[00:00:01] Speaker A: This week in the parish of bourses and market structure vermiculous actions, reality bytes, txse misbelligned issues in the eu pitching futures and hong kong exchanges destiny my name is patrick l. Young. Welcome to the boris business weekly digest. It's the exchange invest weekly podcast, episode 360.
[00:00:32] Speaker B: Foreign.
[00:00:42] Speaker A: 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 on Exchange Invest Daily subscriber newsletter. The unique guide to the Boris Business. Send daily to your inbox for more
[email protected] over in Young's Pyramid Volatile times all round of course we were discussing recently the idea that LSEG had been demoted into Tier 2 as a result of their stock price stagnation after the Stockholm Syndrome takeover of LSEG by Refinitiv. Meanwhile that meant that in Tier 2 this meant the biggest shake up delivered us the departure of DB1 as it was promoted to Tier 1 following a 10 billion market cap FD leap to $60 billion, leaving it just a couple of billion dol dollars behind Hong Kong exchanges in tier 1. Thus LSCG is now in tier 2 with stiff competition at the top of the tier, just a billion ahead of the constantly improving NASDAQ franchise which has had another excellent month of key wins in its banking software, while the exciting plans for tokenized 23x5 stock trading are developing a pace. Coinbase had an average quarter frankly in the wake of the failure of the Clarity bill. Albeit that's demise was surely obvious if you were reading Exchange Invest and Bit Carnage. NSE left the Indian Mega Bourse finally in the top bunch of tier 2 with a print from its IPO, a fifth $45 billion market capitalization fairly reflecting the exchange after a lot of hype in private markets which exposed the limits of private markets to fairly price compared with public stock markets at the bottom of Tier 2, Warsaw Exchange and Johannesburg Stock Exchange both continue to demonstrate their promotion was merited a quarter or two ago with the GPW showing a handy return to end quarter three at over billion in market cap, a rate reflection on the management of CEO Tomasz Brachawski. Meanwhile in tier 3 we had ABAX Exchange despite a bruising quarter under attack from a short seller coming out on top ahead of the mongrel Bakkt which continues to muddle along without too much of a clear purpose in Life at $275 million. The next group is covered by a tiny margin. Philippine Stock Exchange just ahead of NZX of New Zealand Zimbabwe Stock Exchange itself a little ahead of the Nigerian exchange N Group.
[00:02:59] 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.
[00:03:18] Speaker A: Over in Bitcarnage Markets Unleashed Adina Friedman is bullish as tokenization could unleash tens of billions of dollars in trapped capital, she said on cnbc.
At the same time, in tales of the Inevitable, Greece prepares to levy a 10% capital gains tax on cryptocurrency and another death in the parish of crypto bourses as crypto investment firm Deus Ex Capital shut down as backers pursue separate strategies. If you read this excerpt, you may be interested to know you can read Bitcoinage 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 Bitcarnage as a standalone on Substack.
Over in the mainstream world of exchanges Vermiculous, the Swedish vendor of note, they've launched AI powered, configurable corporate Actions, an excellent addition to the Vermiculous suite. Deploying AI in the corporate action fields makes clear common sense. At the first big listing shuffle, Texas Stock Exchange unfortunately seemed to flunk with gusto. A white paper arrived from New York Stock Exchange with somewhat grim prescience on just what Texan capital markets could achieve. But at that moment, as Texas Stock Exchange itself was celebrating a raft of listing defections from the country club, albeit several were controlled by a leading 30% shareholder in TXSE. Alongside them came Dillard's, and they, along with Sunoil, had a somewhat bracing series of debuts on txse. All the details of what was lacking in the closing auction was in Exchange Invest, and certainly Net Net meant that Dillard's was to a greater or lesser extent illiquid and the Texas Stock Exchange didn't have any measures to counteract that. Where the more established venues have DMM procedures ensure pricing coherence.
Moving on from the unfortunate APO debuts or listing debuts on Texas Stock Exchange, a better supervisory system and positive progress through MIS was the message from each CCP the European Union CCP lobbying body, a coherent cri de corps towards an unfortunately incoherent Europe from the good folks of each there, while whether or not you understand the infield fly rule. Baseball futures are launching in Chicago via CMEs. CME Group will launch the world's first baseball futures on October 12th. An interesting different angle the hedge speculate via CME on baseball franchise's success or lack of it before, during and after this season. Meanwhile, Hong Kong Exchanges CEO Bonnie Chan has been echoing my long standing view that Hong Kong exchanges group has an abundance of opportunities. The difficulty seems to be finding the budget to exploit them. Of course that includes expanding indices, derivatives and yuan denominated products. Better finance a creed occur from them as well to the European Union. Europe wants citizens to invest, so why does the tax system punish them? No further detail required I suspect to that headline, but at the same time all of the information was in exchange Invest urex have expanded into Japanese equity derivatives and Kalshi is launching prediction apps with native American tribes which is dividing Indian country.
Analysts are warning of risks as idx, that's Indonesia brings back short selling. Of course, Indonesia had a volatile year in the Jakarta exchange resulting in a complete switchover of management just a few months ago.
Meanwhile, pretty apt as an announcement for Columbus Day, the BME of Spain is making inroads towards enabling dual listing between Spain and the usa.
And then in the New York Post an interesting column from Charles Gasparino discussing why prediction market executives could face an existential threat in the Supreme Court over in deals. No actual deals, but the bidding is hotting up for the Cyprus stock Exchange. Some talk previously of Russo's Cypriot interests. The Tel Aviv Stock Exchange is concerned considering a bid. I'm overall not sure who wants this asset. It's difficult to see which big exchanges it really helps fit. It's not for ICE I would imagine, probably not for NASDAQ nor cme. Hong Kong exchanges. LSEG don't really understand markets anymore as Reuters Financial have refinitively re engineered the firm backwards. Switzerland maybe, but I don't quite see the direct synergy with Spain and the Swiss and UK assets of Axis. There's a potential for a third party bid. Indeed, there's huge potential for an EU license to be developed from Cyprus. Intriguing geography and Financial Financial Center. That said, I doubt this development will come to pass. It's not clear that rolling tiny Cyprus into a big group will really work. A Tel Aviv EU link is far from the worst idea in the bidding options, and it'll be an interesting test of the dynamism of Tier's management to do M and A and expand. Meanwhile, if you fancy some financial insights with moving pictures. Don't forget to check out our live streams. They go live on Tuesdays 5 o' clock London time fortnightly. That's New York midday the IPO Vid Live show. Catch the back episodes on LinkedIn and YouTube at IPO Vid. If you can't wait a fortnight for the next episode alongside watching the back episodes, don't forget we now have also full seven day a week running an Exchange Invest Monday through Friday the nitty gritty of the world of exchanges Saturday and Sunday More macro topics the more macro topics on the weekend remain free ladies and gentlemen. Sign
[email protected] and while you're there drop in the tick box and offer yourself a free one week trial subscription to the water cooler of the BORS business itself. Exchange Invest over in Products ICE have started Gold Features in London and that was a market that hasn't had a gold feature since 2020. NCDEX in India are planning an agri index comeback with derivatives trading in guar and spices, which is welcome news. And in technology, a great development. Warsaw the Warsaw Stock Exchange gpw they launched the Watts WATS transaction system, A smooth launch for Watts, which must please GPW given the extent of the system built from scratch under the previous management team. It's interesting to note CEO Tomasz Bartculowski is stating that GPW is prioritizing delivering updates to its tech internally before it considers moving on to selling to third party clients. A very clear move away from attempts by previous CEO Marek Dittel to sell to third parties even before the new system had been installed in its reference Home co location in Warsaw. Meanwhile, the DTCC CTO has said that they could free up $52 trillion in collateral. Good grief. I think in the 13 years of exchange invest that's the first time we've even realized DTCC has a CTO. My, how times are changing. In settlement, the DTCC CTO is being named and speaking in public to an interesting audience. And an interesting topic too.
Over in regulation, the Megatossil over MISP is an issue, certainly one where the idea of a top line domain regulator regulating major exchanges on a single basis. It may not be the worst idea around the eu, but Germany is demonstrating rank hypocrisy as it tries to claim that pan European corporate giant D Deutsche Bose Group and Eurex is in fact just a little provincial entity which should be regulated only in Hesse by Frankfurt regulators.
At the same time, good news from Esmitz clarified access for EU market participants to the service of third country csds. The EU dodges another suicide bullet broadly of its own making by recognizing the third party csds from non European nations in career paths. Great news. Good friend of this podcast, a good friend of IPO vid regular guest there. Daniel J. Davis Dan has been promoted by Connemara Technologies to President Hardy congratulations, elevating him from his Chief Revenue Officer position he held for the last year. Last month Connemara added Pat Kenny, incidentally the Chairman of the AFM to their client focused team as Senior Advisor for Global Engagement over at the European regulator. It's a farewell to Verena Ross, who's been in situate in various roles since the foundation of ESMA and she is being replaced as Chairman by Carlo Comporti from Italy earlier this year. Long time CEO he lasted what, good grief, 26 years? Sunil Benamadu has been finally replaced as CEO. He announced he was standing down earlier in the year, effective the of December. Tim Hogben, an ASX veteran before he moved to the Middle east, is going to take over as the boss of the Mauritius Stock Exchange. And that leaves us well back with the bonhomie of Brussels, which is always challenged when it comes to money. And this round of EU budget discussions appear particularly challenging in Big World. Essentially, the standard Brussels battle cry of more Europe is meeting resistance from what might be termed a more value for money Europe approach. The leaders of Germany, the Netherlands, Sweden, Denmark, Austria and Finland have signed a letter leaked to where else? The Brussels bugle, the Financial Times noting the EU budget must be fundamentally reformed. We must make choices.
The six signatories to the letter represent about 40% of the EU's income and thus the 2834 negotiation looks challenging. Nations not signing this letter include France, Italy, Poland and Spain, all major economies facing election next year and all of them noted for receiving significant subsidies. And of course they're seeking greater EU subsidies in the next budget. In total, 17 members want the subsidy trough to get deeper. And indeed, even as we're recording this podcast, there is news of a general election in Spain. How that changes the EU budgetary numbers remains to be seen. And on that mysterious and magnificent note, thank you for listening to this EI Weekly Podcast 367. Join us daily via exchangeinvest.com or if you have a new exchange 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.
[00:12:52] 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.
Please consult an investment advisor before you make any investments. And for goodness sake, do your due diligence and do not make investments without complying with the regulations in your home state. Exchange Invest cannot be held responsible for any investment decisions made as a result of our program, which is for entertainment purposes only.
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