OF MORGAN STANLEY SAID LAST WEEK. LISTEN TO THIS.

JAMES GORMAN: THE GROUP OF PEOPLE WHO THOUGHT THEY WERE BUYING THE STOCK SO THEY COULD GET AN ENORMOUS POP WERE BOTH NAIVE AND BOUGHT IT UNDER THE WRONG PRETENSES.

BARTIROMO: DO YOU AGREE THEY BOUGHT IT UNDER THE WRONG PRETENSES?

GREIFELD: BUT I’D SAY THAT QUESTION COMES FROM A DIFFERENT POINT OF VIEW. WE DO NOT LIVE IN THE WORLD WHERE WE'RE TALKING TO RETAIL INVESTORS ON A DAILY BASIS.

BARTIROMO: I UNDERSTAND THAT, BOB. BUT YOU'RE DEALING WITH KNIGHT, CITADEL UBS AND THEY ARE REPRESENTING THE RETAIL CLIENTS. SO ALL OF THESE INVESTORS AT THE END OF THE DAY ARE BEING LOOKING AT YOU, NASDAQ, AND THEY ARE TRYING TO FIGURE OUT, I GOT SCREWED AS A RESULT OF THIS.

GREIFELD: AND WHAT WE CAN BE DO IS OBVIOUSLY DO THE RIGHT THING WHICH WE'RE DOING TODAY WITH DIRECT EVIDENCE WITH RESPECT TO HOW OUR MARKET WORKS. WITH RESPECT TO THE OPINION OF WHETHER RETAIL INVESTORS SHOULD HAVE BOUGHT ANY STOCK LISTED ON NASDAQ, WE DON'T COMMENT.

BARTIROMO: LET ME ASK YOU ABOUT THE RAMIFICATIONS GOING FORWARD. HAVE YOU LOST BUSINESS ALREADY IN TERMS OF TECH IPOS COMING HERE? WHAT ARE YOU EXPECTING IN TERMS OF MARKET SHARE LOSES AS A RESULT OF THIS?

GREIFELD: GREAT QUESTION WELL FIRST WE OBVIOUSLY WON A MAJOR SWITCH FROM NYSE TO NASDAQ THAT WAS WESTERN DIGITAL ANNOUNCEND ON MAY 20th, THAT WAS A GOOD SIGN. THE OTHER SIGN IS THAT OUR BACKLOG OF IPOs HAS NOT CHANGED. IT'S ACTUALLY INCREASED SINCE MAY THE 18th. OBVIOUSLY WE'RE INVOLVED WITH INTENSE DISCUSSION WITH ALL OF OUR CUSTOMERS. WE'RE COMMUNICATING WITH THEM ON A REGULAR AND FREQUENT BASIS. WE'RE DOING THAT. CERTAINLY WE'RE WORKING HARD TO MAINTAIN THE BUSINESS WE HAVE AND SO FAR WE'VE BEEN SUCCESSFUL.

BARTIROMO: SOME PEOPLE WOULD SAY THE AUCTION SYSTEM AT THE NEW YORK STOCK EXCHANGE THEY COULD HAVE HANDLED THIS. BECAUSE YOU HAVE ALL OF THESE LAYERS YOU’VE GOT GOVERNORS YOU’VE GOT ALL OF THESE LAYERS THAT DECIDE WHETHER OR NOT TO OPEN A STOCK OR HALT THE STOCK. WHY DIDN'T YOU HALT THE STOCK?

GREIFELD: THE KEY DECISION WE HAD TO MAKE WAS THAT WE COULD OPERATE THIS CROSS AND THAT WAS THE INPUT WE GOT FROM REALLY SEASONED NASDAQ PEOPLE WE CAN RUN THIS CROSS, WHICH WE DID DO THAT. SO THE CROSS WENT OFF AT 11:30 THAT INPUT WAS CORRECT OBVIOUSLY WE APOLOGIZED TO THE INDUSTRY BECAUSE THE CONFIRMATION FOR THAT CROSS DID NOT GO OFF UNTIL 1:50. CONTINUOUS MARKET WORKED PERFECTLY FROM 11:30 TO 4PM

BARTIROMO: BUT DO YOU REGRET NOT HALTING IT?

GREIFELD: NO WITH THE SET OF FACTS THAT WE HAD AT THE TIME WHERE WE KNEW WE COULD RUN THE CROSS AND RUN IT SUCCESSFULLY AT 11:30, THAT WAS THE DECISION TO MAKE.

BARTIROMO: BOB, WE KNOW IT'S BEEN A TOUGH COUPLE OF WEEKS. WE APPRECIATE YOU BEING CANDID AND TALKING TO US. THIS IS NOT THE MOST THIS IS A LITTLE COMPLICATED IN TERMS OF SOME OF THE WAY THINGS ARE TRADED. FINAL QUESTION HERE, IS ANYBODY'S JOB ON THE LINE? WHOSE HEAD IS GOING TO ROLL ABOUT THIS?

GREIFELD: WE HAVE TO COME OUT OF THIS AS A BETTER, STRONGER ORGANIZATION. WE ANNOUNCED TODAY THAT IBM WILL BE COMING IN TO HELP US OUT. WE'VE BEEN IN INTENSIVE DISCUSSIONS INTERNALLY. WE WANT TO GET THE EXTERNAL VIEWPOINT CLEARLY WE CAN IMPROVE AND WE WILL IMPROVE.

BARTIROMO: IS YOUR JOB ON THE LINE, BOB?

GREIFELD: THAT'S NOT FOR ME TO SAY. MY TRACK RECORD OVER THE LAST 9 YEARS AS YOU KNOW SPEAKS FOR ITSELF. THIS WAS NOT A HIGH POINT FOR US. IT CLEARLY WAS A LOW POINT. BUT WE ARE GOING TO BUILD AND BE A BETTER COMPANY AS A RESULT OF IT.

BARTIROMO: WOULD YOU LIKE TO ADD ANYTHING ELSE?

GREIFELD: AGAIN, WE'RE FOCUSED ON MAKING SURE WITH THIS ACCOMMODATION POLICY, THOSE TRULY AFFECTED ARE ACCOMMODATED AND, TWO, THAT WE'RE BUILDING A BETTER MARKET WITHIN NASDAQ OMX.

BARTIROMO: BOB WE APPRECIATE YOUR TIME.

GREIFELD: THANK YOU SO MUCH.

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