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Retail brokerages playing by the rules, making markets favorable for investors: Former E-Trade CEO - YouTube
Channel: Fox Business
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joining me now former e-trade ceo and
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left terrace acquisition corporation ceo
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carl rossner it's great to have you here
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sir
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good morning thanks for having me and
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joining our conversation all morning
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long we've got assistant editorial page
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editor at the wall street journal james
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freeman is here
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and professor of business and economics
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at the king's college in manhattan and a
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fox business contributor brian
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brenberg and good morning to both of you
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as well
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uh i want to start uh here with the
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issue of
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first your thoughts on what you heard in
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that hearing yesterday i mean it was
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about five
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hours a lot of ground was covered sir
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what do you what do you say carl
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so it was sort of as expected in terms
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of what you would
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see on the hill for a hearing with that
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many questioners limited to
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you know a five-minute question time
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some of them use their time what i
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consider to be extremely
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effectively others used it for you know
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either grandstanding or political
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you know sort of gain a little bit
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disappointing but but i think to be
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expected in terms of what we saw they
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covered a lot of ground
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um i don't think anything came out of it
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i'm glad to see that there are a number
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of
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participants in the hearing suggesting
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you know no knee-jerk reactions because
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those knee-jerk reactions
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oftentimes will end up harming you know
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the retail investor
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um so to me it was it was exactly what i
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expected to see
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well do you think that there's going to
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be future regulation do you think that's
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going to be necessary to deal with these
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types of trades moving forward because
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going into the hearing
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yesterday a lot of speculation was that
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there would not be
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really regulation coming out of this but
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maybe some new rules
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coming out of this that they could
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actually agree to
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so i think some of some of the things
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that came across yesterday were that
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in the current business models that are
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being used by retail brokerages
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payment for order flow is legal it
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actually has a
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place in the system and it's providing
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retail investors with some of the best
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trade executions
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that they've ever received right right
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now the markets are
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as favorable for the retail investor in
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terms of the manner in which they can
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get their trades executed how fast the
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information flow
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what's available to them and a lot of
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that is actually now funded in a
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commission
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free trading world by payment for order
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flow so as long as you're playing by the
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rules as the sec has laid them out
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as you know many of the participants
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said yesterday many other witnesses went
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through
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i think you know they're they're in a
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pretty good place in terms of those
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rules that
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you can you look at them can you change
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them sure but then you're impacting you
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know business models as well
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so it's going to take a lot more than a
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hearing on capitol hill they're really
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going to need to look at the whole
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system
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and if you flip to the other side of
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what was being talked about was you know
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changing the settlement procedures
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i think there were some very good
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comments made by a number of the you
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know the palace and
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the witnesses on the in the hearing and
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i think where they you know where they
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came out was
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you really need to look at this in terms
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of the risk to the system
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in going to that you know blockchain led
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you know
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uh t settlement right the instantaneous
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settlement that they would have
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and i think that'll be something they
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look at over time so that the back end
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systems can catch up with you know the
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technology applications that are
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available for retail traders
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yeah and that capital raise that they
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had to do in particular robin hood you
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know cut a lot of people by surprise and
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it was you know honestly a little
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worrisome
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i do want to switch gears here your spac
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debuted on the nasdaq back in october
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and it's focused on the financial
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technology sector
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now where are you looking to invest
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right now
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well you know left terrace acquisition
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core was actually when we put it
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together
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uh what we tried to do was pull together
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a bunch of professionals
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in the space so former operators ceos
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and individuals who have a deep
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knowledge and background
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in fintech and financial services in
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general so
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we laid out five separate sleeves that
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that we're interested in within
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bin tech right and that's primarily
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wealth tech
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regtech or regulation technology
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insurance technology
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wealth and asset management and then hr
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and payroll technologies
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so really looking at you know those
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platforms that
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can impact the way that individuals
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interact with their finances right
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whether that be
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insurance whether that be you know
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trading stocks investing
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right how do you sort of look at that
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because i think one of these
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apps will get it right and put all of
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that in a very easy to use way for a
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consumer
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to have all of their applications in one
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place so that's what we're looking at
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we've seen some amazing technology
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and it's it's really no surprise to me
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that the front end technology has gotten
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so far ahead of where we are on the back
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end of things you know as we've seen
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this whole
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gamestop piece unfold it's been a
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fascinating
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story to follow and it certainly got
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wall street still
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talking about it uh this morning carl
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rossner carl thank you very much for
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being here
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thank you appreciate it
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