Biggest challenge for NYSE's Marshall Carter

Marshall N. Carter, Chairman, NYSE Group, Inc., addressed the Boston Security Analysts Society (BSAS) on Thursday, May 11. He discussed the changes brought on by the merger of the New York Stock Exchange with Archipelago and the impact of increasingly electronic and global stock trading.

During the Q&A, I asked Carter what's his greatest challenge going forward.

His reply? What happens if revenues from the NYSE's three sources -- listings, trading and market data -- really takes off? The NYSE's customers could complain that those revenues are "coming out of their hides." There are issues of how the NYSE, as a nonprofit organization recently turned into a for-profit organization, can maintain the public's trust.

In his presentation, Carter alluded to his recent testimony before a House Financial Services subcommittee. He's got some interesting stats about the declining number of IPOs listed in the U.S.

In case you're not familiar with Carter's background, here's what his blurb said, "Prior to serving as a director of NYSE, Mr. Carter lectured on leadership and management at the Sloan School of Management at M.I.T. and Harvard’s Kennedy School of Government. At Harvard, from 2001 to 2005, he was a Fellow at the Center for Public Leadership and the Center for Business and Government. From 1992-2001 Mr. Carter was chairman and CEO of the State Street Bank and Trust Co., and its holding company, State Street Corporation.