6 min read

218 Exchange Invest Weekly Podcast November 4th, 2023

This week in the parish of bourses and market structure: ICE CDS clearing leaves Europe as the EU drives the business across the Atlantic, Everybody everywhere all of the time is guilty except SBF, There's a new ICE Fixed Income boss, …and RIP Patrick Birley.


This week in the parish of bourses and market structure:

ICE CDS clearing leaves Europe as the EU drives the business across the Atlantic

Everybody everywhere all of the time is guilty except SBF

There's a new ICE Fixed Income boss

…and RIP Patrick Birley.

My name is Patrick L Young

Welcome to the Bourse Business Weekly Digest

It's the Exchange Invest Weekly Podcast Episode 218

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 7 days can be found in Exchange Invest Daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox. 

More details at ExchangeInvest.com  

In Bitcarnage this week, leaving aside the fact that SBF readily testified he is blameless but everybody else everywhere all of the time was guilty. Or so it seemed. 

The FTX liquidators are still working hard to relaunch FTX as an exchange that drew a rare gem from the comments below a story on Yahoo Finance, noting acerbically:

“Relaunch a crypto exchange where billions were lost due to fraud and ineptitude. What a great idea, I'm sure people will flock to it.”

If you enjoyed this excerpt you may be interested to know that you can read Bitcarnage everyday in Exchange Invest. Alternatively, if you want to follow a Bitcarnage, the daily update and happenings in the world of crypto and digital assets you can find Bitcarnage as a standalone on Substack.

Bitcarnage | Exchange Invest Bitcarnage | Substack
“Bitcarnage” by fintech pioneer Patrick L Young, is a spinoff from the daily bourse business bulletin “Exchange Invest.” Subscribe to understand crypto market dynamics from a team which successfully predicted the decline of FTX etc…. Click to read Bitcarnage, by Exchange Invest Bitcarnage, a Substa…

In the world of legacy exchanges this week, FTSE Russell and Tradeweb announced a strategic partnership. The notion that two divisions of LSEG can cooperate may not seem big news, but this discounts the political minefield of dysfunction. Which is the LSEG Group post Refinitiv acquisition - well done to FTSE Russell and Tradeweb.

In results 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, let's look at some edited highlights. 

In results this week, CME was good albeit not as spectacular as might be the case for a USD yield curve monopolists with the CCP in an age of heightened interest rate volatility, while Japan Exchange Group was buoyed by listings and MarketAxes and Tradeweb had a major divergence, the former was flat, the latter - Tradeweb - on the other hand, had a great leap forward in revenue terms. NZX also impressed this week and all the results were in the daily bulletin of the bourse business, Exchange invest. 

In new markets this week, the Air Carbon, ACX exchange and clearing house in ADGM the Abu Dhabi Global Markets called no surprises here ACX Abu Dhabi has gone live - congratulations to all on this welcome development in the ADGM while in Australia, the regulators expect a 2024 launch for their National Carbon Exchange, and Chittagong Stock Exchange hopes to launch the first commodity exchange in Bangladesh within 6 months.

If you try to make sense of what's happening in the world of financial markets, FinTech et al, let alone blockchain or cryptocurrency, why not check out my most recent book “Victory or Death?” Blockchain, Cryptocurrency, and the FinTech World It was published 20 years on from the Capital Market Revolution itself being published. “Victory or Death?” is published by DV Books and is distributed by Ingram worldwide. 

While you're waiting for your copy of “Victory or Death?” to arrive, check out our live stream Tuesday 6 o'clock London, 1 o'clock New York time - it's the IPO Video live show.  Catch the back episodes on Linkedin on Youtube via IPO-Vid. 

Our most recent show was a master class, professor Dr. Richard Sandor, the man in Chicago they know as “The Doc”, we know him as the Father f Financial Futures. 

Check out IPO-Vid #123, it's available on Linkedin by searching IPO-Vid or indeed you can do the same search IPO-Vid on Youtube and Facebook

Next to IPO -Vid 124 will be recording from the ICE house in London.

In product news this week DGCX (Dubai Gold and Commodity Exchange) have launched the GCC's First Shari'ah Compliant Silver Spot Contract while Japan Exchange will Test Stock Trades In Foreign Currencies, Eyeing Asian Money that comes as LME Says China's Guangxi CNGR has Applied For a New Nickel Listing

ICE Announced the Successful Transition Of Credit Default Swap Open Interest From ICE Clear Europe across the Atlantic signalling another deft foot shot ricochet into the head of the financial markets of the European Union and the UK thanks to what it's difficult to see as anything but a copybook example of EU stupidity. It's a further sad footnote in the tragic tale of the becalmed continent of slow growth, which is well into a second decade of, at best, stasis.

In technology news, the LME has issues with its trading upgrade, kicking the relaunch another year back it seems according to Reuters and I quote:

“Sources said the front-end trading platform developed by US-based Trading Technologies does not work for the complicated structure of contracts on the LME.”

In career paths this week, first up, the most ghastly news of the week. I'm deeply saddened to report the death of Patrick Birley. More details will doubtless follow but for now, I know I'm far from alone in the mourning the passing of a good man who ran SAFEX, European Climate Exchange and NEX Exchange, was CEO of the London arm of LCH.Clearnet as well as working for LME and consulting for a long time to LSEG and NYSE Euronext. Our thoughts are with his family and indeed the parish of exchanges in which there has been a vast outpouring of grief.

On happier news, a big move to Atlanta is happening for Chris Edmonds ( congratulations that marks and other statistic for the Chicago exodus as well). 

Also congratulations to Elizabeth King, currently ICE’s Chief Regulatory Officer and President of its Sustainable Finance business, who will also become head of ICE’s six clearinghouses around the world and its global risk management team which were formerly part of Chris Edmonds’ ICE portfolio. Finally for Career Paths this week, the news which came not just as a shock to onlookers, it was a vast, massive shock to the person concerned - AKA yours truly voicing this podcast! 

On Sunday 22nd of October, PLY -  that's me - resigned from the board of Valereum PLC without their having an exchange deal to complete, their exchange expert was after all, de facto redundant.Unbeknownst to me, a low latency shareholder revolt was rising with ULL speed. Within 2 days of a public notice over 60% of ALL shareholders were demanding an EGM. 

The chairman and his board supporters from resigned immediately…At which point the new Chairman, responding to a proclamation by acclimation from shareholders, reappointed me to the board and invited me to become CEO. 

I am honoured by the shareholders’ support and I'm doing my utmost already - this podcast was recorded in Gibraltar from Valereum HQ before I head out for a busy day of meetings…In the case of Valereum itself, watch this space ladies and gentlemen.

Fun facts I gleaned the other day reading some stuff about the Soviet Union and why it failed. Here is a cracking example of how central planning and socialism disincentivized the population but the blob has no desire to appreciate the facts, so just repeats its failings. 

By the 1970s, the average Soviet farm worker was only 20% as productive as his American equivalent. 

The blob solution from the central planners was automation - specifically tractors. Thus the Soviet Union went from producing 3 tractors for every one sold in the USA in 1976 to a 12:1 ratio by 1986. 

…Agricultural production and productivity went nowhere because there was no incentive to produce a surplus. However, the solution was not in keeping with the dogma of the central planners. subtractor stockpiles grew in warehouses. 

And on that mysterious and magnificent note, ladies and gentlemen, my name is Patrick L. Young creator of markets, creator of marketplaces, indeed as well the world over, Chief Executive of Valereum Group PLC and also the publisher of Exchange Invest. 

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


FTSE Russell And Tradeweb Announce Strategic Partnership

Tradeweb And FTSE Russell Announce Strategic Partnership

GCC's First Shari'ah Compliant Silver Spot Contract

Japan Exchange will Test Stock Trades In Foreign Currencies, Eyeing Asian Money

LME Says China's Guangxi CNGR has Applied For a New Nickel Listing

ICE Announced the Successful Transition Of Credit Default Swap Open Interest From ICE Clear Europe

ICE Appoints Chris Edmonds To Lead Fixed Income And Data Services Business

LME Trading Technology Revamp Faces Lengthy Delays

Valereum PLC Change Of Directors
Valereum PLC

Appointment Of New Directors
Vox Markets / VLRM