Transcript
Roll up, roll up. Bids are open for Borsa Italiana! Meanwhile, Miami International Holdings have bought Minneapolis Grain Exchange and the NASDAQ new generation volatility index will trade on CME. A massive attack on the CBOEs aging monopoly ViX. My name is Patrick L. Young, welcome to the boursef business weekly digest. It's the exchange invest weekly podcast.
News flow for summer: It's been absolutely crazy! And let me just add, remember ladies and gentlemen, this podcast is a very brief reduction of the key headlines from the week in market structure, but all the analysis, all of the PLY pith too, from 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.
The European Union has been mouthing off once again; at the same time, London maintains its grip on the European Union's financial market plumbing through the central counterparty clearing house system.
That is of course, zero shock. If you were listening to, or reading , Exchange Invest... my CapX opinion piece from three years ago, “The EU’s Euro clearing plan as an act of protectionist self-harm” outlined absolutely exquisitely in detail and accurately what was going to ultimately happen. As long as the European Union is still bent - hell bent in fact - on a Pyrrhic victory, trying to destroy the London financial center at the expense of destroying its own funding. As we've seen the European Union watchdogs have flagged a harsher line on cross border fund management during Brexit. It's a depressing example of the European union's bunker mindset.
There are so many opportunities for EU 27 and yet the regulatory blob is hunkered down in pure play protectionist mode, reducing competition and de facto raising prices and removing customer choice for hard-pressed investors in EU 27. The clear subtext is one I've noted before: France, Germany, and other EU financial centers are disappointed that more business didn't just land at their feet post-Brexit because those financial centers didn't think through the dynamics. Now the European union is continuing to seek to push protectionism both in clearing houses and particularly in the realm of funds management this week and further gum up the already depressed European union economy in a way which once again, fundamentally affects the prosperity of its citizens.
It's utterly disappointing, but then again, a fundamental thrust of why so many people supported Brexit.
The European Union is embarrassing itself by being so easily typecast and it's blinkered incompetence.
On happier news, in results this week, spectacular record numbers from a series of bourses: the Warsaw Stock Exchange was one earlier in the week, but the biggest numbers of the week came from the Hong Kong Exchange. Just what an incredible tribute to Charles Li. They warned of a typhoon on Wednesday morning in Hong Kong.
...And in fact, perhaps given the fact the actual weather pattern disappeared during the course of the morning, they were really talking about the Hong Kong Exchanges results! Record profits, record revenues, and indeed vast amounts of growth in pretty much every area of the business. Particularly Charles Li's own signature through-train and the Connect program between Hong Kong and mainland China.
Equally very encouraging results from B3 in Brazil, financial growth above 30%. Even the frankly backwards Bucharest stock exchange managed to grow profits by 10% in the first half. Disappointing, but sadly, unsurprising.
And in deal news this one week, a multitude of fundings and other issues.
First of all, let's get to the biggest pricing, the Interc...
