Saluting Another Real Time Real World Market Achievement

by Patrick L Young (“PLY”)


Exchange Invest

God’s work is a much overused phrase in the marketplace and one somewhat discredited by Goldman Sachs’ dubious deployment of the phrase. However, in our parish there are many who deliver great services which directly link the financial world with main street. Note I have no issue with either – even the most arcane risk transfer is still a vital social service. However, where there is a very clear link to the economy it is even better for the parish proving its worth to society. In the latter, I would readily attribute the “God’s work” epithet as highly appropriate where it helps deliver funding and thus jobs in our economy.

On day when there are no major headlines in Public markets, I will break a cardinal rule – EI generally does not cover volume gains per se. That is harsh given how for example CME sits on the cusp of a staggering 20 million contracts per month. However, if I highlight every last volume figure then the Bavarian Goatherders Boerse will always, well, bleat when their forward Dirndl wool futures are not noted for reaching a new pre-Octoberfest high of 6 wool-steins.

That said, breaking an EI rule is only fair for somebody whose career has been a masterclass in elegant mould breaking. Step forward Professor Doctor Richard Sandor, Chevalier de la Légion d’Honneur. His new metier isn’t as glamorous as being the creator of environmental markets, nor as radical as being the lightning rod at the epicentre of creating financial futures. However, as a longstanding visionary (remember his was the first electronic exchange plan – see also “Electronic Trading And Blockchain: Yesterday, Today And Tomorrow” a most fascinating tome published last year), the “Doc” has simply no equal….

…which brings me neatly to today. A virtual pile sits upon my desktop trumpeting a series of volume records from one market alone. Yesterday the dam breached when I noticed another trifecta of day, week and month volumes highs plus more members and much else besides. This matters because the American Financial Exchange connects a vital area of banking – the less than mega mega silos – with a more coherent scalable funding market. It proves the breed (exchanges are at the epicentre of digital commerce, in more ways than one). Thirdly and arguably most vitally of all: AFX delivers a massive fillip to the businesses which are the backbone of Main street America (and across the world tragically forgotten by the big government apparatchiks running riot in too much of the world).

At a time when interest rate reform arguably does not receive sufficient consideration – it is clear the answer to a world after LIBOR is probably some major indices…but probably not a singular answer as we need in the next era to deliver a means for all – within and even somewhat outside – investment grade, to be able to borrow and lend easily with a suitable loan rate.

I am sorry Exchange Invest cannot highlight every new volume record given current resources but rest assured every such little snippet of good news adds a spring to my step. At the same time, breaking the rules is only fair for such a perennial mould breaker and I salute Richard Sandor and his AFX team on delivering a magnificent testimony to how our parish is improving the economy for every one of our citizens and stakeholders.


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