119 Exchange Invest Weekly Podcast November 6th, 2021

Exchange Invest
Exchange Invest
119 Exchange Invest Weekly Podcast November 6th, 2021
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Transcript: 

        This week in the parish of bourses and market structure:       

        CME results continue to disappoint as HongKong Exchanges have a record nine months spell and mudstone welter of results while SETL makes their DLT tech open source. ICE on the other hand was awesome revisited.

        My name is Patrick L. Young.

        Welcome to the bourse business weekly digest.

        It’s the Exchange Invest Weekly Podcast Episode 119.

        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 week’s many events and happenings can be found in Exchange Invest’s daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.

        More details at ExchangeInvest.com.

        Temasek, that arm of the government of Singapore, their investment arm, has been seeking to dispel the notion that the Singapore Exchanges is a dull market. Tokyo Stock Exchange, things are so exciting there, they’re extending the trading day by 30 minutes.

        On the other hand, not so good at the Angola Stock Exchange, although they’re pretty happy, their daily transactions have surpassed $1.6 million per day. On the other hand, that’s the magic round number in Angolan currency of 1 billion Kwanzas. The Nairobi Stock Exchange you can now buy and sell the shares of companies listed on the Kenyan Stock Exchange on the same day. Exciting move with the invention of the Kenyan day trader there.

        And meanwhile, Nadex they have offered a quiz from which you can determine the strategy that’s going to best fit what you’d like to use. The Pan African Exchange (PANEX) they’ve raised a complaint against the Securities and Exchange Commission but that’s admittedly in deepest darkest Africa, not the USA.

        And there was a great story from the NYSE this week. What it’s like to ring the New York Stock Exchange bell, a fabulous outline of the world’s most famous financial campanology experience. It ought to be read in conjunction with another post indeed, which was from last week’s NYSE blogging by Farrell Kramer, who counts himself very lucky to be within the halls of the NYSE reporting on what happens there. That previous article Bitcoin, Jason Sudeikis, WeWork Mark Historic Week at the NYSE is another excellent example of what goes on behind the scenes at the world’s most famous stock exchange. 

        China, they published the rules for the new Beijing Stock Exchange, not slacking there. And the Saudi Exchange Tadawul, issued ESG disclosure guidelines for listed companies.

        Dubai, they’re getting very, very active indeed, with the addition of a new head of the Dubai financial marketplace, you’re seeing the plan to list 10 state-owned companies. Also, they’re launching a 2 billion dirhams market maker fund and the Emirates has also approved launching a 1 billion dirham fund to encourage tech companies to list in the stock market. 

        Elsewhere, the ‘Flash Boys’ Exchange IEX, we heard about them moving their data over recently to an interesting internet or at least distributed ledger-based protocol. IEX is now going to start charging customers for access to their data beginning from next year.

        Results – what a cornucopia of results it was during the course of the week. Oh yes, there was news from Japan Exchange, DFM, and all sorts of other places. They were all reported in Exchange Invest, the go-to source for information news about the parish of bourses. But let’s just concentrate on one set of results for this week, ladies and gentlemen. 

        The Intercontinental Exchange – they reported a fabulous third quarter set of results net revenues up 28% year on year beating the consensus by a handsome $50 billion. All the other numbers were just absolutely blistering in another quarter of excellence from the Atlanta-base exchange.

        CBOE – they managed to beat estimates from analysts but it wasn’t quite so spectacular profits up 9% as they continue to invest in the business.

        New markets this week, TP ICAP – launched the first of its kind ICAP-Speedwell Climate Index. Unfortunately, the climate for TP ICAP itself seems pretty grim as their results were frankly awful. And indeed, the shares have now reached 140 pence a new all-time low, and also the level of coincidently which they launched their rights issue a number of months back when they were seeking to buy Liquidnet.

        The Bangladesh Securities and Exchange Commission has allowed the Chittagong Stock Exchange to establish a commodity market while in Belarus, Russia conversations are going on between the Belarus Universal Commodity Exchange (BUCE) and the St. Petersburg International Mercantile Exchange (SPIMEX) about forming a unified commodity market.

        In deals this week, one key deal – albeit not actually in the parish of exchanges itself but relating around a vendor Trading Technologies will be acquired by 7RIDGE

        That’s intriguing. “CarCrash”, Carsten Kengeter, the former CEO of Deutsche Bursa, has stitched together the dean to buy Trading Technologies via his 7RIDGE organization. 

        There’s gonna be a new fund and that fund will be a closed entity and it specifically includes amongst its investors, none other than CBOE and SGX as partners. They’re gonna buy Trading Technologies, CEO Tim Geannopulos will be standing down, while the impeccably networked and indeed very close to Victor Veronica Augason, who’s one of the leading figures within 7RIDGE. The KRM founder Keith Todd is expected to become CEO of the unified group. Elsewhere KRM22 has now got a 25% shareholder in the shape of 7RIDGE. How TT works and this new incarnation will be very interesting. It was once a tech pioneer and then an aggressive patent combatant while it’s recently been working on SaaS solutions to the trading desktop.

        Elsewhere, SGX is collaborating with the Shanghai Stock Exchange subsidiary they’re going to be trying to bring securities market data to investors in mainland China.

        Interesting news in the world of crypto this week: the controversial crypto exchange BitMEX two months after paying a $100 million fine in the US for illegal trading operations. They’re trying to get themselves regulated in Switzerland.

        In product news, this week: Refinitiv launched their regulated Tokyo swap rate (for swaps refinancing Tona) to facilitate the industry transition away from Libor. 

        Elsewhere CBOE is launching nanosize tiny size S&P 500 Options to pull in retail traders

        FTSE Russell they’re considering revamping their China index after the launch of the Hong Kong Exchanges rival index in recent weeks.

        Technology this week: SIX have partnered with BMLL for best execution analysis. It is very interesting to see what’s going on there.

        Elsewhere SETL (the CSD software provider and also CBD software provider) – they’re open-sourcing their blockchain code for the settlement and of their business.

        Instinet – they’ve connected to Clearstream and LCH Equityclear for post-trade activity. And CBOE will be distributing real-time data via Amazon Web Services (AWS) with CBOE Global Cloud.

        However, the most exciting tech story of the week is undoubtedly related to the Pakistan Stock Exchange – with great fanfare last week rolled out their new trading system which was based on a Chinese system from one of their shareholders. Unfortunately, it seems to be a total disaster. The Pakistan Stock Exchange this week said it was reverting to its previous trading system as a short-term measure to provide uninterrupted service to all brokers. I believe we have a winner in the all-time catastrophe exchange tech implementation stakes.

        Elsewhere MCX – they’ve initiated an audit of payments made to the London-based firm PSEB. That’s after they paid the full amount of a PSEB contract for a trading system which was never delivered.

        Korean news this week: Yury Denisov has been re-elected Chairman of the Executive Board of Moscow Exchange through 2025 while Padraic O’Connor will be stepping down from the Euronext board after his term ends in May next year. His departure was part of a wider refresh of the supervisory board following Euronext’s next acquisition of Borsa Italiana in April. And of course, the new CEO has been confirmed. They’ve nominated Fabrizio Testa as the CEO of Borsa Italiana. He’s currently the CEO of MTS and he also becomes Head of Fixed Income Trading for the Euronext group and a member of the Managing Board of Euronext N.V

        And that leaves us ladies and gentlemen in this very rapid run-through of the exchange week with ‘big world’: China’s power crisis threatens Xi Jinping’s bid to stay in power, according to some experts. It’s an interesting analysis but then of course it has to be said coming from probably Xi Jinping’s biggest and most mortal enemies in the media. Now, rather I think the story of the week in ‘big world’ was that Reuters noted that  Emirates are stripping their first-ever A380 for furniture, memorabilia as the plane goes out of service, a commercial debacle. The Airbus A380 superjumbo jet, finally finished by the COVID downturn. Does anybody else see this as a metaphor, a vastly subsidized multinational project that just kept leaden-footed pushing for a larger, larger master plan, and has ended up proving redundant within a decade as the preference is for smaller, more nimble entities?

        And on that mysterious and magnificent note, ladies and gentlemen. My name is Patrick L. Young. Thanks for joining me for this very brief weekly podcast this week. Episode 119 of the Exchange Invest weekly podcast.

        We’ll be back for (yes, you guessed it!) Episode 120 next week, thanks for listening!

 

Links:

Temasek Unit Sees Role To Dispel Notion That SGX Is A Dull Market
The Business Times

Tokyo Stock Exchange To Extend Trading Day By 30 Minutes
Bloomberg

Angola Stock Exchange Transactions Surpass US$1.6 Million
News Ghana

You Can Now Buy And Sell NSE Shares On The Same Day
The Standard

Traders Can Determine Their Strategy With A New Quiz From Nadex
Business Wire

PANEX Raises Complaint Against SEC CEO For Alleged Insider Trading
News Diggers!

What It’s Really Like To Ring The NYSE Bell
NYSE

China Publishes Rules For New Beijing Stock Exchange
Reuters

Saudi Exchange Issues ESG Disclosure Guidelines For Listed Companies
PR Newswire

Dubai Announces New Financial Market Initiatives
Arab News

Dubai To List 10 State-Owned Companies As It Seeks To Increase Stock Market Size To Dh3tn
The National

‘Flash Boys’ Exchange IEX Will Start Charging For Its Market Data
Bloomberg

Japan Exchange Group, Inc. And Consolidated Subsidiaries Consolidated Financial Results For The Six Months Ended September 30, 2021 (Based On IFRS), Unaudited  
JPX

DFM Company Posts Net Profit Of AED 38.1 Million ($10.4m) In The First Nine Months Of 2021
DFM

Intercontinental Exchange Reports Strong Third Quarter 2021

ICE

Intercontinental Exchange Approves Fourth Quarter Dividend Of $0.33 Per Share
ICE

Exchange Operator Cboe’s 3rd-Qtr Profit Boosted By VIX Franchise
US News Money

Cboe Global (CBOE) Q3 Earnings & Revenues Top Estimates
Nasdaq

Cboe Sees “Perfect Time” To Re-Enter Digital Asset Market
Markets Media

TP ICAP Launches First Of Its Kind ICAP-Speedwell Climate Index
TP ICAP

BSEC Allows CSE To Establish First Commodity Exchange
New Age

Belarus, Russia Discuss Formation Of Single Commodity Exchange Market
Belta.by

Trading Technologies To Be Acquired By 7RIDGE
TT

SGX To Collaborate With Shanghai Stock Exchange Subsidiary To Bring Securities Market Data To Investors In Mainland China
SGX

Binance Move To Ban Singapore Users From Crypto Trading Fails To Put Off Hardcore Investors
The Straits Times

Refinitiv Launches Regulated Tokyo Swap Rate (For Swaps Referencing Tona) To Facilitate Industry Transition From LIBOR
Refinitiv

Cboe Is Launching Small-Sized S&P 500 Options To Pull In Retail Traders
Markets Insider – Business Insider

FTSE Russell Considers Revamping China Index After Launch Of Hong Kong Rival
Financial Times

Six Partners With BMLL For Best Execution Analysis
WatersTechnology

SETL Open Sources Blockchain Code
Finextra

Instinet Connects To Clearstream And LCH Equityclear For Post-Trade Activity
Clearstream

Cboe To Distribute Real-Time Data Via AWS With Cboe Global Cloud
PR Newswire

PSX Reverts To Old Trading System After Chinese Trading System Encountered Serious Technical Glitches
Malaysia Sun

MCX To Initiate Audit Of Payments Made To London-Based Firm PSEB
The Hindu Business Line

Yury Denisov Re-Elected Chairman Of The Executive Board Of Moscow Exchange Through 2025
MOEX

Padraic O’Connor To Step Down From Euronext Board After Term Ends In May
Independent.

China’s Power Crisis Threatens Xi Jinping’s Bid To Stay In Power: Expert
The Epoch Times

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