MARIA: THANK YOU SO MUCH.

DICK GRASSO IS WITH US THIS

MORNING.

WE HAVE TO GET YOUR REACTION TO

HONG KONG OFFERING TO ACQUIRE

THE LONDON STOCK EXCHANGE FOR

$36.6 BILLION, DICK.

>> THAT'S A LOT OF MONEY.

BUT THERE IS A LOT OF MONEY IN

EXCHANGE THESE DAYS.

I THINK THAT HONG KONG HAS BEEN

VERY SUCCESSFUL BECAUSE IT'S INT

INTEGRATED BOTH ITS TRANSACTION

BUSINESS AND ITS CLEARANCE,

COMPARISON AND SETTLEMENT

BUSINESS.

I THINK THE ATTRACTIVENESS OF

LONDON WOULD PUT HONG KONG IN A

POSITION TO BE A 24 BY X MARKET.

36 OR $37 BILLION, THOUGH, IS A

VERY BIG PREMIUM AND I GUESS THE

WORK HAS BEEN DONE WHICH

SUGGESTS THERE ARE BOTH

SYNERGIES THAT CAN BE TAKEN OUT

AND GREAT CROSS-TRADING

OPPORTUNITIES.

YOU KNOW, HONG KONG HAS ALWAYS

BEEN A MARKET WITH A

CAPITALIZATION RIGHT UP THERE AT

THE TOP, TOP THREE OR TOP FOUR.

AND I THINK IT'S A LOGICAL MOVE

ON THEIR PART.

IT WILL BE INTERESTING TO SEE

WHAT LONDON'S REACTION IS.

YOU KNOW, THIS IS PROBABLY ONE

OF THOSE RARE MOMENTS WHERE WE

MAY SEE A REVERSE PAC MAN AGAIN.

WE HAVEN'T SEEN ONE IN A WHILE.

BUT LONDON MIGHT TURN AROUND AND

BID FOR HONG KONG TO MAKE IT

INTERESTING.

THE QUESTION BECOMES CAN YOU

MAKE MONEY, GIVEN THAT PREMIUM?

AND THE PREMIUM IS RICH BUT

THERE IS A LOT -- PARTICULARLY

IN LONDON ON THE BACK END THAT

CAN BE VERY PROFITABLE.

SO IT'S GOING TO BE INTERESTING

TO WATCH.

I'M CERTAIN THIS IS NOT THE

FINAL BID.

>> AS FAR AS THAT, THE HONG KONG

BID, THOUGH, YOU MENTIONED THE

RICH PREMIUM, IS THIS AN

ENDORSEMENT OF LONDON AS A

FINANCIAL CENTER, REGARDLESS OF

HOW THE BREXIT DEAL WORKS OUT OR

DOESN'T?

MARIA: THAT'S GOOD QUESTION.

>> IT'S AN EXCELLENT QUESTION.

I THINK THAT BREXIT IS KIND OF A

SIDE SHOW WITH RESPECT TO

EXCHANGES.

EXCHANGES CAN'T BE

COUNTRY-CENTRIC ANYMORE.

THAT'S WHY YOU SEE HONG KONG

BIDDING FOR LONDON.

LONDON HAS A TERRIFIC BUSINESS

AS IT IS, BUT IT ALSO HAS BEEN

-- IT PREDATES THE NEW YORK AND

THE AMERICAN MARKETS BY A COUPLE

HUNDRED YEARS.

LONDON HAS A GEOGRAPHIC

ADVANTAGE THAT THEY COULD BE,

TOGETHER WITH HONG KONG, A 24 BY

FIVE MARKET.

MARIA: IS THERE ANY RETANS

MARIA: IS THERE RNY RETANS

MARIA: IS THERE REL RETANS

MARIA: IS THERE RELUCETANS

MARIA: IS THERE RELUCTAANS

MARIA: IS THERE RELUCTANCS

MARIA: IS THERE RELUCTANCE IN

YOUR VIEW, GIVEN THE FACT WE'RE

WATCHING HONG KONG PUSH BACK ON

CHINA'S THOR

CHINA'S RHOR

CHINA'S RULR

CHINA'S RULE.

PEOPLE ARE PUSHING BACK ON CHINA

IN HONG KONG.

DO YOU THINK OF HONG KONG ANY

DIFFERENTLY THAN YOU DID YEARS

AGO?

I ALWAYS THOUGHT OF HONG KONG AS

THIS INTERNATIONAL FINANCE HUB,

EQUAL TO LONDON, EQUAL TO NEW

YORK.

IN RECENT MONTHS, MY OWN

PERCEPTION HAS CHANGED BECAUSE

OF THE CHINA POWER GRAB.

AND WE ONLY HAVE 28 YEARS LEFT,

RIGHT, JAMES, 50 YEAR PACT FROM

THE HANDOFF.

>> I THINK -- WELL, FIRST, MOST

IMPORTANTLY, HONG KONG DOESN'T

MAKE THIS BID WITHOUT BEIJING'S

APPROVAL.

OKAY.

SO YOU KNOW THAT BEIJING WAS

INVOLVED.

IT'S A WONDERFUL DIVERSIONARY

TACTIC.

WHETHER OR NOT THE DEAL ACTUALLY

HAPPENS, IT TAKES A LITTLE BIT

OF THE HEAT OFF BEIJING TO KNOW

OR TO SAY TO THE WORLD, HONG

KONG REALLY IS INDEPENDENT.

LOOK AT THE BID THEY MADE FOR

LONDON.

ON THE COMMERCIAL SIDE, THOUGH,

IT MAKES A LOT OF SENSE.

I MEAN, WHETHER IT'S HONG KONG

BUYING LONDON OR LONDON BUYING