Latest / Exchange Invest / 278 Exchange Invest Weekly Podcast January 18th, 2025
Transcript
- 0:00Speaker A: This week in the parish of Bourses and Market Structure, Ethiopian stock exchange launches B3A5 sounds like a chess move, but it's a big talking point in the Brazilian market. Tel Aviv buys back stock and SEBI is setting new limits for exchange traded derivatives. My name is Patrick L. Young. Welcome to the Borscht Business Weekly Digest. It's the Exchange Invest weekly podcast, episode 278. 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 newsletter. The unique guide to the Borscht's business sent daily to your inbox. More details@exchangeinvest.com over in BitcoinAge Crypto world, Mudrex find itself bogged down A tale of crypto woe hopefully it'll turn out okay, but then again, our sense of optimism about troubled crypto exchanges remains. Well, how might one put it? Highly distributed, I suppose. The Indian crypto exchange Mudrax suddenly blocked withdrawals in mid January. Hopefully on or before January 28th the suspension will lift. According to the exchange, it's due to upgrading the platform compliance framework to prevent misuse. Hopefully that will prove true. 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 ass, you can find Bitcarnage as a standalone on Substack this week in Exchanges. The Singapore Exchange Group chairman has called for bold and decisive actions to solve the stock market's long standing issues. The problem is SGX really needs to stop the talk talk and get a bit of execution mojo going. The problem of the conversation remains that it is insular, not dynamic and lateral. The biggest exodus in history from the London stock market since the global financial crisis took place in 2024. No meanwhile, China's two major stock markets have been holding considerable meetings with foreign institutions amid another period of market volatility. At the same time, China's futures exchanges are not going to be lowering their high frequency trading fees. But there's a big seismic shift in the US or at least coming soon. Tradeweb and indeed even Trumid are closing in on Market Access's longtime leadership in the electronic bond market platform. A useful glimpse, which also clearly shows under underlying reasons why Rick McVeigh was departing last year. Market Access is seeing Its lead diminished to a whisker by Tradeweb. And Trumid is coming up fast on the outside lane, despite many doubting it could ever make a serious impact. What's the future for Market Access? Well, we discussed that in Exchange Invest this week. Suffice to say that with $552 all time highs for the stock seen in late December, that looks like a distant memory with the stock around $215 as we record at an $8 billion market cap. Well, things look interesting. For more analysis, it's all been an Exchange Invest this week. You can subscribe@exchangeinvest.com Liquidnet, the ATS block provider has been charged by the SEC. It admitted no anything really, but it paid a $5 million civil penalty to resolve the charges of market access, rule infringements and failing to protect confidential subscriber trading information. Meanwhile, Chitra Ram of the former CEO of the NSE India is fighting on as Sebi and the NSE refused to share details of the rupee 643 crore settlement in the tap misuse case. That dates back to the end of last year. No results this week, but a lot happening in new markets. As I said at the top of the show, Ethiopia launched their stock exchange this week, the first stock exchange in the country for 50 years in an attempt to further drive the liberalization of the economy. A historic step. Ten days into the year of 2025 and we had a new board to add to the edge of the exchange. We wish the Ethiopian stock Exchange all the very best as it becomes one of 30 African exchanges currently functioning. Over in Brazil, a 5x has gained major momentum. A fascinating shareholder roster, including market maker Optiver, comes together with an eye to a huge prize in the Brazilian market. B3 of course has a vast integrated CCP moat to def their position and two years to increase their defenses before a five will be launching. At the same time, B3 now faces a two pronged attack from some seriously backed rivals. The Badla invested ATG venture which is initially focused on the cash markets and a 5 which looks to be specializing in derivatives over in Tel Aviv. The stock exchange there has made a major buyback. They bought 5% in total of their market capitalization straight from Manikke. Manik of course being the largest stockholder in the business with a circa 20% stake, was bought for $150 million. That's half a billion new Israeli shekels, roughly enough. Now Manik have sold a quarter of their holding for 202 million new Israeli shekels pretty much $60 million. Not a huge bounty, but not half bad given. Presumably we will see Tayce cancel that stock and therefore they've just paid Monica to buy back some shares which ultimately will still leave Manik with a 5% so will still leave Manik with a 20% stock holding. Manik founders Shane Feinmore and Russell Abboud of course had a colorful background. You could find all that history in Exchange Invest way back when. An interesting issue as going forward, the Tel Aviv Exchange is certainly a very different animal to the one in which they invested in 2018.
- 6:34Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly Patrick DerivativesVision.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.
- 6:53Speaker A: Apart from that deal with the share buyback from Tesa to Manake, we also saw another deal this week. It's coming closer. The Philippine Stock Exchange is nearing the integration of its stock and bond markets by buying pdex. Finally, we announced that deal last week and it's only been, what, 11 plus years in the making? So therefore it's worth mentioning at least a second time. 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. 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. 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 the price of the original, shorter print book a quarter century ago. Meanwhile, don't forget, of course you can subscribe to the Exchange of Information. Exchange Invest will come out Monday through Friday with our groundbreaking, authoritative coverage of what's going on in the Board's business. And there's also a free Saturday edition about the global macro of the world in general. To boot, Sign up now for your free seven day trial exchange invest.com and you can get all the details on subscription plans there. Don't forget, if you fancy some financial insights with moving pictures, check out our livestream Tuesdays 5:00 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 is our episode from this week, IPO vid 166 talking about neurodiversity and finance with a fabulous guest, the impeccable Sally Bridgeland. We're taking a week off this coming week because it's a Martin Luther King day and also they're inaugurating some guys present now let me see, who was that again? Oh, I'm sure it'll come back to me. IPO Vid167 will return later this month. Product news this week Cebu Global Markets and Matoris Advisors are collaborating on new US equity index, the first of four in a planned dispersion product suite. NGX Nigeria have launched an equity based commodity index to track performance and apparently good news, there are no more actions to restrict access to derivatives. According to a whole time member of the Sebi Commission, Mr. Narayan Ongoing exchanges OTC clear there is now accepting China Government Bond and Policy Bank Bonds as collateral for all derivatives. Excellent news that took place on 13 January while China is launching new indices on the Star Board. Much more Product news this week it was all in Exchange Invest the business of both Daily Newsletter the exchange of information as we move on to technology apparently having announced a similar Simplicity with a fanfare, Aquas Exchange and CIBO to launch Simplicity to explore a bid for the EU Equities Consolidated tip in mid November. The subsequent analysis has led to the exchanges opting not to bid for that EU Consolidated Tip position in equities in the interim, of course, ACWIS was acquired by six, a deal we're still waiting to close, but no reason to see that it won't in the near term. Trading at DACA Stock Exchange was delayed by an hour and a half on Sunday, January 5 due to an unavoidable situation, according to the authorities. Trading starting at 11:30am instead of the 10am schedule. The National Stock Exchange well, here's how times have changed. They're expanding their colocation capacity, 200 new racks are coming on stream soon and Exchange Data International and Guidata are partnering to empower academic institutions with high quality data. Elsewhere BMLL and Pico, they've partnered to offer historical and real time data to all of their clients and Euronext's leading board port software iBabs has joined the GCloud 14 framework to enhance government in the UK public sector. Not before time that the UK public sector needs enhanced government either. Crowdfunding One Piece News this week OkCredit in India has shut down their P2P platform OK Nivesh, following the Reserve bank of India clamping down on P2P lenders. And in regulation, ESMA has launched the selection process of the consolidated tape provider not for equities but for bonds. And SEBI is refusing to share the dates on which their chairman, Madhavi Puribuk submitted asset declarations under the RTI legislation. SEBI looks embarrassingly opaque when dealing with its own internal shambles surrounding the chairman. Alas. Finally, in regulatory news this week, Gary Gensler is exhibiting caution, warning against weakening the guardrails for retail investors, where CFTC Chairman Benham has looked like a passenger of events, invariably choosing, alas, the wrong side despite his colossal attempt at Padinian historical revisionism to try and make it look like everything was fine under his failed term in office, outgoing SEC Chairman Gensler has a strong track record in two contiguous areas crypto and indeed warning about perils for retail investors in Korea. News this week Vindhya Jayasakara is going to be the next CEO of Sri Lanka's Colombo Stock Exchange. All the best to retiring CEO Rajiva Bandaranike, who will step down later this year after 11 years at the helm of the Colombo SE. The new CEO, Jaya Sekira is joining the exchange from NDB Wealth Management Ltd. Where she was Chief Investment officer. Finally this week in Career Pass, Hong Kong exchanges have announced two new MDs MD head of markets will be Gregory Yu and Kevin Ramjan is going to be the MD head of Strategic Products. That only leaves us to look back on what's been going on in Big World and, well, indeed, perhaps the biggest news of the week was a resignation. Justin Trudeau, simply the least capable Canadian PM in the nation's history, for once got ahead of the Democratic will and resigned, albeit he got Parliament prorogued for over a month just because his party is in turmoil. That seems strange to a lot of other Democratic folks in the rest of the world. In seeking to assess understand the Heribois premierships, we could analyze his hatred of working truckers and his economic disinterest that has left Canada with median incomes below all but one of the US States Trump now wants to incorporate Canada into. However, I think we can simplify this discussion by comparing the wisdom of Canada's greatest sportsman versus the discredited outgoing pm. Ask Wayne Gretzky. He'll say I skate to where the puck is going to be, not where it's been. Ask Trudeau, and I reckon we'd hear here it's clearly important to bear in mind the position of the puck. Given pucks are often the target of violence by off duty truckers, it's clear this is a minority which has been poorly treated. And so on and so on and so forth. And on that mysterious and magnificent note, thank you for listening to this EI Weekly Podcast 278. Join us daily via exchangeinvest.com or if you have 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 Market.
- 14:38Speaker 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.