[00:00:00] Speaker A: This week in the parish of Bourses and Market Structure as DC regulators talk Kumbaya. BQ is cancelled while LSE and ASX pioneer faas. There's an SEC Dream probe and ESMA makes a power grab My name is Patrick L. Young. Welcome to the Boris Business Weekly Digest. It's the Exchange Invest Weekly podcast, episode 316 Foreign Ladies and gentlemen, this is a very brief reduction of highlights amongst the E 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 Board's business sent daily to your inbox. More
[email protected] over in Bit Carnage Lo it came to pass that the Winklev have apparently pushed out, Brian Contends as the new crypto chairman of the CFTC for the sin, it seems, of not being crypto enough. It's a kind of defi et tu Brute, I suppose. If you enjoyed this excerpt, you may be interested to know you can read Bitcoinage every day and Exchange Invest. Alternatively, if you want to follow Bit Carnage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcarnage as a standalone on Substack. In the world of exchanges. The CFTC and SEC had a roundtable and all we seem to have gotten is lousy crypto talk amongst the Kumbaya. The big fat epicenter of the bell curve was outshone by a tail barely larger than Nvidia's market cap and outshone by the chip maker and Microsoft. Anyway, Unity at least brought denial of any merger, which is a relief all round at the boar's end. Failure as a service is not a thing in our parish. In many ways, one might say ASX got there first and we have now perfected the fine art of appearing blithely corporate while eschewing any blame for management on actually delivering a market. The London Stock Exchange is now in the same zone with their CEO. Remind me, what lucky bag did somebody find this woman in? Rarely has any exchange been blessed with such consistent ineptitude in response to Euronext trolls. The answer was not given by the dismal daem. It was spoken by the fewer than 70% of shareholders voting in favor of remuneration packages for the LSE management team. While they are a team, they're united to pay themselves more regardless of their incapacity to deliver markets. People want Phil Marks to Euronext that they can rattle the L But again, as Mexico sails past LSE and IPO volume, it is clear that the UK has marked intention to win the reverse milei prize by beating the rest of Europe's growth incoherent nations to become the next Argentina Peronist style. That LSE is trolled by Euronext is one sign of failure. That the one time European leader is rising to the Parisian bait shows how far the exchange's management ability has plummeted.
Meanwhile, a potentially seismic move from esma. They're looking to take oversight on crypto and stock exchanges. In essence, the EU is looking to cut all the national market regulators out of regulating their own markets. That's a potential disaster area as the next step is presumably enforced mergers between exchanges which will only further deteriorate the EU's crumbling capital markets. There's a lot to unpack here as it might have the odd advantage in some places, but overall it's hard to trust ESMA when their EU EC paymasters are eager to cut and shut all EU markets into best a lumpen duopoly. Lseg meanwhile, have agreed a long term extension of their Paternoster Square Office, the world's 23rd largest IPO venue. LSEG staying in Paternoster Square raises the question of what might remain by the end of this long term tenure. Perhaps just a jaunty dangling letter G above the portico. Either way, ICE now have a ringside seat from their European headquarters next door in Paternoster Square to watch the ongoing declined fall of the LSE empire. After a gibbon like fashion down under, it's nothing more than a minor start. But at last ASX has a challenge for listings. CEBO have been licensed as a listings venue, reducing the ASX market monopoly in one element.
[00:04:14] Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickrivativesvision.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.
[00:04:33] Speaker A: In new markets the Texas Stock Exchange's won SEC approval, y'. All. Street has a licensed business whose addressable business proposition isn't what it was when the paper went in just a few months ago. That's not an SEC issue. Rather, the US regulator has, it seems, worked speedily and efficiently to deliver the license.
The trouble with TXSE is they are now a license bereft of a viable business model and we're still a seeming excess of the startup hubris which has damned so many other new exchanges. I find it frustrating, beyond frustrating indeed that so many new bourses end up resembling a very public male midlife crisis. Will TXSE be the next one? Too early to tell, but the omens are not portentous in Deals A couple of great deals amidst a busy week for deals in the Parish. All the deals were in Exchange Invest Daily the newsletter no person can afford to be without capital markets and market structure. For the sake of this podcast, let's look at some edited highlights. Euronext Deal on Stefan Bu has taken advantage of the relative lack of initiative from Greek Exchange CEO Janus Kantopoulopoulos, a classic investment banker you appointed just to do a deal to sell as opposed to develop the business Hellenic exchanges. The offer is now open and it is a lovely asset to add to the Euronext empire. Another Bougina success.
Meanwhile, across the Atlantic, ICE, the Nicely parent are going to invest up to $2 billion in the prediction market Poly Market Data Data data ladies and gentlemen. ICE gets to distribute it to institutions and it's finally where I thought we could pioneer prediction markets three decades ago. More is the pity. I was way ahead of the curve. Not the only time, but interesting to see how this data packet is going to visibly power all manner of institutional thinking in the future across all asset classes.
Meanwhile this week we've been taking an opportunity in Exchange Invest to look at the Young's Pyramid and a quarterly update. Fascinating events happening in Tiers one, Tiers two, and indeed Tiers three all over the place, M and A, all sorts of interesting political maneuvers and more. For all those details you can catch the
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[email protected] and as I say, it's completely free of charge in regulation. All of that kumbaya between the SEC and the cftc. A new era of collaboration between the two agencies being trumpeted by Chairman Paul Atkins and indeed Acting Chairman Caroline Fam. Good grief, sharing the love in a GOP administration with such a fusion, it feels like the CFTC SEC were hosting a Woodstock reunion. Trouble is, the focus needs to be on legacy markets and not merely indulging the cryptokiddy's short tale in career paths. Well, it's related to the CFTC of course. White House has pulled Brian Quintance's nomination to lead the CFTC and ultimately the Winkelvie, as I mentioned earlier, have won in what could yet prove a remarkable frontline spat between the uber doctrinaire and the overzealous. The notion the A16 staffer Quintance was insufficiently devoted to the crypto world angle has always struck me as ludicrous. Now, who comes next? Recent back charts suggest La Farm truly is serious about joining the private sector again. Thus the unhappy nomination of crypto loyalist Brian Quintance as CFTC Chairman dies because he isn't crypto loyal enough. This Soviet style spat of distributed doctrinal perfection could yet go in the history books of Market A hubris. Does it a spell upcoming permanence for la femme fatale? Or is she truly determined to go back to the private sector?
Over at cboe, interesting upheaval. Catherine Clay is departing as Global Head of Derivatives and she's going to be replaced by a returning Rob Hawking. Meanwhile in Big World, readers will recall that PLY has been consistent in noting British Prime Minister Keir Starmer would not last a full term in office despite a stonking Majority of MPs elected in a lukewarm mandate on July 4, 2024. If anything is noted recently that looks like the height of optimism he would survive. Not quite a full term. Knives have already been out as the Labour Party Annual conference droned on in Liverpool recently. The perma disappointing PM Starmer has achieved a new low where Liz Truss managed a -51% net approval rating, Starmer has plumbed new depth an all time PM approval low at minus 66%.
And on that mysterious and magnificent note, thank you for listening to this EI weekly podcast number 316. Join us daily via exchangeinvest.com or if you've new Exchange or Marketplace you'd like build, get in touch My name is Patrick L. Young and I wish you all a great week in life and markets.
[00:09:50] Speaker 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.
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