Transcript:
This week in the parish of bourses and markets structure:
Robinhood disappoints in Public Trading as there may be a singularity moment approaching and the Top tier of Young's Pyramid.
My name is Patrick L Young, welcome to the bourse business weekly digest.
It's the Exchange Invest Weekly Podcast Number 106.
Good day ladies and gentlemen, this is a very brief reduction of the highlights amongst the key headlines from the weekend market structure. All of the analysis of the week's many events and happenings can be found in an Exchange Invest daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.
More details at ExchangeInvest.com.
As I said at the top of the show, is it time for the singularity moment at the top of Young's Pyramid? I wonder?
I thought for some time a possible turning point in the parish was emerging. A massive baton handover fueled as much by ICE’s efficiency and ambition as the Chicago Mercantile Exchange groups complete absence of ambition beyond being a micro futures haven for meme-sters.
One little snapshot that emerged over the course of the last week:
A week ago on Wednesday CME reported revenue of $1.2 billion. On Thursday, ice reported net revenues of $1.7 billion. Growth at CME was anaemic. Growth at Intercontinental Exchange group: 22% year on year. No matter how you look at this CME remains becalmed and ICE has momentum.
Which raises the question, how many antitrust lawyers do you need to buy CME?
Maybe it's one for next year, maybe it's one for the year after. But then again, remember that ICE was part of a joint NASDAQ bid for the New York Stock Exchange in April 2011 (which evaporated by May of that year due to antitrust on the NASDAQ - NYSE side of the stock market equation). Even at that juncture, of course, Intercontinental Exchange was making eyes to acquire LIFFE as part of the Euronext group.
Within 20 months of that deal falling apart however, in November 2012 Intercontinental Exchange group had vaulted sufficiently forward to buy the whole NYSE Euronext business.
Perhaps at a 22% versus anaemic 1.6% relative growth rate, ICE armed with better oil markets and a unique chance as interest rate benchmarks shuffle their senses between a whole new series of possible benchmarks...There's a unique chance for the Intercontinental Exchange group to go for the jugular and defenestrate the apparently not keeping up with the times CME Group.
Speaking of keeping up with the times, it was time to go public with the rather medieval, Robinhood group. They closed at $34.82 in what Reuters termed ‘a grim stock market debut’. This was only part of a very fast moving week for the folks who enabled the GameStop movement, even if the meme boom didn't extend to t...
