Transcript
And in the business of bourses this week, direct public offerings can raise cash at the New York stock exchange while RobinHood is facing the litigators. My name is Patrick L. Young. Welcome to the Bourse business weekly digest. It's the Exchange Invest Weekly Podcast.
For those of you who only interact with this podcast, you may not be aware of Exchange Invest. That's the daily newsletter of the Bourse business. The Exchange Invest advantage for subscribers - who are paying from as little as 250 U S dollars per user per year - is the innate ability to get ahead of the curve.
Years ago, I noted RobinHood were going to eventually meet a lawsuit due to their dubious free brokerage claims, which involved selling the order flow and then saying, “look, our services are free.” It was as clear as day while others failed to notice, or explained this in public, though the Exchange Investor Newsletter frequently did.
I even had a reminder as recently as Wednesday of this week ahead of news of the litigation creeping out that evening. Of course, I feel pleasantly vindicated, but importantly, are you on the inside track in the world of extensions? If not, you need to be a subscriber to Exchange Invest by all means.
Please help us to do an even better job. Pay your subscriptions promptly and encourage a few colleagues to avail of a free trial. Exchange Invest can keep you ahead of the curve in the world of market structure.
Moving on from RobinHood, the other big news of the week, the SEC, in the USA approved the New York Stock Exchange proposal to let companies raise cash through direct listings.
While dangerously close to appearing like the poodles of the sell side, when it comes to market data, the SEC have taken an enlightened step towards a better market with more content in US equities, enabling more DPOs shorn of the ludicrous outmoded processes and costs of the intermediary rich - in every possible sense - IPO process. Capital raising by DPO has been an obvious avenue for 20 plus years.
...Yes. Yes. Somebody might have written a book about that Capital Market Revolution! #Whatevs?
No.
At last DPO is a serious reality for raising money. Here's hoping the rest of the world follows suit ASAP. This reform is desperately needed. Meanwhile, the must read article of the week came out in Fortune. ‘Never waste a crisis, the Sprecher master plan to make mortgages efficient:’ Essential reading to understand better the Intercontinental Exchange machine and its inherent efficiency.
Talking of inherent efficiency, Moody's have completed their periodic review of the ratings of Intercontinental Exchange… And unlike some others who were spooked out by the Ellie Mae purchase a couple of weeks ago: They've announced no change.
Meanwhile at the European parliament this week, the new chairman of an advisory committee to the Commission on the parliament itself. Klaus Luber an ECB career banker was giving testimony: UKs Euro clearing access to EU requires careful analysis, post Brexit. It's a beautifully calibrated statement, actually. In one way, it appeals to the minds of the world's most expensive kindergarten: The European parliament. It gives them everything they want to think about in terms of total protectionism and trying to, well, effectively render the Euro a non-tran...
