Transcript:
This week in the parish of bourses and market structure:
The European Union’s letter to Santa Claus is leaked. And we have IPO records across the world even before we reach Thanksgiving for the calendar year.
My name is Patrick L. Young.
Welcome to the bourse business weekly digest.
It’s the Exchange Invest Weekly Podcast Episode 122.
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 many events taking place over the course of the last seven days 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.
So as we enter Thanksgiving week, in fact, we’re recording as Thanksgiving takes place. We’re already in record IPO territory for the year while Euronext has been eyeing up their options in the Great Game for Euroclear and beyond.
Meanwhile, the European Union has leaked their letter to Santa Claus, or perhaps it’s what they called the mafia review letter. It seems to be a pipe dream of reforms that the European Union has let loose towards the media as it flails post-Brexit to get its act together, then again, at least the one good sign is that deregulation is now feasible after the dire over prescriptions of Brussels for many years. Not admittedly that I think they can actually pull off the reforms that they’re mentioning, but it’s good to see bureaucracy underlining a core reason why Brexit was a good thing, competition, and better-regulated markets.
The Intercontinental Exchange they’re going to host Carbon Credit Auctions for Permian Global, a leading developer of large-scale tropical forest protection and restoration projects. We seem to be heading closer and closer towards the one true global carbon price, albeit whose one true global carbon price it will be. Well, that remains to be seen between the voluntary and indeed also the less voluntary compulsory sector for example through the European Union auctions.
Anyway, a Reuters headline this week around the world exclusive exchanges will be forced to show their hand on trade prices. The European Union is proposing transparent pricing for trading by exchanges. The draft is outlining a plan to give more data to investors reforms in derivatives are going to help the European Union branches in London and they’re talking about payment for order flow to be banned while listing rules are to be reviewed.
There’s much talk about consolidated tape inefficiencies as a result of not having a tape for share prices can cost as much as 10.7 billion euros or $12 billion a year. The documents say there would also be according to this document mandatory contributions from exchanges to a tape for each asset class like stocks, bonds, derivatives, and exchange-traded funds in return for fair remuneration.
There are all sorts of other issues in the Santa wishlist subscription fees for professional investors would be set high enough so that retail in...
