054 TRANSCRIPT
Japan exchange group joins the Nikkei 225 at the same time as Tadawul announces a new derivatives market. From throughout the world welcome to the bourse business weekly digest it's the Exchange Invest Weekly Podcast with me Patrick L Young.
A wave of relief hit the European clearing houses this week. ESMA; their third EU wide CCP stress test found the system Resilient to shocks even in the wake of the unprecedented volatility of the COVID-19 era array... and indeed well done to all the European CCPs who have received a signed vote of confidence from the EU’s regulators
Meanwhile, The EU will grant temporary market access for UK derivatives clearers. Hooray. A vote of Brexit clarity! At last, after all the time wasted the shouting and threats the tiresome innuendo. The relentless attempts to bully and a mammoth amount of bluster... We're starting to see the clarity I noted would likely emerge unless the EU truly lost its mind. Finally, those who are analyzing and not merely shrill advocates of the EU are being proven correct. Yes, I feel pleasantly vindicated. And if you've been reading since 2016, or before, you will have had an accurate picture to work with in the Exchange Investor Daily Newsletter which preceded even the 54 episodes of this podcast, as opposed unfortunately to the outside world where a multitude of inaccurate analysts and simply dismal media outlets have been perpetually telling us completely incorrect information.
Elsewhere, we had European Community guidance that European Union Consumers can hold UK bank deposit accounts after Brexit and indeed, after January 1st next year, gradually the European Union is heading towards some form of UK market access agreement and indeed potentially a free trade agreement. Progress remains painfully slow. But pan EU solidarity appears to be cracking qv Luxembourg which is looking at its own equivalency regime amongst the EU 27. Essentially, the EU Remoaner fantasies of doom have now been proven to be the Alice in Wonderland variety, while the EU and its component nations are edging towards delivering what a few years ago many but not Exchange Invest or indeed PLY’s pith would have been deemed establishment ‘six impossible things before breakfast.’
In Hong Kong this week exciting news, the brokerage, Huatai international, a Chinese mainland brokerage is bringing zero fee trading... However, they're not going to manage the same smoke and mirrors free element of order flow sale in the USA world. Of course, your order as a retail client is actually sold to somebody to execute for a handy sum of money, thus enabling the likes of Robin Hood to give you supposedly “free” execution. In Hong Kong dollars this appears to be a discount war rather with Huatai thinking they've got the biggest pockets for some “alt” form of profit from being the king of the kids and therefore holding huge portfolios. That ought to squeeze further the over brokered Hong Kong community while you are paying brokerage and the Hong Kong stamp duty transaction tax.
It'll be interesting to see where this eventuates.
One piece of news indeed from Robin Hood this week, their UK launch could be further delayed amid fallout over their recent customer suicide: that tragedy in the USA we discussed a few weeks ago.
The Pakistan stock exchange; the facilitators of the attack on the bourse itself have apparently been traced. And meanwhile the PSX will be resuming normal trading hours was the news this week.
