243 Exchange Invest Weekly Podcast May 4th, 2024
Transcript:
This week in the parish of bourses and market structure:
MCX Shines Bright,
Nasdaq Makes A Revenue Leap,
Third Time For Lucky Lutnick?
Sebi’s Calculated Insanity,
DFM Results Sensation,
And there’s Hosking’s Broadside At ASX
My name is Patrick L Young
Welcome to the Bourse Business Weekly Digest
It's The Exchange Invest Weekly Podcast Episode 243
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 the 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:
It was a huge case of 4-Months: FUD! In the end - the man behind the Twitter tyranny of 4:FUD! has ended up with 4-Months: FUD! of jail time after the once seemingly unimpeachable CZ was bolstered by some 161 letters of support. Then again, only 161 letters is almost disappointing when you consider that this time last year, he could motivate a thousand or more braying donkeys to support his view with a de minimis Twitter cri de coeur of “its for 4:FUD!”
CZ apologized, which made a conspicuous difference compared to say the sentencing of SBF. In the end CZ is lucky, a very, very lucky man to get away with 4 months incarceration where his former foe SBF has decades in jail ahead of him.
If you enjoyed this excerpt you may be interested to know you can read Bitcarnage every day in Exchange Invest. Alternatively if you want to follow Bitcarnage the daily update on happenings in the world of crypto and digital assets, you can find Bitcarnage as a standalone on Substack.
Exchange Invest Bitcarnage
This week in exchange, a fabulous letter in AFR (that's the Australian Financial Review) effectively the Financial Times meets Wall Street Journal independently-owned by Australian interests of the Australian antipodean financial markets. Great newspaper it is too. ASX monopoly threatened stability of the Australian Financial System ran a headline for a fabulous letter.
I commend the parish to enjoy and read thoroughly Les Hosking’s broad ranging but pinpoint accurate letter to the AFR describing the manifest failures of the shameless ASX where management has become a synonym for “just hanging on to your sinecure at all cost.”
Let me repeat remarks I've made in Exchange Invest this week, please can somebody buy FTX now and give Australian markets a chance of a two pronged revival alongside CBOE (formerly Chi-X)? (Or indeed send me the money and I'll do it, Oz deserves better markets and there's a hefty sum to be made in a potential development of the FEX Exchange.
Meanwhile, the SEC is in talks with various firms on becoming US Treasury clearing houses.
Monopoly clearing houses are, in my humble opinion, hideous idea straight from the Stalin playbook even though the model naturally leads to a form of monopoly, creating a complex situation within a complex situatio! There needs to be some serious competition to the DTCC which has many great people but also a vast amorphous mass of blobular activity aided and abetted by a PR machine which spouts Agitprop, but can't reply to our emails. We need a better deal for clearing and settlement not just of treasuries and the worry remains the Hail Mary pass to blockchain being seen as a means to rescue the likes of DTCC from decades of indolence in various areas.
Take note Europe, that concept of monopoly settlement which has been much discussed in Brussels of late is not the panacea for all your ills.
Speaking of panaceas for all your ills, CBOE didn't find one but they did find $15 million they can save if they've closed a crypto exchange, they've realigned their digital asset business, and made a handy cost saving rationalizing their service which ultimately didn't receive that quasi-mythical beast as customers - institutional crypto investors. CBOE essentially throw in the towel on trading crypto stuff after a lot of hype.
Good news for Euronext on the credit front, they've been updated to BBB+ positive outlook by S&P.
Meanwhile, CMU still appears to be stalled in Europe even though former PM of Italy, Enrico Letta, wrote a de facto love letter to Europe's markets and in France former Banque de France Governor Christian Noyer produced a report - However, when jaw jaw gives way to actual execution is anybody's guess and a lot of the talk is of single monopolies which sounds little short of madness.
Meanwhile, it was a tricky week for Indian exchanges, as Sebi decreed with a big back surcharge all the way back to 2006 AD - that regulatory fees for options are to be paid on option value, not premium value. Big changes there hit BSE, MCX and NSE in particular caused a lot of volatility in the stocks of BSE and MCX as well. BSE have already moved to increase their flagship SENSEX and BANKEX index options fees by between 24 and 32%.
In results, too many results to mention here leading the field where NGX Nigeria, Bulgaria and DFM in Dubai with incredible growth. Amongst major international markets: NASDAQ, Tradeweb, JPX, and MCX all produce good numbers.
But with such a busy week for results in the parish all the details have to be find in exchange invest daily newsletter no person can afford to be without and capital markets and market structure.
New markets this week, one new market to talk about Howard Lutnick has lined up his latest attempt to skewer CME with an exciting array of shareholders. Of course, the old adage “This time it's different” ought to be ringing in everybody's ears who has seen previous Cantor Exchange platforms appear and disappear.
It's probably fair to say that El Tel has not massively expanded his circle of friends as Chairman CEO of CME since Howard Lutnick had his last attempt at the then CBOT monopoly. Now it's a full US dollar yield curve attack. Can it work? I've yet to be convinced there's a game changer in here, but it's going to be exciting to watch.
As we bring popcorn for that, couple of interesting deals this week, not enormous but India's National Stock Exchange has sold their digital tech unit to Investcorp for $120 million.
LSEG sold their onboarding unit as well. Full story was in Exchange Invest and the British Commodities Futures broker Marex made their debut on the NASDAQ stock exchange, notching evaluation and total of $1.38 billion.
If you're trying to understand where the trends are in financial markets going forward, then you ought to be looking for the market infrastructure view and “Victory or Death?” my most recent book blockchain, cryptocurrency and the FinTech world. It's published by DV Books and distributed by Ingram worldwide.
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While you're waiting for your copy of “Victory or Death?” to arrive, check out our livestream,Tuesdays at 5 o'clock London time, midday New York time- the IPO video live show. You can catch the back episodes on Linkedin and Youtube via “IPO-Vid”.
This week, we have an epic show, and that was Episode #141 with Roland Bellegarde, a very very famous figure from Euronext and subsequently NYSE Euronext who's nowadays the Chief Adviser to the CEO of the Saudi Tadawul Exchange and his topic was Modernising Saudi Markets / Modernising Tadawul. Great discussion there, you can find that online, just go search “IPO-VID’.
Coming up this week, another epic show Blue Ocean - A New Market Tide. Don't miss this one, ladies and gentlemen. We're going to have the boss Brian Hyndman have the most exciting ATS of the moment, Blue Ocean.
Speaking of Blue Oceans, and all sorts of things that took place there and there abouts, one company that had an inordinate number of private jets flying across the blue ocean, the Atlantic for a long time was of course the company's Daimler-Chrysler when they had a bit of corporate M&A action a couple of decades back. That's our “Book of the Week” this week taken for a ride all about Mercedes Benz buying Chrysler, or at least Daimler, the parent company of Mercedes Benz buying Chrysler for $36 billion in 1998. It's a gripping narrative by Bill Vlasic and Bradley A. Stertz going behind the scenes of the corporate drama which ultimately didn't work out. Really worth a read this a fabulous book of the week all round.
Product news, one big highlight of course, we're getting there. We're only weeks away now, we're in May, it's going to happen at the end of the month. The US Mexico and Canada are all going to T+1 settlement for their equities FX dealers face end of day trading stress from T+1 shift reports risk. This could also of course, be read as “stunningly linear FX market incapable of amending CLS to make it a dynamic modern entity.”
In technology news this week, the Vietnamese regulator have intervened and they rejected the May start date for the new KRX derived system for the Vietnamese stock exchange that was due to launch on May 2nd. We await news on when that deal is going to take place.
Regulation news, one thing the city is mounting according to City A.M, which is going through a golden period at the moment actually very, very readable City A.M once again.
The city is mounting a final push to topple the FCA’s name and shame regime. What frustrates me here is that any investigation can be named and shamed by FCA under these plans without it being clear there is guilt. But the London exchanges, the London Stock Exchanges have to keep secret details of members who transgress their rules and are punished! Whither This Farce? Seems ridiculous.
Career paths, very busy week Carlson Tong has been confirmed as Hong Kong Exchanges Chairman on the retirement of Laura Cha at the annual general meeting of Hong Kong Exchanges Group.
The SET, the Stock Exchange of Thailand has announced that Pichai Chunhavajira has tendered his resignation as Chairman of the SET Board of Directors. That came very, very quickly. He stepped down immediately from the SET Board of Governors on April 25th. That was a big surprise, but apparently Mr. Chunhavajira is sheduled to become Deputy Prime Minister and Minister of Finance of the Kingdom of Thailand in the near future.
Meanwhile, there's also an upcoming CEO vacancy at the Stock Exchange of Thailand as nobody has applied to replace the SET President Pakorn Peetathawatchai’s position which is going to be open in September. Thus the 30th of April deadline for applicants has been extended to May 15th.
Meanwhile, to round out an exciting week and career paths, the MCX in India are also advertising once again for a new CEO after Sebby nixed their last slate of choices.
Of course this week included May Day, the 1st of May that pan European day of England's and a day when we can all sit down and reflect upon all the people who innocently died while people have been trying to manage to create a social state which worked. Still seems to be celebrated far and wide across the globe. I suppose on the other hand, there are many, many victims of socialism that and communism that we ought to be celebrating because of the numbers of the millions,tens of millions and facts of innocent victims.
Anyway, given that doctrines, failure and continuing failure, we had a very interesting run in BigWorld of facts centered around different aspects of communist failure. We centered this week on the DDR, the former Communist East Germany.
Here's a couple of interesting facts for you. In 1989 when the Berlin Wall fell amongst East Germans - aka the citizens of the communist DDR a scant 16% (mostly senior civil servants) had home telephones.
Across West Germany, the coverage stood at a much more egalitarian 99.3% of all the population. You didn't have to be a senior civil servant, any worker could get a phone.
In 1989, 65% of DDR apartments were still being heated with coal stoves.
At the same time, 24% of DDR homes in 1989 had no internal toilet, and indeed 18% entirely lacked a bathroom.
And on that mysterious and magnificent notes ladies and gentlemen. Thank you very much for listening to this, the Exchange Invest Weekly Podcast #243.
You can join us daily via ExchangeInvest.com or if you have a new exchange or market you'd like built, get in touch!
My name is Patrick L Young and I wish you all a great week in life and markets.
LINKS:
ASX monopoly threatens stability of the Australian financial system - AFR
AFR
SEC In Talks With Firms On Becoming US Treasury Clearinghouses
Bloomberg
Cboe Can Save Up To $15 Million By Closing Crypto Exchange
FinanceFeeds
Euronext Upgraded To ‘BBB+, Positive Outlook‘ By S&P
FT
India's National Stock Exchange To Sell Digital Tech Unit To Investcorp For $120 Mln
Reuters
British Commodities Broker Marex's Nasdaq Debut Gets Lukewarm Response
Reuters
FX Dealers Face End-Of-Day Trading Stress From T+1 Shift
Risk
Vietnam Regulator Rejects May Start Date of New Stock System
Yahoo Finance
City Mounts Final Push To Topple FCA's 'Name And Shame' Plans
City A.M
Member discussion