Name: Fortune Live from Brainstorm Tech, July 14th, 2015: NYSE President Tom Farley, Ari and Rahm Emanuel, and YouTube CEO Susan Wojcicki
Uploaded: 2015-07-14
Duration: 13 min 6 s
Description: This week host Leigh Gallagher is reporting from Fortune's annual tech conference.

This week host Leigh Gallagher is reporting from Fortune's annual tech conference.

Fortune Live from Brainstorm Tech, July 14th, 2015: NYSE President Tom Farley, Ari and Rahm Emanuel, and YouTube CEO Susan Wojcicki

Yeah. Welcome to Aspen, Colorado, into Fortune Live at Brainstorm Tech. It's Tuesday, July 14th, and I'm Leigh Gallagher. Over the next two days, we'll be bringing you all the highlights from Fortune's Brainstorm franchise, now in its 14th year. First up. Senior technology editor Andrew Muska previewing the campus events from this year's conference. So, Andrew, here we are. Brainstorm Tech. What is it about brainstorm Tech that makes it unique among so many other tech conferences these days? I mean the informality of it. You know, you can go to one of our roundtable sessions and sit next to former Cisco CEO John Chambers, and it's not a big deal to be able to exchange ideas like That's great. The first time I came, I plopped down in the main session next to someone, and he introduced himself as Jeff Jeff Bezos. Really? Wow. So what are some of the sessions today that you think are just kind of can't miss sessions? I'm really looking forward to the one on one with EV. Williams, who leads medium medium, is kind of a new media company, and they've gone through some trouble in recent weeks and you know it was going to have to speak about that on stage and probably also talk about Twitter as well. Absolutely. And then I'm also looking forward to the on demand panel. You've got a bunch of folks like Instacart one click, and you get that good. This is the hottest thing in tech right now, and I can't wait to hear what they have to want it now. And what about you, personally? I mean, there's so much on the program, you can really kind of cut, like, pick out things for yourself that maybe might be on the quirky side. Or What are you looking forward to? Absolutely. On day three, I'm really looking forward to a session. We call what, the hack, which is all about cybersecurity. Of course, you'd be looking forward to that, of course. So this is the number one issue for executives, let alone Tech executives this year. And I just I also can't wait to see what they say. Well, another huge highlight was that last night our very own Adam Lashinsky had the chance to talk to Ari Emanuel, uh, the Super agent, and Rahm Emanuel, the mayor of Chicago, to Emanuel Brothers on stage at the same time, and it was just fascinating. So here's a little bit from their conversation. So we're in the taste business, the fashion business, the sports business, the events business, the movie business, the television business, the music business, the books because the theater business and commercials. And when Mao As we talk about the end of the 32nd spot, or or decoupling on the broadcast business and and advertisers want to come to a company, um, we have the ability to kind of deliver on multiple different fronts forever. Mari A moment ago I was listening to businesses that W M B I N g is in and you were shaking your head. Why? Because he has a Because I'm the younger brother. I never thought I could do anything That's alright. Don't use past tense. Uh, really. Uh, you're dealing with a guy who has attention deficit disorder. I was shocked that he could do all 10 in order, and that's all. Now you weren't dismissing the business activities of of your of your little brother or the impressive list of things that he was talking about. We have a we have a rule, Uh, in our household, I mean, he I'm not gonna argue with what he does, and I don't listen to them and their advice on what I do, Even though they give it freely. What are they? What do they advise you that you don't listen to and buy? They that brother Zeke as well, right? Yeah. They would be the plural, uh, versus singular. Uh, but if I write for fortune, if I listed, it would indicate that I was listening to them so they would actually undermine what I just said. Great stuff from Adam and from the Emmanuel's. It was a really special night, to say the least. Um, Andrew, what do you think? Uh, there is to say about these brothers. I mean, they're both really innovating in their own industries as it were. I mean, you wouldn't call necessarily being the mayor of Chicago and industry, but they're both kind of Mavericks in their own way, are they not? Well, cities are an industry, right? They are as yourself. No, I mean, you know, Rahm Emanuel, You you've got a guy leading a city that's been led by a mayor for many, many years the daily clan. And so you know you have to push through and tight City together. That's that's been divided for our Ari. You've got an industry entertainment that is in tremendous upheaval. Lots going on. You know you've got Netflix is of the world and who lose of the world changing the way we watch and look at the stars. And he's got to deal with that. And they're both just so colorful. Amazingly, thank you so much, Andrew, for being here. And congratulations on a fantastic event. Thank you. Coming up. Next, we'll catch up with Tom Farley, the president of the New York Stock Exchange, to discuss the recent shutdown. Among other things, there's more fortune live from brainstorm right after this mhm everything we do have to be a platform for someone else to build on. Mhm, we never enter markets where we can be number one or number two. Yeah, particularly in technology. The law is not clear. We don't operate in a black and white world. People say they added a camera to a cell phone. What happened was we added networking to camera. We just want to grow the overall industry. We're here because we want to impact culture, even if it's in a small way. Yeah. Yeah, Well, it was major news last week when the New York Stock Exchange shut down for almost four hours, Joining me now to talk about that and other things. Is President of the Exchange Tom Farley. Tom, good to have you here. Thanks so much for having me. So any new insight into what actually happened last week and why it happened? You know, last week we had a release on Tuesday night, and it was for a, uh, an industry mandated regulatory requirements. And we did what else put in quotes or or with some irony, a small release on Tuesday night. And in that process, we went through all the necessary checks and balances. Um, but yet we made a mistake, and ultimately we introduced a bug into the software and it caused a significant problem. And so when I wasn't sure exactly what the problem was or how customers may be impacted if we continue to trade, I made the decision to suspend trading, to fix it, to get it right and ultimately bring our markets back up before the close. So How do you actually do that? You push a button, essentially you do. You do press the button. So in in this particular case, when we decided to suspend trading, we shut down what are called the gateways, and those are the portals through which customers can send orders, and if they can't send us orders, then we can't trade. We continue to operate our matching engines, and that's important because we continue to do our regulatory duty of promulgating, limit up, limit down prices and issuing regulatory halt notices and all those sorts of things that are important for exchanges to do come heck or high water. And we were able to do that. I take pride in that. I also take pride in the fact that customers weren't hurt. We communicate effectively. We put out 27 market wide notices during the outage. I myself went on TV five times and participate in three customer calls, and ultimately we did get back up for the clothes. I'm certainly not proud of the outage, nor do I want to have it happen again. But it went just about as well as you could hope in such a circumstance, so you were lucky you handled it well. But does this make you worried that you could be vulnerable down the road to an actual hack? Which is something that is on everyone's mind these days and every industry? Well, in general, I'm a paranoid person, and so I worry a bit about a bit about everything. Uh, and certainly last week's events won't won't change that last week. Uh, we have nothing to believe whatsoever that it had to do with a hack or cyber or an external threat all the time, not just last week, but all the time we're investing in information security. In fact, we're working directly with the federal agencies because, let's say so. The New York Stock Exchange is a target, and last week didn't change that. And we'll continue to do that because we understand how important we are. And I think last week it underscored and really cemented it for me in the psyche of the American public and how important we are with respect to our role at the center of the global capital market. You were brought on to the New York Stock Exchange largely to modernize it, bring it into the to the to the modern era. And one of the ways you've done that is you have been very active in Bitcoin. You made an investment into coin base. You started a Bitcoin index. Why are you making these moves? And, uh, what do you think? How big do you think this can get? Let me answer that a couple different ways with respect to Bitcoin in particular, we're interested to see the evolution of Bitcoin as a potentially a traded asset class. And we want kind of a front row seat. In the case of our coin based investment, we were able to invest with a terrific management team and with terrific investors. And they're giving us to see the table to really learn and be knowledgeable. And we've been able to also provide a Bitcoin index. And we thought that that was important because there's so many different Bitcoin prices and exchanges and a good deal of confusion and a lack of transparency, and so that investors investment helped us in those ways. In addition, it's possible that Blockchain technology down the road, uh, will be, if not disruptive, additive or helpful with some financial industry systems and processes. However, I just want to mention in general, we're always looking at technology were part of the technology community. That's why we're here in beautiful Aspen, that fortune brainstorm Tech. We are increasingly the home of tech. We went from a listings perspective, almost all of the large deals and a majority of all tech deals. And so our interest in Bitcoin is really symptomatic of, in general, our interest in evolving technology. Or he landed the Alibaba IPO, which was a huge coup. Um, but in general, tech IPOs have been a little bit fewer and further between these companies, giant valuations just clinging to the private markets. Why do you think that's happening? And do you think we're going to see that change anytime soon? We We've had a number of great technology. IPO's Alibaba. I just want to mention a couple others because last year at Brainstorm Tech in particular really kind of cemented our bonds with Go. Daddy, who ultimately chose New York Stock Exchange, had a hugely successful I P O. And then Fitbit, with whom we're doing a number of co branded activities this year. So I just wanted to get a shout out if I could. To those guys, there's been a couple more. Yeah, exactly. But nevertheless, the overall pace, given the money that has been flowing into these companies, so you're absolutely right. Uh, it's specifically with respect to what I'll call wildly successful technology companies for the most part. And it's because there's an abundance of private market capital more so than there was in the past. And and there's a variety of reasons for that. One is that public investors are investing more in the private market. I can tell you, we don't spend a lot of time worrying about it. Ultimately, those companies will grow up and they will be New York Stock Exchange listed companies. So whether it's the year 2015 of the year 2017, it doesn't have a meaningful impact on our bottom line. We just want to be there, and we want to be the appropriate home for them when they when they get to that point. Tom, thank you so much for being here. Great to see you in Aspen. Thank you. Our thanks to Tom Farley before I let you go, I want to take you back to a highlight from Monday night with YouTube CEO Susan Wisniewski on Facebook's push into video. I think, let's say, five years ago, the the dialogue, it was all about YouTube. There was nobody else. There was no dialogue about online video. It was YouTube. Now it's everybody else. So cup half full. You'll make the case. Well, that's great. We're doing great. They're doing great. Everybody's doing great. The cup cup half empty is now. They're doing things that YouTube isn't necessarily doing. So The ice bucket challenge, you know, grows to prominence on Facebook. Not not YouTube. Do you need to react? Is the question I'm asking? Well, I mean, we we did have a lot of ice bucket challenges on on YouTube. Um, I mean, I think the thing that we see, you know, when I look at YouTube, I see all the things that we know we want to do. I see an important list of important projects for us to be able to move the company forward. That's a good opportunity for me to ask you what? What are the top three things on that list? Yeah, and so, um, but when? When? I, um And so, you know, I look at that and I say, Like, we have a lot of things to do. Um, and we know what we need to get done. Let's get those those done. And then when I look at our overall numbers of the business, I see that we're accelerating. I see that. You know, we have an amazing base. We have over a billion users, um, globally, which is very significant. Um, um, the are watch time year on year is growing over 50% year on year. Um, and so you have this gigantic base of users, and it's still growing at the rate that it's growing and we've actually seen acceleration. Um, which I'm, uh, I feel like, you know, we still have. We have a very significant opportunity ahead. That's it for Fortune Live at Brainstorm Tech. We'll see you back here tomorrow. Mhm.