044 Exchange Invest Weekly Podcast

   In oil, Brent created a tale of two settlements. ICE reminded us what management looks like, with excellent results and another magnificent quarterly call. The FSB threatens a big CCP shake up. Are we moving towards a better system? Or just another example of the blob bending over backwards towards the banks? And Charles Li has set his CEO departure date as Hong Kong Exchanges miss their first quarter estimates. My name is Patrick L. Young Welcome to the bourse business weekly digest: it's the Exchange Invest Weekly Podcast    ICE reported results with a reminder of how a professional management team deport themselves. There was education aplenty, with a delightfully elegant explanation of how oil settlement processes work (something which was desperately needed after the confusion following the Cushing crisis).   It has become almost commonplace to expect a masterclass from the ICE but this quarter’s call not only rammed home the material difference between the somewhat rambling, amateur performance we had a day earlier but also reminded us of the depth of the ICE team. It’s management ranks may be appreciably thinner than others but each member brings a depth of ability. Ben Jackson was truly enlightening while Scott Hill shone once again. Jeff Sprecher was naturally peerless.    One quarter on and I suspect there is a hint of realisation amongst the investor/analyst community that they hastily leapt to an erroneous conclusion over eBay. Certainly there can be no doubt that the difference between the well managed entities in the parish such as ICE and Nasdaq is exacerbated by a chasm to those other large entities who still appear blithely unaware that they are on the cusp of crisis.   Speaking of which, the CME Group has secured $7 billion as a credit facility to protect against clearing member default, a very sensible caution. Albeit what happens if a GCM fails because of a flaw in CME contract design?   Elsewhere, the Delhi High Court have refused to stay a user complaint about the WTI April settlement in India. A full hearing will take place on June the 24th.      That tale of two settlements, Brent and WTI demonstrated an amazing chasm in the ability to create an orderly market and an orderly settlement process.  Ultimately the media just passed by when there wasn't a meltdown...and missed a much more newsworthy event.  Brent Crude Oil Futures settled last Friday at $25 29. That was May the first. Please note this was positive $25 29 not negative   Moreover that settlement was achieved through hard work, concentration and absolutely NO DRAMA whatsoever. Moreover oil traders had such confidence in the ICE Brent crude settlement process they held  Open Interest equivalent to 74 million barrels of crude, which is pretty much the entire working capacity of Cushing on a good day. By comparison, they held 74 million barrels I repeat: through to expiry. Traders and commercial interests had the confidence to hold to expiry and were rewarded with a perfectly coherent settlement process. I don't want to overly load the excellent staff of ICE here as they did the job they are expected to do and indeed regulated by government authorities to provide: a coherent settlement,  as expected of modern futures markets. Sadly, the world's media didn't see fit to cover this smooth event because it lacked the crisis, they demand of modern news. Yet it does open up a whole new series of questions about practice and accounta...