161 Exchange Invest Weekly Podcast September 17th, 2022

Exchange Invest
Exchange Invest
161 Exchange Invest Weekly Podcast September 17th, 2022
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Transcript:

This week in the parish of bourses and market structure:       

ZipMex Zip-Thai’d?

HRH Queen Elizabeth II dies and the parish mourns along with the world

European Union cutting energy margins 

PCAOB is due in Hong Kong soon 

 

My name is Patrick L. Young.

Welcome to the bourse business weekly digest.

It’s the Exchange Invest Weekly Podcast Episode 161.

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 of the past seven days 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.

 

We begin this week by paying homage after more than 70 years on the throne, Her Majesty Queen Elizabeth II died last week, leaving a genuine void across the Commonwealth where she had been a devoted Monarch. 

The Queen was active in the parish of exchanges during her reign: I can clearly recall Her Majesty visiting the LIFFE floor on the 11th of February 1992. The atmosphere in the pits was febrile throughout the day, and the traders were delighted to chair Her Majesty and the Duke of Edinburgh as they toured the Cannonbridge pits.

Meanwhile, over in the USA plaudits to NASDAQ and NYCE, who both delivered Pitch perfect tributes. The New York Stock Exchange floor captured the moment in an elegant video of silence across the floor itself led by the president of the New York Stock Exchange Lynn Martin, while the Times Square NASDAQ MarketSite gave the lasting image of the Queen projected across Manhattan. God save the king! 

All markets in the UK are closed after the King’s proclamation of a special Bank Holiday marking the funeral of Her Majesty on Monday, September 19th. 

Albeit one exchange stands out with the LME, worried after the Nickel nightmare about their ‘cash’ settlement risk on the T+2 third Wednesday of September being an issue thus they have apologised but opted to stay open.

Similarly, Canada’s Federal holiday will be marked with most markets closed but the TSX will be open on Monday the 19th. 

Very interesting scoop this week and exclusive by Huw Jones of Reuters: The European Union Financial Watchdogs Considering Collateral Changes To Ease The Energy Crunch

If you just woken up after say 15 years doing the Rip Van Winkle sleep cycle, you wouldn’t notice much difference. If like the rest of us, you have well, lived regulatory experience, then the news is a tad more seismic: all that margin being essential for markets to operate coherently? Well, it doesn’t apply to energy, it’s just a banking thing according to the European Union.

That led us in Exchange Invest to ponder what is the Latin for “In desperation, Nonsense?”

Google translate reckons it’s “In desperatione, Ineptias” which has a certain ring to it. Anyway, I think it’s a perfect motto for the European Union’s regulation. 

At the same time, we had Lord Spencer last week (who was formerly Michael Spencer, the man who created ICAP): “FT Is Not A Pro-Business Paper,” he said in an interview. 

In fact, I’ll give you the whole thing:

“That’s typical FT, I’ll be honest with you, the FT is not a pro-business paper., it’s not a pro-Tory paper – no reason it should be a pro-Tory paper – but you might think it might be a pro-business paper. It is not. In fact, it has always been highly sceptical of the business community. I’m astonished it’s still called the Financial Times!” 

Thus, Michael Spencer eloquently knocked it out of the park – the Brussels Bugle has consistently reduced coverage of financial markets, while disdaining its original core readership, and is now alas, a washed up pastiche of a newspaper, glorifying wild wealth while chasing trendy causes as espoused by its core subscriber base in Brussels. 

And indeed, it wasn’t long until the FT managed to show its sheer incompetence. There was an article this week by Patrick Jenkins, who is their Deputy Editor and thus a man who frankly ought to know a great deal better. 

Energy Crisis Should Spur Regulatory Overhaul went that headline. 

We described it in Exchange Invest as a column of genteel muckraking. Ultimately, actually, The Woes of the Brussels Bugle were writ large very rapidly thereafter, because “in Ed we trust”. 

Ed was a man who provided some wonderful comments to note that the market is not dysfunctional, and indeed, there was a supply-demand imbalance. He noted how the financial crisis had been caused, and therefore the issues that were arising that were and were not related to the current issue of the TTF and European energy markets. Thus, ultimately, as he said, in a very, very pithy remark, effectively, the Financial Times was objectively wrong. 

Unfortunately, our anonymous hero then was subjected to an attack from Mr. Jenkins himself. However, as I said earlier “In Ed we trust”. The parish has a new anonymous hero. We don’t even know if he’s an Edward, and Edmund or something more exotic still, perhaps he’s a female under a pen name. Anyway… 

Having written perhaps the worst Financial Times article ever (I know tragically nowadays a more competitive endeavour than, say, cutting edge financial news in the FT) Mr. Patrick Jenkins doubled down in a spirit of career harakiri, which was almost refreshing in its brazen blend of arrogance cum ignorance. 

Ultimately, the comments, well, I’ll leave you to go and find them yourselves within the pages of the Financial Times. But I’ll note those one six-word mot juste  intervention endorsing the anonymous Ed’s remarks: “Ed is absolutely right on all points”. Who said that? None other than David Peniket, the former ICE Europe boss whose background was of course at the International Petroleum Exchange itself. 

Meanwhile, of course, in the midst of this energy crisis, we had sound folks like Peter Reitz, having to show simple demand/supply curves to try to explain why markets are just fine, it’s just such a pity that the European Union seems to fundamentally misunderstand, as do, it has to be said most every government today the whole basis of markets, and now they’re working to reduce/remove margins for energy trading in a desperate Hail Mary pass being executed under the sort of pressure normally only find within a reticent behemoth of rock mid-frack cycle.

Elsewhere this week, the European Energy Exchange (EEX) opened a new trade registration platform for OTC deals touchpoint. Mexican finance leaders are planning stock exchange reforms to staunch the exodus of listings from the BMV market, and indeed, BMV (Bolsa Mexicana De Valores) have signed a collaboration agreement about financial education with their Spanish co-freres, the BME.

A useful statistic to bear in mind is that just two cities contribute 80% of the market turnover of the National Stock Exchange of India, and the Sri Lankan stock market has extended its trading market hours by 30 minutes. Thus, from September 15th, the Colombo Stock Exchange is now trading a slightly longer day.

Deals news this week, not such a busy week for deals in the parish but all the deal information was as usual in Exchange Invest daily, the newsletter no person can afford to be without in capital markets and market structure. 

One key issue, the LSEG’s takeover of Quantile having been referred the CMA (Monopolies and Mergers Commission as now branded) has received provisional approval to take over Quantile. 

Elsewhere Urbana Corporation is doing a little bit of a buyback. They’re looking to buy back 3.14 million shares representing fairly considerable actually 9.90% of its share capital. 

If you’re looking for some reading at this point in time ladies and gentlemen, if you are thinking about your Christmas presents for the festive season ahead then why not look towards buying a copy of “Victory or Death?” – Blockchain, Cryptocurrency, and the FinTech World, an easy read by myself Patrick L. Young. It’s published by DV Books and is distributed by Ingram worldwide. 

While you’re waiting for your copy of “Victory or Death?” to arrive, check out our Livestream, Tuesdays at 6 pm London, and 1 pm New York time. It’s back after its summer break on what a cracking return we had. Episode #76 was all about Exberry: Building Cloud Based Exchanges. I have to say it was a thrilling show with Guy Melamed, the CEO of Exberry, and Magnus Almqvist, their Head of Sales, discussing how, it’s not just about moving to the cloud, it’s the whole new way you do a software that has been designed to be accessed, operated and run without fear or favour remotely in an agile environment. 

Next week, we’re going to be talking to Caterina Caramaschi, she’s going to be our guest for Episode #77: “Caterina Caramaschi: Coming of Age With ICE”. You can catch all of our back issues by searching IPO-Vid, whether you’re on Facebook, LinkedIn, or YouTube

Product news this week, water is now being seen as a precious, vital and scarce resource in the global energy sector. 

Yip, yip, and thrice yip, I said in Exchange Invest this week. Having been banging my drum in the past (indeed, arguing for water markets being a big thing by 2020 in the January 2000 edition of the Futures Industry Association’s FIA Mag) I suppose you’ve probably heard that before. If you listen to all of this podcast cadra.

 The CME Group have announced the launch of Ether options, that came to prominence just before the merge itself took place. Meanwhile in India, traders and various interested parties have locked horns over turmeric futures contracts. 

Technology news this week, the Beeks Group are going to be providing on demand cloud compute solutions for ICE global networks. A very interesting moment in the development of Beeks financial-oriented cloud and the New York Stock Exchange has added pay equity opportunity tracking tools in an ESG push in association with Syndio partners. 

Regulation news this week, the Thai SEC have filed a police complaint against crypto exchange Zipmex. Zipmex didn’t meet a deadline for delivering information, prompting the SEC’s action.

 Zipmex as you recall filed bankruptcy protection on July 22nd and the exchange protection from creditors via Singapore’s High Court until December the 2nd…but that won’t save it from the wrath of the Thai regulators. Another problem in the Zipmex quest for resurrection. 

Career path this week, the Delhi court sent the Ex-NSE Managing Director and Chief Executive Officer Ravi Narain to two-day ED custody this week. There was a headline in the Business Standard saying: Has Ravi Narain Joined The List Of Fallen Market Heroes? 

Given considerable chunks of Ravi’s pension have been paid to the state as a result of previous financial misdemeanours, and he’s now been arrested and jailed. I think the answer to that one must be ‘yes’. 

In happier news this week, careers on the up Blockchain Australia the Industry Association for the distributed ledger within Terra Australis, they’ve announced a new CEO. Their board is proud to announce the appointment of Laura Mercurio as CEO effective from Monday the 12th of September. 

I’m delighted to see my friend and fellow World Trader Laura Mercurio, taking the reigns of Blockchain Australia. A perfect position for her and the great move by the Australian Blockchain lobby. Laura was a fabulous guest, incidentally on my wife’s Livestream, you can catch it by searching for PHD #006, the topic was Womenomics, the Future of Female Economy on May 1, 2022. 

Speaking of womenomics, well, good grief, what a macro task ladies and gentlemen, organising the funeral of a 70-year-long monarch who lived to the ripe old age of 96, who was by pretty much every metric, the most recognised woman on earth for several generations is quite a challenge. 

A lot of plans have been put into action although I must say, I’m saddened that the ‘efl’n’safety’ gremlins apparently put paid to use of the Royal Train for even part of the trip.

However, the challenge (as I record this podcast) is neither the invitations and the organisation of the funeral itself Monday 19th of September, now a one-off Bank Holiday in the UK (thanks to the remit of King Charles III) Westminster Abbey seats 2,000 people, although for the Queen’s coronation in 1953 a lot of deft gallery additions enabled 8,200 people into the cathedral itself. The latter number, of course, would cause the aforementioned ‘efl’n’safety’ gremlins to have a hissy fit so it remains to be seen if any extra capacity is possible for the Queen’s funeral in 2022. 

Filling those seats will not be remotely difficult….rather, the huge problem lies in who to invite. Given the Royal family, the House of Lords, the House of Commons, and the Privy Council could alone fill the capacity before we start considering the Heads of the Commonwealth nations, world leaders of 193 UN states plus other states, representatives of Scotland, Wales, Northern Ireland, and the British regions, as well as the British Overseas Territories…let’s of course not forget world church leaders, the panjandrums of international entities such as the EU’crats, the UN’crats, and we haven’t even considered homegrown British bureaucrats. As Commander in chief and whose name a British soldiers fought (e.g in Iraq, and the Falkland etc.) there must be a selection of leading armed forces figures too. 

So even with that brief list, trying to select the 2000 people who can mourn the Queen in person at her funeral service is going to be, well, a very, very hyper example of #It’scomplicated. 

Westminster Abbey 19th of September will clearly be the ultimate invitation of 2022. 

Meanwhile, the forthcoming Coronation will, I’m sure be a much sought after event in 2023. 

God save the King!

And on that mysterious and magnificent note ladies and gentlemen from a position of mourning, I wish you a great week in blockchain, life, and markets. My name is Patrick L Young.

 

LINKS:

HRH Queen Elizabeth II Visit To LIFFE 11/02/92
Youtube

Stock Exchanges, Industry Pay Tribute To Queen Elizabeth II
Financial Standard

In Memoriam: HM The Queen And The Square Mile
City A.M.

NYSE Honors Queen Elizabeth II With A Moment Of Silence
NYSE Youtube

Nasdaq  Honors The Life And Legacy Of Queen Elizabeth II
Nasdaq twitter

LME Passing Of Her Majesty Queen Elizabeth II – Bank Holiday Arrangements
LME

LME Says Market To Remain Open On Sept. 19 Despite Queen’s Funeral
Reuters

Canada Declares Holiday To Honor Queen But TSX Stays Open
Bloomberg Tax

Exclusive: EU Watchdog Considers Collateral Changes To Ease Energy Crunch
Reuters

Lord Spencer: “FT Is Not A Pro-Business Paper”
Guido Fawkes

Energy Crisis Should Spur Regulatory Overhaul
FT

Q&A: Supply, Not Power Market, Is The Problem, EEX Says
Argus Media

EEX Group Unveils New Trade Registration Platform – Touchpoint
EEX

EEX Opens New Trade Registration Platform For OTC Deals
Yahoo Finance

Mexican Finance Leaders Plan Stock Exchange Reform To Stanch Exodus
Nasdaq

BME And Bolsa Mexicana De Valores Sign A Collaboration Agreement On Financial Education
BME

Just Two Cities Contribute 80% Of NSE’s Market Turnover
Business Today

Sri Lanka Stock Market Extends Trading Hours By 30 Mins

EconomyNext

LSEG Takeover Of Quantile Gets Provisional Approval From UK Watchdog
Reuters

LSE’s £274M Fintech Buyout Provisionally Cleared By CMA
Law360

Urbana Corporation Announces An Equity Buyback For 3,139,548 Shares, Representing 9.90% Of Its Shared Capital.
MarketScreener

Water Is Now Seen As A Precious, Vital And Scarce Resource In The Global Energy Sector
CNBC

CME Group Announces Launch Of Ether Options
PR Newswire

FPOs, Traders Lock Horn Over Turmeric Futures Contract
The Hindu Business Line

Beeks Group To Provide On-Demand Cloud Compute Solution For ICE Global Network
Beeks

NYSE Adds Pay Equity, Opportunity Tracking Tools In ESG Push
Bloomberg

Thai SEC Files Police Complaint Against Crypto Exchange Zipmex
CoinDesk

Delhi Court Sends Ex-NSE MD Ravi Narain To Two-Day ED Custody
The Financial Express

Has Ravi Narain Joined The List Of Fallen Market Heroes?
Business Standard

Blockchain Australia Announces New CEO
Blockchain Australia







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