Transcript
ICE makes their biggest acquisition to date: $11 billion on the mortgage electronification play. Strong results from the New Zealand exchange. Meanwhile, the DAX's rules are changed to avoid a future Wirecard style embarrassment, Borsa Italiana speculation, running rampant, and much more. My name is Patrick L Young.
Welcome to the bourse business weekly digest. It's the Exchange Invest Weekly Podcast.
We begin this week with worrying news from the US treasury, the treasury secretary Mnuchin is threatening a stock market ban for Chinese companies. That threat to delist Chinese firms may of course give a competitive boost to non U S exchanges.
Some have even seen it as being a godsend for the Hong Kong Exchanges Group, already seeing an uptick in IPO business. Thanks to recent sword rattling between the two countries. Certainly Stephen Manoukian. He said that Chinese firms must comply with U S audit requirements or face delisting from US stock exchanges at the end of 2021.
Meanwhile as the U S government was saber rattling over the Chinese audit issues on more matters of Sino US trade friction, NASDAQ boss Adena Friedman was noting how in COVID terms, economically “capital is part of the cure” in one excellent podcast with CSIS while also discussing “how to solve capitalism, public market access, education on the economy with Kinsey Grant at BusinessCasual. As Adena Friedman noted.
“Our fundamental mission in markets is to maximize access and minimize friction.”
During an excellent base of podcasts, which were insight rich throughout, there was much mention of the symbiotic relationship as a sound basis going forward for government and corporates to work together, which also extends to fair treatment of, and by supplier companies from big corporates to help the entrepreneurial economy grow opportunities.
For those companies and the individuals involved the positivity of Adena Friedman's cooperative capitalism thesis is very signed and sensible. Moreover, I have to admit every time I hear it, or even repeat it myself, that wondrous factoid the 62 billion message peak on February 28th across NASDAQ's U S equity and options platforms discussed again by Adena Friedman on the CSIS podcast.
That snippet gives me a very warm, fuzzy feeling of how the vast, vast majority of bourse technology worked so well during the first COVID crisis in the first half of this year.
Still looking at Nozstock NASDAQ's private markets reported a giddy $1.7 billion in transaction value during the first half of 2020. 29 private company sponsored transactions were completed amid the pandemic related market slowdown. Well done NASDAQ private markets, an excellent work from home initiative at the same time, the flexibility of public equity and bond markets shown through in the pandemics first shock, which underlines that while private markets are highly useful on the NASDAQ private market, highly efficient public markets are essential and we need regulatory edict, particularly from the SECc to reflect that in their policy and application to encourage public listing.
That isn't to denigrate this NASDAQ private market achievement in any way. It's just a bald statement. Private markets have their limits, even when executed elegantly by the NASDAQ team.
Over in India, the National Stock Exchange has set aside the rather swingeing amount, 4,000 crore of revenue from their co-location operation. That's in Indian rupees, which amounts to gosh, something like half a billion dollars, really from the co-location operations, following directions from Sebi over the co-location affair, for which they're clearly going to be rapped over the knuckles with a swinging fine in the near future.
Still in India. GreenCo, Lord Dholaki...
