FactSet Acquires Revere Data


FactSet Acquires Revere Data
Thursday, September 05, 2013

http://www.factset.com/news/revere

FactSet Research Systems Inc. (NYSE: FDS | NASDAQ: FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced it has acquired Revere Data, LLC.

FactSet acquires Revere

Over the last decade, Revere has built a dynamic industry taxonomy that offers investors a unique way to classify companies and analyze how they fit in the global economy. Revere also offers a robust database of supply chain relationships that helps investors identify companies’ interrelationships and mutual dependencies, as well as a comprehensive geographic revenue exposure database to manage geopolitical and macroeconomic risk.

“Revere’s data solutions help refine interesting ideas and strategies so investors can better identify opportunities and measure risk exposure throughout the global equities and derivatives markets,” explains Phil Snow, Senior Vice President, Director of Global Content Sales at FactSet. “The addition of Revere’s specialty data complements FactSet’s commitment to provide clients with unique and insightful content sets.”

“At Revere, our data sets help unlock and maximize value for our customers and partners,” explains Kevin O’Brien, Chief Executive Officer of Revere Data. Adds Vivian Ramos, Chief Operating Officer, “We’re delighted to join FactSet as we share a common goal: to deliver innovative products that offer clients actionable insight.”

The acquisition of Revere is not expected to have a material impact on fiscal 2014 diluted earnings per share.

About FactSet
FactSet, a leading provider of financial information and analytics, helps the world’s best investment professionals outperform. More than 48,000 users stay ahead of global market trends, access extensive company and industry intelligence, and monitor performance with FactSet’s desktop analytics, mobile applications, and comprehensive data feeds. The Company has been included in FORTUNE’s Top 100 Best Companies to Work For, the United Kingdom’s Great Places to Work and France’s Best Workplaces. FactSet is listed on the New York Stock Exchange and NASDAQ (NYSE: FDS | NASDAQ: FDS). Learn more at http://www.factset.com, and follow us on Twitter: http://www.twitter.com/factset.

About Revere
Revere Data, LLC, is the leading provider of industry classification and supply chain specialty data, analytics, and index solutions for the global financial services industry. Revere’s data is invaluable for traditional to alternative asset managers seeking alpha generation opportunities and better risk management capabilities. Index owners and fund sponsors use Revere to create innovative investment products for customers ranging from institutions to retail investors.

Aquis Exchange To Offer Access Via BT Radianz Cloud


Aquis Exchange To Offer Access Via BT Radianz Cloud

http://www.mondovisione.com/media-and-resources/news/aquis-exchange-to-offer-access-via-bt-radianz-cloud/

Date 29/07/2013
BT given preferred supplier status
Aquis Exchange Members will benefit from subscription pricing
Allows quick and cost-effective access to Aquis Exchange
Enables straight through processing
Aquis Exchange Limited, the proposed pan-European stock exchange*, today announced a new agreement with BT that allows its Members to access its trading platform via the BT Radianz Cloud.
The BT Radianz Cloud — the largest secure networked financial community in the world — helps financial market participants globally to exchange market information, trade with each other and clear and settle transactions.
Under the new agreement, BT will not only be Aquis Exchange’s preferred cloud connectivity supplier, but the Exchange’s services will now be accessible to the thousands of members of the BT Radianz Cloud community globally.
In addition, Aquis Exchange Members can use the BT Radianz infrastructure to connect with Aquis Exchange’s clearing partners using one resilient access point. This allows the full trade cycle to be conducted seamlessly and helps institutions achieve straight through processing (STP).
Commenting on the agreement, Alasdair Haynes, CEO of Aquis Exchange said:
“The opening of our doors to the BT Radianz Cloud community to access Aquis Exchange is important for us. It provides us with an opportunity to gain rapid access to an unrivalled community of market participants, which is why we have selected them as our preferred cloud connectivity supplier. We believe in having the widest possible range of users to strengthen the ecology of our marketplace and extend the benefits of our subscription pricing model to all professional investors.”
Robin Farnan, Managing Director, Financial Technology Services, BT, said:
“We are delighted to have been selected as Aquis Exchange’s preferred cloud connectivity provider. Aquis Exchange now joins over 100 trading venues that are already part of the BT Radianz Cloud community and benefits from reduced time-to-market and cost of technology infrastructure. The availability of Aquis Exchange to the BT Radianz Cloud community is a great example of how technology can accelerate innovation and efficiencies in the financial sector.”
Aquis Exchange’s subscription pricing works on a similar model to that of the telecoms industry and is designed to encourage participation from all categories of professional trading firm. Users will be charged according to the message traffic they generate, rather than a percentage of the value of each stock that they trade. There will be different pricing bands to accommodate varying degrees of usage. There will be a very low usage band for small firms, that are traditionally disadvantaged by the pricing structure of the incumbent exchanges and, at the other end of the pricing structure, will be the top category where usage is unlimited (subject to a fair usage policy).
For Aquis Exchange Members that are not part of the BT Radianz Cloud, access is available in a number of other ways, including via direct line connection or co-location into Equinix’ LD4 data centre in Slough (Berkshire, UK)

Rewiring Europe’s ETP industry


Rewiring Europe’s ETP industry

http://www.efinancialnews.com/story/2013-07-22/rewiring-europe-exchange-traded-products-industry?omref=email_TradingTechnology

European exchange-traded products are being delisted at a record rate as the region battles with fragmented liquidity and high running costs.

Rewiring Europe’s ETP industry

During the first half of this year, 231 ETPs were delisted from European exchanges compared with 189 for the whole of 2012, according to data from consultancy ETFGI.

Arnaud Llinas, Lyxor’s global head of ETFs and indexing, said: “There are definitely too many products in Europe. There are more ETPs in Europe than the US. I’m not surprised that the market is rationalising now in terms of number of products.”

Compared with the US, the European ETP market presents a fragmented picture, with issuers required to list products across many regional exchanges, clearing and settlement systems. Each product could be listed on as many as five exchanges.

At the end of June, the European industry had 1,954 ETPs, with 6,156 listings, and assets of $357 billion, compared with 1,478 ETPs, 1,478 listings, and assets of $1.44 trillion in the US, according to ETFGI.

 

Some of this fragmentation is regulatory-driven: Switzerland, for example, forces providers to list on its local exchange if they want to market their products in the country. In addition, issuers have seen it as necessary to have a shop window in each jurisdiction to target retail customers.

In recognition of how disparate the European market has become, and to concentrate liquidity, issuers are rethinking their strategy.

Deborah Fuhr, founding partner of ETFGI, said: “In the early days of ETPs in Europe, many people thought that marketing and listing should go hand in hand, especially if you wanted to sell to retail and financial advisers. However, there are considerable costs involved with maintaining multiple cross-listings and it fragments liquidity across multiple exchanges.”

The ETFGI data shows the number of new listings on European exchanges has also slowed considerably, from 758 for the whole of last year to 295 so far this year. New listings peaked at 1,589 in 2010.

 

Leland Clemons, head of iShares capital markets for Europe, Middle East and Africa at BlackRock, said: “We are trying to take a more proactive approach to developing the market structure for ETPs. We would like to see liquidity better consolidated to make the investor experience better. From my perspective, the European ETP market structure or ecosystem has developed a bit from when the proliferation of listings began five or six years ago.”

Clemons said rule changes set to come in with a revised version of the Markets in Financial Instruments Directive are also driving change. The directive is not expected to come into force before 2015, but its draft form calls for increased reporting of trades, and the greater transparency this will bring will highlight products that lack volume, he said. Recent industry initiatives are also thought likely to consolidate the market.

Bats Chi-X Europe, the largest pan-European cash equities trading platform, is exploring using trade order routing techniques to direct investors to the most liquid products. For example, an investor looking to buy the iShares Euro Stoxx 50 ETF, which is traded on six European exchanges, would be directed to the most liquid of these listings.

BlackRock and settlement giant Euroclear have also made a move to improve the European ETP market, with plans to create one international central securities depository that would allow ETPs to be settled in one place rather than nationally.

 

But issuers say delistings and consolidation will also see some market participants lose out.

The five largest European exchanges have lost 194 listings so far this year, compared with 51 in the first six months of last year.

According to ETFGI, Borsa Italiana has been the worst hit of Europe’s exchanges, having seen 57 ETPs delisted from its platform so far this year (see chart).

NYSE Euronext’s Paris exchange has lost 43 ETPs; German exchange Deutsche Börse, 35; the London Stock Exchange, 34; and Switzerland’s Six Swiss Exchange, 25.

 

Silvia Bosoni, Borsa Italiana’s head of ETF listing, said despite recent delistings the market remained popular. She said: “There are no Italian issuers of ETFs, which means Italy is often the first market issuers list in after their domestic market. Issuers have to be alive to the fact that most Italian investors in Italy are not very keen to invest in something not listed in Italy.”

Providers say the LSE has benefited from its position as a hub for Europe, cemented by a number of US issuers that have come into the market and used the LSE as a launch pad. The Six Swiss Exchange, meanwhile, has been protected by its regulatory framework.

According to issuers, the primary consideration when it comes to delistings is geographical positioning and running costs.

Although all the exchanges offer deals for multiple listings, new issuers and annual fees, an individual listing of an ETF on Borsa Italiana costs €8,500; on NYSE Euronext, €7,500; LSE charges £5,000 (€5,807); Deutsche Börse, €3,500, and it costs Sfr3,000 (€2,425) plus charges for new equity securities in relation to market capitalisation on the Six Swiss Exchange.

 

Manooj Mistry, head of ETPs for Europe, the Middle East and Africa at Deutsche Bank’s Asset and Wealth Management unit, said: “Listing fees are a component of the costs so you need to take into consideration that some exchanges are more expensive than others.”

According to ETFGI research, Lyxor has delisted the most products this year with 53, followed by Royal Bank of Scotland, 42, iShares at 40 and ETF Securities with 38.

Matt Johnson, head of distribution for Europe, Middle East and Africa at ETF Securities, said: “The rationale is, of course, based on economics. Multiple listings incur a cost that is both direct, such as legal time, and indirect, such as marketmaker support.

“We’ll certainly be keeping all of this in mind when listing new or cross-listing existing products and as we continue our six-monthly reviews of potential delistings,” he said.

 

• Global product shutdowns hit record level

The number of closures of global exchange-traded products hit a record 117 in the first six months of this year, according to ETP consultancy ETFGI.

Providers have engaged in rapid expansion in recent years, with the number of global ETPs rising by 217% since 2008 and hitting a growth peak between 2009 and 2010 of 32%.

But this has slowed over the last 18 months, to 8.8% from 2011 to 2012 and 2.6% in the six months to June, according to ETFGI.

 

Market participants have attributed the change to a smaller number of benchmarks still available for new products and a move by issuers to take stock of their portfolios after high levels of growth.

Deborah Fuhr, founding partner of ETFGI, said: “There has been a decline in the number of new launches as most of the core benchmarks in core asset classes are already covered by ETPs. There is a first-mover advantage when bringing an ETP to market. Many firms are [now] working to grow the assets in their existing products.”

Earlier this month, db X-trackers, the ETP arm of Deutsche Bank, announced the largest number of closures at one time by a single provider, with 36 ETPs set to disappear. The bank attributed the closures to “low levels of interest”.

The figure is not included in the first-half global total because the products are still in the process of being closed.

 

Manooj Mistry, head of ETPs for Europe, the Middle East and Africa at Deutsche Bank’s Asset and Wealth Management unit, said: “Over the past few years we have very much been in expansion mode in terms of products we’ve launched.

“We felt we reached a stage in our evolution where it made sense to review our product range in terms of whether there had been the anticipated demand and turnover on exchange we had expected.
“Some products had not met these levels after a fair time period of around five years so we have decided to close them.”

The majority of the db X-trackers closures are in niche products that have failed to grow substantial assets, said Mistry. Some issuers said that rapid growth and innovation in the ETP industry had led to a number of more specialist products being created that are harder to market and can take a long time to build assets.

–This article first appeared in the print edition of Financial News dated July 22, 2013

E*Trade swings to loss, aims to sell unit


E*Trade swings to loss, aims to sell unit

http://www.efinancialnews.com/story/2013-07-25/etrade-swings-to-loss-aims-to-sell-unit?omref=email_TradingTechnology

25 Jul 2013

E*Trade Financial swung to a second-quarter loss as the online brokerage took a $142 million charge related to a trading operation that it plans to sell.

E*Trade swings to loss, aims to sell unit

The process of finding a buyer for the business, which handles the stock orders of individual investors, is being run by Citigroup, people close to the discussions said.

E*Trade may sell the division, known as G1 Execution Services, or G1X, along with a commitment to send the buyer a certain amount of business from the online broker’s customers, they said. It is unclear how much the Chicago-based trading business might fetch.

On a conference call Wednesday evening with analysts, E*Trade chief financial officer Matthew Audette said the company is selling the business because of “tightening economics, operational and regulatory risks,” and that G1X “isn’t core to our retail customer business.”

He said New York-based E*Trade hopes to strike a deal for G1X in the next three to six months.

 

For the period ended June 30, E*Trade posted a net loss of $54 million, or 19 cents a share, compared with net income of $40 million, or 14 cents, a year ago. Adjusted earnings beat analyst estimates, and shares rose 4.6% after hours following the earnings report; they closed little changed on the Nasdaq Stock Market at $13.62.

E*Trade’s revenue in the second quarter fell 2.7% from a year ago, to $440 million.

E*Trade disclosed that the G1X business is for sale in its earnings release, confirming a report on the possible deal earlier Wednesday by The Wall Street Journal.

The E*Trade unit is known as a market maker; it handles stock orders through E*Trade’s online portal and through other discount brokers. Such market makers use computerised trading models to fill investors’ buy and sell orders, sometimes at better prices than are available on exchanges.

 

E*Trade is alone among the major online brokers in running such a market-making unit in-house, though its overall share of the business in May slipped below 7% from the roughly 8% it has held over the past year and a half, according to data from Raymond James Financial .

The length of time and percentage of orders that E*Trade would commit to sending the unit’s buyer are up for negotiation, two factors that would influence the deal’s valuation, said two of the people. An arrangement could be as long as 10 years, one person said.

E*Trade’s efforts to sell G1X come roughly five months after the online brokerage said a review of the order-handling practices between its broker-dealer and G1X found shortcomings in how the company measured “best execution.” The term refers to brokers’ regulatory obligation to provide the best price for customers’ trades in the shortest time frame.

E*Trade launched the review last fall after Kenneth Griffin, a former company director and head of Citadel LLC, previously E*Trade’s largest shareholder, raised questions about the pricing of customer trades. Citadel, a manager of hedge funds, also runs a trading division that competes with E*Trade’s G1X for online brokers’ business.

 

Griffin, whose firm twice rescued E*Trade in recent years, last year hired away several key traders from E*Trade’s international market-making unit. While E*Trade’s share of the retail market-making business trails that of larger rivals like Citadel, KCG Holdings Inc., Citigroup and UBS, its specialisation in trading certain securities like foreign-based stocks remains prized by other brokers.

Books containing information about the unit are already circulating among possible buyers, some of the people close to the matter said. Possible buyers include Citadel and Virtu Financial LLC, the people said.

Other discount brokers that owned similar operations have opted to exit the business, however, as specialist firms like KCG, formerly known as Knight Capital Group, and others built large-scale operations that paid handsome rebates to online brokers in return for the chance to trade individual investors’ orders. Such market makers also took on the risk of dealing with bad trades and exchange outages.

E*Trade has struggled for more than five years to recover from bad bets made on the US housing market and has set aside billions of dollars to offset losses in its mortgage portfolio.

 

Write to Jacob Bunge at jacob.bunge@dowjones.com and Brett Philbin at brett.philbin@dowjones.com

 

New Role for Buy Side in Corporate Bond Market: Liquidity Providers


New Role for Buy Side in Corporate Bond Market: Liquidity Providers

http://tabbforum.com/opinions/new-role-for-buy-side-in-corporate-bond-market-liquidity-providers?utm_source=TabbFORUM+Alerts&utm_campaign=12c4c4b950-UA-12160392-1&utm_medium=email&utm_term=0_29f4b8f8f1-12c4c4b950-271568421

Full document at:-
http://www.scribd.com/mobile/doc/154736561

New Role for Buy Side in Corporate Bond Market: Liquidity Providers?
With the shift in the corporate bond market from voice to electronic trading, and from capital facilitation by dealers to agency facilitation, will the largest institutional investors commit their own capital to replace that which has been withdrawn by dealers?
Corporate bond markets are being radically changed by a confluence of factors: new Basel III capital and liquidity rules, the MiFID requirements on transparency in bond markets, and the availability of innovative new platforms based on equity and FX market technology. These factors have already led to a reduction in capital commitment by dealers, even prior to the regulatory implementation of Basel III.

[Related: “In Search of Liquidity: The Transformation of the Corporate Bond Market”]

The shift from voice to electronic trading and from capital facilitation by dealers to agency facilitation are well established trends, but RFQ mechanisms are likely to continue to be necessary due to the clear differences between equities and FX on the one hand and most corporate bonds on the other. A key question is whether the largest institutional investors themselves might now choose to commit capital to replace that which has been withdrawn by dealers and to do this by making prices through order-driven and RFQ platforms. This would enable them to buy at the bid and sell at the offer, thereby taking out the spread. An increasing number of platforms are now All-to-All, thus enabling the buy side to act as capital providers.

For more on the technological innovation in and transformation of the corporate bond market, see Professor Scott-Quinn’s complete research paper, “European Corporate Bond Trading – the role of the buy side in pricing and liquidity provision,” below.

Institutional large-in-scale (LIS) crossing networks for bonds, such as Liquidnet provides for equities, and the use of reference pricing should enable investment institutions to transact with each other without broker-dealer, MDP or SDP intermediation. However, under recent draft proposals for MiFIR, European regulators have introduced a volume cap mechanism that may have a dramatic effect on dark trading in Europe – whether in equities or, in the future, in bonds. Regulatory control will be based on a (low) cap on the percentage of trading that can go through mechanisms using a reference price. This would seem to be only the most recent of a number of retrograde steps taken by the EU in terms of its implications for market liquidity.

The combination of Basel and EU regulation certainly has the potential to counter all the efforts of individual governments and the G30 to encourage corporations to raise finance for economic expansion through bond markets rather than through fragile banking systems in order to reduce systemic risk. At this stage it is too early to say if higher costs and reduced position taking by broker- dealers in response to regulatory change will result in higher funding costs for issuers of corporate bonds in Europe or if the innovations we discuss in the paper below may be able to offset at least some of these additional regulatory costs. Certainly at the moment, there is little sign on this side of the Atlantic that regulators are heeding the sentiment of SEC Commissioner Daniel Gallagher, who hoped that “the Commission … will understand the differences and interplay amongst the equities, debt and credit markets so that we can be a more sophisticated regulator of those markets.”

Professor Brian Scott-Quinn is Chairman and Director of Banking Programmes at the ICMA Centre, Henley Business School, and a former practitioner in the eurobond secondary market. Deyber Cano, a research assistant to Professor Scott-Quinn at the ICMA Centre, contributed to the paper.

NYSE Technologies’ Robson Calls for Collaboration; Pushes Shared Infrastructure to Reduce Costs


NYSE Technologies’ Robson Calls for Collaboration; Pushes Shared Infrastructure to Reduce Costs

http://low-latency.com/blog/nyse-technologies-robson-calls-collaboration-pushes-shared-infrastructure-reduce-costs/?utm_source=weekly&utm_medium=email&utm_campaign=ll_13-07-18

blog | July 3, 2013 – 5:59am | By Pete Harris

Nine months after taking the reigns at NYSE Technologies, CEO Jon Robson has begun to articulate a renewed vision for NYSE Euronext’s IT services operation with “A Call for Collaboration” to the financial markets. Of course, in Robson’s mind, that collaboration hopefully means trading firms will embrace the cloud platform, global network and open sourced middleware APIs that it has rolled out in recent years.

Via an open letter and a video posted on NYSE Technologies’ new TechTalk website, Robson suggests that “The economics of the industry clearly don’t support the content and infrastructure models that we’ve been using for decades … Market participants now need to ask themselves hard questions, such as how do I simplify my architecture? Is there a way to take a cost, put it into a single entity and share that cost?”

Unsurprisingly, Robson has answers to the hard questions: “An exchange that aggregates capabilities and liquidity, runs a highly secure network, and undergoes regulatory scrutiny, is an ideal entity to open up its platform for a community to share its capabilities, content, and code creating a new model for doing business – and in essence, changing the way world works.”

In order to execute on the vision of the new model, Robson has organised NYSE Technologies into three business focuses – Liquidity Solutions, Infrastructure Solutions and Content Solutions – all of which report into COO Terry Roche, who worked for Robson during their previous lives at Thomson Reuters.

Liquidity Solutions – under the direction of Adam Mazur, formerly with Goldman Sachs – runs the exchange’s data centres in Mahwah, NJ in the U.S. and Basildon, near London, in the U.K., and is also responsible for software solutions for matching engines, FIX connectivity and market access gateways.

Infrastructure Solutions – headed by Varghese Thomas, who joined in May from Savvis – comprises the global SFTI communications network, the FIX Marketplace network, managed co-location and hosting services and the Community Platform cloud offering, which offers both pre-provisioned and on-demand compute, storage and connectivity to support trading and downstream applications.

Content Solutions – which Roche runs himself – owns various low-latency, real-time and historical data services, including the Superfeed consolidated (crowd sourced to some) data feed, data feed handlers for third party markets and information vendors, and the Data Fabric middleware. It also develops the open source OpenMAMA API, which is administered by the Linux Foundation and provided via a free open source licence.

In the realm of content, the TechTalk website is clearly picking up on both the hype and reality of big data, highlighting NYSE Technologies’ data centric capabilities and success stories grouped within a “Data Factory” section.

Given the investment in OpenMAMA, it’s not surprising that Open Source – and general open collaboration – is another key topic on TechTalk.  Daryan Dehghanpisheh, previously many years with Intel, is playing a key role in NYSE Technologies’ open source and standards business push.

While Robson and NYSE Technologies are pursuing some lofty game changing business models, it’s worth noting that the ‘game’ might change on them as well. Recent press reports suggest that the exchange group – itself being acquired by IntercontinentalExchange for nearly $10 billion – might sell off NYSE Technologies. Other speculation is that the unit could be spun out as an independent company. Certainly Robson’s background – founding Moneyline, acquiring former employer Telerate, and then selling to Reuters – gives him requisite experience for managing such a process.

About the Author

Pete Harris

Editor and Publisher, Low-Latency.com

Pete Harris is Editor and Publisher of Low-Latency.com.  He is also President, Americas and Editor-at-Large at A-Team Group, a publishing, research and events company focused on the deployment of information technologies in the global financial markets.  Low-Latency.com is a service of A-Team.

Deutsche Borse and Liquidnet to launch block trading service


Deutsche Borse and Liquidnet to launch block trading service

http://www.atmonitor.co.uk/news/newsview.aspx?title=deutsche-borse-and-liquidnet-to-launch-block-trading-service

Published on   Jul 18, 2013

logo

Deutsche Borse will launch a new block trading service on Xetra MidPoint on 29 July and has named Liquidnet, the institutional trading network, as the Block Agent for this new service.

This new block trading model provides a platform where more than 240 Xetra members can trade directly with Liquidnet’s network of asset management firms. Xetra MidPoint’s Block Agent model will combine the liquidity of multiple sources, increasing the probability that large orders will be executed at midpoint.

“Connecting Liquidnet provides our members the opportunity to execute block sized orders in a manner that serves the specific requirements of this segment, with all advantages of exchange trading via Xetra MidPoint. The Block Agent model offers access to considerably greater block liquidity for Xetra MidPoint execution, increasing execution probability for all Xetra participants,” said Martin Reck, Cash Market Managing Director at Deutsche Borse.

Mark Pumfrey, Head of EMEA, Liquidnet, said: “We have long championed borderless equity trading by opening up investment opportunities for our members in markets where they can create value and improve their investment performance. When combined with an average execution size of €1.1 million on our platform, the Xetra MidPoint liquidity will significantly enhance institutional block trading in German stocks. We believe this cooperation will make trading of these stocks more efficient, drive performance, and lead to an increase in foreign institutional investment.”

All German shares that can be settled via the CCP may be traded using the Block Agent model, including those of the four selection indices DAX, MDAX, TecDAX and SDAX, as well as other small and midcaps.

Clearstream’s investment funds strategy for Latin America strengthens with Latin Clear joining Vestima


Clearstream’s investment funds strategy for Latin America strengthens with Latin Clear joining Vestima
Latin Clear Panama as central hub for investment funds across Latin America to use Clearstream’s post-trade solution Vestima/ International investors can now gain easy access to Panama-domiciled funds through Clearstream/ Regulatory changes: markets in Latin America open up for offshore funds
17. July 2013
Clearstream: Clearstream has taken an important step in strengthening its ties with Latin American financial markets by signing Latin Clear Panama as the first transfer agent (TA) to join its investment funds platform, Vestima. Accordingly, in the course of July 2013, investment funds domiciled in Panama will be eligible for order routing, settlement and custody at Clearstream.

The Vestima suite of services will bring increased operational efficiency and security benefits to the Latin American financial markets by providing centralised delivery versus payment (DVP) settlement services based on synchronous exchange of cash and securities between fund distributors and transfer agents.

Philippe Seyll, Member of the Executive Board of Clearstream and Head of Investment Funds Services, said the cooperation with Latin Clear and the migration of Panama domiciled funds to Vestima was key in light of the company’s Latin America funds strategy as it allowed international investors to gain easy access to these financial instruments.

“We are pleased to welcome the first TA in Panama, a major domicile for cross-border distribution of investment funds in Latin America, where markets are gradually opening up to offshore funds,” he said. “Our objective is to become a partner of choice for the financial institutions in the region that wish to enhance their investment funds offering.”

Clearstream is headquartered in Luxembourg which has more than EUR 2,500 billion (April 2013) assets under management in investment funds. Luxembourg is the second-largest funds market in the world after the US. Currently, more than 3,800 collective investment schemes are administered in and distributed from the Grand Duchy.

About Clearstream

Clearstream is one of the leading providers of investment funds services globally. It has more than 120,000 investment funds on its Vestima order routing platform and more than 7 million fund settlement instructions are processed every year. The company is also the largest contributor to the standardisation of funds processing worldwide.

Clearstream holds EUR 11.6 trillion in assets under custody making it one of the world’s largest settlement and custody firms for domestic and international securities. As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 53 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing.

About Latin Clear

Latin Clear is acting as central hub for Latin America as it has established settlement links to other markets in the region, such as Costa Rica, Nicaragua, El Salvador and Venezuela. Access to the Dominican Republic is in progress.

Panama is currently attracting an increasing number of international investors because of its stable government and the size of its financial sector. It is the largest international banking centre in Latin America with more than 150 banks from more than 35 countries and offers easy access to other Latin American markets.

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®


Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

http://perseustelecom.com/news/sao-paulo-based-blk-sistemas-financeiros-accelerates-trading-with-perseus-liquidpath/

Perseus Telecom

 

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

–        Perseus Telecom Brazil Connects BLK Sistemas Financeiros to Brazil Exchange in less than 50 microseconds

–        Perseus LiquidPath® Enhances Liquidity with Ultra-Low Latency Connectivity with BM&F Bovespa

SAO PAULO– 15 July 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity global networks, today announced that BLK Sistemas Financeiros has connected to the BM&F Bovespa through the Perseus Telecom LiquidPath connection of sub 50 microseconds. LiquidPath launched late in 2012 by Perseus, connects the ALOG/Equinix (SP1) datacenter with the BM&F Bovespa data center (CT1) in less than 50 microseconds Round Trip Delay (RTD).

Perseus Telecom winners of the Global Telecoms Business Innovation award in 2012 for building the fastest connection between the Nasdaq OMX datacenter in New York and the BM&F Bovespa data center in Sao Paulo, has since launched its LiquidPath product, which furthers the commitment to market-to-market trading. LiquidPath assists brokers, vendors and their customers, with international communications, infrastructure support and ultra low-latency last mile connectivity to exchanges.

Rogério Paiva Managing Director at BLK Sistemas Financeiros said, “We carefully selected Perseus Telecom, who is well known in Brazil for its exchange connectivity platform, LiquidPath, which has helped ensure the best performance locally for our customers.”

BLK Sistemas Financeiros is a specialized electronic & algorithmic trading service provider that assists in developing proximity colocation infrastructure for high speed electronic trading operations. The BLK customer requires a sophisticated ultra low-latency straight through processing environment, based on the latest technological advancements available.

“BLK Sistemas Financeiros is a great new addition to the Perseus Telecom community connecting to our global network from Brazil, said Marcos Guimaraes, President of Perseus Telecom Brazil, “BLK can now help its customers take advantage our LiquidPath infrastructure to provide access to the BM&F Bovespa for its trading customers, but also to other exchanges in the 60 global markets Perseus serves.”

# # #

About Perseus Telecom

Perseus Telecom is an award winning global, facilities based licensed carrier of enterprise and telecommunications services with a focus on ultra-low latency connectivity. Perseus provides the fastest routes between New York and Brazil exchange markets and was recently awarded for QuanTA, the fastest trans-Atlantic route between New York and London. The company also operates the fastest route between London and Frankfurt over its high-tech wireless/microwave service as well.

Perseus connects global markets with significant points of presence in New York, Chicago, Mexico, Tokyo, Singapore, Sydney, Hong Kong, London, Frankfurt, Stockholm, Moscow, Madrid, Milan and Dublin. The company’s management team has decades of experience in major finance, telecommunications and technology companies operates from offices in London, Dublin, New York, Chicago and Sao Paulo.

For more information about Perseus, please visit www.perseustelecom.com or contact us at +1 (212) 300-6813 or sales@perseustelecom.com.

PRESS CONTACT:

Dan Watkins

+1(347) 394-3068

marketing@perseustelecom.com

CLEARPATH ANALYSIS – West’s persistent fiscal uncertainty helps emerging market equities become “safe havens”


West’s persistent fiscal uncertainty helps emerging market equities become “safe havens”

http://www.atmonitor.co.uk/news/newsview.aspx?title=west-s-persistent-fiscal-uncertainty-helps-emerging-market-equities-become-safe-havens
Published on   Jul 04, 2013
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The search for yield in a constrained environment has caused significant rebound to emerging market equities, the Investing in Emerging Market Equities, report concludes. Over the last twelve months inflows into frontier equity funds have equated to roughly one quarter of assets under management. 1 But what drives this influx and how should investors isolate the appropriate geographies, governance and market volatility for best-value proposition.

The Investing in Emerging Market Equities, report, produced by Clear Path Analysis, in collaboration with M&G Investment, Allan Gray Africa Funds and Hermes Fund Managers debates how the West’s persistent fiscal uncertainty presents emerging market equities as “safe havens” for those with an increased appetite for risk.

According to Philip Gerson, Deputy Director, Fiscal Affairs Department, International Monetary Fund, “…many of them have paused their deficit reduction efforts in response to the weaker global environment.” But whilst an appropriate short-term response some “..emerging market economies still have fairly high debt ratios.”

Yet Gerson shares favourable economic predictions for 2014, particularly in more developed economies and argues that: “the gradual strengthening in advanced economies will be beneficial to emerging markets and low income countries in terms of increasing demand for their exports and commodity prices.”

Matthew Vaight, Fund Manager, M&G Investment, raises an important point regarding the state of corporate governance and influence of controlling shareholders in emerging markets: “In Brazil, China and Russia, for example, the state controls a large number of firms, enabling it to appoint personnel and direct corporate strategy. In China, 75% of the stock market by value is made up of state-owned enterprises (SOEs), in which the government retains a majority stake and exercises effective control.”

Vaight also stresses the diversity of governance within emerging markets. “In our opinion, South Africa has numerous businesses from banks to retailers that have exceptional operating practices as well as management teams that understand the importance of creating value for their shareholders and generate high returns on capital.”

Whilst conversely, he states: “there are markets such as Korea where companies are often controlled by families. These conglomerates frequently have complex and sprawling organisational structures and can be focused on empire building rather than generating returns for minority investors.” So carrying out the due diligence is vital particularly in those markets where it is questionable as to whether the management team is actually in control.

According to Andrew Lapping, Portfolio Manager, Allan Gray Africa Funds, the focus on emerging market equities should be on value not growth and that Africa in particular has good potential real returns. Lapping states “This is mainly because African equity markets are less developed, illiquid, under researched and often retail investor driven. These factors allow for discrepancies between the fair value of companies and their share prices to emerge.”

Lapping excludes South Africa in this as its “stock market has been a great place to invest over the past 15 years with returns of 13% per year, compared to nominal GDP growth of 10.3%.”

Lapping argues that market volatility, particularly on the African Continent, can make buying into negativity is a profitable strategy. “Kenya has a current account deficit problem (12% of GDP) and relies on foreign investments to settle the balance of payments. In 2011, a drought, among other issues, led to increasing inflation and a loss of confidence. The Kenyan shilling depreciated from KES85 to KES105/US$, while at the same time the Nairobi Stock Exchange 20 fell 18% in local currency terms, making for an excellent buying opportunity.”

Elsewhere Gary Greenberg, Head of Global Emerging Markets, Hermes Fund Managers, examines the value of Russia equities as an investment proposition. He asks whether “…the rest of emerging markets so unattractive as to make this modern pariah state look good in comparison, or are these specialists seeing something that others are missing?”

Greenberg states: “At the current earnings multiples (5x) it is more than one standard deviation under its historical mean (8x), and the discount to its universe of peers is 53%. Adjusting as one should for sector composition, the discount to the peers in Gems is 36%. Is this enough?” He believes it is.

On other geographies Lei Lei Song, Principal Economist, Office of Regional Economic Integration, Asian Development Bank, states: “We forecast Cambodia is going to grow about 7% in 2013 and 2014. It is a promising market. It has a good economic growth potential and a very strong demographic trend.”

“Myanmar is just starting to open up since late 2012. It is a frontier market and we predict its economy to grow about 6% in 2013. It has huge potential because it’s a very rich economy in terms of human resources, mineral resources, and it is also in a strategic position, connecting both South and East Asia.”

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