[00:00:00] Speaker A: This week in the parish of bourses and market structure. Rip jim olaf hong kong exchange excels outlook terminal and a tale of two jses my name is patrick l. Young. Welcome to the boris business weekly digest. It's the exchange invest weekly podcast, episode 33 5.
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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 many events and happenings from the past seven days can be found in Exchange Invest Daily Subscriber Newsletter. The unique guide to the boss business sent daily to your inbox. More
[email protected] over in BitCarnage, SBF is Unwanted finally, there's some political bipartisanship from Washington D.C. as the FTX leading felon SBF has endorsed the Clarity crypto bill, provoking pushback from the political class he used to distribute largesse to. If you enjoyed this excerpt, you may be interested to know you Greed Bit Carnage every day on 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.
Our top story this week? Well, it's a very sad one. Former CME Deputy Chairman, a capital market revolutionary to his core whose legacy in markets was wonderful. Its breadth and depth. James E. Olaf has passed away. We published an appreciation of Jim, a true capital market revolutionary of the first order. You can find that on exchangeinvest.com it is in front of the paywall, free to everybody. Please make sure that as many people read as possible because when the history of markets is being written, Jim deserves his position therein. On behalf of myself and the Exchange Invest team, our condolences to Jim's wife Margot and his large and much loved family.
Over in the mainstream of markets, more movement towards T +1 as Hong Kong exchanges gears up within the growing Chinese mainland gateway of Hong Kong. Borsa, Kuwait are amongst those publishing good results alongside Hong Kong exchanges and Turkey is pondering a new mining exchange.
Elliott Management well they're still not happy despite the fact that odd out of his depth, Dave and the London Stock Exchange that he normally leads are caving to their demands for more stock buybacks. The truth is LSEG can buy back all the shares they want. The problem is their core management don't seem to understand or truly want to understand their market's division and had they had any true understanding of data, they wouldn't have bought the secondhand data shop which was Thomson Reuters in the first place. All of this is explained in much more detail in Exchange Invest, which you can read the water cooler of the Boris Business, the exchange of information. Sign up now for your seven day trial.
[00:02:53] Speaker B: Exchangeinvest.com 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.
[00:03:13] Speaker A: Over in the Australian conundrum, which is asx, they continue to make commitments to asic, the regulator. None of these promises have worked for years, so I suppose the savings grace for ASX is perhaps the old regulator's line. Past performance is no guarantee of future outcomes.
Meanwhile, Hong Kong results scintillated once again as the Bonny Chan growth era continues with unabating expansion. And the best is yet to come elsewhere Back in the Americas, CME had yet another tech outage. This is truly becoming a parish embarrassment coming hot on the heels of the impeccable uptime for the New York markets ice, iex, NASDAQ and NICE during the crazy snows which buried infrastructure under powder from Manhattan to Mawa and beyond.
Clearly somebody will get their clipboard broken over their head for this one at cme. Coming so soon after the CME data center fiasco last year, on which point a lovely conversation has been going on in social media about the snow in New York this week our post on LinkedIn was provoking several people to make points to the effect of Isn't it obvious that data centers just work and exchanges know how to avoid these failures. The tragedy is CME reminds us once again some even megastructures are struggling in the modern age. And that is why I have heaped praise on ice, iex, NASDAQ and NYSE for running impeccably during the fall weather bomb that hit New York recently.
Over in India, as the IPO nears, it definitely seems to be on this generation around folks. National Stock Exchange of India is looking to settle a few niggling outcomes, a long running predatory pricing case amongst them and also making it clear that NSE shares won't be listing on the NSE itself. The IPO is to be entirely an offer for sale, said the CEO Ashish Chauhang. The lack of self listing is of course another curiosity of the de facto zero trust SEBI regulatory framework. NASDAQ had a fabulous day this week for investors and there's a huge transformation in bloom once more raising medium term revenue outlook and their strategy is one which has succeeded where funnily enough, the analysts couldn't see it working just a few years ago in results. I mentioned them earlier. Scintillating results from the Hong Kong exchanges with a pipeline of 488 IPOs, essentially more than the LS CG has managed in multiple consecutive years. It's obvious why Hong Kong exchanges is growing and the best is yet to come. As we've been outlining in Exchange
[email protected] the prospects for Hong Kong exchanges remain nothing less than exhilarating. And Bonnie Chan is doing a terrific job exploiting the opportunities surrounding her group Down Under. New Zealand demonstrated that not all antipodean exchanges have to be disaster areas. Decent overall profits normalized. Operating earnings up 11.6% as Mark Peterson bowed out after a 10 year stint where, in partnership with former chairman James Miller, he rescued NZX from an abyss.
Other great results this week included the Nigerian Exchanges group and there was A Tale of Two JSEs Hannesberg Stock Exchange actually bouncing back for once. Operating income up 14.2% heartening to see headline earnings per share rising 17.7%. Encouraging results as the Johannesburg Stock Exchange makes progress in the swan song results for outgoing CEO Leila Furi, who's retiring as CEO on March 31, to be replaced by Valdine Reddy. On the other hand, another jse, the Jamaica Stock Exchange. Their financial statements not quite so exciting. Profits down 11% even though revenue is up nearly 9%. New markets this week. Delighted to see that Turkey is looking at establishing a new mining exchange in 2026 to boost financing and price transparency as $5,000 per ounce gold becomes the new normal they claim.
Well, I'm all for new exchanges. The opportunity far, far outstrips the current supply. But of course there may be an issue when all these things are based upon profound bullishness and only one side of the equation. Deals this week. LSEG announcing a share buyback promptly being slapped in the face with a vet fish by the activist investor Elliot who said it's just not enough. And who am I to disagree with that sentiment? A consortium of global banks. They have made a strategic equity investment in Austra Austria, of course being hived off by the S and P global CME combo combine that owned it just last year. An interesting post trade reshuffling in action there that leads us neatly to discuss all manner of aspects to post trade and other issues in our NASDAQ sponsored segment.
Welcome to a NASDAQ sponsored Segment Investor appetite for Asia is rising, but post trade friction is holding markets back in the new Nasdaq and value exchange study, 25% of participants plan to grow exposure, yet 46% face artificial trading limits. The biggest pain point corporate actions, 60% report high error rates and 39% of platforms are still legacy. The fix is harmonized rules, standardized workflows, modernize technology in order to unlock efficiencies in settlement and corporate actions for exchange leaders ready to scale Download Creating Asia's Post Trade Operating Model of tomorrow Apt bitly that's bit ly apac Post trade that's apac post trade all one wordtly. Meanwhile, if you fancy some financial insights with moving pictures, check out Our livestream Tuesdays 5 o' clock London midday New York time. It's the IPO Video Live show. Catch the back episodes on LinkedIn and YouTube via IPO vid. Now online fabulous episode 203 predicting the future of Market tech with Dan Davis of Connemara EP3 as they're a Bullian with an incred year of onboarding behind them and a very very exciting 26 already shaping up coming next week. What's wrong with economics, economists and the economy? That's a gripping discussion with Professor John Hearn. Catch those online and enjoy them. Make a comment, drop a like it all helps to promulgate the message of the exchange of information, the future of markets and all those things that we hold true to in IPO vid as well as exchange invest. Our finance book of the week this week is the Art of Execution how the World's Best Investors Get It WR and Still Makes Millions by Lee Freeman Shore Showing you exactly what to do and what not to do when your big idea is losing or winning.
Technology News this week cme amidst their problems with their execution platform for trading CME Clearing are going to be migrating their MQ infrastructure to cloud based technology.
At the same time, Perplexity AI has just dealt what could finally be a death blow to the terminal monopoly. The inevitable cleaving apart of revenue from the utterly outmoded terminal mentality. It's been written on the wall for decades. Bloomberg and LSAG are hugely exposed now as perplexity AI has turned a $30,000 a year Bloomberg Terminal into a $200 a month core subscription to the AI engine. Over in regulations, Senators bickering about prediction markets. CFTC bickering that it has the power to look after prediction markets. And in the middle prediction markets making mistakes over having markets on dead people something that hasn't been legal since the early 18th century in most Anglo Saxon.
But of course to understand that, you needed to be reading Exchange
[email protected] over in Career Paths, CFTC Chairman Selig has been announcing a raft of staff to bring in his senior management Broadridge. They've appointed the former ITG CEO Frank Troyce as President Global Capital Markets and William Kwan is going to be joining Market Access as their Chief Technology Officer. As the Middle east kicked off during the course of the last weekend thanks to Operation Epic Fury, Dubai Airport closed after the UAE saw Iranian missile strikes. What a big world this is. That led to a total cancellation of Emirates flights each day that Emirates Airlines alone do not fly to or from their co hub of Dubai in the United Arab Emirates. It costs the airline around $95.6 million per day.
And on that mysterious and magnificent note, thank you for listening to this EI weekly podcast number 335.
Join us daily via exchangeinvest.com or if you have a new market you'd like built, get in touch My name is Patrick L. Young and I wish you a great week in Life and Market.
[00:11:54] 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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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.
