Speaker 0 00:01 A bad body. They appear the ankle life Lambeth
Speaker 1 00:05 50 years ago this week of course at 195 hours, 18 minutes and 18 seconds. The historic Apollo 11 mission drew to a close when the astronauts made splashed on off the coast of Hawaii this week in a parish, perhaps not such an epic for the well one step for bosses, one giant step for boys kind, but nonetheless an interesting week all round. Welcome to the exchange invest weekly. My Name's Patrick Eliane,
Speaker 2 00:29 <inaudible>
Speaker 3 00:33 <inaudible>
Speaker 1 00:50 I must admit by midweek it was tough not having that live stream 50 years on to listen to the Apollo 11 missions as I was producing extended invest, but nonetheless the parish didn't disappoint for news. We had a raft of results coming out. Most of them were actually highly encouraging Nasdaq, second quarter earnings topped estimates true. They slightly missed on revenues, but overall it was a very, very encouraging set of numbers and overall, once again it actually showed the vast diversity and the move towards well non exchange core services that Nasdaq has been making over time as in many ways it becomes a very, very broadly based technology company. True enough. The day before we'd had the amusing aside of a an analyst from Citi who stepped forward and offered one of those things called a sale recommendation, hadn't even realized that they actually still existed intercontinental and to neutral Nasdaq went to sale the following day.
Speaker 1 01:40 Nasdaq produced epically good results. Once again and I suppose the recommendations, our history, one of the interesting asides that we saw in the Nasdaq business was certainly the way that their private markets have actually set a new transaction records in the first half of 2019 obviously it's a very bubbling private equity market. There's a lot of people have been looking towards IPOs and obviously a lot more people are deciding to stay private for the time being thanks to well subjects passive that we've been discussing in the newsletter for the course of the past six or seven years. However, quite interesting to see how non-stock really are making progress with their private markets initiative at a time when many other wannabe competitors have either exited the market or scaled down. Overall. If we were to look back across the business of Nasdaq per se, I suppose one area for concern would happen to be in fixed income where despite their acquisition of east speed a number of years ago, there seems to be near stagnation in that business despite the fact that, well during the course of the week we also so results from market access where they truly were powering ahead as well across the board and of course there's also that issue.
Speaker 1 02:43 Well one might argue there is some degree of potential bond cyclicality at this stage in the overall economy over in Germany, the beast is alive that Deutsche of Bursa posted a 27% rise in quarter two net profit and they confirmed their 2019 very interesting. I mean db one retains an incredible talent pool and there's a huge engine of growth potential within their business, but it seems to be difficult to know where to start to actually make that really achieve its potential. As I shared in the newsletter this week, it's a conundrum I seem to share with its CEO or perhaps he just hasn't got to run to the chronic messaging failure, which leaves db one looking a great deal less coherent than the reality of its many excellent business units. There was no ins update incidentally on FX. All negotiations. That would be FX all being bought from refinity IV, which of course well after the bell we had a little bit more news on that to come DFM started the week's results off.
Speaker 1 03:40 Actually the Dubai Financial Market, there are Q2 net profit rose 9% on improved income from investments are amongst all their things. Meanwhile BGC where perhaps one of the more disappointing partners during the course of the week, their quarter to earnings were lagging estimates. CMC markets were one of the first to see their operating income rise. The first, I mean that have been affected by of course the many swinging cuts and restrictions and leverage allowed for retail clients following investment decision last year. In many respects, perhaps the oldest part of the entire week's results were despite the fact that market access as overall numbers looked incredibly encouraging because the earnings missed expectations. We saw the share slide
Speaker 1 04:23 amongst the beasts are working this week. Certainly one of them is clearly the beast of the deal. The good folks of Goldman Sachs amongst others are out on the street trying to shop the concept of what might be done with Euroclear shareholder structure and therefore we learned from Bloomberg that CVC and and DG I see are amongst those who might be eyeing a stake. Very interesting to see the Singapore in sovereign wealth fund. Having a sniffle though. At the same time, they always seem to be mentioned in these sorts of stories as do indeed wealth CVC. Nonetheless, it would appear to me, well, I mean a decade after I pointed out the value that can be fined in Euroclear. There's going to be a lot of interest in the six point $4 billion business, whether it goes to an IPO or there's some sort of a stake sale in the meantime elsewhere, Robin Hood, those people who offer you incredibly cheap, Aka free share dealing in the United States of America or be, it's selling your order flow.
Speaker 1 05:15 They have managed to raise another $323 million out of valuation of 7.6 billion. I must admit, I'm really struggling with this one. I'm giving the concept of Robin Hood being free, but that actually involves de facto selling your treads to the rich to give to the poor. See a real cost commission. Arguably, that's not best execution. True. This is a network effect in action, which therefore must account for a great deal of the valuation. However, out of seven point $6 billion valuation, surely folks are sinking hundreds of millions of dollars to be on the tail end of what could turn out to be one of the most excitingly vast class action suits and securities of all time. At the point when the investors belatedly do the due diligence and realize that they're actually not getting, as I said before, best execution, I may be missing something, but frankly, I can think of vastly better investments to be hard at this valuation and indeed way, way below this valuation on any sense of multiple over at urinal, Stephen Buhner, whether you love him or loath him and deed intuitively, it strikes me that, uh, amongst those camps, one of them's a little bit light of balanced support.
Speaker 1 06:20 I have to admit, I'm, I'm often very impressed by the sheer candor of Stephen Buhner. I'm not sure the undertone of urine x being responsible for destroying the merge of recollects.
Speaker 1 06:36 I'm not sure that the undertone of urine x being responsible for destroying the merger of equal desperation was entirely fair or Itali opt within this interview, but fair's fair. Buenas urine ext ensured it plays a part in destroying a dog of a deal overall, an interesting profile worth reading. Meanwhile, an element of seller's regret was creeping into the media, have the banks in some ways signed their own death warrants, trumpeted one headline for example, and even actual careers over their sales of steaks in Tradeweb but the IPO interesting to see. Of course, they said the same thing about exchanges a decade or more ago, but that doesn't stop. Banks ultimately juicing their results when they're desperate by selling stakes in different platforms that they own. In fact, of course, that's the strategy which was pioneered by Reuters that kept them afloat for about 20 years.
Speaker 0 07:24 <inaudible>
Speaker 1 07:27 the story of Brexit loomed large once again during the course of this week. First of all, we were hearing all manner of dotes silver, high, much access the UK financial sector can expect to the EU after Brexit, and indeed we were seeing a series of world quite fascinatingly, obstructionist moves from the EU who are busy trying to strip all manner of perfectly reasonable jurisdictions, have some degree of equivalents. Absolutely, completely and utterly. Some. See this as being a sign of, well effectively saber rattling ahead of Brexit itself. I personally find it quite difficult to see how the European Union can survive without the spigot of funding from non EU financial centers and particularly from the city of London, which is the largest global financial center of them.
Speaker 0 08:10 Oh. However,
Speaker 1 08:12 whether or not the EU have decided to bend. It was certainly a lively week in British politics because of course we had the election as party leader of the Conservative Party in the UK of Boris Johnson that Boris Johnson has come in. He's produced a properly coherent Brexited Korean cabinet. They've all had to sign up to the idea that a new deal is potentially on the table and at the same time the remained stream media has gone into overdrive and lots of very white ball joie. People have ended up marching around London being terribly upset about the idea that this might endanger their lifestyles. That's of course entirely not in keeping with the majority of use in the country where 17.4 million votes were potentially being ignored by the previous government. Hopefully I will never have to speak about Theresa May again, let this be the last mention of her exit in disgrace from government after. Well shambolic failures over three years.
Speaker 4 09:04 <inaudible>
Speaker 1 09:07 a star was born a star shot to the stars. A star achieved well, something approaching re-entry. It didn't quite make splashed on, but the star market certainly did have a trajectory rather like well, a field missiles shot in the early days of the satellite era. On the first day of the 25 stocks trading every last one of them at least doubled in what was described as a dream start for the technology board, which seeks to somewhat replicate a form of Nasdaq like trading in China based out of Shanghai. By Day three, things were much more muted because of course, day two we had the absolutely sensational hangover where a lot of things fell back to earth quite rapidly, and of course that opened up to a lot of cynical headlines. Shanghai's Fun House Mirror Nasdaq shows what's wrong with Chinese markets. Harrumph the Wall Street Journal and just one of many different headlines.
Speaker 1 10:07 The South China morning post was perhaps sniffy first of all, China's answer to Nasdaq turns out to be a one day wonder after all, I don't think it is a one day wonder, but at the same time with the amount of hype that went into it, I think the ShanghaiTech board is going to require, well a little bit more maturity and a little bit more investor maturity before it's going to really reach its potential elsewhere in Hong Kong. Some worrying news as the possibility that the Chinese military can actually intervene in the civil unrest in Hong Kong relating to some rather abysmal pieces of governmental action in terms of an extra bit addition law, which is hugely opposed in the country. Even the Chinese born Charles Lee's chief executive, the Hong Kong stock exchange caution against military intervention during the course of the week as obviously that potentially could be our somewhat worrying factor for the Hong Kong exchange itself and the entire Hong Kong financial center.
Speaker 1 11:01 At the same time, Charles Lee was very bullish over all the Shanghai Tech Board is an asset for the Hong Kong exchange. He noted during the course of the week and then finally I wonderful piece of transparency in Hong Kong. Well it's not truffle under full I suppose if you're the justice minister, but thanks to well the very, very pedestrian business of everyday filings. It transpires that the Hong Kong justice minister, that Chung <inaudible> has been revealed as a substantial shareholder in her husband's recently listed company. I have no idea of the property of the situation. I have no idea of whether or not this is a good thing or a bad thing. I have not even attempted to read into it. What I do see is whatever the merits of this argument, one thing is clear. Our parish provides transparency and clarity where even government may feel to have considered how to present this information. When we consider life, liberty and the pursuit of happiness, dangers, our bosses are doing a good job keeping us informed of ownership and that helps society flourish on a basis of mutual trust.
Speaker 4 12:00 <inaudible>
Speaker 1 12:03 people news. Isabelle Girolami will be joining LCH to be the head of LCH limited on November, the first coming from Credit Agricole Bank where she most recently served as deputy CEO of the corporate investment banking business. She's replacing Martin plumes, who had previously announced his intention to stand down over that the Indian energy exchange. That's the IEX which is actually listed in India as opposed to the IEX, the FEMA stock exchange or flash boy Tara discussions in uh, in the United States of America. We saw the elevation of, uh, Rajiv Srivastava as CEO and also the elevation of such an Orion goal to the post of chairman. Congratulations to both stand also to Emily Westerberg, who's been, uh, named the chief counsel of the division of Trading and markets at the SEC
Speaker 4 12:52 <inaudible>
Speaker 1 12:55 in new markets this week. Lots of interesting little developments. Square book has been approved by the FCA. That's the latest adventure from a very well known figure in the London cash equity market. Richard Barkus. It paves the way and trumpets in its press releases the news that it's seeking to unbundle equity primary markets bringing innovation and competition to the IPO process. Elsewhere we saw a billionaire launched the Swiss x global hemp exchange, which is of course going to be cannabis tied cryptocurrency business. Interesting. Liquefy close to two point $6 million pre a funding Ryan. That was led by idea nomics and neo. Now the interesting thing about idea nomics are that they recently purchased a controlling stake in the failed boards, the Delaware Board of trade, which still holds an alternative trading systems license in the USA. One might be able to perceive a pattern emerging there elsewhere. Interesting to see that a Mexican cryptocurrency exchange bits, so received a DLT license from the Gibraltar Financial Services Commission.
Speaker 1 14:00 Quite fascinating of course, because as you may recall just a few weeks ago, we were talking about the kind of catch 22 regulatory format that seemed to be an introduced in Mexico, which was well causing exchanges to have some difficulty being regulated. Albeit this platform says it is actually able to operate under the Mexican fintech law, but it's clearly given itself a bit of a global hedge with the Gibraltar license. Interferon, the stock exchange will launch a prime market and meanwhile BGC partners, uh, on the day of their rather disappointing results introduced a new electronic trading platform. Fenix global options. It's an exchange listed futures and options platform in collaboration with a series of leading international liquidity providers such as Optiv or IMC and maven securities. Elsewhere we match, which seeks to cut out voice broking in a lot of swaps business has seen from HSBC, RBC, and indeed backing from JP Morgan. Very, very interesting development there. Further to the many staffs that are already amongst us over in the Mercer Stock Exchange, they're eyeing the African mainland for expansion, which could prove to be a very, very interesting and fruitful proposition.
Speaker 4 15:12 <inaudible>
Speaker 1 15:14 over in product news, the national stock exchange of India's clearing arm seems to have maintained a stunningly, if not even enhance their lead after the interoperability measures kicked in just a few weeks ago. That's of course in cash stock equities, but reportedly they're getting anything up to 95% of the market choosing NSC for cash equity clearing. Wow. In the interests of competition. Sebi seem to have created a monopoly. Interesting. Aside to that was a story in the business standard this week where brokers are exiting the cash segment in India overall because they don't believe they can manage to make any money. The numbers of actual registered brokers have dropped by a quarter of a 12 month period apparently still in India. The Hindu business line had an accident article wondering about well the possibility of commodities needing a policy push that comes 15 years after the launch of commodity derivatives trade, which was really as oppose heading towards the high watermark of the career of Kipnis Shah with the launch of MCX.
Speaker 1 16:12 So parallel to that of course was the NCD Yanks, which is still a Rhonda as well. To this day, those national nationwide exchanges seem to have done incredibly well, but there is still, according to this article, a sense of underachievement in terms of products and trading volumes. I would tend to say immediately isn't the problem. The centralization and the nationwide issue to what is an incredibly vast continent sized country over at the London metals exchange, LME are preparing a rule that will reveal huge private metal stockpiles. That ought to be an interesting move for transparency over in China. They're going to launch a star 50 index to track the new Nozstock style board after the course of the first three days. Of course, don't forget it. That would probably be the most volatile stock index on earth and give, well, actually most of the cryptocurrencies are run for their money.
Speaker 1 16:59 Even on a busy day over at the CME group, they're launching Black Sea sunflower oil. They're going to be a financially settled future and they're based upon a Platts index. Well done, bravo to in Dutton and the plants team there. Excellent work by CME in conjunction. They already recently launched what has already proven to be a very, very successful black seaweed future as well as Black Sea corn contracts on a similar basis. Meanwhile, bank in India Sebi is considering the idea of aligned commodity futures deliveries from the warehouses of sellers signs. Very exciting as long as it's policed properly. We don't end up with the same chef fiasco was the national spot exchange where there were, what I want one perverted Potemkin warehouses left right and center in the overall process. This ought to be a very, very useful out for those who are excited about volumes. The FIA, we're out to notice the fact that overall volume in futures and options is trending up by 19.7% over the first half of 2019 compared to 2018 and deed.
Speaker 1 18:02 We're about to see a new futures market, ladies and gentlemen, because the Bakun stock extension are preparing to launch futures contracts in the near future over on the listing world and the SME end of the forum competitor platform Zar racks, which is one of the minnows taking on the Johannesburg Stock Exchange, has partnered up with the equity crowd platform, crowd funding platform, upprize Africa in order to list startups on the board. Meanwhile, The Bahamas, The Bahamas International Stock Exchange Bear ISX, announced that they were very close to listing government debt and indeed they noted the fact that earlier in the week we heard that their latest broker member is none other than the Central Bank of The Bahamas, which would seem to presage the idea that debt listings of government securities must be coming very, very soon and crypto news, well, there's the possibility of a government backed cryptocurrency that of course would be great news and Manna from heaven to everybody in crypto world who wants to see the establishment taking on the possibility of some sort of a bitcoin relative being the currency of a nation.
Speaker 1 19:07 The only slight worry is it's the Palestinian Authority. They're considering taking on the cryptocurrency to replace the Israeli shekel. There is a significant body of opinion that a government deploying their own cryptocurrency will Margaret leap forward for this brave new world. My problem is I'm just unconvinced that a Palestinian endorsement is going to be the step forward. That said, the German central bank chief Amman, who's actually been named recently as possible clean line, even to go to the IMF in the near future. Yen's vitamin, he said that he's actually in favor of Facebook's Libra crypto. Why not? Let's face it. The ECB have done very well recently re-purposing a lot of old technology to actually make some quite useful payment systems for conventional banks across Europe. Therefore, he must be hoping that, well, Facebook can manage to perform the same trick with a lot of old legacy technology in the world of crypto. Meanwhile, the grownups are in the pavilion back started testing last Monday,
Speaker 4 20:04 <inaudible>
Speaker 1 20:06 in regulation. Some may think the most exciting thing to have happened in social media all week was news that Instagram are removing likes. Some see it as a way to stop young girls being influenced over this ships of their bodies. Some see it as a way to also basically take away the untrammeled power of influencers and therefore allow Instagram a better chance to have commercial advertising on their books. However, from the perspective of the parish, the most interesting news and social media this week was the fact that UK lenders may be required to keep more cash on their balance sheets to withstand social media fueled bank runs our bank. Chrons takes you back, doesn't it? There's a sort of thing that used to be, well in the case of an old fashioned ignorant analog polity. They used to get terribly upset, terribly overwrought and therefore we'd end up demanding their money bank co back causing a run on the banks and all sorts of weld genuine bankruptcy, not just for the bankers but for people who didn't get there in time.
Speaker 1 21:05 Nowadays it can all happen at five minutes thanks to Twitter. Meanwhile, Facebook are going to face $100 million fine for misleading investors, but the risks they faced from the misuse of user data. This is of course Facebook who are about to try and launch a global cryptocurrency called Libra. Would you trust your data with this social network in technology? Nasdaq had one interesting sale this week. They are going to be delivering matching engine technology to a business called the football index. It's essentially a fantasy football buy and sell your footballing stars proposition, paying dividends according to how well the said footballers perform interesting sale and also gives Nasdaq a very key additional position in the overall gaming where during and related sports trading environment based upon the bedrocks of their customer base which of course include the monster top corporation in Australia, the absolutely mammoth Hong Kong Jockey club and also ATG in Sweden.
Speaker 1 22:04 Actually come to think of it, I missed out some people. News earlier. Echo Fed CEO has been appointed the acting MD of the Ganas stock exchange. You'll recall that his predecessor Kofi Moa who's been there since I think 2003 and nine study, he was going to be standing down that was announced at the AGM and reported an extent invest 1520 which feeds me all in the middle of the people section to remind you if you find this an interesting pricey of what has gone on during the course of the we can extend. Just bear in mind the fact that there are at least another 120 stories every week being covered by the only daily parish newsletter exchange. Invest Exchange, invest.com you can sign up for more details or you can send me an email,
[email protected] I'll be happy to tell you more about the subscriber options which started from $200 per user year and you can manage to get, well almost 250 daily newsletters. Each discussing everything that's going on in the parish of exchanges and includes the unique pla insight back in Hong Kong. The Hong Kong Monetary Authority is going to promote their veteran employee, Eddie, you to head the city states de facto central bank
Speaker 4 23:12 <inaudible>
Speaker 1 23:14 so that ladies and gentlemen worlds the entire news from the Paris during the course of the week, but of course I can't possibly leave you without making one comment. Are the rift affinitive issue? Possibly the world's worst brand ever seen in the parish are related to the parish. Of course. Could well soon be bought by the biggest or one of the biggest name brands in the parish, the London stock exchange. Very exciting news. Watch this space. I will be doing updates for subscribers possibly even as early as across the weekend, but certainly come Monday in the newsletter. I will be happy to you more. Feel like you're missing out all the path as an exchange. Invest Exchange, invest.com email
[email protected] for more information on how you could become a paying subscriber and get the inside track on everything to do with the world of bosses. Thank you very much for listening. My name is Patrick L. Young and the only thing standing between me and the end of this podcast is of course, Stan Hustle guards wondrous out of copyright music. Take it away, Stan.
