Transcript:
This week in the parish of bourses and market structure:
ICE moving some CCP out of London. The European Union kills crypto privacy at the same time as messing around with clearing house access, restructured Tokyo trading begins, Johannesburg Stock Exchange enjoy a spectacular private launch and FTX invests in the ‘Flash Boys’ exchange IEX.
My name is Patrick L. Young.
Welcome to the bourse business weekly digest.
It’s the Exchange Invest Weekly Podcast Episode 139.
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 over the course of the 7 days cycle 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.
A Reuters exclusive this week by the fabulous Huw Jones, ICE are considering relocating their London CDS clearing to Chicago. “The European Union’s constant bickering with London post Brexit has fundamentally destabilised the business case for derivatives in Europe, making the US appear the more flexible, pro-business choice” said one Patrick L. Young in that particular Reuters article.
Attabo… I say…
The sense of Mutually Assured Destruction in the European Union’s approach to nose cut-off repo to spite faces all round is looking very real as apparently the folks at ICE ponder sending some of their CCP business to the USA.
Meanwhile, in a week of curious messaging from the European Union once again on the clearing house issue where they are a morass of contradictions to put it politely. The DGCX ‘s Clearinghouse the Dubai Commodities Clearing Corporation (DCCC) has received renewed recognition as a third country CCP by ESMA.
Ladies and gentlemen, DGCX’s clearing house (DCCC) absolutely deserves this recognition. But remember this for a few years hence when the EUropsychosis dictates that the London clearing houses will no longer be equivalent (presuming the European Union doesn’t of course indulge in its frequent habit of conveniently ignoring its own outpourings)… DGCX (a perfectly sound business and possesses a perfectly good clearing house) it is recognised but according to the current craze dogma all the European Union, or the London CCPs at LCH and ICE have to struggle to be recognised or will be struck off if the doctrinally blinded of Brussels are to be believed – that’s because the European Union doesn’t understand (or doesn’t want to understand) economics, free markets free currency and indeed appreciate that Brexit was as much of their making as it ever was a British democratic movement. ‘Plus ca change’ as they say in Dagenham essex, I suppose.
Then we got the final sting in the tail notice for the week the European Union widened access for US exchanges and clearing houses to investors in the block, as Reuters noticed, adding in the Reuters article, a move which contrasts with Brussels’ intention to shut off clearing houses in London in 2025.
