Exchange Invest Weekend Edition 2781: Midland Oil Macro
A history of British decline — still invalid — Black on Murdoch, antimatter, the WTI/DSW shift & more, as the Publisher talks race cars…
Exchange Invest is a unique information resource combining the day’s stories in a newsletter for investors in exchanges/financial markets infrastructure.
Exchange Invest was founded by former exchange CEO and author of the first bestselling book of fintech (“Capital Market Revolution!” FT 1999) Patrick L Young. Monday through Friday our daily paid subscriber email discusses the business of bourses of all kinds across the world.
On this day in 1856, Cyrus Chambers Jr. patented a folding machine that folded books and newspapers.
IN BIGWORLD
From Exchange Invest 2776: Monday, October 2nd:
As of today (NB last Monday) there are 400 days to the next US Presidential election.
After 2 choices where “Devil’s Alternative” rules appeared to apply, who will be contesting next November 5th.
That the US election coincides with the UK’s Guy Fawkes night celebrating the foiling of the Gunpowder plot to blow up Parliament, some American voters may have a sense of deja vu.
I stick with my original point on the candidates: if one octagenarian runs, he loses. If they both run, we all lose.
IPO-VID LIVESTREAM
NEXT WEEK TUESDAY! Season 20: Episode 06: IPO-VID Livestream 120
Guest: Rod Blondin
Tuesday, October 10th: 1800 UK, 1900 CET, 1400 EST
“On The Commodities Road With Rod Blondin”
“The agricultural derivative market in South Africa grew from nothing to a world market trading futures and options contracts in grains in a space of 5 years. A system of warehouse receipts was developed for delivery on the market and traded volumes increased from a total of 3343 contracts in 1996 to 1 969 346 contracts in 2002.”
This week’s IPO-VID talks to the man who went on the road to make that growth happen…
Rod Gravelet-Blondin has a lifetime of experience in agricultural economics having been Agricultural Counselor at the South African Mission to the United Nations in Geneva, Switzerland responsible for South African agricultural representation at the GATT (now WTO.) and Agricultural Counselor at the South African Mission to the European Union in Brussels, Belgium responsible for agricultural relations between South Africa and the European Union.
Thereafter Rod made a magnificent career quantum leap, becoming the marketing and product guru of the South African Futures Exchange (SAFEX) in 1995 where his legendary road trips built a market across the vast geography of South Africa.
Watch the stream on:
NOW ONLINE! Season 20: Season 20: Episode 05: IPO-VID Livestream 119
Guest: Andrea Corcoran
Tuesday, October 3rd: 1800 UK, 1900 CET, 1400 EST
“Going Global, the Birth of the CFTC”
Andrea Corcoran, Principal of ALIGN, advises the C-suite of firms and regulatory authorities located on five continents on various regulatory and policy puzzles. Her consulting services include: confidential evaluation of organizational structures and processes, development of regulatory and compliance strategies, training, adaptation to international standards, and much more after 15 years as a consultant. Previously she was the initially Trading and Markets, the CFTC’s then-principal regulatory arm, and, subsequently, the newly created, Office of International Affairs.
Watch the stream on:
IPO-VID LIVESTREAM PODCAST
In IPO-VID podcast episode 112, Patrick Young was joined by a former CME Group Board Member and a seasoned expert in commodity trading with extensive knowledge in cash currency markets, Yra Harris.
Tune in as Yra delves into the importance of exercising patience as a valuable virtue when navigating the world of finance and markets.
EI WEEKLY PODCAST
FTC Vs Amazon
Cushing Crushed?
Another MCX TCS Delay
The Exchange Invest Weekly Podcast 214
VICTORY OR DEATH
20 years on from the first fintech bestseller “Capital Market Revolution!”… “Victory Or Death” is a must-read book for anyone interested in the intersection of Blockchain, Cryptocurrency and FinTech as part of the whole future of finance.
FINANCE BOOK OF THE WEEK
In response to reader’s queries, we have added a book of the week column to the EI weekend edition — You can sign up for EI Weekend for free at ExchangeInvest.com incidentally.
We’re choosing interesting books pertaining to exchanges and markets, investment et al.
This week’s book was written by our IPO-VID guest 062 Patrick M. Young:
“It is high time we nullified this poverty-incarceration two-feeder system. How? By dealing with the root, which is poverty. So how do you break the cycle of poverty? You may want to get out of jail or prison but are you ready to get out of poverty. How?
The answers are found in “A Way Up: Economic Development Post Incarceration Workbook” in learning how to experience your own economic development post-incarceration. This book is the clear road map to creating generational wealth and living the kind of life you deserve. This book is the guide to finding a way up not just a way out.”
Get the workbook here.
Suggestions welcome if you would like to nominate a book for us to cover!
Our next Book of the week will be unveiled Saturday in the EI Weekend Edition.
& don’t forget if you want all the news on the bourse business sent daily to your Inbox subscribe to Exchange Invest — via Exchange Invest.com — it’s only $349 per annum to join “The Exchange of Information.”
BITCARNAGE
We know SBF is in court but we’re not going to rush to judgement albeit in Bitcarnage on Substack and Exchange Invest, we will cover his trial while giving ourselves a little time to consider what is happening — as is our wont. At the same time what a day Tuesday 3rd October was: SBF, Hunter Biden and Donald Trump all in the US courts at the same time!
One thing which has been clear from early reviews by folks in the know is that Michael Lewis may have an issue insofar as he appears to have been the last high profile victim of the SBF cult before the curly haired one stood trial…
As one Yahoo finance column headline noted: In Michael Lewis, Sam Bankman-Fried Found His Last And Most Willing Victim
Then there was the steady drip drip drip of news about FTX’s excesses, one being FTX Paid Tom Brady $55 Million For 20 Hours Of Work Over 3 Years: Biography (Business Insider).
In the tail sting department, last week saw Silk Road founder Ross Ulbricht Mark 10 Years Into His Double Life Sentence In Prison (CoinTelegraph).
SBF may be assured of his innocence in his own mind but will the US judicial system agree?
MACRO THOUGHTS
Cushing Oil Hub’s Low Levels Spur Quality, Operational, Price Worries
Reuters
“”If you let the crude (level) drop too low, the crude can get sludgy and you can’t get it out. What does come out — you won’t be able to use,” said Carl Larry, a sales director at energy consultants Wood Mackenzie.”
PLY: (This is an abbreviated version of longer Exchange Invest subscriber content): It’s looking increasingly like the end of an era albeit denial is a big beast in South Wacker. Ever since the epic failure of CME to keep up with oil trends was writ large, the story has been one of when, not if, CME’s Cushing WTI would be toppled as the global oil benchmark.
Houston was where the pricing was at even before the last mega banking crisis. Cushing was a kind of community rest stop for oil thanks to the CME’s rather old fashioned settlement affection.
While it’s all in the genre of light sweet, there’s a vast chasm between what today is West Texas Intermediate and what is the WTI future on CME, which is such a sweet crude, it’s like comparing Hershey bars (CME) with Lindt (WTI Houston). Thus nowadays the market (apart from the folks of CME) are differentiating the Cushing stuff as DSW (Domestic Sweet) with “WTI” truly being from West Texas, mostly around Midland, being a far superior oil for a range of purposes.
The switch is finally happening — the hedgers are leaving NYMEX/CME for ICE Midland, the real WTI… soon the DSW CME WTI will prove a hollow benchmark which endangers the additional revenue streams from ETPs et al.
OF INTEREST
As always, a review of interesting reading to provoke thoughts and consideration… Not sure we agree with much of it….but it’s thought-provoking!
The Endless Myth Of British Decline
The Spectator
PLY: I found this article by Robert Tombs captivating as it seems British decline has been a hot topic for centuries more than I had previously appreciated!
Rupert Murdoch Was My Fiercest Competitor
UnHerd
PLY: A fascinating tribute by former Telegraph owner Conrad Black.
Scientists Crack How Gravity Affects Antimatter: What That Means For Our Understanding Of The Universe
Singularity Hub
A World In Every Cup: Exploring Coffee Cultures From EBRD Regions
EBRD
And finally — PLY is up to this for the weekend — if you’re in Malta join him for the Mdina Grand Prix where he is commentating: Mdina Grand Prix On October 7–8.
LAST WORD
…If you want to stay abreast of the world of exchanges then please Subscribe to our Daily Newsletter — free 30 day trial.
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You can also check out the “Reflections From Young’s Pyramid”, it illustrates the relative value of exchanges around the world.
Or the “ICE Cost of Borrowing 2020–2022” An Interest Rate Comparison, which illustrates the end of the funny money era of QE and how interest rates have already had a major lurch up from their previous region of zero to, even negative, levels.
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The future continues in the water cooler of the bourse business…
- Patrick
