I used to own CBOE but sold after revisiting their investments in Europe. They're spending a lot of money to try and disrupt pan-European derivatives, a historically fragmented & entrenched field. I'm not willing to wait around & find out if their investments will pay off.
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Replying to @HideNotSlide @NeckarValue and
European market structure is hard to disrupt because there are multiple clearinghouses for the same underlying product, whereas in the US there's only one. The below chart shows just how dispersed the plumbing is - good luck to CBOE for cleaning this up!pic.twitter.com/tSWxBF1grI
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Replying to @HideNotSlide @MarcRuby and
Fragmented, huh?pic.twitter.com/RRxk53t8Hn
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Replying to @NeckarValue @HideNotSlide and
What is the risk of exchanges getting disrupted either by technology or new competitors? Are there any startups whose IPO you're anticipating?
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Replying to @NeckarValue @MarcRuby and
The only market where disruption is likely & somewhat priced in is US equities - startups like MIAX & MEMX are taking share w/ low fees & powerful backers. From a technology perspective, I think DeFi exchanges like Uniswap have great long-term upset potential.
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Replying to @HideNotSlide @MarcRuby and
Speaking of crypto, what is your take on
$COIN?1 reply 0 retweets 1 like -
Replying to @NeckarValue @MarcRuby and
At a $100B valuation I think
$COIN is a pricey directional bet on Bitcoin, but I'd love to own it on weakness. They have the potential to be the top crypto exchange AND brokerage app AND custody solution AND prime brokerage operation. More below:https://frontmonth.substack.com/p/my-coinbase-gameplan …1 reply 1 retweet 7 likes -
Replying to @HideNotSlide @MarcRuby and
Got it. Well this was awesome - thank you so much for sharing your thoughts! Where can people learn more about this industry, the players, the business models? Any primers or write-ups you would recommend?pic.twitter.com/bB2H3UqgOj
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Replying to @NeckarValue @MarcRuby and
Thank you for doing this! I have a couple things that can serve as deeper dives - one is my substack where I talk about exchanges and the other is an industry primer I wrote a couple months back. Both links below:
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Replying to @HideNotSlide @MarcRuby and
Thanks again! Alright folks, that's it for today. If you're interested in the space I highly recommend you follow
@HideNotSlide and his substack. Until next time!1 reply 0 retweets 5 likes -
Replying to @NeckarValue @HideNotSlide and
I'm on European time and off for today. If anyone has more questions feel free to DM
@HideNotSlide directly
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