Nov 11, 2023 8 min read Exchange Invest Weekly Podcast

219 Exchange Invest Weekly Podcast November 11th, 2023

This week in the parish of bourses and market structure: NASDAQ Closes A $10.5 Billion Adenza Deal Alongside A Slew Of Excellent Parish Results, Amid Contrasting Tales Of Short Selling, There's #Zeroshock As SBF Is Found Guilty

Transcript:

This week in the parish of bourses and market structure:

NASDAQ Closes A $10.5 Billion Adenza Deal Alongside A Slew Of Excellent Parish Results

Amid Contrasting Tales Of Short Selling

There's #Zeroshock As SBF Is Found Guilty

Welcome to the Bourse Business Weekly Digest

It's the Exchange Invest Weekly Podcast Episode 219

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 Exchange Invest Daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.

More details at ExchangeInvest.com

In the end, the SBF testimony amounted to not a lot other than what we expected - it was anything but his fault, said the guilt-free one while we await sentencing next March.

A sting in the tail was the many mainstream media columns wondering what was SBF alone on trial or was it crypto too?

If you enjoyed this excerpt you may be interested to know that 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, then you can find Bitcarnage as a standalone on Substack.

Over in the world of legacy exchanges, the London Stock Exchange clearly on a quiet week trumpeted the fact that the London Stock Exchange CEO received the City of London Freedom.

At first glance, a lovely heartwarming story but from another perspective, a splendid example of the endemic shift and drift of LSE and the wider group away from the City of London to a sort of data-driven existential limbo distanced from markets. If I had been CEO of LSE for years and only now I received Freedom of the City, I think I would be deeply embarrassed. It demonstrates a total disregard for City tradition. A great example herein of the cluelessness of the management and the blithe incapability of the agitprop machine masquerading as an LSEG PR operation.

Compare and contrast that supposedly heartwarming story, which is rather vapid with the City AM Headline:

London Stock Exchange On Track To Lose THIRTY £100m-Plus Firms This Year

Over Deutsche Börse, they're getting the optimism pills out, Deutsche Börse business new strategy “Horizon 2026” perceives - continued double-digit revenue and profit growth.

They've also instituted a a share buyback program, the first in 6 years €300 million which will begin in Q1 2024.

In Atlanta, ICE (Intercontinental Exchange) launched a service to help identify and monitor entities and securities subject to financial and economic sanctions programs.

Meanwhile, Charles Schwab, one of the mega brokers announced layoffs and the San Francisco office closure in the latest wave of Bay Area cuts. At the same time, Schwab has said they are not planning any more layoffs.

China has vows to ‘go all out’ to highlight Hong Kong's role as a key link between the mainland and the rest of the world.

Finally, a major exchange news this week, the TMX Group launched a new Canadian trading platform Alpha-X and Alpha DRK which provides democratized speed and improved performance.

It was a frantic week for results in the parish, all the details were 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 edited highlights.

MSCI saw a net income +19.9%.

Thomson Reuters operating profit +11%.

Dubai Financial Markets (DFM) are staggering 109% profit rise for the first 9 months of 2023.

Intercontinental Exchange (ICE) had another record quarter with net revenues +11%.

Results from S&P Global, Boursa Kuwait, Bursa Malaysia, Nigerian Exchange Group, Cboe, IEX, NSE, India and Dar Es Salaam SE were amongst many other results reported this week in Exchange Invest the Daily Bulletin of the bourse business.

More details at ExchangeInvest.com.

In new markets this week, Africa's first locally developed green assets exchanges have launched.

In deals, not such a busy week but one mega piece of news.

Hearty congratulations to Adena Friedman and team on the completion of the acquisition of Adenza for $10.5 billion.

If you're trying to get your head around the current vogue for $10.5 billion deals, for instance, you probably want to read a copy of my latest book, “Victory or Death?” Blockchain, Cryptocurrency, and the FinTech World. It's published by DV Books and is distributed by Ingram worldwide.

Don't forget, while you're waiting for your copy of “Victory or Death?” to arrive, check out our LiveStream Tuesday 6pm London, 1 o'clock New York time - the IPO Video live show.

Catch the back episodes on Linkedin, Youtube, and Facebook by searching “IPO-Vid”.

The most recent show Episode #124 Lucas Schmeddes, the boss of ICE Index discussing Winter is Coming.

Our forthcoming next show, we're going to have on Tuesday, that's going to be with the man who runs ICE operations in Europe, Chris Rhodes and he's going to be coming to us from the London ICE House.

Meanwhile, our “Book of the Week” this week, is somewhat older than the average, in fact, it's the world's first financial best-selling book "Confusion of Confusions" by Josef de la Vega, is the oldest book ever written on the stock exchange business, first published in 1688 yet retains a vast quantity of times advice relevant to the investor of today with many wonderful vignettes that are remarkably akin to modern investor types.

Our “Book of the Week” is out every Saturday in our free Exchange Invest Weekend Edition. You can sign up for that for free at ExchangeInvest.com

Product news this week, EEX has launched additional maturities for natural gas derivatives trading. In fact, that reminds me of something that made my jaw drop on last week's IPO-Vid Lucas Schmeddes' noting that not only is TTF, the facility for balancing gas markets in Holland, the benchmark for European gas it also happens to be the single largest Euro denominated contract for any commodity in the world. In fact, I'd say it's the large Euro denominated contract apart from Euribor and a couple of stock indices. At the same time the shocking news is that and this is wonderful for the parish of gas TTF now has open interest stretching out 9 years.

Hoping to stretch liquidity out 9 years are Eurex relaunching its EURIBOR derivatives segment.

Interesting settlement deal this week, the Bursa Malaysia and the Dalian Commodity Exchange, they've signed a licensing agreement for pricing the settlement of soybean oil futures in China.

And then there was the case of short selling, the Philippines have debuted short selling during the past week for all parties after a 27-year wait.

At the same time we've seen South Korea reimposing their stock short-selling ban through June because they say they want to ‘level the playing field’ until June 2024.

Technology news this week, BMLL has been awarded ISO 27001 certification, which sets out the requirements for an Information Security Management System (ISMS).

The Exchange Data International and CTD Indices have partnered to provide proprietary indices.

Regulation news this week, as the headline went in Bloomberg: Wall Street Gets More Leeway To Invest Client Margin Under CFTC Plan.

In career paths, the LME has confirmed that their interim Chairman John Williamson will become the permanent chairman, effective immediately under a fixed-term contract that is new and runs until 28^th of April 2026.

Aquis meanwhile, is hiring from within to replace their retiring Chief Operating Officer Jonathan Clelland. All the very best to the retiring COO Jonathan Clelland, who has set to depart next April. Congratulations to chief revenue officer and head of Aquis Markets David Stevens, who will replace John.

Miami International Holdings has appointed Kelli Annequin as Chief Marketing Officer.

The Rockefeller Foundation has announced that Laura Cha, the chairman of Hong Kong Exchanges is joining the Rockefeller Foundation's Board of Trustees.

Meanwhile, I want to give you a little fun fact in BigWorld before we end today.

It's worth considering when you're looking for a good anecdotal way to explain why free markets matter and centrally planned Communism doesn't quite cut the economic mustard of diverse economic growth.

The total GDP of North Korea is expected to peak a little over $21 billion in 2023.

The global market for K-pop right now is somewhere between $8 billion and $9 billion alone.

In other words, K-pop amounts to more than ⅓, significantly more than 1/3 of the entire economy of the Democratic People's Republic of Korea to the north.

…And on that mysterious and magnificent note, my name is Patrick L Young, I develop marketplaces the world over and build exchanges to whatever is required in the prevailing environment. And indeed also publish Exchange Invest - the daily bulletin of the bourse business. I wish you all a great week in life and markets.

LINKS:

London Stock Exchange CEO Receives City Of London Freedom
London Post

London Stock Exchange On Track To Lose THIRTY £100m-Plus Firms This Year
City A.M.

Deutsche Börse: New Strategy “Horizon 2026” – Continued Double-Digit Revenue And Profit Growth
DB1

Deutsche Börse AG: In The Context Of The 'Horizon 2026' Strategy And Its Further Refined Capital Management The Executive Board Resolves A Share Buy-Back Program Of €300 Million Beginning In Q1/24
Bloomberg

ICE Launches Service To Help Identify And Monitor Entities And Securities Subject To Financial And Economic Sanctions Programs
ICE

Charles Schwab Announces Layoffs, SF Office Closure In Latest Wave Of Bay Area Cuts
San Francisco Chronicle

Schwab Plans No More Layoffs: WSJ
ThinkAdvisor

China Vows To ‘Go All Out’ To Highlight Hong Kong’s Role As Key Link Between Mainland And Rest Of The World
South China Morning Post

TMX Group Launches New Canadian Trading Platform - Alpha-X And Alpha DRK Provide Democratized Speed And Improved Performance
TMX

MSCI Reports Financial Results For Q3 And 9m 2023
MSCI

Thomson Reuters Reports Q3 2023 results
Thomson Reuters