Latest / Exchange Invest / 276 Exchange Invest Weekly Podcast December 21st, 2024
Transcript
- 0:00Speaker A: This week in the parish of Bourses and Market structure Kill the PCAOB Death to banking regulators Trump World gets ambitious as Trump man of the Year rings the New York Stock Exchange bell. European Union in focus over CCP rules again as India ponders the SEBI stock options restrictions My name is Patrick L. Young. Welcome to the Boris Business Weekly Digest. It's the Exchange Invest Weekly Podcast, Episode 25176 Good Day Ladies and gentlemen. This is a very brief reduction of highlights amongst the key headlines from the week in Market Structure. Our last such review of Twin 2024. Indeed, 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 Bourse business sent dilly to your inbox. More details@exchanginvest.com and rush by now and sign up over the festive season and you'll be eligible for a seven day free trial and also the opportunity to read our special end of year editions where we give a digestion of what's been happening in the bourse business throughout 2024. Over in Bitcarnage, it's a case of no fixed abode, once again refusing to state where they come from, which I think ought to remove them from being regulated anywhere Binance is coy on its hq. They also seem to be once bitten, twice shy about re entering the US Market, according to their CEO Richard Tang. 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 Bitcarnage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcarnage as a standalone on Substack this week in Exchanges, the Man of the Year was announced by Time magazine Person of the Year indeed, because, well, that's the way things go these days. The point is he was the President of the United States of America, the Incoming President number 47, Donald Trump. A fabulous end for what has been a magnificent year of classic campanology on the NYSE podium, following no less than the incredible, the amazing, the great free marketeer President Xavier Milei of Argentina, amongst others, has to be said. On a personal note, after the Warholian Manor, I was delighted to swap my option on 15 minutes of fame for 93 seconds on the podium at the NYSE on July 5th this year. Bestday ever. After an incredible win in the presidential election, which is already engendering a new spirit of greater optimism in the usa. I salute President Trump ringing the bell. And if indeed his government can manage to maintain what has been a breathtaking start with appointments so far, it promises to be morning in America. A line, of course, from the last US President to ring the bell of the New York Stock Exchange, Ronald Reagan, way back in 1985. Over in Europe, the joint associations are getting in early, more than a year in advance, talking about UK CCP equivalence and recognition. The industry wants clarity from what has been a very dark chapter in protectionist desperation. Even by low standards established by the European Union itself, London's central counterparty clearing houses need to be treated the same as all other leading clearinghouses. Without that, the EU denigrates any vestige of open market credibility. And the euro ought to be marked down as a non convertible currency like the RMB rupee or indeed South African Rand. Sebi, meanwhile, has okayed the exit of the Indian Commodity Exchange from the marketplace a year after they applied for voluntary surrender of their license. And sad news from the London Stock Exchange Group, but hardly surprising given how out of debt that organization feels these days. The UK stock market now trails Oman and Malaysia in the IPO rankings for 2024. Setback for NASDAQ this week. And it looks like time to recalibrate after a US appeals court rejected Nasdaq's diversity rules for company boards. It's a really tough one, this. We need faster and better dei, particularly in an often sexist business environment. But mandating is really difficult and then extending to a cornucopia of minorities of differing forms makes the matter incredibly complicated. It may be time for Nasdaq to seek to encourage boards to take the lead of their excellent chairman CEO Adina Friedman, who is a fabulous ambassador for diversity. Speaking of which, what a fantastic week, ladies and gentlemen, for the Parish. In addition to the man of the year, Donald Trump ringing the bell at the New York Stock Exchange, we saw an incredible result for the Parish. A magnificent trio of ladies rightfully represented amongst the 100 ladies on Forbes World's Most Powerful Woman 2024 list. It's a truly sensational Parish achievement. Adina Friedman of Nasdaq, Lynn Martin of Nicee, Bonnie Chan of Hong Kong exchanges, all on this power list. All three ladies entirely deserve their status amongst the world's 100 most powerful women as the exchange of information. The bulletin of the Bourse Business Exchange Invest is delighted to see these three ladies from exchanges all on the list, representing a remarkable concentration for the Parish. Well done, Adina, Lynn and Bonnie results this week. Just one set of news, the privately held Budapest Stock Exchange announced a slight decline minus 2% in net profit overall.
- 6:11Speaker B: Thanks for listening to 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.
- 6:30Speaker A: New Markets this week Very exciting news in the US Bruce ATS backed by Peak 6 are going to be deploying now NASDAQ technology to essentially copy Blue Ocean technologies. As the overnight trading race heats up in US stocks, will the victor be the one with the best market, the best technology or the best boots on the ground in apac? I wonder. Few more fits of the vapors from the protectionist narrow minded folks, the unionizing US broker dealers, the Better Markets organization, etc. But this is truly the way forward for a global market driven from the US equities environment. In other news, Moldova are looking to set up a new bourse backed by the Bucharest Stock Exchange in next door Romania. A bit of a challenge given the fact that Moldova also announced a state of emergency this week due to various issues relating to energy, gas and indeed their proximity to the Ukraine. Russia Conflict in deals not such a busy week for deals, but quite remarkable all the same given the proximity to Christmas. T Corp have acquired a minority interest in Euroclear. That was the stake being sold by the London Stock Exchange. It represents a healthy profit for the London Stock exchange selling at $478 million a stake that they paid I think 278 million euros for. So in other words 455 million euros. They managed to make a handy 50% plus on their stake. Nonetheless quite interesting. T Corp, that is the wealth fund Investment Fund of New South Wales State Government in Australia. How incredible that they would choose to buy a stake in Euroclear over and above possibly investing in the somewhat became and unable to revolutionize their clearing and settlement systems. Australian Stock Exchange Group based in Sydney, the state capital of New South Wales Exchange Invest, as I mentioned earlier, was very proud to have launched a special edition inspired by my visit to ring the closing bell at the New York stock exchange on July 5th. Patrick L. Young's original bestseller, that's Me 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 accurate 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 the ludicrously Reasonable price of $9.99 a quarter the price of the original shorter print book just a quarter century ago. While you grab that as a stocking filler on Kindle, if you're bored during the Christmas season, don't forget we are taking a short break with our podcast, but nonetheless you can catch up all our live streams. Go and look at the back issues we have. Good grief. A vast cornucopia of information that you can find via IPO vid if you want to search on YouTube, Facebook or LinkedIn. Our next live episode will be on January 7th, 2025 when we will be talking to Joe Sikela, a man who's bringing a very interesting and diverse exchange to the United States of America. In product news, Fast markets and ICE are launching used cooking oil futures to meet rising biofuel demand at the same time as ICE launched their long European Union bond index. Futures options fever has cooled after the SEBI curbs kicked in and the CME are going to launch single stock futures, a fascinating move which essentially undermines the one Chicago enterprise in which CME has a stake. The problem with SSFs in the USA remains the Brodsky legacy. Joe Brezhnev's former college roommate argued convincingly against SSFs until a last minute Damascene repo conversion, but by then he had done the damage of leaving legacy very high margin rates which served to stunt the market over in technology. Interesting article from Garb States of Confusion despite much discussion and hundreds of legislative proposals, AI policy lacks clarity. AI is going to be prioritized, I believe by the new AI crypto czar of the Trump government, given its impact on daily life. It's a very, very interesting article this. I think it's well worth your reading over the Christmas holidays, no matter how proximate you perceive you or your job is to artificial intelligence. Meanwhile, Olsman Technology Hong Kong exchanges have introduced a fund repository on their integrated fund platform which has been welcomed by the regulator. The SFC and mcx, the Multi Commodity Exchange of India have hired EY to investigate a ransomware attack which took place on many brokerages earlier this month. And there's a milestone in cloud adoption by deutsche Bursa. Fully 50% of DB1 workflow is now in the cloud regulation news. Big shakeups could be coming. SEC Commissioner Mark Ueda is suggesting stripping the US Audit regulator of power to punish firms. That could make a huge impact on the PCAOB oversight body. And indeed there is more. Not only is incoming SEC Chairman Atkins well known as a critic of the pcaob, there is a wider move afoot to potentially revolutionize the entire US Banking regulatory nexus. Many stories creating the possibility that there could be potentially a revolution which could break U.S. banking. Q.V. shilibert and voices of the Old Blob are worried or truly create a revolution in financing for the fintech era in career paths. One more appointment from the Trump campaign not directly in financial markets, but does have impact upon the Parish. The Pro Innovation FTC Commissioner Andrew Ferguson will lead the antitrust agency in the wake of the departure of the Biden appointee Lina Khan. She had some qualities which were indeed liked by incoming VP JD Vance. And while I sympathized with some for thinking on monopolies, her knee jerk reluctance to endorse deals like ISA's acquisition of Black Knight dragging the process out struck me as somewhat unnecessary. Over in NSEL News, there is a curious case of one group of investors want to accept the 63 Moon settlement and the other group doesn't. Even a settlement of the NSEL disaster that's been ongoing for a decade it seems, is factionalized. So here we are, ladies and gentlemen, the last Exchange Invest Weekly podcast of the year, where we look at the key stories and market structure redux. And of course, all the stories and all the detail are are provided in Exchange Invest Daily, which you can sign up for@exchangeinvest.com don't despair. Of course, you can still read during the course of the next fortnight, if you're a subscriber, a series of reviews of key events during the course of 2024 all the way through to the New Year. And we'll return to EI Daily with some roundup of editions from January 7th. How to end the year in podcast form. Well, think about this, a headline from the New York Post Google's AI can accurately predict weather forecasts 15 days in advance, which means my most famous quotation may be reaching the end of the road. That was of course, the trouble with weather forecasting is that it's right too often for us to ignore it and wrong too often for us to rely on it. From all of us at Exchange Invest, ladies and gentlemen, whatever the weather, we wish you a fabulous festive season and we look forward to seeing you in 2025 for a very happy, healthy, peaceful and prosperous New Year. My name is Patrick L. Young and I wish you a great festive season in life and markets.
- 14:37Speaker 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.