049 Exchange Invest Weekly Podcast

TRANSCRIPT    Tel Aviv go on strike.  NYSE and NASDAQ emerged victorious from a court spat with the SEC while NASDAQ pulls ahead enjoying a bumper crop of IPOs: 44 to 27 against the New York Stock Exchange for new listings so far this year. My name is Patrick L Young Welcome to the bourse business weekly digest. It's the Exchange Invest Weekly Podcast.   Plaudits to Nasdaq, easing ahead of NYSE in the US IPO market, which has a vibrancy that would have been simply unbelievable three months ago as lockdown began. Likewise, Hong Kong is showing a remarkable degree of new issue activity. One issue this week from China was no less than 360 times oversubscribed!. That new issue activity is somewhat flying in the face of many economic fundamentals around the world. True those fundamentals are changing fast in a very, very volatile environment economically. But once again, the flexibility of modern for profit exchanges demonstrates the sound management and key benefits of the exchange model at the heart of digital commerce. NASDAQ leads right now and well done across 71 new listings in the United States of America. They have 44 compared to a very impressive equally 27 at the New York Stock Exchange. And that's before we look at the many successful follow on offerings enabled to prevent more financing in this COVID-19 era in the US capital markets.   In Italy, there is a five star argument. It seems that that party: “The Five Star“ which is descended from a comedian, in disarray, wanting to buy the Milan Stock Exchange. We discussed that last week... Having considered the issue - and given this is Italy and the world's most Machiavellian investment bank Mediobanca are involved. I cannot help but think the motives here are much more ulterior than concerns about MTS trading. The closed minded nationalism of Five Star demonstrates fairly standard closed minded, outmoded left wing thinking so prevalent in Europe. It is killing the economy in Italy and far beyond.    Meanwhile, on a settlement, which I don't think anybody can be too proud of T plus 8 years!. Finally, Turkish government bonds are going to be coming to Euroclear, the Brussels based EU settlement house.   The negative oil mystery carried on this week ‘day traders are a new wrinkle’ went the argument. It was a worryingly misguided analysis suggesting that it was day traders at TD Ameritrade and E trade, as well as those already declared IBKR, who when suffering technical glitches due to the negative pricing in that huge Cushing crisis of more than a month ago, meant they couldn't sell once they realized prices had turned negative. It's a worryingly misguided analysis. At least there is one key takeaway: scapegoating brokerages who were left with a devil's alternative to either implement software changes on ludicrously short timelines or simply not be able to offer trading... That all took place at a time when priority was ensuring market technology functioned during enormous volatility. I would suspect goodwill to CME has drained despite the valuable claims of that entity to have been hugely ahead of the curve when it gave several days notice...And one might argue very muted notice that it all of a sudden enabled negative pricing and a previously untouched rather aged futures contract.   The parish needs to seriously consider its stance going forward, as this sort of article is just the latest clarification of what remains a fundamental product design issue. Moreover, I suspect brokers will consider suspending contracts in future situations where exchanges attempt these mid air engine replacement approaches. Crunchy alternatives are re...

An episode of the Exchange Invest podcast, hosted by Patrick L Young, titled "049 Exchange Invest Weekly Podcast" was published on June 12, 2020 and runs 16 minutes.

June 12, 2020 ·16m · Exchange Invest

Summary

TRANSCRIPT    Tel Aviv go on strike.  NYSE and NASDAQ emerged victorious from a court spat with the SEC while NASDAQ pulls ahead enjoying a bumper crop of IPOs: 44 to 27 against the New York Stock Exchange for new listings so far this year. My name is Patrick L Young Welcome to the bourse business weekly digest. It's the Exchange Invest Weekly Podcast.   Plaudits to Nasdaq, easing ahead of NYSE in the US IPO market, which has a vibrancy that would have been simply unbelievable three months ago as lockdown began. Likewise, Hong Kong is showing a remarkable degree of new issue activity. One issue this week from China was no less than 360 times oversubscribed!. That new issue activity is somewhat flying in the face of many economic fundamentals around the world. True those fundamentals are changing fast in a very, very volatile environment economically. But once again, the flexibility of modern for profit exchanges demonstrates the sound management and key benefits of the exchange model at the heart of digital commerce. NASDAQ leads right now and well done across 71 new listings in the United States of America. They have 44 compared to a very impressive equally 27 at the New York Stock Exchange. And that's before we look at the many successful follow on offerings enabled to prevent more financing in this COVID-19 era in the US capital markets.   In Italy, there is a five star argument. It seems that that party: “The Five Star“ which is descended from a comedian, in disarray, wanting to buy the Milan Stock Exchange. We discussed that last week... Having considered the issue - and given this is Italy and the world's most Machiavellian investment bank Mediobanca are involved. I cannot help but think the motives here are much more ulterior than concerns about MTS trading. The closed minded nationalism of Five Star demonstrates fairly standard closed minded, outmoded left wing thinking so prevalent in Europe. It is killing the economy in Italy and far beyond.    Meanwhile, on a settlement, which I don't think anybody can be too proud of T plus 8 years!. Finally, Turkish government bonds are going to be coming to Euroclear, the Brussels based EU settlement house.   The negative oil mystery carried on this week ‘day traders are a new wrinkle’ went the argument. It was a worryingly misguided analysis suggesting that it was day traders at TD Ameritrade and E trade, as well as those already declared IBKR, who when suffering technical glitches due to the negative pricing in that huge Cushing crisis of more than a month ago, meant they couldn't sell once they realized prices had turned negative. It's a worryingly misguided analysis. At least there is one key takeaway: scapegoating brokerages who were left with a devil's alternative to either implement software changes on ludicrously short timelines or simply not be able to offer trading... That all took place at a time when priority was ensuring market technology functioned during enormous volatility. I would suspect goodwill to CME has drained despite the valuable claims of that entity to have been hugely ahead of the curve when it gave several days notice...And one might argue very muted notice that it all of a sudden enabled negative pricing and a previously untouched rather aged futures contract.   The parish needs to seriously consider its stance going forward, as this sort of article is just the latest clarification of what remains a fundamental product design issue. Moreover, I suspect brokers will consider suspending contracts in future situations where exchanges attempt these mid air engine replacement approaches. Crunchy alternatives are re...

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