Latest / Exchange Invest / 296 Exchange Invest Weekly Podcast May 24th, 2025
Transcript
- 0:00Speaker A: This week in the parish of bourses and Market Structure. ASX cutting staff NASDAQ gains a tie extension as Thoma Bravo sells out of their stock RMB Curve tweaks help Hong Kong exchanges, and that all comes during our 12th birthday week here at Exchange Invest. My name is Patrick Elyoung. Welcome to the Boris Business Weekly Digest. It's the Exchange Invest Weekly podcast, episode 296 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 Daily Subscriber News Letter A unique guide to the Bosch business sent daily to your inbox. More details@exchangeinvest.com over in BitCarnage this time it's different. While it's news that coin's going to be joining the S&P 500, the big gabfest of last week was at the SEC's latest crypto task Force roundtable and the results were interesting. First up, much as I admire Chairman Atkins, I think he's simply wrong. His opening remarks note this movement of securities from off chain to on chain systems is akin to the transition of audio recordings from analog vinyl records to cassette tapes to digital software decades ago. The tricky part was each of the steps worked because it was more efficient. There's nothing more efficient about having what we now have, which is a concept of blockchain, which is actually like having eight track and open real tape and compact cassette amongst other formats, all competing. The trouble with blockchain is that DLT is Betamax, an arguably better standard, but guess what, VHS works and folks like buying it. Plus there's already a better network on there to start with. This is where tokenization is something I've argued for decades, but I am left behind at the notion it has to be on a blockchain, except in the case of very unique product sets, AKA not actually homogeneous groups of shares. For example, the commission to watch once again was Caroline Crenshaw, whose questions were apposite and who knows, the bros may be able to answer them, but why haven't they already? The token roundtables at SEC are a worrying development as we have a kind of smugger classic feel of this is the future and we get it because we're modern theme around the bureaucrats, commissioners and frankly, the blob never gets ahead of technology or as crypto media elegantly headlines the wisdom of Commissioner Crenshaw, SEC's crypto embrace seems like government picking winners and losers. Hmm. This time it's different. If you enjoyed this excerpt, you may be interested to know you can read Bitcarnage every day and Exchange Invest. Alternatively, if you want to follow Bitcornage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcoinage as a standalone on Substack. In the world of exchanges this week, ASX ought to feel obliged to start cutting from the top down. Rather, they're looking at an 8% payroll cull circa 100 people. That's a start. But the problem is whether ASX employs one person or a million, or any variation in between, there's zero faith in the top tier of management to deliver. Over in Europe, the European Stability Mechanism has selected Eurex Clearing for voluntary clearing of interest rate swaps. Zero shock there that the protectionist EU will favor its own Eurex, the London Stock Exchange Group is recommitting to an expanded hq, doubling down on Paternoster Square. Also of course the home to ICE Futures Europe, as well as the LSE's ragtag exchange assets over. In result, it was a frantic week for results in the Parish. All the details are an Exchange Invest Daily the newsletter no person can afford to be without capital markets and market structure. For the sake of this podcast, let's look at some edited highlights where Euroclear was flat as usual, Euronext had somewhat more lively results. Meanwhile in Israel, tiers positively dazzled. Revenue up 21% adjusted profit up 32% very decent data from the Israeli Stock Exchange, particularly at this troubling time for Israel while it tries to seek to clear the terror tourists in its midst. Over in deals. Well, not such a busy week for deals in the Parish, but a couple of interesting nuggets. All the deals 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. Thoma Bravo have divested around 43 million shares in Nasdaq, around 7.4% of the company in unregistered block trades. Those took place on May 7 and May 13, a remarkable chunk for the block facilities and a stirring testament to overall US Equity market liquidity. We await with interest to see whether there was a large clustered buyer therein. Filings will doubtless no longer tell us more by the time the next podcast is out. The last tranche was sold at $80.6, closing out the deal from 2023 where Nasdaq bought a Densa for 10.5 billion in cash and stock. As previously reported, Thoma Bravo had used various issues to offload their stock. In total, the last stake, which has an initial value of $4.7 billion, garnered Thoma Bravo a handy 6.2 billion elsewhere. Fabulous move. The National Stock Exchange of Australia is going to be acquired by the Canadian Securities Exchange. This deal is simply absurdly perfectly logical. Indeed, PLY was talking about a link up of Australian, Canadian, uk, South African for extractive centric listings as long as the 1990s. It was all part of the capital market the Revolution thesis. The major monopolists in each nation stewed the idea. Arguably as much ego as agenda driven at the time. And look where they all are now. It's a brilliant move by CSE CEO Richard Carlton, himself an IPO vid alumni. That was episode 63 bringing the Max Cunningham led IPO FID173 was Max's appearance and NSX will be brought into a unified SME inflexible listing trading venue backed by the Tom Caldwell inspired Urbana team. There's a vast amount of potential here and the price, even at a 59% premium to recent dealings, is cheap for the infrastructure involved. What an exciting start to the week for all of us who want richer, better SME markets to grow the economy across the world. Exchange Invest is proud to have launched a special edition inspired by my visit to Ring Closing Bell at the New York Stock Exchange July 5, 2024. My bestseller that's Me Patrick L. Yeung Capital Market Revolution was the first breakthrough book in fintech a decade before that word held common currency, and it has over 10,000 new words of additional pip, placing the past quarter century in perspective alongside the original text, which has proven remarkably successful through the years. Capital Market Revolution 25th Anniversary Edition is published by Exchange Invest and is now available as an ebook via Amazon Kindle at a ludicrously reasonable price of $9.99, a quarter of the price of the original shorter print book a quarter century ago. Meanwhile, don't forget you can also pick up some exciting moving pictures from the Exchange Invest team. Our insights via the live stream is on Tuesday at 5 o' clock London time, midday New York time. The IPO Video Live Show Catch the back episodes on LinkedIn and YouTube via IPO vid now online. We had a brilliant show this week. IPO Vid won 78 the evolution of trading with Mark Bettis, who's recently retired from the front line of the capital markets business next week. No show. It's Memorial Day and we have a weekend off or holiday. But if you're looking for something to do, why don't you pick up the hard book of the week? The Power of Capitalism by Reiner Zitleman shows how capitalism is a force for good, enabling prosperity, alleviating poverty and improving people's lives around the world. Reiner, of course, a serial guest on IPO vid and magnificent. All his appearances have been in product news this week, Deutsche Biz and Euronext are said to be stepping up the battle against the IPO flight to the USA. The difficulty here and where DB1 and Euronext are going wrong is to see the IPO battle as one of equivalents. Exchanges need to find the right niches they can best service, not merely go head to head in the minds of the exchanges boards or elsewhere. In a case of demented unicornophilia elsewhere in Hong Kong. Great to see Tweaks to Swap connect further enhancements announced by Hong Kong exchanges this week. The RMB yield curve is increasingly becoming tradable via Hong Kong exchanges in the sir and that can only be a huge fillip for the firm and the gradual internationalization of the yuan itself. Elsewhere, great deal from 6 they managed to borrow $250 million of Swiss francs in a digital bond. Borrowing at 1% in Swiss francs looks like a no brainer for 6 as it helps pay for the Aquas acquisition.
- 8:39Speaker B: Thanks for listening to Exchan Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickrivativesvision.com with any comments. Meanwhile, if you enjoyed this show we would welcome you giving us a thumbs up or if you have time. A positive review will always be welcome wherever you find this podcast Technology News.
- 8:59Speaker A: This week the Stock Exchange of Thailand expanded its strategic partnership of NASDAQ to modernized capital market ecosystem. Krx, of course recently signed a deal with SET to expand their usage of the CSD system, which therefore means that Nasdaq will be able to extend their long running deal. Which leaves some other vendors as rather conspicuous losers on the sidelines when it comes to the Thai deal, despite a lot of people working very very hard to that effect in career paths. This week Clara Christina Stright has been elected the first Chairman of the Supervisory Board who is female at Deutsche Bose. She was originally listed for the position oh gosh. Exchange Invest 3141 a number of months ago and it's another McKinsey consultant in as chairman of DB1 to keep the PowerPoints as impeccable as the management strategy has been dismal for decades. New board member is Jean Pierre Moustier, an interesting figure given his past as UniCredito boss pushed out during some of the Montepansky shenanigans. The CFO Rosaida Baharum has quit Borsa Malaysia and that's quite an amazing HE vault for the very simple reason. Her personal reasons for departure we know not, but with Razmona Abdul Rahman, EVP of Group Finance and Corporate Services assuming the acting CFO role, that means all change at the top. The CEO Datuk Fadal Mohammed joined 1st of March and the Chairman Hans Re Abdul Farid Alias, has been in office since only May 1st. Now the CFO is changing too. Commissioner Goldsmith Romero is one of many announcing her departure from the CFTC as a Commissioner. That was announced in February, but it should be coming live at the end of May provided the incoming Chairman Brian Quintence is confirmed by the cftc or at least confirmed rather by the US Senate. Otherwise the CFTC is in danger of having just one commissioner, Democrat Kristen Johnson, the Trump Admin needs to get a wiggle on to add some commissioners asap. That said, a total, near total clearance of the previous commission is probably a good thing as it was not a particularly successful or orderly group under the disastrous venom chairmanship. What will become of the CFTC under Brian Quintanz? He has the status to rebuild cftc, albeit it's a concern that he's coming straight back to the DC blob from a 60 16Z which has hardly been the most subtle advocacy voice even amongst the most pro crypto bros. Ladies and gentlemen, I'll leave you with a fascinating fact. The US Great Plains is the biggest single tract of arable land in the world. Great Plains amount to roughly one third of the U.S. territory. That's before of course any Trumpian expansion. While the USA has the greatest arable land of any nation on earth, amounting to about three quarters of the nation, 1.7 billion acres of which forestry covers around 40% of the entire area. And on that mysterious and magnificent note, thank you for listening to this Exchange Invest weekly podcast number 296. Join us daily viexchangeinvest.com or if you have a new exchange or marketplace you'd like build, get in touch. My name is Patrick L. Young and I wish you a great week in life and Markets Foreign.
- 12:19Speaker B: This show relates to the business of bourses. It is not to be construed as investment advice nor are we making any investment recommendations. Please consult an investment advisor before you make any investments. And for goodness sake, do your due diligence and do not make investments without complying with the regulations in your home state. Exchange Invest cannot be held responsible for any investment decisions made as a result of our program, which is for entertainment purposes. Purposes only. The material herein is copyright Patrick L. Young at the date of publication, while our music and sound effects are sourced from copyright free sources. Thanks for listening to Exchange Invest Weekly. The exchange of information.