Jul 4, 2024 9 min read Exchange Invest Weekly Podcast

252 Exchange Invest Weekly Podcast July 6th, 2024

This week in the parish of bourses and market structure: NASDAQ - EEX Out, LME Plans Hong Kong Warehouse, The SEC Courts Have Been Curtailed, And 7 Out Of The Top 10 IPOs Choose NYSE In First Half 2024 With A Fabulous $12 Billion Raised Across All Listings.

Transcript:

This week in the parish of bourses and market structure:

NASDAQ - EEX Out,

LME Plans Hong Kong Warehouse,

The SEC Courts Have Been Curtailed,

And 7 Out Of The Top 10 IPOs Choose NYSE In First Half 2024 With A Fabulous $12 Billion Raised Across All Listings.

My name is Patrick L Young

Welcome to the Bourse Business Weekly Digest

It's The Exchange Invest Weekly Podcast Episode 252

Good day, 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 7 days can be found in the Exchange Invest daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.

More details at ExchangeInvest.com

Over in parish notes, well what a great week this is ladies and gentlemen, Capital Market Revolution! Celebrates 25 years.

What a week, we celebrated the 25th anniversary of the book in great style. July 1st was the precise date but we allowed a T+4 settlement window because we got an incredible offer. Then NYSE President Lynn Martin invited us to celebrate the milestone anniversary by ringing the closing bell of the New York Stock Exchange on Friday, July 5th.

It's fun to look back and consider the future of finance but with a lens back to the book that said mo re than most about what finance would become back when the linear folks and consultants were all convinced everyone needed to worry about Y2k.

(And if you don't know what Y2k was, well, that kind of answers its own question)

To celebrate the 25th anniversary staff at EI Mission Control, are, as I record this, putting the finishing touches to a sympathetic update to the book which is going to be published as an e-book imminently. The quarter century old core has been frozen and aspect of the revolution continues with "Capital Market Revolution: 25th Anniversary Edition"

It's “The future of finance, reimagined!”

First published in 1999, “Capital Market Revolution!” offered a clear, concise roadmap for navigating the financial revolution fueled by technology. And 25 years later, as the world of FinTech continues to evolve, the core principles laid out in the book remain surprisingly sharp.

Over in Bitcarnage, fearless words: Binance.US ‘Prepared’ For SEC Legal Showdown (Cointelegraph) headline. After the previous day's news, a judge had given the green light to almost every SEC claim in their case against Binance.

Binance may be enthused, however, by a 2nd July judgment in their favor, where the SEC versus B inance court ruled BNB sales, cryptocurrencies, not securities laws for the Howey Test there .

If you enjoy reading this excerpt you may be interested to know you can read Bitcarnage every day in Exchange Invest. Alternatively, if you want to follow Bitcarnage, the daily update and happenings in the world of crypto and digital assets you can find Bitcarnage as a standalone on Substack.

In the world, the vast world of the parish of exchanges this week, London Metals Exchange are looking to set up a warehouse in Hong Kong. Exciting news! At the same time as the LME has returned to court to battle it out with Elliott Management as they're appealing the Nickel nightmare ruling where Elliot lost the entire case earlier in the year.

Meanwhile, big news from New York, fabulous first 6 months for IPOs once again, particularly in the USA, which continues to lead the world almost without any opposition whatsoever. The New York Stock Exchange led the industry and global IPO proceeds for the first half of 2024. NYSE welcoming 7 out of 10 of the top largest transactions. That's a terrific filip, while global IPO proceeds overall of $12 billion is a stunning number by any standards - great work by Lynn Martin and her fabulous team.

Also plaudits to SIX incidentally who along with their Spanish BME subsidiary offered a sound European (but not exclusively EU) bounce of IPOs, including the largest IPO in the world in H1, Puig on BME. Plaudits to Bjørn Sibbern and the SIX Group team.

Over at NASDAQ well, they were second to NYSE, but vastly ahead of the rest of the field, 66 IPOs (53 operating companies, 13 SPACs), raising a total of $8.7 billion, which is in its own right, a stunning number. Once again, we can compare NYSE versus NASDAQ but the reality is we're watching world class all-star performances every quarter as 2 exchanges dominate the world's markets - what a brilliant message as of course this week we were also celebrating the anniversary of the canniest Independence Move in world history.

There's also a discussion it was about concentration of volume in the closing auction prompted by XYT data published by the FT - we added our unique tilt to the concept in Exchange Invest during the course of the week. That's our subscriber advantage. Sign up now to access this article and more via ExchangeInvest.com.

In new markets this week, very exciting, Abbaxx - welcome to the parishes as an operating market. Abaxx Commodity Futures Exchange and Clearinghouse had its first trades in liquefied natural gas and carbon credit futures on Friday June 28th, 2024 from their base in Singapore.

Over in deals, it was a busy week for deals in the parish. All those deals were of course in Exchange Invest daily, the newsletter no person can afford to be without in capital markets and market structure. For the sake of this podcast let's look at some added highlights.

First of all, the deal was not happening, NASDAQ announced the termination of their previously announced agreement with EEX. So the curve went from Exchange Invest 2689 on June 20th last year with the announcement that NASDAQ would sell its Scandi power biz to EEX and it ended this week at EI 2996 with the deal facing a probe, soon after the deal was called off.

First up that leaves NASDAQ with an asset it can either keep and might well do so in the long-term, too. In terms of bidders, the list strikes me as so much short and that's tricky. Step forward Stephan Boujnah if anybody is going to be in a position to buy now as his Powernext can probably just escape monopoly probe? I doubt any of the smaller EU power players have sufficient cash / leverage to buy the asset.

At the same time this, on a broader basis, raise key questions as I have noted about the EU silly ‘wishcast’ for top down Soviet of central markets, clearly pushed by DB1 to become emperor of Euro-bourses. It's an amazing Hapsburgian theme but not one which really works once it meets the cold reality of money and markets, as I have noted previously, the fact that the EU’s antitrust folks won't allow a bigger EEX - after all itself a DB1 subsidiary via EUREX - raises huge issues as to how the silly Capital Markets Anschluss plan of the European Commission could possibly work out.

Other deals Kazakhstan Stock Exchange, they're set to buy back their stake that's held by Moscow Exchanges after mad Vlad self inflicted iron curtain of sanctions has befallen him. Alina Aldambergen and the KASE team are making the sensible move to buy back 13.1% stake in KASE owned by MOEX, which has a book value of $25.9 million.

Then we came to a killer deal in the data world, it escalated fast in fact, just a few weeks ago, we had talk of a 1 billion pound takeover of PreQin. It actually turned into a 2.5 billion pound (that's roughly $3.16 billion) takeover of the platform BlackRock are going to slot into their Aladdin product. The fun fact here is that the British founding couple of PreQin, Mark and Lindy O’Hareon own 80% of the business, which means when the deal completes their $2.5 billion fortune will be larger than Larry Fink’s, the man behind the growth of BlackRock of course at circa $1.3 billion.

Meanwhile, on our livestream, we had a terrific livestream this week with Danny Corrigan. I recommend you go and look at the Repo & The London Reporting House IPO-VID #148. You can find that online at Youtube as well as Linkedin by looking for “IPO-VID”.

In “Finance Book of the Week” this week, we're looking over to Chicago at “Good Derivatives: A Story of Financial and Environmental Innovation”. It's the story of the creation of the Chicago Climate Exchange and its affiliated bourses Richard Sandor elegantly demonstrates that market best trading systems are a far more effective means of reducing pollutants than “command-and-control” economics.

Richard Sandor was our guest on IPO-VID #123, where we talked to The Father of Financial Futures.

Product news this week, it's “Bye-bor to Libor.”Murdered by a blob of idiots whose fresh technocratic solution was at best nothing like a step forwards. Delivered this was by ICE’s announcement alongside the UK regulator confirming the LIBOR death sentence cannot be commuted.

The same time EEX and ECC, all of a sudden they've decided to waive transaction and clearing fees for Nordic power markets for 6 months. That couldn't of course have anything to do with their inability to be able to buy the Scandinavian power markets during the course of the past week. Could it ladies and gentlemen?

In technology news, the ASX confirmed their plans for staged implementation of CHESS replacement project confirming it is progressing with the delivery of the first phase in 2026.

Given “ASX confirms” as a statement, holds about as much credible weight as say “President Biden tdebates” we’ll keep the idea ASX can rule out any product anywhere anytime (before we even consider that the vendor is the frequently delayed TCS) in the cabinet - as in cabinet bid / cabinet offered does it really matter? Can anybody believe ASX anymore, particularly when it comes to technology implementation?

Bit of all oops nasty also for Interactive Brokers, they lost $48 million from a technological issue at the New York Stock Exchange when the company promptly had to file a clearly erroneous execution petition with NYSE and uncertain other US exchanges seeking to bust a series of trades gone wrong.

In career paths this week, great excitement surrounds the new GPW (Warsaw Stock Exchange) supervisory board. The reason is there's a new slate of directors in town and the great news is the man responsible for refounding the Warsaw Stock Exchange, Wiesław Rozłucki is returning to the bourse. Fabulous news all round and good too to see the GPW and former KDPW staffer in fact she was the KDPW CSD CEO Iwona Sroka added to the supervisory board too.

Finally in career paths this week, S&P Global have announced their leadership succession. Martina L. Cheung, the current S&P Global President of S&P Global Ratings is gonna succeed Douglas L. Peterson as the Company's President & CEO effective November 1st, 2024 She's already joined the board as well from July 3rd of this year.

Meanwhile, over in Bigworld, we have to say a great word of thanks to the magnificent folks at PopB***h and we're not really sure we can say that next word but it begins with B**H and has 3 letters in between. Anyway, the folks have PopB***h have reported a fascinating data record as part of the incredible Taylor Swift eras tour. On Saturday, June 22nd, Taytay fans at Wembley Arena, in London, broke the record for most mobile data use at a concert streaming no less than 5.57 terabytes during the course of Taylor Swift's eras tour performance.

…And on that mysterious and magnificent note, thank you for listening to this EI Weekly Podcast #252. Join us daily via ExchangeInvest.com or if you have an 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.

LINKS:

Binance.US ‘Prepared’ For SEC Legal Showdown
Cointelegraph

Binance.US Says it Looks Forward To Its Ongoing Fight With The SEC
Decrypt

London Metal Exchange Looks To Set Up Warehouse In Hong Kong
Bloomberg

London Metal Exchange And Elliott Management Head Back To Court For Nickel Ruling Appeal it announced plans for a warehouse in Hong Kong.
Financial News London

The New York Stock Exchange Leads Industry In Global IPO Proceeds For The First Half Of 2024
NYSE

Nasdaq Welcomes 66 IPOs In The First Half Of 2024
Nasdaq

Dash For Last Orders On Stock Markets Stirs Concentration Fears
FT

Trading Commences In Physically-Settled LNG And Carbon Futures On Abaxx Commodity Futures Exchange And Clearinghouse
Yahoo Finance

Nasdaq Announces Termination Of Previously Announced Agreement With EEX
Nasdaq

Kazakhstan Stock Exchange Set To Recoup Shares From Moscow Exchange
The Times Of Central Asia