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167 Exchange Invest Weekly Podcast October 29th, 2022

The Calcutta Stock Exchange is mulling offering its members access to the International Financial Services Centre in Gujarat’s GIFT City so that members can trade in foreign stocks.


This week in the parish of bourses and market structure:

DB1 Sparkles

MCX results are even more spectacular still

SEC Under Resource Strains

MIAX buys FCM Dorman Trading

and BMLL Garners Healthy Funding

My name is Patrick L. Young.

Welcome to the bourse business weekly digest.

It’s the Exchange Invest Weekly Podcast Episode 167.

Good day ladies and gentlemen, this is a very brief reduction of highlights amongst the key headlines from the week in market structure. All the analysis of the many events and happenings from the past seven days can be found in Exchange Invest’s daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.

More details at ExchangeInvest.com.

Hong Kong Stock Exchange (HKEX) is proposing some very interesting new rules. They will allow some technology and science companies that haven’t yet generated revenue to go public. In a week when HKEX was touting its role as the SuperConnector between China and the world.

Over at the HKEX’s London-based subsidiary LME, they are advancing their sustainability agenda during the course of London Metals Week this week. LME passport has been enhanced to include emissions data comparability and disclosures relating to non-LME grade metal. Responsible sourcing agenda that has been advanced by integrating the first artisanal mining (SM passport) as well as scrap material attestations into the LME passport, while LME itself has given a net-zero commitment with a 2040 target.

One exchange that will just be happy to be around in 2040 is the Calcutta Stock Exchange (CSE) which is trying to find a raise on data in a bid to stay afloat as Moneycontrol reported it. The Calcutta Stock Exchange is mulling offering its members access to the International Financial Services Centre in Gujarat’s GIFT City so that members can trade in foreign stocks.

One exchange is going strong and Happy Birthday Trinidad and Tobago (TTSE) mark the milestone of 40 years this week.

It was a busy week for results in the parish, all the details were in Exchange Invest daily, the newsletter no person can afford to be without in capital markets and market structure. For the sake of this podcast, I’m just going to look at a few edited highlights.

Comdaq Metals (they’re a tiny platform) gave us an incredible update, they’re looking towards 6 million in revenues this year, and their financial year projections to the year-end of 31st of March 2023. Their contracted data and product revenues grew +24% year on year, which has increased to 84% of total revenue. Fascinating times for Comdaq Metals Group.

Meanwhile, Deutsche Boerse at the opposite end of the scale, top of tier 2 in Young’s pyramid, produced very, very strong results net revenue +30%  year on year.

NASDAQ is not quite as spectacular but still a very, very sturdy set of results as its accustom for NASDAQ nowadays under CEO Adena Friedman.

MCX blew everything out of the park, net income +94% on their Q3 revenues.

It was also a busy week for new markets, highlights of a few very, very interesting deals. The Saudi Tadawul Group offered us terrific news that in participation with the public investment fund, they’re going to establish a regional voluntary carbon market company.

Tel Aviv Stock Exchange is going to be restructuring and they’re also going to create a crypto platform. The TASE itself will now become a private subsidiary 100% owned by the group holding company which is of course listed on the Tel Aviv Stock Exchange, all at a time when TASE looks to be going great guns. Profits have grown from $5 million dollars to $13 million in a year, which presumably vindicates the takeover by Manikay Partners when they acquired 20% of the exchange in 2018.

Last but by no means least this week in new markets, TYMLEZ have partnered with XBourse (Tony Mackay’s tech company) for a new climate marketplace.

No laugh deals either this week even though the Deutsche Boerse’s CEO announced during his results that he is getting calls for M&A deals, but he’s selective about anything he might pursue.

Somebody who’s selected a really, really interesting deal, that’s Miami International Holdings, you’ll recall we’ve been talking about the move towards exchanges being in the brokerage business for some weeks now. Well, MIAX or at least MIH (Miami International Holdings) have acquired Dorman Trading (a full service Chicago-based FCM) with FTX and CME making proposals to have DMA through FCM, MIAX is leaping ahead of the field towards something that actually I PLY (Patrick L Young) thought was fairly inevitable since I find notes of a late 1999 presentation I gave to a group of Australian investors in Sydney which was hosted by a leading investment bank.

This is a very very interesting move which positions MIAX once again as both a fearless innovator and the enterprise that seems to be prepared for the next wave whichever way CFTC may opt to go on this matter. Instantly, of course, it’s worth considering that while MIAX owns the Exchange Traded Derivative (CFTC regulated) market MGEX based in Minneapolis, we ought to remember that MIAX’s original primary regulator remains the SEC for their stock options and cash equity exchanges. I’m not sure if this impacts owning a CFTC regulated FCM but it all adds up to some veritable excitement.

Fun fact to finish with, Dorman Trading was established on CBOT as a broker in 1956.

Instinet have completed their purchase of FIS Execution Services.

Valereum (I’ve got a vested interest there and as executive director) are in talks to complete their Gibraltar Stock Exchange acquisition according to their latest RNS. No firm news yet, but some of us are waiting with more eager anticipation than others.

Speaking of eager anticipation, if you’re eagerly anticipating the future of finance, have you read my latest book “Victory or Death?” Blockchain, Cryptocurrency and the FinTech World, a rapid romp to try and understand where markets are and where they’re going 20 years on from the Capital Market Revolution. “Victory or Death?” is published by DV Books and is distributed by Ingram worldwide.

Don’t forget while you’re waiting for your copy of that book to appear, check out our Livestream, Tuesday at 6pm London, 1pm New York – it’s the IPO-Vid live show. You can catch the back episodes on LinkedIn and YouTube via our IPO-Vid.

Our latest show was superb Christian Katz (CEO of Helveteq) “Securitizing The Future” was the title there. There’s not going to be a show next week due to it being the Day of the Dead and many other holidays around the world, but our next show will be on November 8th when we will have as our guest, Paul Humphrey & Dr. Elliot Banks of BMLL. Let me not get ahead of myself, we’re gonna talk about that more in this podcast in just a second, they will be discussing “BMLL Liquidity Maps: The Data Magna Carta”

Of course also, if you’re trying to keep up to date with the world of the business of bourses, then you need to be reading Exchange Invest daily, the exchange of information, get your Free Trial now, thereafter, it’s $300 per user year and worth every last penny in these volatile times for the exchange business.

Product news this week, CBOE and S&P Dow Jones are going to develop a new dispersion index.

Project “Eden” has kicked off for the first time in Israel, the Ministry of Finance and the Tel Aviv Stock Exchange (TASE) are preparing for the issuance of government bonds on a blockchain platform.

Bursa Malaysia has invited public feedback on proposed amendments to the main market listing requirements in relation to listed REIT (real estate investment trusts ) and ETFs (exchange-traded funds) with Waqf feature.

Luxembourg Stock Exchange (LuxSE) has launched a new Fastlane Procedure for Euro MTF listings.

Shanghai Futures Exchange are going to be launching container freight rate futures. The latter seems entirely logical to me, particularly given the market volatility within the container freight industry, just on the Sino-US West Coast routes alone. Rates back down 60% or so this year since the COVID squeeze sent supply chain issues and therefore the prices of containers rocketing through the roof last year.

In technology news this week, a spectacular announcement from BMLL – they have secured no less than $26 million in series B funding, that’s led as well by a cornucopia of great market names: Nasdaq, FactSet and IQ Capital to name but three. Fabulous news altogether and hearty congratulations to Paul Humphrey and the entire BMLL team, and of course, they will be on our IPO-Vid Livestream coming up on Tuesday week, November 8th.

Interestingly, crypto hacking is heading for a record according to Barron’s, they noted that there are dangers in DeFi in their headlines.

Thing that strikes me is given how far values of crypto have fallen during the course of the past year with many of the cryptocurrencies of 60% or more. That means the hacking growth has been pretty enormous, if not exponential, in terms of actual hacking to be a larger amount of money than it was this time last year.

Regulation news this week, the SEC Watchdog: Staff Worried About Workload Under Gensler, that was a headline in Politico.

The Wall Street Journal put it: SEC Chairman’s Agenda Strains Resources, Internal Watchdog Finds.

Gosh, going hyperactive with a hefty dose of micromanagement and bracket creep of monumental proportions  – from the original, very simple brief, which seems 7 sigma away from where we were with the original Securities Exchange Act after the Wall Street crash in the early 1930s. This seems to be creating resource issues. Who would have ever thought that? The only surprise, frankly, is that this concern has taken so long to emerge.

Elsewhere the SEC have recorded a lobbying blitz on disclosures of greenhouse gas emissions. Unsurprisingly, corporations are deeply worried about the extent of those disclosures.

Meanwhile, a Bank of England official has been quoted in City A.M. stating: Crypto Has ‘Serious Deficiencies in Governance’.

Clearly the Bank of England discerns this salient point about governance on the time honoured “takes one to know one” basis.

The European Commission’s circuit breaker plans for energy futures are under fire, and 22% of the CFTCs a year-long enforcement actions involved digital assets.

Career paths this week, shake up at IOSCO Jean-Paul Servais, he’s the head of Belgium’s regulator, he’s going to replace Ashley Alder, the longtime chairman of IOSCO and also IOSCO board has appointed the CFTC Chairman Rostin Behnam as the Vice Chairman.

Former CFO of the London Stock Exchange Group Tim Powell has moved to Alpha FX under the same rule.

While, surprise, surprise, the crypto exchange Binance-US has hired an Ex-FBI agent as their first head of investigations.

Last week Olivier Gueris as our esteemed IPO-Vid guest noted during the Livestream that a name change had already happened while I had it in the big world archive awaiting a quiet day to announce.

Astana, which was Nur-Sultan for the past few years, has reverted to Astana in less time than it took to settle some obscure continental European government securities during the 1980’s.

So, just when you hadn’t got used to it, Nur-Sultan has already reverted to Astana, which is just as well the Astana IFC and the Astana International Exchange (AIX) hadn’t rebranded yet, even if it has doubtless upset the brand consultants who could have sought ‘double bubble’ within 3 years.

Of course, this raises all sorts of interesting questions about cities being renamed Kazakhstan’s capital was known as Akmolinsk in Imperial Russian times, was renamed toTselinograd during Soviet times, then Akmola when Kazakhstan first was independent in the 1980s, and finally settled on Astana in 1997.

City branding is always tough. I recall visiting BSE and NSE in India while carefully reciting “Mumbai” at all times and then having the locals say nothing about the word “Bombay” when referring to their hometown. #Confusing.

And indeed, to save anybody still confused at the water cooler in an effort to kill a lingering western misunderstanding: Leningrad was St. Petersburg while Stalingrad was Tsaritsyn but has actually been Volgograd since 1961, thanks to Khrushchev.

Khrushchev, of course, was famed for transferring the Crimean Oblast from the Russian SFSR to the Ukrainian SSR in 1954, which just goes to show that political meddling and territory and state branding is not always a good thing.

Speaking of state meddling, let’s finish the week on. Most Salvadorans think making Bitcoin legal tender was a ‘failure’. The survey conducted by the University of Central America (UCA) revealed that 75.6% of those polled never used cryptocurrency during the course of this year, and 77% consider crypto adoption “to have been a failure.”.

And on that mysterious and magnificent note, ladies and gentlemen, my name is Patrick L. Young, creator of markets, and publisher of Exchange Invest (the Exchange of Information).

I wish you all a great week in blockchain, life, and markets.

Hong Kong’s Stock Exchange Proposes Pre-Revenue Tech Listings
The Wall Street Journal

HKEX Plays The Superconnector Role Between China And The World
The Standard

LME Advances Sustainability Agenda With Three Key Developments

Calcutta Stock Exchange Plans To Provide Access To IFSC For Its Trading Members

Stock Exchange Celebrates 40 Years
Trinidad and Tobago Newsday

Nasdaq Reports Q3 2022 Results; Continues Strong Growth In Solutions Segments Revenue

Nasdaq Announces Quarterly Dividend of $0.20 Per Share

MCX Reports Net Profit Of Rs. 63.27crore In Q2 FY22-23

MCX Q2 2023 Earnings: EPS
Simply Wall St

Saudi Tadawul Group In Participation With The Public Investment Fund Announces The Establishment Of The Regional Voluntary Carbon Market Company
Saudi Tadawul

Tel Aviv Stock Exchange To Restructure And Create Crypto Platform

TYMLEZ Partners With XBourse For A New Climate Marketplace
XBourse Tony Mackay LinkedIn

Deutsche Boerse CEO: Getting Calls For M&A Deals But Am Selective

Miami International Holdings Announces Acquisition Of Dorman Trading, A Full-Service FCM
PR Newswire

Instinet Completes Purchase Of FIS Execution Services
Traders Magazine

Valereum In Talks To Complete Gibraltar Stock Exchange Acquisition
Market Screener

Cboe, S&P Dow Jones To Develop New Dispersion Index
Seeking Alpha

Project “Eden” Kicks Off: For The First Time In Israel – The Ministry Of Finance And TASE Prepare For The Issuance Of Government Bonds On A Blockchain Platform USA
PR Newswire

Bursa Malaysia Invites Public Feedback On Proposed Amendments To The Main Market Listing Requirements In Relation To Listed Reits And ETFs With WAQF Feature
Bursa Malaysia

The Luxembourg Stock Exchange Launches A New Fast-Lane Procedure For Euro MTF Listings
CMS Law-Now

Shanghai Futures Exchange To Launch Container Freight Rate Futures
Yicai Global

BMLL Secures USD 26 Million Series B Funding

Nasdaq, FactSet And IQ Capital Lead $26 Million Round In BMLL

Crypto Hacking Is Headed For A Record. There Are Dangers In DeFi

SEC Watchdog: Staff Worried About Workload Under Gensler

SEC Records Reveal Lobbying Blitz On Disclosures Of Greenhouse Gas Emissions

Crypto Has ‘Serious Deficiencies In Governance’, Warns Bank Of England Official
City A.M.

EC Circuit Breaker Plan For Energy Futures Under Fire

22% Of CFTC’s Year Enforcement Actions Involve Digital Assets
Seeking Alpha

Jean-Paul Servais Appointed Chair Of The New IOSCO Board

IOSCO Board Appoints CFTC Chairman Behnam As Vice Chair

Alpha FX Hires Ex-London Stock Exchange CFO Tim Powell In Same Role
AJ Bell Youinvest

Crypto Exchange Binance.US Hires Ex-FBI Agent As First Head Of Investigations

Most Salvadorans Think Making Bitcoin Legal Tender Was ‘Failure’
Philippine Star