UPDATE 1-NYSE chief: No evidence of U.S. recession
(Adds comments about NYSE trading floor, consolidation; byline)
VIENNA, Va, Jan 22 (Reuters) - The head of NYSE Euronext (NYX.N) said on Tuesday he did not see evidence the U.S. economy is moving into a recession and expressed surprise at the magnitude of the Federal Reserve's rate cut.
"I don't see any evidence that implies we're headed into a recession," Duncan Niederauer, chief executive of NYSE Euronext, told a suburban Washington, D.C. business group meeting.
"It seems like an awful lot," Niederauer said about the Fed's surprise cut in interest rates by 75 basis points on Tuesday. "It seems reasonably reactive to me, but I'm going to assume they know what they're doing."
Niederauer had expected a rate cut of 50 basis points. But said the Fed's priorities seemed to be right in moving aggressively after a two-day global stocks rout.
"Some people in Europe and Asia may be a tad bit annoyed with the U.S. right now," Niederauer said.
Overseas exchanges suffered two days of steep losses on worries a deteriorating U.S. economy would also drag down other regions.
In a time of stock volatility, Niederauer said in his speech, it is even more important for the New York Stock Exchange to maintain its balance of electronic trading and a physical market floor where people broker trades.
About 85 percent to 87 percent of the business at the NYSE is done without human intervention. An all-electronic exchange would minimize best-price transactions and add to volatility, he said.
"There's no reason for me to shut it down," Niederauer said about the trading floor. "We're finding that equilibrium level for it."
As to the future, Niederauer said to expect more deals such as the one announced last week in which NYSE Euronext agreed to acquire the American Stock Exchange for $260 million in stock.
Exchanges worldwide have embarked on a consolidation spree in recent years to expand into new markets.
NYSE Euronext operates the NYSE and runs bourses in Paris, Amsterdam, Brussels, Lisbon and operates the Euronext.Liffe derivatives exchange.
"By 2018, the world will have consolidated to five or six global exchange groups, of which we would be one," he said. (Editing by Jeffrey Benkoe/Andre Grenon)
