Transcript:
This week in the parish of bourses and market structure:
The Binance Noose is tightening more as Coinbase Blinks versus the SEC and the London Stock Exchange closes Curve Global.
Aquis Exchange makes great results, and congratulations to Verena Ross who’s returning to ESMA as Chairman, having been Executive Director under Stephen Maijoor.
My name is Patrick L. Young.
Welcome to the bourse business weekly digest.
It’s the Exchange Invest Weekly Podcast number 113.
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’s daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox.
More details at ExchangeInvest.com.
Over in Brussels the stubborn determination of the European Union to defer a decision on European clearing permissions is an impediment to taking Brussels seriously. That’s after the Financial Industry across the EU 27 and indeed the UK and beyond was urging the European Union to extend the Euro swaps clearing rules to permit the use of the London clearing house and avoid financial Armageddon.
Meanwhile, sad news from the London Stock Exchange Group on the path to trying to organize Refinitiv they’ve decided to drop the London Stock Exchange group’s loss-making derivatives platform Curve Global as the Financial Times put it, curve global markets has failed to win enough business and will cease trading in January.
It is sad news as the latest attempt to break the Exchange Traded Derivatives interest rate oligopoly dies with the demise of Curve Global as the London Stock Exchange group clearly looks in every area to reduce costs which have burgeoned with the addition of the Refinitiv bloat.
So farewell then curve which will close during the Libor transition and thus LSEG abandons what amended to the most tangible possibility to revamp the interest rate oligopoly to date. It’s understandable that faced with the tsunami of reorganization in Refinitiv LSEG would make this sort of cut (a ‘desperation-o-meter’ reading towards the top of the 1-10 scale is apparent from the Paternoster Square C suite). But it’s still a real shame that there was not enough impetus from the top of the group to give Curve a better chance to innovate further.
At the group level, it’s another sad day for LSEG’s long story of failed derivatives ambition. Clearly, a small LCH CCP pot will die too but that won’t have much impact compared to the Noun-clear behemoths of Swap clear, repo clear et all.
Andy Ross and the Curve team have made a spirited attempt at delivering a seri...
