Latest / Exchange Invest / 270 Exchange Invest Weekly Podcast November 9th, 2024
Transcript
- 0:01Speaker A: This week in the Parish of Bourses and Market structure, CME FCM approved Aquas CBO to bid for EU Consolidated Tip JPX Arrowhead goes live the Ice Age continues and there's a new MCX CEO. My name is Patrick L. Young. Welcome to the Bourse Business Weekly Digest. It's the Exchange Invest Weekly podcast episode 270 Good Day Ladies and gentlemen. This is a very brief reduction of highlights amongst the key headlines from the weak in market structure. 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 brought daily to your inbox. More details@exchangeinvest.com over in parish Notes this week we've been debating many topics amongst them the CME FCM. For all the details go to exchangeinvest.com and subscribe now. On the pros and cons for investors of non stop trading there has been a great deal of debate as well as nice ARCA looks to move 22 hours a day as we discussed last week and then this week Charles Schwab said they would be going 24 by 5 following the NICA 22x5 proposal. Interestingly, Fidelity are abstaining from the movement. There are also some valuable opponents to the expanded U.S. trading day. In one corner are the Luddite hystericists whose only interest is a very narrow state one Here the USA is in its least cosmopolitan angle. This is essentially the position held by the various trade bodies. As we also know the US has a quixotic approach to the rest of the world. However, American capital markets need to appreciate their position and indeed to be bigger than their politicians and the narrowly focused with a vested interest on their pension market quangocrats. However, the main thing to bear in mind is that what the world has been buying for years is often dubious merch posing as US stock CFDs et al. Fair play to the likes of GPW and others who offer some element of US equity as a credible depository receipt, but the overall liquidity fungibility point is missed. Plus at best the overseas exchanges can only concentrate on a few key trillion dollar or fashionable stocks. The data we see from the Blue Ocean revolution is that a vast multitude of names two 5k or thereabouts a month from the NMS list are traded every month on Blue Ocean predominantly but not exclusively by Asian clients. During their working day, Blue Ocean went way way east of the Hudson and found a pool of customer demand that was broadly untapped or at least unsullied by dealing with some of the less seemly CFD elements, suddenly Blue Ocean are on the map and doing business. A revolution indeed, adding depth and liquidity to the US market as a whole. Whereas the narrowly focused folks chanting USA USA without appreciating their place in the world are still lost when to whatever row stands for. The point is with 60.5% of the world's market capital, the USA is the world's stock market. Everybody else is an also ran and if they are wise enough a niche or feeder to the future AKA the usa. This becomes a self fulfilling prophecy. True a watch more growth and China, Hong Kong might balance this out a little, but the EU's desperate pining for decline there's no other way to describe this deliberate inclination towards relative destitution likely means a dominant USA for a long time to come. In the global capital markets context, the US equity market has to stop thinking around a six to seven hour day session window centered on nasdaq, NYSE and appreciate that US stocks are a global powerhouse. It's time to ensure that they are traded as much as possible around that entire globe. This will also change markets immeasurably and for the better, not to mention making US stocks trade like Forex, Gold et al in being massive global 24 hour a day phenomena.
- 5:09Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickderivativesvision.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.
- 5:28Speaker A: Over in Bitcarnage, it's been a case of fumbling the obvious. A lot of folks were wildly stressed this week and indeed the big buy government 2024 crypto election had a lot of cash riding on continued crypto wonderment to come. What will be the result? Well, watch this space. In the end, however, on a wildly busy Results day Friday 1st November, we thought coin had good numbers because, you know, plus 78.8% total revenue and a lurch from loss to profit seemed pretty good. However, it seems that was hugely disappointing and thus Coin Stock promptly lost 15.34% on Friday 1st November after the results were published. If you enjoyed this excerpt, you may be interested to know you can read Bitcarnage every day on Exchange Invest. Alternatively, if you want to follow Bitcarnage, the daily update on how happenings in the world of crypto and digital assets. You can find bitcarnage as a substack standalone. This week in exchanges, CME Group have received approval to establish their Futures commission merchant from FINRA. Having started first, CME arrived second. As we noted in exchange invest 2488 a couple of years ago when Myax bought an FCM. Previously the CME intention brought out a lot of bloodletting in FCM circles. Brokers slam CME over conflict of interest and FCM plan was just one such headline. What does this mean? Well, frankly it could be a useful conduit, but it depends how the CME wished to deploy it. And for more on that topic, ladies and gentlemen, there's a vast amount of debate in Exchange Invest throughout the course of the trading week. Over in the ft, there was a fascinating profile in the ongoing FT series about major market players talking about Ken Griffin's Money Machine. The best snippet was a point that Citadel securities executes more cash equities in the US than NYSE's primary platform, albeit sleight of hand somewhat. Add NYSE and ARCA and suddenly the picture is very different. Over at the Tel Aviv Stock Exchange they have introduced a block trading facility. As a former director of liquidnet in the profit centre of Europe back when. Well, it's a long story, but back then Europe was the profit center. I always find it difficult to contain myself that block trading was really difficult to implement, or so I was told, so we'd never reach smaller exchanges. Ta da Taise. The Tel Aviv Stock Exchange has a block facility. I rest my case. Big Boris news. The Hong Kong exchanges are going to open a Saudi office in 2025 to strengthen their Middle Eastern connections. That follows hot on the heels of New York and London offices established in recent years. Meanwhile, the Singaporeans have cracked down on market manipulation. One manipulator in particular, O wei Hian, made $255,000 from illegally manipulating prices of SGX stocks. He got nine months in jail for the latest and largest reported SGX spoofing case. Speaking of the election, which, yes, I know, it crept up on us, didn't it? Nobody really realized November 5th who knew it was going to be a presidential election? One big side effect in the Parish Kalshi They've had incredible times for the prediction markets. They fought the law and so far they won. Tarek Mansour looks to have incredible investor sport after matching over $200 million on the main who would win the presidential election result itself. Good for Tarek. Finally, prediction markets. And of course, ply myself, I was a pioneer in this field, but with much less clement outcomes. It's great to see prediction markets taking off where in the past the early adopters had a mixed bag of outcomes and now we're seeing vast potential increase in revenue coming into Kalshi as dozens of VCs battle to fund it to the next level over in Results to say it was a busy week would be a major understatement. All the details were in Exchange Invest Daily. I'm just going to take a couple of highlights today. It's still the ice age. 3 month total revenues up 24.9%, net income up 20%. Compounding is the big thing. The likes of Warren Buffett et al. Our right to note, works in every investor's favor and ICE produces strong results quarter after quarter with the engaging regularity of hit Taylor Swift songs. It was a splendid presentation as always, which I thoroughly recommend folks pay attention to and consistency thus keeps ice at the top of the Young's pyramid. A clear $13.5 billion last time I looked ahead of the CME and the rest of the parish. It's a richly deserved lead for what Jeff Sprecher himself terms an all weather growth story. And our thanks to Jeff as an unofficial representative of the Life diaspora, I can say the words of condolence about Sir Brian Williamson and Hugh Friedberg at the end of your prepared remarks during his speech were well received after the presentation and of course richly deserved for those two great men. By contrast, in results, let's pick a European number Euroclear achieves a robust third quarter results, they noted, but it was another case where the transatlantic drift is writ large. Euroclear locked in single digit growth territory where double digits are de rigueur in the markets that matter. The that's 60.5% of global market capitalization, which is the USA. To be fair, DB1 broke the European ceiling this quarter, but it remains hard to know where DB1 is going to go long term. If you're trying to work out where the world of exchanges is going long term, well, why don't you look back to the future? Exchange Invest was prior 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 that's me original bestseller Capital Market Revolution, which was 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 is published by Exchange Invest, now available as an e book via Amazon Kindle at the ludicrously Reasonable price of $9.99 a quarter the price of the original shorter print book a quarter cent century ago. While you're waiting for your Kindle download, don't forget you can always catch some financial insights with moving pictures every Tuesday. Our livestream IPO vid is available on a Tuesday at 5:00 London time, midday New York time the IPO Video Live show. Catch the back episodes on LinkedIn and YouTube via IPO vid now online episode number 159 US retail equities trading and focused with our guest Cody Asmoon. And next week we're looking forward to discussing the evolution of markets technology with Mick Heyman. Our finance book of the Week this week is Crowdfunding how to Raise Money and Make Money in the Crowd by Moduena Rees Mogg. The first book to get to the heart of this exciting and fast moving business phenomenon From a UK perspective, Modwana was in fact our IPO Vid17 guest discussing startup pluralism. Catch that also and all the usual sources where you can get IPOVID as a livestream and a podcast. Our next Book of the Week will be unveiled on Saturday in the Exchange Invest Weekend edition. And don't forget, if you want all the news on the bourse business and daily to your inbox, subscribe to Exchange invest via exchangeinvest.com it's only $499 to join the exclusive exchange of information product news this week epic excitement comes from China, another huge easing. They've eased requirements on foreign investments in listed companies with a wave of optimism, including news China's listed companies report growing profits that came from Xinhua News Agency. There's a huge shot in the arm for the A share market opening up to more foreign investors and that's got to be very exciting for the future of the Chinese market. Meanwhile, the Saudi exchange they've signed ahead of terms with hang Sen Indexes Co. To strengthen their collaboration. That of course alongside, as I mentioned earlier, Hong Kong Exchanges Group establishing an office in Riyadh Technology November 5th TSE JPX Arrowhead went live upgrading the Tokyo Stock Exchange while on consolidated tip in Europe News Aquas Exchange and Cibo Europe are launching Simplict, based in the Netherlands as a 50:50 joint venture for the European Union's Competitive Tape Initiative, which opens its beauty contest next June. Meanwhile, I reported a while ago it was an exchange invest 3035 and on this podcast a few weeks back, Market Access and ICE announcing a data partnership. Now S and P have announced a similar deal with Market Access. For the polyglots amongst you, the National Stock Exchange of India have launched a new mobile app for Android and iOS and that's expanded to no fewer than 12 languages to access the market. Finally, Nasdaq Private Market They've launched tipd, the premier private market news source in regulation. Also with Nasdaq and cbo, they are challenging the SEC over their updated stock trading rules. Watch this space and in career paths, Pravenarai becomes the first female CEO of mcx, the Multi Commodity Exchange of India. In fact, that raises the question, I don't believe we ever had another female boss at an Indian Comex, albeit nse. The stock market was led by Chitra Ramkrishna on the equity side. In any case, all the best to Mrs. Rai. And here's to another ongoing success for the dominant Indian commodity exchange. Let's ponder some fun, if somewhat sanguine facts in the wake of last week's swingeing UK budget, which raised taxes on pretty much every form of UK taxpayer, whether the government believes they identify as a worker or not. Britain's top 100,000 taxpayers, that's 0.3% of all taxpayers, paid 24% of all income and capital gains tax in 2021 22. Their average bill was 559,000 pounds each. If you want that in real money, you can call it around million dollars. The top 100 taxpayers paid an average of US$60 million each in income and capital gains tax and the top thousand taxpayers paid collectively £11.5 billion, which is something like $15 billion. And on that mysterious and magnificent note, thank you for listening to this Exchange Invest weekly podcast 270. Join us daily by 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 markets.
- 17:22Speaker 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 data publication. While our music and sound effects are sourced from copyright free sources. Thanks for listening to Exchange Invest Weekly. The exchange of information.