TRANSCRIPT
This week in the parish of bourses and market structure.
Welcome to European free markets where the underbidder gets first ‘dibs’ at exclusive negotiation as MEMX launches and the EU suggests ‘the customer is always wrong’ when it comes to CCP usage, while, grudgingly, granting an 18 month Stay of Eurozone Armageddon..oOr as some others refer to it, Eurozone clearing access in London.
My name is Patrick L. Young. Welcome to the bourse business weekly digest, it's the Exchange Invest Weekly Podcast!
Good day, ladies and gentlemen, this is a very brief reduction of highlights amongst the key headlines from the week in market structure. Away from this podcast, all the analysis of 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.
NASDAQ futures are a thing of the past. The CFTC have granted their request to vacate the DCM - that's the designated contract market designation. It looked as if the NASDAQ exchange traded derivatives dream of a futures market had died in recent months when they went down the route of licensing to CME.
And indeed it has to be said CME itself: Where would their product development department be with the addition of judicious outside resources? If it weren't for NASDAQ, for S & P and indeed Eris - the swap exchange platform - CME would have a paucity of new product launches in recent times.
Meanwhile, this was the week of a near volte face of a digital plan to tax trading, as New York Stock Exchange, NASDAQ at all, held solid against the denizens of politics in New Jersey and the bosses of CME and CBOE went to see their local council in Chicago and said, “don't even think about it!” NYSE and NASDAQ plan a Chicago offsite backup trading session... Indeed a week of sessions, to demonstrate that New Jersey just doesn't have to be in their plans at all.
And soon, some legislators in the Eastern seaboard State started backing off the whole notion of taxing trading at the server level whatsoever Presumably to help the non Silicon inhabitants of Mahwah, New Jersey to sleep easier too, at the prospect of still having some jobs.
Meanwhile, over in Zimbabwe, there appears to be a sluggish response to the Victoria Falls Exchange as it searches for an equity partner for the offshore. U S dollar denominated marketplace. That, of course, sluggish response for equity partners is in the wake of the government shutting the main Zimbabwe bourse itself for a few weeks on a political whim. Frankly, who wants to even waste a proposal sketched on the back of a cigarette packet with stability issues like this?
Over in Brussels CCP, capitulation was achieved as was, widely expected. Well, at least if you're reading Exchange Invest or listening to me and my various missives and articles in, such as, Cap-X up to four years ago...soon after the Brexit vote. Anyway, CCP capitulation was achieved with a hugely bad tempered note from Brussels where the EU de facto blamed the clients for using UK clearing houses, regardless of the simple business expediency that they find for offsetting into Europe's largest multi currency clearing house providers.
And the Members Exchange launched, adding to the deluge of new stock venues this month alone. The arrival of any sell side denominated competitor platform, always prompts another round of that...
