Transcript:
This week in the parish of bourses and market structure:
No foreign bidders please, we're Australian.
NYMEX is in peril and the CME in acute danger as West Texas Intermediate is reborn and Cushing WTI looks more obsolete than ever...
And a happy FinTech story, we're an oil major fault the blob to pay dividends more efficiently.
My name is Patrick L. Young,
Welcome to the bourse business weekly digest.
It's the Exchange Invest Weekly Podcast Episode 100.
Good day ladies and gentlemen, this is a very brief reduction of highlights amongst the key headlines from the week in market structure. All the analysis of the week's many events and happenings can be found in Exchange Invest daily subscriber newsletter, the unique water cooler, the guide to the bourse business sent daily to your inbox.
More details at ExchangeInvest.com.
Magellan-Enterprise and Intercontinental Exchange team-up.
PLY: Sounds like an innocuous headline. The remarkable thing is how little this seismic news has so far impacted either the Chicago Mercantile Exchange of shares or the Intercontinental Exchange of stock. A great reckoning approaches on LaSalle Street, but so far CME stockholders retain a Stockholm Syndrome embrace of Terry Duffy's increasingly imperiled regime.
As Harold Hamm, the Chairman of the Board of Continental Resources, and the Founding Member of the American Gulf Coast Select Best Practices Task Force Association, rather a tongue twister there that was set up in the wake of the Cushing crisis last year.
And indeed, as Chairman Harold Hamm goes on to note:
“On April 20th last year, when the Cushing, Oklahoma West Texas Intermediate contract traded down to negative $38 it was a wake up call to the oil industry that the storage constraints and landlocked location of the Cushing contract could no longer be ignored.”
The negative trading shambles of April 20, 2020, Cushing Crisis was a disaster for the image of the derivatives market, as we have previously noted, and - regardless of what their agitprop may claim (leaving aside to a spineless CFTC response) - it showed in plain sight the folly of the CMEs ‘monopoly milking’ strategy.
April 20th marked the grave of being dug in 2020 for Cushing West Texas Intermediate futures, and yet... and yet... 14 months on CME has done nothing apart from distribute yet more shameless propaganda.
As I noted in
