Latest / Exchange Invest / 277 Exchange Invest Weekly Podcast January 11st, 2025
Transcript
- 0:02Speaker A: This week in the Parish of Bourses and Market Structure. Comebacks have all is forgiven, ASX's Christmas shambles, PSE bids for PDEX rate sensitive ice and it's a festive catch up edition, a podcast covering the Parish of Exchanges up to the end of 2024. My name is Patrick L. Young. Welcome to the Boris Business Weekly Digest. It's the Exchange Invest Weekly podcast, episode 277 Foreign 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 on Exchange Investor Daily subscriber Newsletter Matter the unique guide to the bourse business sent daily to your inbox. More details@exchangeinvest.com over in Bit Carnage After a mere year or two in Montenegro, Do Kwon's Balkan idol has ended and he is in the US justice system. Interesting that his plea is not guilty after such a long time to consider his position from that Montenegrin jail cell. If you enjoyed this excerpt, you may be interested to know you can read Bitcornage every day in Exchange Invest. Alternatively, if you want to follow Bitcornage, the daily updates on happenings in the world of crypto and digital ass, you can find Bit Carnage as a standalone on Substack this week in exchanges well before Christmas, it was the Grinch of Christmas pasts. Xavier was in the news headlines because the London Stock Exchange was suffering its biggest exodus in 15 years and its former boss Xavier Rolle was sounding the alarm. Deeply uncompetitive was his description. How ironic. The discount to US stocks from the looking rather last century UK and don't even ask about mainland Europe is now 52% for London listings. Xavier now looks rather like a demigod, even though his Brexit plaza was balderdash. But to be fair, he remains French. Back to Xav. The simple fact remains. He might have micromanaged on occasion, but he ran an LSEG with direction and mojo. Now the LSEG has little more than entitlement with what looks dangerously like moronic characteristics of management. Is it time to say comeback? Zav Always forgiven. Meanwhile, on the Euro protectionist front, the industry of derivatives want clarity from what has been a very dark chapter in protectionist desperation. Even by the low standards established by the EU itself, London's CCPs need to be treated the same way as all the other leading clearinghouses. Without that, the EU denigrates any vestige of open market credibility and the Euro might be marked down as a non convertible currency like the rmb, the Rupee or the South African Rand. Thus the joint associations are already writing looking towards the UK being granted the equivalence and recognition that it justly richly deserves. Big switch in working hours Coming next year, the Tel Aviv Stock Exchange will shift to Monday to Friday trading week starting 2026 in place of their current Sunday to Thursday. They're of course following various markets in the Middle east such as in the uae who moved over in a similar fashion in recent years to a more European and rest of the world work week. Sebi. Meanwhile, the Indian regulator they have revoked the recognition of icex. That was the Indian commodity exchange, not to be confused with ICE in any way, shape or form, who had approached for a voluntary ex from the exchange business over a year ago. No results over the festive season, but a couple of fascinating deals indeed. It was a busy period for deals over Christmas. Remarkably enough, all of them were in the exchange Invest Daily the newsletter no person can afford to be without in capital markets and market structure. For the sake of this podcast we are going to look at two edited highlights. First of all, ice, the Intercontinental exchange they've acquired the American Financial Exchange. This is a seismic affair wrapped around a very modest deal. For one thing, ICE is taking the stir battle closer than ever to the cme, even though CME probably will be reluctant to acknowledge that its true competitor not FMXBTC Cantor. But ICE is lining up a remarkable row of ducks. It creates a fascinating new global seam in the stir battle in Europe, where life owns the curve until its further extremes in the Euro, much to the chagrin of Eurox's protectionist mindset. However, the really key factor here is the cornucopia of opportunity delivered by credit sensitive rate derivatives. Here we have had issues as the less progressive elements of central banks, half alongside a misguided and frankly embarrassingly misinformed Iosco, attempted to remove credit sensitive benchmark rates from the world of derivatives. Blinkered is a polite term to use for what amounts to a cluelessness masquerading as investor protection. True, the CME will doubtless rail against such initiatives because they've lost their growth mentality in favor of Urex's protect and survive at all cost mindset. However, this is great news for everybody with exposure to interest rates, which means everybody.
- 5:05Speaker 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.
- 5:25Speaker A: Meanwhile, their second deal of the week, the Philippine Stock Exchange finally are going to acquire 61.92% of the PDS. That's the Philippine Dealing System, the bond platform for 2.32 billion Philippine pesos. Finally a deal. This is a deal we've been talking about since actually before Exchange Invest was even born 1112 years ago. Finally, the Manila Exchange is buying the crosstown bond platform. 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 on July 5, 2024. My original bestseller, that's Me, Patrick L. Young Capital Market Revolution, the first breakthrough book in fintech a decade before that word held common currency, has over 10 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 e book 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, if you fancy some financial insights with moving pictures, don't forget to check out our livestream. Tuesdays at 5:00 London time, midday New York time. It's the IP Radio Live Show. Catch the back episodes on LinkedIn and YouTube via IPO Vid. When you're searching there, go watch our IPO Vid 165 from this week. Building the Dream Exchange. Absolutely superb show with guest Joe Sikela which We held on January 7, 2025, all about venture exchanges and much more with the Main Street Growth Act. Our next show is going to be a fascinating discussion of neurodiversity and finance with Sally Bridgeland, a fascinating actuary and portfolio worker who's going to bring a great deal of wisdom to the show coming up on Tuesday, January 14th. In product news this week, the CME Group they're launching Hard Red Spring Wheat Futures and Options, a spot of interesting news adding to their wheat complex. And meanwhile in Hong Kong, OTC Clear are going to accept China Government Bonds and Policy Bank Bonds as collateral for Swap Connect from the middle of January 13th of January to be precise. And that certainly will add a lot of value to swap northbound Swap Connect over in technology. Well that was our headline story of the entire Christmas period. The ASX had a very dull announcement Chess batch settlement delay update, but actually the reality, the real politic was that after years of disgraceful mismanagement, Chess, the settlement system of the Australian Stock Exchange, which was brought into service so many moons ago, I think most of the people who worked on it aren't even alive, let alone whether or not they're actually in the workforce anymore. Anyway, Chess essentially fell over a streaming mess just as much as the rest of the world was hanging their turkey or preparing the Hanukkah decorations. ASX is now so deeply discredited, their C suite would frankly experience a rise in user confidence if they employed Justin Trudeau over in Vietnam. Worries from the regulator with delivery issues. The regulator threatening that the new stock trading system from KRX, that's the Korean exchange, must come on stream in 2025 at the Vietnamese exchanges Career Paths this week our chairman Roston Benham has announced his departure from the cftc. Absolutely unsurprising. What was more surprising was the bizarre parody of reality. A real Wag the dog interview where Mr. Benham was trying to pass himself off as a success in office. And indeed, the man who prosecuted the fraudsters of ftx, oddly enough, is strange, because he seemed to be the man who was entirely acquiescent to SBF just a few months earlier, before the collapse of the FTX empire. Succession Planning Ongoing Malaysia's bourse confirms their CEO succession planning is underway and the Jamaica Stock Exchange is retaining a Marlene Street Forest for the time being in Kingston as the search for a Successor to the CEO of the Jamaica Stock Exchange continues. So welcome to 2025. And after a fabulous festive break to recharge the batteries, with or without any involvement of rare earths, it's time to engage with the New Year and see what we can make of it. What to expect well, we're lining up for what looks like a 2025 that's going to be morning in America and winter in Europe. We'll be breaking down the topics more day by day in Exchange Invest, which of course you can read for the princely sum of $500 investor license for each individual user a snip at twice the price. Frankly, ladies and gentlemen, if you want to stay ahead of the exchange business, this is what you every day, the exchange of information itself. Anyway, Donald Trump is not merely looking organized, vastly more so than ahead of his first term, but also he's dominated the airwaves over the Christmas holiday period to the point where the world has realized just how seriously his agenda must be taken. So as I record this, there's less than a fortnight to go, and then it's all over for the Brezhnev term in the Obama era. Good riddance to the politics of defeat and failure. And even from Mar A Lago before he takes office, President Trump has brought the USA back to leading the world and more importantly, leading the global agenda, whether you agree with it or not. And I for one, I'm certainly a little concerned about the concept of lots of tariffs. I'm not sure, however, when we could last say that the US was leading the world. Bullying it may be, hectoring it, certainly, but leading it other than warfare, it's been quite some time. Net Net Big world dawns in 2025 with the exciting news it's morning in America. However, if that's not cheery enough for you, let me add a little, well, if slightly personally melancholy note. But it's good news. The Impact of AI There was a report just before Christmas that apparently Google reckons its AI can accurately predict weather forecasts 15 days high. Which means, of course, my most famous quotation may be reaching the end of the road. 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. Thank you for listening to this Exchange Invest EI Weekly Podcast 277. Join us daily via exchangeinvest.com or if you An Exchange remarkable place you would like build, get in touch My name is Patrick Gall Young and I wish you a great week in life and markets.
- 11:42Speaker B: This show relates to the business of borses. 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 are sourced from copyright free sources. Thanks for listening to Exchange Invest Weekly. The exchange of information.