246 Exchange Invest Weekly Podcast May 25th, 2024
Transcript:
This week in the parish of bourses and market structure:
In A Week Of All Round Expansionism,
We Celebrate FTSE 100 Futures At 40 Years Young,
But The Big Birthday Is At The Big Board, NYSE Is Growing Fast at 232
My name is Patrick L Young
Welcome to the Bourse Business Weekly Digest
It's The Exchange Invest Weekly Podcast Episode 246
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
The great and the good of the UK index Exchange Traded Derivatives business gathered at Paternoster Square last week for a soiree hosted by FTSE Russell and ICE. We had a full feature in Exchange Invest discussing several of the key twists and turns in the history of the UK’s leading stock index futures.
Happy Birthday, who knows where FTSE will be in the next 40 years?
Over in Bitcarnage:
Will it be “4:FUD! - The True Story” - will 4 months even be enough to write a whole tome?
Questions abound as the billionaire Binance founder is preparing for life behind bars. Canada's most famous crypto entrepreneur Changpeng Zhao is teasing the idea or writing project ahead of reporting to prison, according to Cointelegraph.
Whether he can manage “Quiet time” for writing’ within his sentence space, I'm not so sure, some say jail is not such a ‘safe space’ for quiet reflection?
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
While FTSE futures are 40 years old, across the Atlantic in the ICE empire, the NYSE celebrated its 232nd anniversary Friday, as US stock market structures ride the crest of a wave - New York alone has 2 stock exchanges now playing in their own league when it comes to listings and a cornucopia of innovative platforms are making better markets for the world's biggest stock market.
Even talking the talk, LSEG is adrift in the contrast has never looked greater since the old 1960s/1970s City of London as a post-Imperial construct, struggling to find a place in the world. Interesting times.
Meanwhile, the OTC markets in New York City are moving to provide their own Asian day session mimicking the NMS stock trading ATS Blue Ocean which we discussed the other week in our livestream that drew record crowds instantly on LinkedIn as they listened into IPO-VID 142 Blue Ocean - A New Market Tide with Brian Hyndman.
Patrick Young
Fortune this week, elegantly pointed out the chasm between the US country club listings duopoly of NYSE / NASDAQ and the rest of the world. You can catch our short videos about that topic on YouTube, Instagram, and Tiktok for more on this topic - which we already covered in Exchange Invest daily.
This week in another busy week for results, there was good news from Manila where the PSE (Philippine Stock Exchange) reported net income up over 19%.
In new markets, we have two incumbents in Ukraine under pressure and potentially losing their licenses due to associations with sanction persons. That means that a lot of the great and the good of Ukraine's financial markets want to create a new stock exchange, while Iceland will get its first power market after the Nord Pool deal in the near future.
In deals this week, no exchange deals per se but all the best to the Hertshten Group who have acquired the trading assets of OSTC markets.
Meanwhile, if you're trying to work out where the world of finance is gonna be in terms of market structure in the future, you ought to be thinking about my most recent book “Victory or Death?” Blockchain, Cryptocurrency, and the FinTech World to understand how technology is affecting life and markets. Pop over to Amazon or any other good bookstore and you can pick up a copy of “Victory or Death?” which is published by DV Books and distributed by Ingram world wide.
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While you're waiting for your copy of “Victory or Death?” to arrive, check out our live streams on Tuesdays 5 o'clock London time, midday New York time - it's the IPO Video live show.
Catch the back episodes on Linkedin, and Youtube via IPO-Vid.
Now online, our most recent show IPO-Vid #144, how appropriate that we'd have a gan number to speak to a technical trader Jason Sen, a Seasoned Trader was speaking to us from his home in Phuket in Thailand, which made for a great show.
Next week, we're going to be joined again by Rainer Zitelmann and this week he's going to be discussing his book How Nations Escape Poverty.
Our “Finance Book of the Week” however, this week is also from an IPO-VID guest but not from Rainer Zitelmann. It's from our IPO-VID #139 guest to Bharat Kulkarny, "ECX and the Winds of Change: A memoir from Ethiopia” a compelling memoir that unveils the gripping tale of how a simple idea was turned into an industry-disrupting institution. Readers will be drawn into the roller-coaster journey of establishing the Ethiopia Commodity Exchange (ECX).
Don't forget if you want to know what is our “Book of the Week”, you can get that post test absolutely free of charge along with a bunch of other great macro reading in EI Weekend Edition. You can sign up for that at ExchangeInvest.com of course if you want to stay abreast of what's going on in the world of exchanges you need to be reading Exchange Invest itself, the daily newsletter the bulletin of the bourse business, the watercooler of the bourse business, one might say the exchange of information only $375 per user year. We have a 7-day test package available right now for anybody who wants to sign up. Thereafter we will of course take the money for the full subscription because that paid for us to do this podcast and among other things.
Product news this week, Euronext have launched a new ‘Invest In France’ index family while Comdaq metals have launched four physical lithium trading contracts, adding to their expanding portfolio of what I collectively title “unobtanium” AKA high price often highly specific use case ‘metals’ which are vital for the digital world.
Speaking about the digital world that moves us neatly into technology, the New York Stock Exchange have announced the launch of the NYSE tech council.
A deft move as NYSE signals it's increasing heft in tech, where they're often perceived to be far behind the curve of NASDAQ the tech stock exchange. On the macro, this is truly though a 2 horse race globally where nobody else is in serious competition right now. Hong Kong may be able to amp itself up again on the back of a Chinese economic renaissance, but every other market is in the lower league. That's not to say they can't make money there but the top flight of listings markets are the US country clubs: Nasdaq and NYSE.
So NYSE are eager to garner more recognition for what the ICE age management team has brought to the exchange. The NYSE website notes indeed “75% of tech IPO proceeds have been raised at the NYSE since 2014, that's the past 10 years. The network of tech companies on NYSE includes Alibaba, Dell Technologies, Pinterest, Spotify, PagSeguro, Oracle, Tencent Music and Uber Technologies”.
In signaling a “Tech Council” while running a conference in the west of the USA, NYSE is setting out a clear sign of intent to push its tech influence further forward. In reality, while the meeja will talk of a NYSE versus Nasdaq ‘head to head’, it strikes me this is as much about sourcing content and far away places where they've grown tired of local alternatives struggling to deliver the service, larger tech companies need in scale. Thus, it's a shrewd move by NYSE to remind us that there is a US market which sets the pace for the world and a world market which follows, nowadays often there's a significant distance. That said there is opportunity for all in the bourse business but the days when people could say e.g. Europe rivals, the USA are long gone and unlikely to return in this generation, if ever.
That in one week, two arms of ice can issue separate notes on how they are reshaping the world (aka mortgages and stock listing venues shipping, the tech co-discussion) is indicative of the footprint of the ICE network (before we even get to the globalized technology of the ICE network).
Meanwhile, in regulation this week ASIC, the Australian regulators, they're welcoming ministerial determination to progress competition in clearing and settlement reforms.
It's a big headline, but it will lead to big results, I wonder, it's hard to be entirely convinced given ASIC still sleeps with those that ought to discipline on a couple of levels…On a positive note, there is a new instrument which gives ASIC more power but #srsly, you mean they didn't appreciate for the past decade and more just what a disaster area was brewing?
The reality is that ever since Exchange Invest formally began publishing 11 years ago, we've been expressing clear worries about the ASX and its ability to operate a free fair, coherent series of markets and concomitant utility for all parties in Australia. ASIC has to be judged as part of the protectionist problem.
More about this was in Exchange Invest this week, you can sign up via ExchangeInvest.com
And that moves us elegantly on to career paths, when were the board of SET (Stock Exchange of Thailand) have elected Adjunct Prof Kitipong Urapeepatanapong as the 19th president of the SET, succeeding Pichai Chunhavajira, who has resigned from the position and is now the finance minister.
Meanwhile, congratulations to the wondrous former GHF Chairman Mark Ibbotson, who's also joined the board of ICE Futures Europe.
Over in BigWorld this week, Exchange Invest has been continuing a comparative discussion on national defense spending…
Italy is the 12th largest global military spender at a paltry 1.5% of GDP (so much for that NATO suggested 2% level for all members, barely anybody in the EU treats that number with anything other than contempt these days). Then there's Australia, which is 1.9% GDP spend (that's roughly $32.3 billion US). And indeed, Australia has uniquely a remarkably cavalier approach to its borders albeit one with a comprehensible twist. Essentially, the 4000 kilometer wide nation, an Asian continent essentially, doesn't much bother policing its southern borders. I want to ask an Australian army officer about this unique defensive oversight in the world to which he replied: “What’s our invasion risk here, penguins?”
And on that mysterious and magnificent note, thank you for listening to this Exchange Invest Weekly Podcast #246.
Join us daily via ExchangeInvest.com or if you've got a new exchange you'd like built, get in touch.
My name is Patrick L. Young, and I wish you a great week in life and markets.
LINKS:
PSE Profit Up Due To Investments
Manila Bulletin
Iceland Will Get Its First Power Market After Nord Pool Deal
Bloomberg
Hertshten Group, The Global Financial Services Conglomerate, Has Signed An Asset Acquisition Agreement Of The Trading Business Of OSTC Limited
OSTC Limited LinkedIn
Euronext Launches New ‘Invest In France’ Index Family
Euronext
Comdaq Metals Launches Four Physical Lithium Trading Platforms
Comdaq Metals
The New York Stock Exchange Announces Launch Of The NYSE Tech Council
ICE
ASIC Welcomes Ministerial Determination To Progress Competition In Clearing And Settlement Reforms
ASIC
Kitipong Succeeds Pichai As New Chief Of Stock Exchange Of Thailand
Nation Thailand
Member discussion