It doesn't seem all that long ago that ISX was a darling high flying regtech stock on a real growth spurt. Then along came the OM report and things started to get a little messy. But in hindsight the OM report and the associated media blitz against the company and management pales into insignificance compared to what is unfolding now. JK and a few trusted staff would have know what was to come but none outside this small group I suspect.
Sure there were the meetings with ASIC and APRA with regards seeking additional licences as they build their modest little business, a little fish in a very large pond, or so it seemed. One could be cynical and suggest that information from these early meetings with ASIC and APRA were leaked to those with vested interests, no proof just a strong suspicion.
So the ASX starts to ask questions of ISX, questions that most people thought would be answered very quickly and business would go back to normal, maybe with a couple of small sanctions or not. There was a very definite change in the tone of how ISX started to respond to the queries, some put it down to annoyance that the shares could not be traded but I wonder if it was calculated to draw the responses it did. JK looks as though he has had a plan for quite some time based on new announcements about when the various pieces of the current puzzle were being put into place.
A revolution is planned, but will it be executed as hoped. The forces being aligned against ISX now are massive, not only the ASX but all the big hedge funds, broking houses all who have vested interests in maintaining the status quo. I would imagine the pressure being applied to ASIC and APRA to deny ISX would be stifling.
Are the current court proceedings an opportunity for ISX to continue with their strategy whilst the ASX is busy fighting a phony war?
Every mum and dad and retail investor should be taking notice of what is happening now, may happen and what the implications will be for them either through their own portfolios or their superfund.
Imagine if you can what ISX/NSX propose, no HF traders with the computers located right next to the ASX computers, no naked shorting, no algorithmic trading with bots manipulating share prices to advantage big hedge funds, no need for dark pools, T+2 trading down to T+0 and possibly 24 hour/day trading.
This will not happen over night if ISX gets its way, will probably take a couple of years but a tipping point will be reached when it changes forever.
So what might happen if ISX was to relist in the not to distant future, the pressure on the share price will be enormous, too may vested interests for this not to happen, hedge funds don't want changes, big trading houses don't want changes nor do the big end of town. You cannot have the ASX under pressure with the wealth of the nation in its hands. The big end of town does not like change.
I have no idea how this will pan out, who will come to the aid of JK against the forces of darkness, retail investors maybe, hopefully. One thing I suspect is that he has a plan to manage the onslaught, he seems to savy not too.
This will probably make a great doco sometime into the future whether the plan worked or not.
Just my musings on another red day on the ASX, bring on the next installment in this drama.
Regards
Rayda
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