Latest / Exchange Invest / 287 Exchange Invest Weekly Podcast March 22nd, 2025
Transcript
- 0:00Speaker A: This week in the parish of Bourses and Market Structure. EU renews London CCP equivalence as Indian battle lines are drawn. Sebi throttling options volumes SIPS stasis as the 24 hour schlep begins and NASDAQ announce their Texas plans My name is Patrick L. Young. Welcome to the Bourse Business Weekly Digest. It's the Exchange Invest weekly podcast, episode 287. Good Day Ladies and gentlemen. This is a very brief reduction of highlights from the windswept Isles. Amongst the key headlines from the week in Market Structure. All 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 Boris Business sent daily to your inbox. More details@exchangeinvest.com over in BitCarnage Readers of Bitcarnage will be aware that we're not in the dumb shilling for the crypto religion. It's been a long journey from a decade or more of the digital money concept to ending up deeply cynical by what has resulted to typically and it pains me for there are good people in parts of crypto a schlock hype, get rich quick scheme mentality with empty pixels, broken promises and endemic fraud. While many parties seek little or no regulation for their new virtual Klondike phenomenon seems to have taken hold. Anyway, looking at the structure, there are phenomenal dangers to the fabulously misbranded stablecoins, and a pointy headed academic has done a takedown which deserves a read. Policy Brief the Hagerty Scott Loomis Killybrand Stablecoin bill would cause great harm to consumers, investors, our financial system and our economy. You can get that over at SSRN or if you prefer, a brief surmise, a noted crypto skinnik, a former SEC manager adding his pith John Reed Stark on LinkedIn. Stablecoins are neither. If you enjoyed this excerpt, you may be interested to know you can read Bit Carnage every day and Exchange Invest. Alternatively, if you want the Full of Bitcoinage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcoinage as a standalone on substack over in the mainstream world of exchanges, Exchange Invest Pixelated A Guide this week SIPS A guide for the perplexed as the SIP Committee and its first round of votes for stasis. So far as we're concerned, we're far from unanimity in the 24 hour trading debate, even as DTCC confirmed they would buy Q2 2026 have the capacity to actually clear US stock trades 24 hours a day. Catch this developing story in Exchange Invest. Subscribe by exchangeinvest.com as the T seemingly forever picture develops towards a 24 hour stock market on exchanges in the US at least. Meanwhile the NSCC has announced it will increase clearing hours to support extended trading. That comes as good news for the likes of Cebu and Nasdaq who were rather pinning their hopes on this taking place and therefore means that in well Q2 2026 we should see the DTCC able to actually allow almost near 24 hour stock trading somewhere beyond 23 hours at least per day. Albeit of course we still need the SIPs to vote for all the other governs to allow the exchanges to play. Meanwhile Nasdaq has announced their move to shore up presence in Texas which surely kills the ill conceived TXSE stone dead. Of course if you were reading Exchange Invest you could learn that TXSE was always a shaky concept. Now it is surely DOA with a NASDAQ office in Dallas alongside of course NYSE Texas which will also be in Dallas. Will blackrock and Citadel seek to cut their losses? After all, up to $161 million has been invested if they aren't already over in India the battle of the bourses heats up after a semi crackdown on features and options. It's not winter in Mumbai but there is a harsher wind blowing through after SEBI restricted options volume from retail traders. Already the options market is seeing a three year low in retail participation. Meanwhile back in Europe some seismic accusations made against Eurex by Mosaic Finance from Paris which the DB1 subsidiary fervently denies concerning HFT access loopholes does relief all round amongst those who prefer markets to be functional. As a sotto voce Paris agency announcement states blandly, ESMA extends the tiering and recognition of the three UK based CCPs. Thus there is so far no dice for the demented protectionism of Eurex and the worst vestiges of commission idiocy. ESMA have pushed the date at which mud huts are back on the Brussels financial agenda to 30 June 2028 for the three recognized UK Ice Care Europe, LCH I and LMEclear, first adopted by ESM on 25th of September 2020. This feels a bit like that temporary imposition of a 70 mile an hour speed limit on British motorways. From Paris meanwhile came a bombshell, particularly for Euroclear shareholders as Euronext will take back control of their settlement within their own CSD for equities. That's one way of rebalancing the valuation differential with euraclear, which euranext CEO Stefan Bujna recently noted he would like to acquire in Results A busy week for results in the Parish. All the details were an 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. Steady results from six the Swiss exchange which also owns BME. Total operating income for the year up 4%, net profits actually turning into a slight net loss due to a few technical issues, but nonetheless an encouraging story as Indeed their new CEO Bjorn Sibirn gets two take a chopping block to the organization of the 6BME organization as he has done already.
- 6:22Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickrevativesvision.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.
- 6:41Speaker A: In new markets, the Bruce ATS announced its regulatory approval. It's now open for business. Bruce ATS is based in Chicago and will also trade overnight US Equity markets like the trailblazing Blue Ocean. It'll be interesting to see how their volume and trade profile shapes up against the market leader over in deals. It was a busy week for deals in the Parish. Again, all the deals were in Exchange Invest. The big new deal of the week was the miax, that's Miami International Exchanges Group bid for tise, that's the International Stock Exchange, formerly the the Channel Island Stock Exchange based in the UK Offshore island of Guernsey in the Channel Islands are listing Titan, which is likely to be sold for $91 million. Exchange Invest is proud to have launched a special edition inspired by my visit to ring the closing bell at the New York Stock Exchange July 5, 2024. Patrick L. Young's original bestseller Capital Market Revolution, the first breakthrough book in fintech a decade before that word held common currency, has over 10,000 new words of additional pith, 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. If you fancy some financial insights with moving pictures, check out our live stream Tuesdays 05:00 London time, midday New York time. Although this week actually because of the time change, I think we're going to be slightly different. We will still be at midday New York time though. It's the IPO video live show. Catch the back episodes on LinkedIn and YouTube IPO vid coming up this week IPO vid 173 high floors help Markets over in our Finance Book of the Week, we're looking at an excellent tome by Frank Partnoy. He recasts the life story of Ivor Kruger, the Match King, a remarkable yet forgotten genius who was, well, someone who was fundamentally behind an absolutely spectacular Wall street scandal. But all the same, a forgotten genius. You can catch our weekly Book of the Week review, which will also be in Exchange Invest Weekend, which is our free macro newsletter. You can sign up to that@exchangeinvest.com while you're there. Don't forget, have a trial too. Exchange Invest, the bulletin of the Boris business, the water cooler of the exchange world. And you can catch that and get a free trial@exchangeinvest.com meanwhile, in product news, the CME Group well, it's a fairly dull headline expands credit products with high yield duration hedge futures. But it's an interesting new product edition by CME all the same. It can be translated as show me a credit sensitive interest rate product without saying it's a credit sensitive interest rate product. Not dismissing what CME are doing, but at the same time it's likely to fuel frustration elsewhere with regulators having proven simply incapable of comprehending what counterparty risk means. With daft Iosco directives and previous moves stifling credit sensitive products, for example from the UK fca. Then again, you don't need me to prattle on about this, do you? I have pointed out this will be a key theme for quite some time to come and a very major theme during the course of 2025, 2026, even before ICE bought the AFX assets from Severnridge to establish their own credit sensitive interest rate product base. Over in technology, NASDAQ and Neuam, that's the merged series of three South American exchanges. They're strengthening their technology partnership to drive capital market integration in Latin America. The CSD extension for NASDAQ is clearly an important win for morale and momentum. It will be a blow to Vermiculous who have a solid base of clients but are again stuttering in the face of NASDAQ competition. A long time ago I believe LSEG were in this fight but had to withdraw due to the curious nature of what passes for management under the out of his depth day of person. Elsewhere, it's a big RFQ game on. The UK Financial Conduct Authority has invited applications for a bond consolidated Tip Provider Regulation News this week brings us back to one of our headline stories. At the top of this show that wave of relief felt not merely in London but across the world when ESMA on behalf of the European Union once again stepped back from the brink with an extension to the temporary recognition of the UK CCPs, which also happens to be the highly significant CCP players when it comes to EU markets, especially in the Eurozone. Alongside of course the clearing settlement CCPS at Euronext and to a larger extent, Eurex Career Paths this week the QSE Qatar Stock Exchange appointed Abdullah Mohammed Al Ansari as the CEO of. Meanwhile, the Texas Stock Exchange appointed a series of new people to run their ETF business. One wonders if that's actually a sensible and coherent thing to be accepting a job with Texas Stock Exchange right now, given the fact that the underlying business looks to be potentially decimated in Big World. It's interesting to note the talk about G7 being eclipsed by the BRICS by some frankly often misinformed media. Let's look at the numbers. The expanded BRICS membership amounts to globally 27% of GDP. The G7 of the USA, Germany, Japan, UK, France and Italy amounts to 45% of global GDP with their new members included, Indonesia as a member, Nigeria as a partner. BRICS still only amounts to 29%, a 16% deficit in GDP to the dominant G7 grouping. And on that mysterious and magnificent note. Thank you for listening to this Exchange Invest weekly podcast number 287. Join us daily via exchanginvest.com or if you have a new exchange you'd like build, get in touch. My name is Patrick L. Young and I wish you a great week in life and markets.
- 12:47Speaker 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 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.