00:00:04: Inside Wirtschaft, the podcast with Manuel Koch.

00:00:28: for longevity and anti-aging.

00:00:30: And so I was suffering from all kinds of, you know things from my long COVID and stuff like that.

00:00:36: So i started on it and am ten years younger...

00:00:38: ...and your hair is still wild?

00:00:40: My hair is fantastic!

00:00:41: I'm having a great hair day which means the market will be up there.

00:00:44: you go see market is up.

00:00:46: when im having good hair days its always a bullish market.

00:00:49: we

00:00:49: love Peter, just some quick questions.

00:00:54: So you are here for over thirty-five years on...

00:00:59: Thirty one?

00:01:00: Forty-one!

00:01:01: I wanted to make you younger You know?

00:01:03: Yeah, I am younger.

00:01:04: So forty-one years on the floor what was the biggest change?

00:01:08: whether it's technology?

00:01:09: Yeah,

00:01:10: I would say that was the biggest change.

00:01:11: I mean a couple things.

00:01:13: The technologies will cause real changes which is because there used to be seven thousand people in this room.

00:01:19: And so while we are still at our last human-based marketplace where there's interaction between humans and beings For stock, you know this was all caused by technology right?

00:01:31: So up until probably in seven or eight during the financial crisis when we got to first bit of technology.

00:01:38: The first handheld computer to trade with them before that We were doing everything.

00:01:42: it's open outcry.

00:01:42: It is done on paper screaming and yelling interacting with other humans.

00:01:47: So once we got the first computer to execute stock, you know there was not a necessity for as many people.

00:01:55: I can send out thousand orders in four seconds right.

00:01:59: so unless People were able to reinvent themselves and find some new niche Right that a lot of the people upstairs just chose To use an algorithm or uh?

00:02:08: You know.

00:02:08: Or it Just hit A button And basically Execute Stock!

00:02:12: The stock exchange has done a really good job giving us still a little bit of an edge.

00:02:18: so people who are really persistent like me, who did not want to leave here and saw the value of this place stayed.

00:02:25: And we're able add a lot of values for their customers.

00:02:28: but I think that just the advent technology then how has overlapped into lack necessity as many people?

00:02:36: Is AI next big step or is it already there?

00:02:39: AI is already here.

00:02:41: Look, AI in the nooks and crannies of our lives... We say we're on a third inning or nine-inning game that's going to go into extra innings.

00:02:53: You know it's revolution AI.

00:02:55: The amount money trillions and trillions dollars are being spent on cap expenditure by all firms Even firms not AI firms like Google and Facebook.

00:03:04: All those people investing their visionaries of those companies are visionaries and they're each allotting six hundred plus billion dollars into the AI space, into building data centers.

00:03:19: And then there's always secondary and tertiary derivative trades—the energy trade.

00:03:25: And it's one of the big reasons why the market is still where it is.

00:03:28: Think about, we've been in this conflict.

00:03:31: they don't want to call it a war but now for maybe twelve weeks right?

00:03:37: We watched the price of oil go from sixty-three a barrel to hundred and twenty and sustained itself above a hundred dollars which was incredibly inflationary.

00:03:47: so you know its starting.

00:03:50: surely economic problems here in the States.

00:03:52: I know it is abroad as well, and yet the market still trades at record highs.

00:03:58: We actually sold off about thirteen or fourteen percent a few weeks ago.

00:04:02: Everybody got caught of guard And then suddenly boom we went from sixty three hundred to seventy five hundred in S&P which was unheard up and down fifty thousand.

00:04:12: The market is incredibly resilient, the market strong.

00:04:14: It's completely disengaged to war.

00:04:17: and it all about now... ...it´s about AI, earnings.. And its what lifeblood of the market is.

00:04:23: So when I met you fifteen years ago You were always a very.... You

00:04:27: were fourteen years old?

00:04:28: I

00:04:28: was fourteen, you were fifty something

00:04:31: Something?

00:04:33: You are always very social!

00:04:35: You talk with everyone here on the floor Very friendly.

00:04:38: but now you're also very social on social media, so you have one point two million followers on Instagram.

00:04:46: Everyone knows you here on Wall Street.

00:04:48: how does this feel to be a star here at Wall Street?

00:04:51: You know what I love every minute of it!

00:04:53: To be honest with you...I did not expect this happen..you know i worked really hard to get to uh the two hundred and fifty thousand followers and I had a nice business in good social media following.

00:05:06: you know, in middle of October I did a couple very small things that bridged huge gap and i went from two fifty to one point two million.

00:05:15: so uh...and the algorithm likes me alot.

00:05:18: You know now when it comes to fifteen thousand views to fifty million views, right?

00:05:23: So I mean last month i did over a billion views in my content.

00:05:28: For me it's very exciting and its opened incredible doors for me.

00:05:31: I just got a book deal...I'm doing a lot of collaborative deals with Robin Hood, Polymarket things like that.. I am going speak at the Kahn Lion Festival in Europe in a few weeks.

00:05:46: And from the educational point, it's opened a lot of doors right?

00:05:50: So I have an academy where i teach people to trade But I'm also working with, you know there's a new thing called the Invest America.

00:05:58: This is Michael Dell and The President have put two hundred fifty million dollars to open up accounts for every child born.

00:06:06: so they're doing a lot of work.

00:06:08: try get people interested in financial literacy once again.

00:06:15: All of the fame is paying off in a big way.

00:06:19: One new thing you don't know about yet, Is that there's a gentleman and well-known artist who has made his statue with me A five foot seven.

00:06:28: He gave two extra inches A bronze statue of me, which is going to be in the VIP entrance of The Stock Exchange.

00:06:38: In July we're having a big ceremony.

00:06:40: you'll be invited probably twentieth of july and they will.

00:06:44: basically it's a tribute to the broker because its this full statue that was done out of clay then it was bronze.

00:06:52: so I'm the only person who has a statue not dead yet but it just shows that there is still an interest in Wall Street and more than ever.

00:07:04: I'm recognized, literally can barely walk down the street which is great.

00:07:07: so my demographic from eight to eighty right?

00:07:11: Which is great!

00:07:12: So i am enjoying every minute

00:07:14: of it.

00:07:14: In future we could touch your statue as well.

00:07:16: We will be able

00:07:17: to touch my statue.

00:07:18: yes

00:07:19: With this visibility also a lot responsibility coming

00:07:24: a hundred percent.

00:07:25: You hit it right on the head and more than I even expected, you know?

00:07:34: Be careful what you wish for because Reach more people, reach millions of people.

00:07:45: and now I have that.

00:07:46: And so the responsibility is daunting because you know...I'm not just doing jokes on social media.

00:07:54: I am talking about something serious.

00:07:56: first of all The educational part to motivate inspire next generation of traders investors.

00:08:02: then try help people To learn how trade stock market.

00:08:07: this isn't a get rich quick scheme.

00:08:09: This place where can build financial wealth and a legacy, change the narrative.

00:08:16: The doors are open now to everybody.

00:08:19: in old days it was an exclusive place not very inclusive.

00:08:23: so when you opened the door for everyone people like myself have the responsibility of making sure they know what is involved.

00:08:34: that's not just about throwing a dart at wall but money.

00:08:38: money does funny things to people, right?

00:08:40: And so I am taking on the responsibility and on a daily basis.

00:08:46: And important is everyone can start, even if you are a student and have one hundred bucks.

00:08:51: You can start right?

00:08:52: Anybody with a hundred bucks on an iPhone could now trade the market before COVID Right!

00:08:57: Before Webull Robinhood all these free trading apps... ...you had to be accredited investor To trade stock market,

00:09:04: right?!

00:09:04: You had prove that whatever money invested in the stock market If lost it at all It would not affect your standard of living for five years.

00:09:12: Well, only very wealthy people could say that.

00:09:15: But now anybody literally with ten bucks and an iPhone can trade the stock market.

00:09:20: so I love that right?

00:09:25: However, people need to understand the rules of the game.

00:09:29: And so that they can benefit from it all because look you could lose more than you invest You know?

00:09:34: You can blow up your account and lose everything.

00:09:36: So we did see that initially happen when COVID came along and Robin Hood and Webull.

00:09:42: Everybody was sheltered in place.

00:09:44: They had a couple shekels on their bank.

00:09:46: Remember everybody got a stimulus at least here.

00:09:50: And then you had the meme phenomenon and just perfect storm.

00:09:55: They claimed they were making millions of dollars with GameStop and Rivian.

00:10:00: I would say probably ninety percent of them blew up the accounts, went home with a tail between their legs.

00:10:06: but those retail people have come back and are really smart right?

00:10:14: They're the ones who've been buying the market last year February-March April when it sold off twenty percent.

00:10:20: It was retailers that bought it And institutions selling even though we thought was the other way around.

00:10:26: This recently, when we had this big sell-off a few weeks ago, right markets sold off thirteen or fourteen percent kind of quietly.

00:10:34: once again it was retail buying and so retail has matured.

00:10:38: there is new generation investors in traders.

00:10:42: multi millions I mean probably one hundred million.

00:10:44: by now they are forced to be reckoned with.

00:10:49: So we have some people looking at you with the big eyes.

00:10:53: any questions guys?

00:10:54: for Peter Tuckman?

00:10:57: Yeah, please.

00:10:58: What is your secret?

00:10:59: For your success?

00:11:00: it's more about feeling understanding about the market or You always Have information how things works.

00:11:10: a couple of things.

00:11:10: It's my ability to.

00:11:12: what was my success?

00:11:14: I think I attribute to my ability To make it accessible.

00:11:17: A lot of people talk about the market, but it's not fun.

00:11:21: It was kind of dry and one thing I found last year is that we started a show on CNN with a man named Dan Ives who is our number-one tech analyst in the world.

00:11:34: He dresses very flamboyant And he brought us for one night.

00:11:41: We stayed there eight months.

00:11:45: The reason we stayed so long was that they felt the story that were telling, which is being told in different ways by many people.

00:11:53: It's not as accessible and fun to listen to.

00:11:56: an understand And I think it's one of my secret sauces My ability to interact with human beings In a way that makes everybody...it levels playing field.

00:12:06: Some people here think their better than everyone else.

00:12:09: They just come off differently down with a group of fifteen year olds and get them all excited about the stock market, right?

00:12:21: And I can talk to a bunch of eighty-year olds.

00:12:23: So i think that's probably the point.

00:12:27: Next question!

00:12:29: Alright thank you Peter for having... Okay go ahead have a drink.

00:12:34: Thank You For Having Us Here at The New York Stock Exchange.

00:12:36: uh..You've got very beautiful workplace and we envy you being here.

00:12:42: Greatest Office in the World.

00:12:44: And my question to you is, when we see in the background going back and forth with your tablet doing orders about eighty-nine percent it's done electronically.

00:12:55: The rest are by traders.

00:12:58: Now especially do need go to a designated market maker?

00:13:04: Obviously an IPO.

00:13:11: There are obviously.

00:13:12: in the old days everything was done between the broker and the market maker, right?

00:13:15: The Market Maker is a person who's flying the plane.

00:13:17: He's there to create a smooth and active market And to inject liquidity into the market.

00:13:22: Right now Obviously majority of orders are done by a human through machine To another Human and Machine.

00:13:31: So we're not taking the human out of the equation completely, but normally I can just send out an order through an algorithm.

00:13:37: It gets to the machine and it's mostly machine-generated.

00:13:41: However you know their IPOs are a perfect example Of where?

00:13:45: We still have complete Human interaction right?

00:13:48: i mean as You described building The book Right.

00:13:50: you Know what What the New York Stock Exchange does better And I've traded more IPOs than anybody who is alive today.

00:13:57: Going back to LinkedIn, going back to Alibaba.

00:14:00: I mean...I've stood there for hours and hours with the CEOs of all these companies you know?

00:14:06: I spent five hours with Jack Ma CEO of Alibabba right?

00:14:10: A wonderful story.

00:14:12: a man who has turned down a hundred ninety nine times.

00:14:15: when he asked for a loan of five thousand dollars just start Alibabad.

00:14:19: He never gave up and then the hundredth person gave him five thousand dollars when he went public.

00:14:24: He made two hundred eighty nine billion dollars in one day.

00:14:27: And here I. but we became, We became friends because were both very short.

00:14:32: So uh...he's actually a little shorter than me But anyway The necessity of having um A market maker and a broker when you are building the book for the IPO is imperative.

00:14:43: If you go to NASDAQ, right?

00:14:44: And unfortunately I think maybe SpaceX's going over to NASDQ which has deep mistake on their part.

00:14:51: but our differentiator is the Market Maker.

00:14:54: The Market Maker sets guidelines.

00:14:56: that' s the difference.

00:14:56: if you back to the IPO of Facebook Right it was disaster!

00:15:01: The IPO was priced at eighteen.

00:15:03: It opened at forty two.

00:15:05: The electronic book froze and people were not given reports until after the end of trading that day.

00:15:12: Very many of those people who are trying to trade this stock, they're unable because you aren't allowed to sell it till you get your buy report.

00:15:20: The electronic marketplace has limitations.

00:15:26: Also, the lack of market makers makes it so that you can open at three go to eighty and back two one without anybody slowing the market down to try an inject liquidity And see what's going on?

00:15:37: So That's one of our expertise.

00:15:38: I always use the analogy of an IPO that you are building a building, right?

00:15:43: And the way that building is built will affect the way it trades forever and ever.

00:15:48: If you use cheap materials and sloppy bricks and don't put them everywhere where they should be The building would be completed but it'll crumble and tumble.

00:15:58: You know if we do this correctly it will really affect the way that stocks are traded.

00:16:02: And we've proven time and again here, if you take your time necessary... ...and put the bricks in the right mortar or all of this stuff.. It's a better do!

00:16:11: But still to this day.... We still interact.

00:16:15: I mean i trade almost half-a-billion dollars today In the S&P five hundred and its done by my.

00:16:24: All the orders are generated upstairs.

00:16:26: The order is then given to me, and I route all of them into my book.

00:16:33: Even though it's electronic on its journey... ...it has been started by a human being.

00:16:41: We're more relevant than ever before in this market.

00:16:45: that can go up or down thousands of points Bless you.

00:16:49: Thousands of points in a day, the movements that we've seen in this market used to take generation or decade and now it happens at lunchtime right?

00:16:58: And so if there's not human being watching it and overseeing it and dealing with guidelines what do here is If stock dislocates from its last sale by seven percent We slow computers down And that gives us a chance to identify what is causing this problem.

00:17:20: Is it news out?

00:17:21: Is it legitimate, was it a fat finger?

00:17:24: What-what is the problem because nobody has.

00:17:27: Only people are disadvantaged by.

00:17:29: you know I know everybody thinks oh It's great that it went up three hundred points in death.

00:17:33: Nobody is advantaged by that situation.

00:17:35: more People end up losing In those situations.

00:17:38: so By having human beings here uh its necessary and we're still quite relevant.

00:17:45: So looking forward to the future, this place will ever stay?

00:17:50: I believe we're gonna be here for a while.

00:17:52: You know i think that The Stock Exchange has made a major effort in giving us as brokers here...the ones who are still left.

00:18:00: they give us an edge right!

00:18:02: They gave us what's called a priority parity model.

00:18:05: so let say you enter and order through from upstairs whether your'e in Germany or where youre here And end up at back of a queue Like you're going to the movies, right?

00:18:16: Whoever entered their order ahead of you is a head-of-you and they will buy stock before you.

00:18:22: If you give your order to me when the minute one hundred shares trades You become on parity with the book And you'll get little bit of sliver every share that trades after.

00:18:32: That's big deal.

00:18:34: So can skip the line.

00:18:35: You guy can skip the line, exactly.

00:18:37: That's one thing.

00:18:39: also if you enter an order through me... ...you could enter the order all the way to three fifty nine fifty right?

00:18:44: If you enter in order from upstairs that cutoff is three fifty-nine fifty.

00:18:48: Those nine minutes and fifty seconds is a huge, I'm sure you've all seen that in those nine minutes the market is very volatile.

00:18:56: And thats because of that reason.

00:18:58: That upstairs people are at three-fifty.

00:19:02: they're done!

00:19:03: Then there's everybody else who uses me has access to time.

00:19:06: still enter orders... ...and their in & out quickly making money.

00:19:10: So Stock Exchange made an effort to maintain this place as the greatest financial institution.

00:19:16: And if

00:19:26: you liked this episode, then subscribe

00:19:36: to

00:19:37: the podcast of Inside Wirtschaft and give us a like.