Latest / Exchange Invest / 286 Exchange Invest Weekly Podcast March 15th, 2025
Transcript
- 0:00Speaker A: This week in the parish of Bourses and Market Structure. Now It's NASDAQ with plans 24.5as Hong Kong exchanges and Hong Kong Monetary Authority ad heft to connect clearing over at lseg. Misery loves company while MOEX post more robust results My name is Patrick L. Young. Welcome to the Boars Business Weekly Digest. It's the Exchange Invest weekly podcast, episode 286. Good Day Ladies and gentlemen. This is a very brief reduction in the highlights amongst the key headlines from the week in Market Structure. All the analysis of the many events, events and happenings from the past seven days can be found on Exchange Invest Daily subscriber newsletter. The unique guide to the Boris business sent daily to your inbox. More details@exchangeinvest.com over in Bit carnage we've been looking at Backing Bitamax no sooner did Charles Gasparino opined in his New York Post column, Trump's plan for crypto strategic reserve could hit roadblock in Congress. Then CNBC reported Trump signs executive order establishing US Strategic Bitcoin reserve ahead of his much vaunted White House crypto summit. So with the reserve funded by appropriating government appropriated crypto, one wonders if there is an appeal risk. In any case, the bickering goes on with even outright disagreement as Solana's co founder opposes President Trump's crypto reserve proposal. Back to Gasparino and I quote and why is the government hoarding something that would compete with US dollar based assets like the debt we need to sell? 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 markets never sleep should trading. That was the headline of A Tao Cohen LinkedIn post discussing Nasdaq's plans for 24 hour trading as the global appetite for US stock grows. As the Reuters headline went telco and left NASDAQ into the 24.5US stock market debate with unsurprisingly plans to join the fray alongside NYSE et al. But of course this remains subject to SIP and more constraints in the US market, which means a lot of committee time in the future before the exchanges can launch. The main players want to be there, but the issue remains how to get the SIP committee and other plumbing to operate overnight with committees to be convened. For now, the ambition of the US Listing Duopoly as well as CIBO will be restricted by their exchange status. That hands overnight market leader Blue Ocean Technologies an ongoing advantage to keep building its trading before the exchanges can join in. And when might that be? Well, Exchange Invest has been making educated guesses this week, and it looks like it may be quite some time into the future. Over in Hong Kong, they're targeting the creation of a rival to Euroclear, and global markets will be all the better for being able to settle without recourse to the seven tiers of Belgian management or indeed the ludicrous strictures of the EU's regulatory fervor EUREX. Meanwhile, out of Paris, Amsterdam, Brussels and its other centers have responded to the report. There's no market in market data. Damningly, Euronext are the latest to call out the Nikki B. Research paper, which clearly thought if it could fill the journos, it could convince the market structure. Various industry bodies have embarrassed themselves by putting their names to this report. Alas, as Euronext notes tartly, the report's pivotal argument is based on incorrect data. Over at the lseg, London isn't alone in facing listing challenges. Odd out of his depth Dave reminds us how far out of his depth he actually is running an exchange business, even if on a clearly part time basis with the perfect old line Reuters excuse. AKA lots of people are losers, so we're in good company. To which the obvious retort ought to be lots of losers are unemployed too. Then again, do we expect anything else from out of us at Depth Dave other than a misery loved company defeatist message.
- 4:29Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patricion.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 in Results Busy week.
- 4:50Speaker A: For results in the parish. All the details are 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. Taezeh that's the Tel Aviv Stock Exchange Group. They reported their financial statements for Q4 and the full year. Not spectacular, but not half bad either given the nature of what's been going on in around Israel recently. Q4 revenues up 14% net profits 2024 saw record revenues up 12% overall at NIS. That's new. Isra shekels 437.9 million with net profits for the year up a healthy 22%. Moscow exchange similarly spectacular numbers there 2024 operating income up nearly 39% and overall course of the year net profits not so good, down 13.36%. But at the same time, Q4 net profits looked rather healthy at about 30.41%. MOEX has managed against the odds to maintain a remarkable franchise, while the Russian economy has gone from Putin normal to outright war footing over in new markets. The second stock exchange has opened in South Korea. Next Trade has launched in Seoul. They've got an ATS MTF competitor platform, they're trading longer hours for less fees, and they're ending the 70 year monopoly of the KRX in Brunei. The stock exchange there is preparing for launch back in 2020. We'd reported a 21 million DOL budget had been set aside way back in 2017. Some people even thought the exchange would launch that year. In more recent times, there has been no clear deadline for the bourse project, but it looks to be healthily funded. Meanwhile, 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 Allianz 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. Meanwhile, if you fancy some financial insights with moving pictures, don't forget check out our archive of our live streams. They're usually live Tuesdays 5 o'clock London time, midday New York time. Most recently I had an excellent oration on a New World Order, giving my Nairobi AFM keynote speech from that fabulous Kenyan conference which was re recorded for posterity after the event and that constituted IPO Vid172. Catch it online now at Facebook, LinkedIn and YouTube by searching for IPO Vid. Our finance Book of the Week this week is the corporation in the 21st century. Why almost everything we're told about business is wrong by the brilliant economist Sir John Kay. It redefines our understanding of successful commercial activity and the corporation, describing how we have come to love the product while we hate the producer. In product news this week, what a milestone The Toronto stock exchange celebrating 35 years of the ETF, the exchange traded fund. Not a lot of people remember that it was actually created in Canada. Originally, the world's first ETF was launched on the TSX, the Toronto Stock Exchange in 1990. Meanwhile, lithium carbonate futures are now live for trading on Abax Exchange. In technology news, while repeating what we mentioned earlier in terms of the steps towards a csd a Euro clear of Asia from Hong Kong, the technology part of the equation, Hong Kong exchanges signed an MOU with CMU Omniclear of HKMA to enhance the post trade securities infrastructure of Hong Kong's capital markets. Absolutely the best and most exciting settlement news of the week. Adding a new layer to fixed income trading on Connect and within the SIR of China. Elsewhere, Cibo Canada completed their technology migration. They're all now on Cibo Titanium and they began trading there on March 3, completing a 15 month integration effort in career paths. Over in Kazakhstan, it's the end of an era as the brilliant CEO of the Kazakhstan Stock Exchange, Alina Altenbergin has announced her resignation after a terrific spell growing the exchange group and Almaty, the Kazakh capital city. I wish Alina all the very best and welcome the elevation of Adil Mukhomianov from leading the CSD to lead the entire exchange group. Elsewhere Expiry, the vendor provided some splendid news this week. They've appointed Magnus Almqvist CEO to drive the next phase of strategic growth. All the very best to Magnus. Competition is considerable in the systems market for execution and trading systems right now, with excellent matching engines from Connemara and Nasdaq to name but two other parties. Meanwhile, as CBOE announces the promotion of Chief Technology Officer Tim Lipscomb to EVP Skilla, the Swedish vendor, they've strengthened their team with the head of marketing and communications being appointed and I'm delighted that that person is none other than the brilliant Frederic Backlund who's returning to the parish having been the head of marketing at Snowber during their golden years. With Scala further developing their risk portfolio beyond their terrific surveillance platform, it's the perfect time for Frederik to be added to their Stockholm team. Meanwhile, in Big World there will be some more and better state growth figures to come out soon. But it's worth noting the top five fastest growing US states between 2019 and 2024 over that five year period and after inflation by the way, Idaho grew 23.3%, Florida 22.84%, Washington, that's the state, not the blood belt of D.C. grew by 18.37% and Tennessee by 18.12.
- 10:49Speaker B: If we exclude inflation, some of these.
- 10:51Speaker A: States grew their GROSS Economy by 40% or more. Remember, excluding inflation, the entire EU grew 9% over 15 years, three times as long from 2009 to 2024. And on that mysterious and magnificent note, thank you for listening to this Exchange Invest weekly podcast number 286. Join us daily via exchangeinvest.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 market.
- 11:38Speaker 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 programme, 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.