[00:00:00] Speaker A: This week in the parish of bourses and market structure nasdaq predicts asx by lscg tech I spice into okx nasdaq texas is live and nasdaq makes a token move that is anything but token. My name is patrick l. Young. Welcome to the boris business weekly digest. It's the exchange invest weekly podcast, episode 336 foreign.
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 Data Subscriber newsletter. The unique guide to the Boris business sent daily to your inbox. More
[email protected] over in BitCarnage, we were giving a prelude to the OKX Ice age. It's a big punt from ice, or not so much of a punt when you break it down as this is an investment which immediately pays dividends. But nonetheless I see a good opportunity to dive in and corner some trading product potential alongside market data in keeping with their recent investment in polymarket. At the same time for OkX, it marks a massive turnaround for a Chinese originated enterprise. We can easily talk about Snake giving way to Fire Horse Energy writ large, I think less than a year ago, okay, X copped a massive fine $500 million for crypto crime for what was a mega failure, to put it mildly. If you enjoyed this excerpt, you may be interested to know you can read Bit Carnage every day and Exchange Invest. Alternatively, if you want to follow Bitcoinage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcornage as a standalone on substack.
Over in the mainstream world of exchanges, NASDAQ is seeking SEC approval for some yes, no binary prediction market options on the major stock index. The NASDAQ 100 grownups enter the room in prediction markets NASDAQ ought to be a better place to think through the foibles of the prediction market startups who've done a great many things but are struggling to truly get orderly markets and holistic thinking with perspective. Altogether, this is a most interesting development, particularly as it could be a thread to help Nasdaq get back to the ETD market in the US where they have not yet conspicuously succeeded much beyond single name stock options.
Euronext have written a very, very worthwhile read a position paper on the market integration package from the European Union, subtitled Building Liquidity and Efficient European Markets. At first glance it's sound logical stuff do something about the egregious systematic internalization shambles. Likewise, don cut and shut CSDS, but sort out competition and cooperation, etc. Of course, we all know the European Union doesn't respond well to the truth, particularly if it's put bluntly about its manifest failings. So the usual political niceties are observed, but overall this is a sound contribution to the debate.
[00:03:14] Speaker B: Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickervativesvision.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.
[00:03:33] Speaker A: Meanwhile, the CME has rebuffed traders seeking to recoup losses from recent outages I can understand how CME is not eager to endorse traders getting paid for losses. These things happen. We've been eating losses from such foibles for years. However, the issue is the symptom, not the direct litigation. It's a message to CME if they choose to read it. Users are growing tired over in Texas, the TXSE is caught in a pincer movement from the country club listings duopoly and I just don't know what way TXSE can respond without merely spending money to no avail.
Thus Nasdaq Texas has launched with inaugural dual listings just weeks after NYSE Texas launched as well, the Nasdaq NYSE listings duopoly have made firm foundations in the Lone Star State once again. I just don't see what the point of TXSE is as standalone challenger other than to redistribute their copious shareholder funds. Also in NASDAQ news, NASDAQ Europe have made a fascinating deal to challenge the EU settlement duopoly alongside Bose Stuttgart in a partnership with Saturion while simultaneously offering a tokenizing service. And at the same time that ought to send shockwaves across the Atlantic. In other words, this is a token move from Nasdaq that is anything bot token.
Speaking of Nasdaq, let's move to our sponsored segment this week. Further good news from the good people of Nasdaq.
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 clear. Harmonize rules, standardized workflows, modernize technology in order to unlock efficiencies and settlement and corporate actions for exchange leaders ready to scale. Download Creating Asia's Post Trade Operating Model of tomorrow at bitly that's bit ly bit apac dash post trade that's apac dash post trade. All one word bitly. Over in Africa, Kenya just celebrated their first IPO in 11 years. It scraped through with a little help from Uganda and in results, it was a busy week for results in the parish. All the details were An Exchange Invest Daily the newsletter no person can afford to be without in capital markets and market structure. For the sake of this podcast, looking at some edited highlights Tel Aviv Stock Exchange stunning numbers there Q4 revenue up 29% Q4 adjusted adjusted net profit up 98% fabulous stunning numbers from Tel Aviv. Moscow Exchange on the other hand, is finally flatlining. After years of war in Ukraine, the remarkable run of MOEX has paused. That said, it's hardly the exchange's fault. They've managed well, but it's a problem when the core economy is on a war footing and sanctions have pervaded essentially every vestige of daily life. Over in Manila, horrific results from the Philippine Stock Exchange as they start to embrace their inner pdx. They bought the bond exchange last year. Operating revenues thus are up 103.3%, although net income still flagging at just a 1.4% gain.
New markets this week Fascinating New Derivatives market Quanta have announced a new US Futures Exchange. It's a new derivatives market via Incubex to trade energy transition and emissions with former CME veteran and ccx. Your ex US boss Satish Nanda Parkour as Executive Chairman alongside a raft of Incubate staffers deals. One key deal this week I headlined at the top of the show when we were talking about bit carnage. ICE has made an investment at OkX at a $25 billion valuation. Clearly ICE seeing a good opportunity to dive in and corner some trading product potential alongside market data in keeping with their recent investment in polymarket.
Meanwhile, if you fancy some financial insights with moving pictures, check out Our livestream Tuesdays 5 o' clock London time, midday new time it's the IPO Video Live Show. Catch the back episodes on LinkedIn and YouTube via IPO vid not online. We're enjoying what's wrong with Economics, Economists and the Economy with Professor John Hearn. Coming next week is going to be Stock Market Maestros with Lee Freeman Shore, Our Finance Book of the Week From Manny to Manhattan, a classic about the rise of the modern art market by Peter Watson it was a look behind the scenes at the world's art market, revealing the connoisseurs, collectors, artists, dealers and auction houses that have shaped tastes in art and completed record breaking sales even decades ago for art masterpieces.
Product News this week very very interesting stir developments. ICE are introducing Norwegian crime, South African Rand, Swedish Krona and indeed Japanese short term interest rates. That is of course Tona replacing what was previously Euro Yen alongside Nibor, Nova, Stybor and Zeronia. Those are going to be products trading from the 7th of April this year and a very interesting development as the race is on to deliver liquid futures and ETD complexes across different currencies in the slightly lesser currencies than the world's dominant dollar or even the likes of the Euro and the British pound.
The Korean exchange. They've gone for an interesting bifurcation justifying their FIA Boca expense deal by signing a deal that will allow them to trade after hours on Eurex as before for their Kospi index futures and in the American R's. It's going to be ICE futures as the chosen platform. An interesting bifurcation I do believe the first time this has ever happened. Euronext are diversifying their financial derivatives franchise with the launch of mini options on ETFs. Pakistan Mercantile Exchange is going to begin trading in rice, maize and sugar and ice. Very interesting development. Once again they're launching Naishek's container freight futures, a great move to further advance what remains a relatively less covered area freight transportation costs which ought to be a rich source of hedging activity, especially in oil volatile times such as the present. Ethiopia's ECX are integrating malting barley into modern trading and credit systems, while the Belarusian Universal Commodity Exchange booths have started regular trade in birch tree juice technology. Quite a surprise this week. ASX and an anything but NASDAQ move. A very sound win I suppose for the London Stock Exchanges Group technology arm who are going to be upgrading the ASX derivatives trading platform.
All the same that seems quite strange given the fact that the London Stock Exchange Group don't actually have a derivatives trading arm of their own.
The thing which also worries me here is how asx, which can't manage its CST upgrade is in a position to also manage its CHESS upgrade, while the users in Australia must surely be concerned about a wall of work SIBO Aus transition this ASX derivatives transition, also other clearing transitions which are coming through as well.
Career paths this week Mikhaila Fleischer has been appointed Chief Operating Financial Officer of the Global Legal Identifier Entity Foundation Golif Wise has named Ex Intercontinental Exchange CFO Scott Hill as an Independent Director. Sounds like a win win for me for a great firm connecting with a great former CFO of a huge exchange group. And that just leads us to Big World. 250 years ago on 9 March 1776, the foundational text of Modern Economics, An Inquiry into the Nature and Causes of the wealth of nations by Adam Smith, was published in London at a point where capitalism was beginning to transform the economy and the prosperity of the citizens within it.
And on that mysterious and magnificent note, thank you for listening to this Exchange Invest weekly podcast 336. Join us daily via exchangeinvest.com or if you have any exchange you'd like build, get in touch. My name is Patrick L. Young and I wish you a great week in Life and Market.
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