Former SEC head Harvey Pitt can be a bit soft spoken at times. But that doesn’t mean his words don’t carry a hefty punch, like they did this morning when he joined us on Squawk Box to talk about IntercontinentalExchange’s plan to buy the NYSE.
This move cements the idea that the business of trading stocks is a losing one, Pitt says. A merger like this is “evidence how the securities world has been turned on its head and …equity securities trading is no longer all that important,” Pitt told us before the show. He added, “The NYSE, once the pre-eminent stock exchange is now a mere shell of itself, and its fabulous franchise has been largely converted into a wasting — and diminishing — asset.”
His tough talk didn’t stop there. Check out the interview to hear what he thinks ultimately will happen to the NYSE and the trading floor. It’s a doozy.