[00:00:01] This week in the parish of boris market structure jpx soars, crypto bifurcation, ice excel nasdaq's brand makes moves and there's a euronext CEO shock my name is patrick l. Young. Welcome to the boris business weekly digest. It's the exchange invest weekly podcast, episode 370.
[00:00:32] Foreign.
[00:00:42] 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 Boris business sent daily to your inbox. More
[email protected] over in BitCarnage a case of for FUD or survival the fact that Binance's $6.3 billion hack started with one engineer's laptop has been all over the interweb thingy for the past week. After the hack. Questions, questions, questions. In the billions outflows 2 in the wake of the Binance mega hack, the total outflows from Binance were in the region of $5.4 billion. On day one alone, Binance says it has covered 95% of the stolen 6.3 billion, and to be fair, some of the tokens are less liquid, so it can take time to acquire in bulk. At the same time, Binance has somewhat shrugged off the notion it is under financial duress, which is all the more remarkable given the total of crypto hacks last year was 2.9 billion and directly. Even allowing for the money it has frozen, Binance is staring at $3.3 billion in losses. According to statements on X, Binance dipped into their $1 billion secure asset fund for users Safu, a specific Bitcoin reserve to cover losses from security breaches. Additional reserves were deployed from their futures INS fund and the corporate treasury. Am I alone in being worried? It strikes me these numbers are stratospheric and frankly, have confidence in Binance. If you enjoyed this excerpt, you may be interested to know you can read Bitcarnage every day and Exchange Invest. Alternatively, if you want to follow Bitcarnage, the daily update on happenings in the world of crypto and digital assets, you can find Bitcarnage as a standalone on substack in the mainstream world of exchanges. Well, stunning results all round. Once again, Japan Exchange Group net profits up 65.6% an explosion of cash equity trading enables a huge profitability link for the Japanese monopolist. Meanwhile, as Nasdaq Eclipse have been demonstrating their solution across DLT digital assets to conventional digital markets. The DTCC was also stepping up their tokenizing initiatives.
[00:02:48] Sensational results too from the Intercontinental Exchange was staggering volume growth in multiple sectors, net revenue there in the third quarter up 15%, operating income up 20% and you started well, what was pretty much another inevitably near record number and added another 15% compounded to the net revenue. A handy fillip all round.
[00:03:10] Interesting pointer. Amidst a wave of issuer reluctance, Jeff elegantly and diplomatically noted how ICE and his company that he's a Jeff Sprecher has built believes in dialogue on tokenizing stocks. Watch this space. It's a marvellous thing to behold, the Parish being recognized by the world beyond bourses. And to that end, Adina Friedman and management, aided and abetted by marketing guru Brian Buckley, have rocketed another four places up the global branding charts to reach number 81amidst truly household names like Google, BMW and Hermes, to name but three huge plaudits to Brian Buckley, Adina Friedman and of course Brian Buckley's entire marketing team alongside those operational managers under Adina who've delivered the core value as a brand only. NASDAQ is from the Exchange parish in the top 100, as I say, moving up to 81st from 85th globally last year. Thanks for listening to Exchange Invest Weekly. We welcome your feedback. You can contact me directly patrickrivativesvision.com with any comments.
[00:04:09] 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.
[00:04:18] Meanwhile, here's the shock news of the week. The new Euronext CEO is not French, he's another outsider like Stefan Boucher, who will be replaced next March. David Niebbe is the new CEO. He's been running NN Group, a massive Dutch insurance combine, and will be the incoming CEO next March.
[00:04:38] Interesting times for the rest of the management of Euronext. I would expect a significant exodus at this juncture and indeed, Anthony Attia now looks very prescient in making his move to sunny Sydney. In the rest of the world of exchanges this week, Big bang marked its 40th anniversary, a defining moment in the evolution of London's capital markets. It was good to see even LSEG manage to cover this element of their history, as they often seem to have little understanding of where they've been in the past. We also covered the events in a special bumper EI weekend edition, which you can sign up for at exchangeinvest.com and it's absolutely free while you're there tick the box for a free 7 day trial to exchange invest.com exchange invest the bulletin of the Boris business. The water cooler of the exchange industry.
[00:05:17] Interesting delivery from Intercontinental Exchange. They're teaming up with Trade XYZ to bring hyper liquid based perpetual futures markets online.
[00:05:27] Very very interesting press release. And also there were three mega names on this day related to the whole issue itself. Jeff Sprecher is pushing this deal forward. Stanley Druk and Miller, former right hand man to the then hedge fund giant George Soros is an investor in XYZ and in the wake of Stanley's tweet to that effect, Elon Musk re exed back. Interesting was apparently Stan Druckenmiller's first comment on X2 by the way.
[00:05:54] So Alphabet Soup Bourse Ice XYZ is a go go which brings together a Trump aspiration stated in the White House many months ago to bring hyperliquid onshore. Meanwhile, Kalshi raised a stunning billion dollars at the even more stunning valuation of 40 billion, which frankly strikes me as hideously top heavy. Back in the day, PLY was in the founding cadre of what later became known as prediction markets and I can well recall stating my main issue with being on the board of Dublin Based in Trade was that I wasn't going to wear an orange jumpsuit in the event of a leap to the usa. They leapt to the USA and I didn't. A generation on and it appears Cashy co founders may yet share that dubious honour. Unfortunately, because certainly a lot of people are litigating against Kalshi and in the wake of the midterms I don't think that's going to abate. Raising money at $40 billion is quite an achievement, but is as much a damning indictment of the inability of private market funders to actually predict trends where they prefer to chase whatever. The crowd has got into vogue at what will prove to be an inflated price. Meanwhile, speaking of inflated prices, Zimbabwe has had terrible problems with domestic inflation for years. Thus the locally quoted Zimbabwe Stock Exchange is facing a liquidity crisis as the US dollar based Victoria Falls Exchange seems to be eating the lunch of the more venerable Harare Exchange over in results. It was a frantic week for results in the Parish. All the details are 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, a couple more edited highlights we mentioned earlier on Japan stock exchanges Japan Exchange Group I should say rather their stunning results also those of Intercontinental Exchange. Meanwhile Coinbase returned to profit but it was a bit meh. Ultimately, trading revenue remains down. Revenue was 35% down year on year, and it was only thanks to marking up their holdings of crypto that they managed to get themselves into profit in the first place.
[00:07:39] Not entirely encouraging news over in deals. It was also quite a busy week for deals in the Parish, and all of those deals were of course in where else Exchange Invest Daily the S and P have completed their acquisition of Open Zeppelin. The Philippine Stock Exchange Hurrah is nearing full control of the PDS bond platform, barely a generation later.
[00:08:02] And elsewhere, State street intends to add to the money pile of the Texas Stock Exchange, according to the Texas Stock Exchange's own CEO.
[00:08:10] Meanwhile, if you fancy some financial insights with moving pictures, check out our livestream Tuesdays 5 o' clock London time, midday New York time the IPO video live show catch the back episodes on LinkedIn and YouTube via IPO vid. I just recorded a fantastic show. Coming up on the week of Thanksgiving we're going to have an opportunity to chat to Kevin Tyrrell. He is the Head of Product at the New York Stock Exchange. Don't forget too, you can still subscribe to Exchange Invest weekend editions and they are now out on a Saturday and a Sunday free of charge.
[00:08:39] Elsewhere in products, Deutsche Beise Group have launched 24.7trading for DAX equities on 360x with it has to be said Deutsche Bose, itself a DAX40 member. A sound initiative from the German exchange to try and capture the zeitgeist of longer hours trading. Albeit the question is just how much interest there really is in German stocks around the globe. Anyway, we can only praise DB1 for trying. Hong Kong Exchange is adding to its collateral panel now accepting China Government bonds, Policy bank bonds and MOF bonds as collateral. Great news altogether. Obviously a huge leap forward in the expansion of the RMB Offshore exchange traded derivative yield curve and then S and P Dow Jones. They threw in a bit of a googly. They're collaborating with Kalshi to bring the world's most trusted benchmarks to prediction markets. Can't imagine this will please cme, which originally had the diligent foresight to invest in index groups so they could not license to other exchange platforms. Or indeed other competing platforms are not. Kalshi has direct line to the S&P's product base in regulation. The chairman of SEBI has been speaking out against exchanges trading on their own platform in career paths. NASDAQ made an interesting reappointment. Borje Ekholm has returned to the board of directors. That's fascinating. He's of course very closely linked to investor ab, who remain a cornerstone shareholder in Nasdaq. Standing down in the near future will be Holden Spaat. That was entirely expected because he represents Thoma Bravo and they've sold all their stock in Nasdaq. It reminds us this boy Ekholm return of how Pivotal Investor AB remains the Nasdaq cap table over the long term. EchoLM was on the Nasdaq board of 2011 to 2017 and was indeed chairman of Nasdaq from 2012 to 2016, only standing down when he became CEO of Ericsson.
[00:10:24] In a realm where investors can be tediously promiscuous in public markets, it's a joy to see the steady Swedish investor pull from investor ABE holding their Nasdaq position.
[00:10:34] If only things could be said to be so stable in Turkey. The Borsa, Istanbul CEO has been detained in a funds probe. Dr. Korkmuz Ergan now makes history as the most exciting member of the wifi, that's the World Federation of Exchanges board since records began on the FIBV last century. Ergan was detained in the aftermath of a fund's meltdown which has shaken the Turkish stock market.
[00:10:55] Meanwhile, in big world, revolting students are in vogue in Paris and common in Barcelona amongst other cities. Right now we've even seen them as far afield as Geneva and Zurich. However, amic media narrative that links us to the student list, which has just gained power in Serbia through a decisive democratic election victory, is not truly aligned. Nor is this student movement truly aligned with their western cousins. Demonstrations have been going on since November 2024 when corruption became a key issue with the government. With the collapse of a railway station canopy in the second Serbian city of Novi Sad, weekly broadly peaceful marches have finally seen long standing President Aleksandrovich ousted at the ballot box.
[00:11:35] And on that mysterious and magnificent note, thank you for listening to this EI weekly podcast 370. Join us daily by exchangeinvest.com or if you're a new exchange you'd like built, get in touch. My name is Patrick L. Young and I wish you a great week in life and markets.
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[00:12:33] 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.
