153 Exchange Invest Weekly Podcast July 23rd, 2022

Transcript

This week in the parish of bourses and market structure:

The NSE nabs the BSE CEO

Binance are not trading stocks

…and the NYSE champions markets.

My name is Patrick L. Young.

Welcome to the bourse business weekly digest.

It’s the Exchange Invest Weekly Podcast Episode 153.

Good day ladies and gentlemen, this is a very brief reduction of highlights amongst the key headlines from the many events and happenings during the past seven days in the world of market structure. All those events 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.

ICE have launched their ESG Geo-Analyzer. Crazy name, crazy project. It means you can now analyse property level, climate risks and demographic data.

The LME hope to soon announce that nickel Asian trading will be returning and indeed the LME have also announced an extension to the implementation period for the OTC position reporting and accountability regime, which they introduced in the wake of the Nickel Nightmare 7 weeks more to delay as the LME CEO works on his plans to win back trust following that Nickel Nightmare.

Meanwhile, Bursa Malaysia Derivatives they have inked a strategic partnership MoU with the Shanghai Futures Exchange and the Shanghai International Energy Exchange and meanwhile, there was disappointment that flooding postponed Prime Minister Modi’s visit to GIFT City in Gujarat to launch the Indian INX and the new Gold Exchange. However, things were going from bad to worse during the course of last week for the NSE on many levels. In the Colo case, the CBI have booked SEBI and NSE officials for the latest problem, which was the phone tapping incident which seems to be going on all the way back to 1997 according to reports given by the the ED (Enforcement Directorate) at the Delhi courts. Thus, they extended MD or at least former MD of the NSE Chitra Ramkrishna’s custody by 4 days in order to allow her to be rearrested and also further interrogated in relation to this messy institute.

The happiest news of the week came from the USA, we suspect the New York Stock Exchange they have launched the New York Stock Exchange (NYSE) Institute, Its job championing capital markets and NYSE-listed companies. Great news, the NYSE is helping fill the void where not remotely enough parishioners are making the right noise about the benefit of markets – until recently that was something we only heard from NASDAQ out of NYC and which we never heard from, well, for example, Chicago, while the message is frankly sporadic, out of London and beyond to. Hooray! As Michael Blaugrund and himself an NYSC veteran noted: “There is no greater catalyst for improving the human condition.” That’s absolutely true. Viva financial markets and long live the NYSE Institute.

Results, we’re heading into results season as I record this podcast today, one to report for you is just the brokerage Charles Schwab, their Q2 revenues rose 13% to surpass $5 billion. Pretty impressive given the earnings beat expectations and also well, in case you haven’t noticed it, the stock market hasn’t exactly been wildly healthy during the course of the last quarter.

Over in new markets, Senator Cynthia Villar of the Philippines has filed measures seeking to establish Small and Medium Enterprises Stock Exchange (SMEX) acts across the Philippine archipelago and encouraged Filipinos to patronize local products. A very interesting idea, albeit in my humble opinion, a little bit too narrow to have just one, but across the Highlands and Islands of the sprawling Philippine archipelago with 110 million inhabitants, we surely need more than just one exchange for SMEs. The government-back project is also a touch worrying and fact that it’s government-backed, but at least it’s a step in the right direction to trying to overall encourage and empower the Philippine economy.

The African Union they’re looking at a multi-level government-based Stock Exchange, they’re intending to establish a stock exchange across the region of Africa. The Lagos Commodity and Futures Exchange (LCFE) is set to go live as we go to pixel, or at least record this podcast. They’ve concluded agreements to commence real-time trading this month, as part of their plans to inaugurate a Pan African Commodities Exchange.

Elsewhere, great news from Korea, the first alternative trading system in Korea is going to debut in 2024.

We had an absolutely marvelous IPO-Vid this week. Our guest was James Fox discussing the Financial Cold War. Absolutely a must listen, ladies and gentlemen. catch it on Facebook, LinkedIn or you can go to YouTube where you can search it by finding IPO-Vid. Coming this Tuesday we have got Peter Reitz the CEO of the EEX now a transatlantic behemoth of commodities, he’s going to be discussing Building Sustainable Commodity Markets Worldwide – How Can An Exchange Build Sustainable Markets? Catch that Tuesday 7pm European time, 6pm London time, 1pm New York Time, IPO-Vid.

Over in crypto land, Binance have been claiming they’re setting high KYC and AML standards to boost user protection but of course, came in the wake of multiple critiques and complaints from various parties that they were doing anything but and indeed, just this week Binance were fined in the Netherlands for the lack of their regulation copping a $3.3 million fine from the Dutch Central Bank. At the same time CZ as the eponymous founder of Binance, he said: “As a Pure Web3 Company” Binance has no plans to offer stock trading”.

Elsewhere, concerns over Coinbase have been rising, they’re ‘temporarily shutting down’ their US affiliate-marketing program, at the same time as it took game stops NFT marketplace just 2 days to pass Coinbase NFT in sales volume. This of course matters because GameStop managed to create a form of customer bandwagon through the amazing COVID meme stock episode, which doesn’t seem to be the case with Coinbase, once upon a time, a stock market darling, but of course now down over 70% in line with Bitcoin and indeed there are concerns we’ve no idea whether or not this is correct, ladies and gentlemen, so please do your own research but according to various experts in the cryptokiddie field Coinbase could be the next insolvency. That’s a big, big question and I’m not clear that Coinbase as I said before, has a trajectory to bankruptcy but what I do see as a management team, which simply hasn’t trained from rapid startup level to multibillion-dollar market cap. Even after that 70% market decline, Coinbase is still worth a better part of $12 billion at the same time one thing we can draw from this is the crypto kiddie community, they are panicking and I suspect it’s still early days for crypto winter.

Product news this week, the Moscow Exchange they’ve resumed sovereign Eurobond trading with FX Settlement. Russia also are aiming to take control of their oil pricing by creating their own benchmark domestically while ICE benchmark administration have introduced calendar year inflation expectations on top of the ICE U.S. Dollar Inflation Expectations Index Family.

Happy birthday to China’s carbon emission trading markets celebrated its first anniversary during the course of the last week while one final new product that’s coming soon, the Saudi Exchange Tadawul is launching the TASI Islamic Index.

Over in career path, the big news of the week, Vikram Limaye tenure ended at NSE. On the day that it ended, there was no chosen successor but soon over the course of the weekend, it trickled out that we have a very, very interesting successor. All the very best to the outgoing NSE CEO Vikram Limaye, whose term has ended. It was a challenging time, presumably leading to his decision not to seek a five-year extension as it rapidly became obvious that all of his actions are entirely secondary to those of his predecessors thanks to the “#Holy Hoax” fiasco, those #algo issues, phone tapping and more.

Thus, it was exciting to read last weekend that Ashishkumar Chauhan he’s getting the top job at NSE and thus makes a very interesting switch. He’s departing the BSE formerly the Bombay Stock Exchange as MD and CEO to the same position at NSE. It’s a fully-fledged case of the prodigal son repo in fact that Ashish Chauhan steps back from the BSE to return to the NSE, which he helped co-found. He’s the derivatives dervish of sorts having set up the NSE’s original ETD marketplaces. That makes Chauhan a fascinating prospect to reestablish the devastated reputation of NSE after his fellow founder cadre proved somewhat hubristic in their CEO approach to the exchange as it developed. All the very, very best to Ashish Chauhan and indeed, interesting thought, I wonder, could it be that Vikram Limaye might yet be the man to turn up and run the BSE for the next five years?

Over at Euroclear they’ve announced a new group chief transformation officer. Rudi Collin will be focused on what sounds in a certain sense like a thankless task at Euroclear, he is going to be focused on Digital Innovation and Implementation.

Thomas Pluta has been appointed the next president of Tradeweb. He’s stepping into the position being vacated by Billy Hult. Billy Hult is of course being elevated the CEO and Lee Olesky is being elevated to chairman in a series of long flagged moves.

Hongkong Exchanges named their new Chief Strategy Officer expanding the emerging business development team. Daniel Sonder will become the chief strategy officer and head of data business markets. He joins Andrew Walton and Ken Chiu at the helm of Hong Kong Exchanges HKEX’s market division’s newly expanded Emerging Business Development team.

One surprise this week from around the general parish, Lee Hodgkinson, formerly of NYSE-Euronex of course, he will be leaving OSTC at the end of this month as CEO, but he has apparently lined up a very new and exciting position, watch this space or did listen to this space. Ladies and gentlemen, the news of course first will be in Exchange Invest daily, the bourse business watercooler.

Away from the prodigal son repo, we’ve got to return to the parish this week. Johnathan Short, the former Chief Legal Officer of the Intercontinental Exchange has been appointed as Gorge Global’s Chief Legal Officer alongside Jose Cobos being promoted to President at the private market share trading organization.

Meanwhile, ladies and gentlemen, when you think about ‘Big World’ okay, it’s the middle of summer and we’re having a heatwave across Europe but within living memory aka about a month or so ago, Poland had this lovely idea or crazy idea depending on how you viewed it, of digging more of their copious coal supplies out of the local mines and burning it to stay warm.

This was greeted with disgust, (to put it mildly) after disdain by Germany and their lackeys in Brussels, who proceeded to pillory Poland for such ungreen activity in the face of Russia’s invasion of Ukraine and thus dubious gas supplies going forward. Thing that’s fascinating here is things that out of Brussels have become a lot more tacit after it became clear last week that Germany is going to have to start burning its forests to stay warm due to the folly of government overseen by the incapable Angela Merkel (of whose failures it has to be said Exchange Invest warned everyone far in advance) apparently too, the Germans are also going to be importing more coal.

And on that mysterious and magnificent note, my name is Patrick L. Young – exchange builder, extraordinary publisher of Exchange Invest daily newsletter and watercooler of information. I wish you all ladies and gentlemen have a great week in blockchain, life and markets.

LINKS

ICE Launches The ESG Geo-Analyzer For Property-Level Climate Risk And Demographic Data
ICE

LME Hopes To Soon Announce Nickel Asian Trading Return – CEO

Yahoo Finance

LME Delays By Seven Weeks Requirement For OTC Reporting
Reuters

LME Boss Says He Has A Plan To Win Back Trust After Wiping $4bn In Nickel Trades
Financial News London

Bursa Malaysia Derivatives Inks Strategic Partnership MoU With Shanghai Futures Exchange And Shanghai International Energy Exchange
Bursa Malaysia

NSE IFSC-SGX Connect Launch Postponed Due To Flood Situation In Gujarat
Business Standard

NSE Colo Case: CBI Books SEBI, NSE Officials For Defrauding Exchange
Business Standard

Phones Tapped At NSE Since 1997, ED Tells Delhi Court
The Indian Express

Ex- NSE MD Chitra Ramakrishnan’s ED Custody Extended By 4 Days In Phone-Tapping Case
The Financial Express

The New York Stock Exchange Launches NYSE Institute, Championing Capital Markets And NYSE-Listed Companies
Business Wire