123 Exchange Invest Weekly Podcast December 4th, 2021

Transcript:

This week in the parish of bourses and market structure:

B3 Bull is moved on while the European Union thinks CMU can move forward in their leaked letter to Santa Claus.

Tadawul prices well Murban makes the million barrel milestone and there’s lots of excitement in the cloud as NASDAQ partners with AWS.

My name is Patrick L. Young.

Welcome to the bourse business weekly digest.

It’s the Exchange Invest Weekly Podcast Episode 123.

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 week’s many events and happenings can be found in Exchange Invest’s daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.

More details at ExchangeInvest.com.

Brazilians Find Their Stock Exchange Bull Unbearable, Remove It went the headlines this week. Actually, the NGOs may have been winching, but the planning laws saw it move on. Many felt gauche that homeless tents are so close to the stock exchange building other prosperous signs of commerce, making some Paulo appear just like San Francisco in the United States of America.

The European Union Sees a ‘Decisive Moment’ For Building the Single Capital Market so went the news at the point when a leaked letter to Santa Claus from the European Union came out masquerading as the mafia review.

I can see that moment too, of course, the trouble is it was at least a decade ago. When even the usually hyper-loyal member of the European Parliament Marcus Ferber reckons, according to Reuters that “the proposals make modest progress but failed to match the ambition of the CMU project” then it’s fair to say the European Union has dropped the CMU ball, once again, after a decade of disappointment.

Bloomberg had one headline suggesting the European Union was moving forward. The other was more in tune with the realpolitik European Union revives bid to build Capital Markets Union – albeit CMU needs not so much reviving as resuscitation if it is ever going to happen, which I don’t believe the European Union is capable of doing given its record in the field.

On the other hand, if you’re on the more upbeat version, pop by the YouTube channel for IPO-Vid, and listen to our latest Livestream recorded last week with Rosa Armesto, the Deputy Director-General of the Federation of European Securities Exchanges, in an episode titled “From Brussels With Love”.

FESE themselves referred to the whole concept of this review as “One Step Forward, One Step Back – the MIFIR review proposal risks missing the moment” said the European Securities Exchange Federation.

Over at the London Stock Exchange, the group’s Chief Executive is battling to save the exchange from becoming the FTSE’s ‘Biggest Faller’. The merger with Refinitiv was due to catapult, the stock exchange business away from its core operations running the London stock market and into the fast-growing lucrative business of providing data to terminals and trader desks the world as The Times noted, has actually turned out to be a complete and utter hound.

Out of his Depth Dave, the CEO is drowning as the Refinitiv play unravels. “Cheer up the worst is yet to come.” Was the rejoinder this week, echoing the words of Philander Chase Johnson in Mad Magazine many years ago. True, it could be that when ODD Dave said his deal would be “transformative” our sole failing as parishioners in the world of bourses, was that we believed the intention was a positive transformation.

Great news on the product, from ICE (Intercontinental Exchange) – they announced that 1 million contracts have traded on ICE Futures Abu Dhabi equivalent to a billion barrels of Murban Crude.

Remember, ICE suddenly announced IFAD on November 19th, 2019, that’s barely two years have gone by. And we’re in the time to sing a happy melody of “Roll out a billion barrels” which is surely much more in tune with the current inflationary times, rather than the rather singular original lyrics of the beer barrel polka translated into English. All in all a solid round number achievement for the IFAD exchange, which ICE created in 504 days despite COVID, despite lockdown.

Remember also, if you want to check out my Op-Ed piece in the National Newspaper from a couple of months ago: The Island of Excellence Emerging Around Murban Futures.

Brexit news this week, well, lots of interesting news which didn’t of course gain a huge amount of traction because vast swathes of the media don’t want you to know that there is a possibility that Brexit might succeed. London’s financial center rivals have abandoned hopes of a post-Brexit city Exodus. Probably something that could have been written actually several years ago, but it seems finally they have announced that they are giving up hope in places like Luxembourg that they’re going to see a huge influx of business post-Brexit.

Equally comments in The Telegraph too that Brussels bid to standardise its rules is a gift to the city.

Bigots, Blobsters and Bar room Blitheres proclaimed the death of London’s financial centre upon Brexit. If ever conformation was required five long years later, their utility is at a level beneath horse poop mouthwash. Exchange Invest noted there would not be anything like the Exodus proclaimed by these panic

Results news this week: the Nigerian Stock Exchange group revenue for Q3 up 15.9%.

It was a busy week for new markets in the parish this week. All the information was in 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.

Japan Exchange Group – they’re establishing a new data rich blockchain centric total smart exchange. JPX jumping towards a crypto ‘everything bourse’.

Meanwhile, hotfoot from the Favelas of Brazil, “We Can Be Agents of Our Own Transformation” went the headline the Favelas of Brazil. The ten largest Favelas have come together to create a stock exchange with the aim of ending decades of economic marginalization. Any Brazilian startup that was born or operates within a Favela can participate in the initiative, as well as anyone rich or poor, who can invest therein, in an age of political pygmies pushing the same old failed socialist claptrap. This is wonderful news and a perfect endorsement of our model, the exchange model at the heart of electronic commerce.

For more on that topic, pick up a copy of my latest book “Victory or Death” – Blockchain, Cryptocurrency and the future of FinTech, our topics therein. It’s published by DV Books and distributed worldwide by Ingram.

Another exciting marketplace, Shanghai, they’ve launched a data exchange to fuel the fourth industrial revolution. Theoretical construct until now that I’ve discussed with some clients. The exchange in this case is led by a series of state-owned enterprises and investment firms. They believe that the date of its foundation November 26th 2021, will prove to be as profound as the finding of the Amsterdam Stock Exchange in 1601.

That wasn’t the only truly exciting futuristic play of the week. HashCash – they are collaborating with Space Giants to create the space commodities exchange.

In deals this week, quite a fascinating week for deals. Coinbase – they’re on the acquisition trail, they bought a crypto wallet from BRD. Also, they purchased unbound security marking their presence in Israel in another undisclosed sum deal.

Fascinating merger – South America’s, well what could we call it? I suppose we could call it LATAM next is a gogo, Colombia, Chile, and the Peruvian stock exchanges have approved their merger.

Product news this week: President Xi of China says that the Chinese should be spinning up work on a unified power market.

Meanwhile, Deutsche Boerse’s EEX – they’re looking to launch a hydrogen index in 2022.

New Zealand Exchange’s Dairy Derivatives – they’ve gone live on SGX’s electronic platform with globalized access and reach.

A great day for NZX delighted to see they’re milking the relationship with SGX in a “win-win” way for the New Zealand, New Zealand Exchange and the Singapore Exchange respectively.

ICE – they’ve expanded their environmental complex with the launch of a global carbon futures index contract.

Technology news this week: NASDAQ and Amazon Web Services Partnered to Transform Capital Markets, went to the headline of their press release. NASDAQ will use Amazon’s technology for private clouds called Outposts, setting up a cloud system at their data center in Carteret, New Jersey.

So just to recap, Google partner with CME and all they get for a billion dollars was a new class of shares. Now AWS links with the biggest customer vendor of bourse systems, NASDAQ and have a chance to expand their business beyond merely one exchange traded derivatives monopolist as per the Google deal.

This is a very exciting deal for NASDAQ in a significant expansion opportunity for AWS. One interesting pointer will be how non-NASDAQ tech vendors react. Will they now prefer Google to AWS or seek alternatives to this duopoly? Will they feel comfortable in AWS despite their partnership with Nasdaq? In any case, it’s a great deal for Nasdaq and understandable why Amazon Web Services would seek to go this way in the parish of exchanges.

A fairly quiet week this week in career paths: Aquis Exchange – they appointed new Chairman Niki Beattie is standing down and will be replaced by Aquis non-Executive Director Glenn Collinson, effective first of January 2022.

And that leaves us in ‘Big World’ this week: for those who are fascinated by the idea of a cartel, whose control of a genuinely liquid asset holds the world to ransom over their breakfast table. Well, of course, OPEC is a mere armature in this regard. Rather, the laureat remains with the Quebec Maple Syrup providers, a government-sponsored cartel representing 11,000 producers which is responsible for no less than 73% of global supply of maple syrup.

Thus, whereas Joe Brezhnev caused an oil price rise with his dumb idea that releasing a couple of days supply from the already depleted US emergency crude oil supply would make a difference that QMSP is releasing over 22,000 tonnes of their glutinous pancake/waffle accompaniment in an effort to stymie a currently tight, inflationary market.

And on that mysterious and magnificent note ladies and gentlemen, my name is Patrick L. Young.

Thanks for listening to this Episode 123 of the Exchange Invest Weekly Podcast.

We’ll be back next week, in the meantime, have a great week in blockchain, life and markets.

LINKS:

Brazilians Find Stock Exchange Bull Unbearable, Remove It
Miami Herald

EU Sees ‘Decisive Moment’ For Building Single Capital Market
Reuters

Analysis-EU Adds More Pieces To Its ‘Elusive’ Capital Market Jigsaw
Nasdaq

EU Revives Bid To Build Capital-Markets Union
Bloomberg

Press Release: “One Step Forward, One Step Back – MIFIR Review Proposal Risks Missing The Moment”
FESE

LSE Chief Battles To Save Exchange From Becoming The FTSE’s Biggest Faller
The Times

ICE Announces That One Million Contracts Have Traded On ICE Futures Abu Dhabi, Equivalent To One Billion Barrels Of Murban Crude

London Rivals Abandon Hope Of Post-Brexit City Exodus
Telegraph