Financials

Report by Galliano's Financials Research

Victor Galliano sticks with B3 as his core value pick; it has a growing share of data revenues, its post-trade revenues are understated and equity fee pressure is easing. He keeps Hong Kong Exchange as a buy, with its high share of post-trade revenues; its shares have been highly volatile, but represent relative value combined with growth potential. Philippine Stock Exchange and BSE are new additions to Victor’s coverage of EM exchanges with PSE being one to watch; MexBolsa is deep value but lacking a re-rating catalyst.

Financials

Report by Galliano's Financials Research

Victor Galliano sticks with his core theme for global exchanges of growing post-trading revenues, as well as capitalising on “big data” in financial transactions and data services, as we move into 2023. He identifies four relative value opportunities. In addition to the two mentioned above, HKEx and MexBolsa feature positively multiple times in Victor’s value screens and they are all diversifying revenue streams. He sticks with Coinbase as the exchange to avoid. Its revenue streams are heavily exposed to low volumes of crypto transactions and recent events highlight counterparty risk.