FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Marco Polo New World appoints Christian Robertson as CEO

NEW YORK – 03 FEBRUARY 2014 – Marco Polo New World, the leading provider of trading solutions for developed and emerging markets, today announced that Christian Robertson has assumed the role of Chief Executive Officer of the company. The Marco Polo New World Board of Advisers has carefully selected Mr Robertson for his unique financial services delivery experience garnered during nearly a decade of building trading platforms around the world.

Marco Polo New World appointed Mr Robertson to lead the firm based on the success as co-founder of Paladyne Systems, a leading provider of buy-side technology and services,  acquired by Broadridge Financial Solutions (NYSE: BR)  in September 2011.  Before Paladyne, Mr Robertson was the founder and President of GAA, a consulting firm providing high-end systems to the alternative investment industry, having spent his early career as a technology investment banker for Credit Suisse and later Merrill Lynch.

“I believe there is a tremendous opportunity for revenue growth and expansion of the Marco Polo New World product offering given our long-standing relationships with foreign brokers and our unique global trading reach,” commented Christian Robertson. “Marco Polo New World is able to leverage Perseus infrastructure services in new and existing markets.  Investing in the latest technologies, Marco Polo New World will be able to grow into new global markets and lines of business, while expanding our existing platform,” he concluded.

Marco Polo New World, established in 2000, was one of the original firms who set out to overcome the barriers to investing and trading between developed and emerging markets. Today Marco Polo New World, with its new focus and technology, has in place a global electronic trading platform that currently provides connections to 80+ plus countries representing more than 100 markets.

Dr. Jock Percy, Chairman of Marco Polo New World commented, “We are delighted to have Christian take the helm given his proven track record, innovative thought leadership and his ability to execute on deployment of a global trading technology business.”

Source: Marco Polo New World,03.02.2014

Filed under: Brazil, Latin America, Mexico, Trading Technology, , , , , ,

Avaloq positioned as a ‘Leader’ in Magic Quadrant for International Retail Core Banking

The Avaloq group, a leader in integrated and comprehensive banking solutions, is proud to announce it has been positioned in the ‘Leaders’ quadrant by Gartner in the recently released ‘Magic Quadrant for International Retail Core Banking (IRCB) 2013’ report. Avaloq sees this as recognition of its strong community work and ability to deliver a full-service BPO option to its customers.

For Avaloq being positioned in the Magic Quadrant is a confirmation of its success in the retail segment and its market vision. “We are convinced that our unique community including client banks, universities, associations and partners gives us that extra edge by gaining important market knowledge. The feedback coupled with our own vision and insights from our BPO centres ensure that we stay ahead of trends and develop product capabilities accordingly”, says Francisco Fernandez, CEO of Avaloq. Pascal Foehn, Head of Marketing and Sales HQ Avaloq, adds: “After having been named ‘best selling private banking solution in the world’ by IBS, we are proud of Gartner’s recognition as a leader that is able to address present and future needs of retail banks.”

In the report, Gartner positioned vendors based on two parameters: ‘completeness of vision’ and ‘ability to execute’. To be included in the IRCB 2013 report vendors had to demonstrate market traction and momentum as well as product capabilities in international retail core banking.

Gartner’s Magic Quadrant on international retail core banking (IRCB) software assesses vendors on the multi-currency products they offer in support of the bank’s financial transaction management in the retail banking market. Avaloq provides a fully integrated front to back banking solution and has a worldwide customer base of more than 100 banks, including tier one banks in the most demanding financial centres.

¹Gartner, Magic Quadrant for International Retail Core Banking, Don Free, Ethan Wong, October 8, 2013.

Source: Avaloq, 17.10.2013

Filed under: Banking, News, Wealth Management, , , ,

Reference Data Utilities Offer Cost Savings, but Challenges Remain DMS Review

Managed services and utilities can cut the cost of reference data, but to be truly effective managed services must be more flexible and utilities must address issues of data access and security.

A panel session led by A-Team Group editor-in-chief Andrew Delaney at the A-Team Group Data Management Summit in London set out to discover the advantages and challenges of managed services and utilities, starting with a definition of these data models.

Martijn Groot, director at Euroclear, said: “A managed service lifts out existing technology and hands it over to the managed service provider, while a utility provides common services for many users.” Tom Dalglish, CTO, group data at UBS, added: “Managed services run data solutions for us and utilities manage data for themselves.”

Based on these definitions, the panellists considered how and why managed services and utilities are developing. Dalglish commented: “We need to move away from all doing the same things with data. Managed business process outsourcing services are well understood, but utilities present more challenges – will they be run as monopolies and make data difficult to access, what is the vendor interest?” Steve Cheng, global head of data management at Rimes Technologies, added: “The market has moved on from lift outs. New technologies mean managed services can be more flexible than outsourcing.”

It is not only the nature of available services that is driving financial firms to third-party providers, but also cost and regulation, both of which are high on the agenda. Jonathan Clark, group head of financial services at Tech Mahindra, explained: “Cost is significant, but regulation is the number one issue. Regulations require more holistic and high quality data and that is high cost for firms, so they are trying to get data quality at a reasonable price point.”

Dalglish focussed on cost, saying: “The business case is about money. Large companies have lost the ability to change, a utility can help to reduce costs. Banks are looking at these data models to regain efficiencies they have lost internally and are difficult to rebuild.”

Cheng described the reference data utility model as being more like the satellite television model than water or electricity models, and noted that Rimes’ experience of customers is that they want to innovate, but not allow their cost base to increase.

While consensus among the panellists was that managed services and utilities can provide cost savings, they also agreed that it is not the cost of data, but the infrastructure, sources, services and people around the data that rack up the cost to an extent that is leading firms to seek lower cost solutions. Firms that opt to use a data utility can convert capital costs to expenditure and chip away at elements such as multiple data sources.

Dalglish commented: “If you can achieve savings of 30% to 35% that is good, but this is a conservative estimate and it should be possible to save more going forward.” Cheng added: “The rule of thumb is that for every £1 spent on data licences, £2 or £3 is spent on infrastructure and staff. The need is to identify those hidden costs so that the use of a managed service or utility can be justified.”

Returning to the pressure of regulation, Delaney asked the panel whether managed reference data services and utilities would be regulated in the same way as banks. While this is not happening at the moment, some panel members expect it to happen and warn that utilities may find a way around regulation by using disclaimers. Cheng said: “Forthcoming regulations are very prescriptive about data models and regulators may look at the whole data chain. This means utilities and managed services may in future be subject to the same regulatory requirements as other market participants.”

The concept of managed services and utilities is not new. Dalglish recalled an effort to set up a utility that did not take off back in 2005 and said that the moment has now come for utilities as the technology stack has improved, data is better understood and this is a good time for competition and collaboration in the market. Groot added: “Data delivery mechanisms have changed, the bar has been raised on projects and the business case for an internal service is difficult, making external services attractive.” Panellists also noted technologies such as the Internet and cloud facilitating mass customisation, and the benefit of utilities that are built for a single purpose.

With so much to offer, Delaney questioned the panel on what type of organisations will benefit from third-party utilities. Panel members said both large and small firms could benefit, with large companies reducing today’s massive data costs and small firms being able to hand off non-core reference data services. Clark added: “Firms that can benefit most are those that find it difficult to discover the cost of data, perhaps because it is managed in different departments or geographic regions. But these firms are also the hardest to convert because they don’t know their costs.”

A question from the audience about defining reference data, making it open and putting it in a utility for all to use, met a consensus response from panel members who said it is a great idea, but will not happen because there are too many vendors with vested interests in the market.

Closing with a blue skies scenario, Delaney asked how far the utility concept could go. Groot concluded: “There is a need for operational procedures and recovery planning, but utilities could go a long way as there is a lot of data in scope.”

Source: Reference Data Review, 08.10.2013.

Filed under: Data Management, Data Vendor, Reference Data, Standards, , , , ,

Deutsche Börse exclusive licensor of BSE (Bombay Stock Exchange) market data to international clients

Deutsche Börse will be exclusive licensor of BSE market data to international clients New partnership gives market participants easier access to market data and information products of both exchange groups Deutsche Börse Market Data + Services and BSE today announced a partnership under which Deutsche Börse will act as the exclusive licensor of BSE market data and information products to all international clients. The new cooperation will benefit existing and potential customers by giving them access to both exchanges’ market data products under a single license agreement. A signing ceremony was held in Frankfurt on 2 October 2013.

The partnership also allows Deutsche Börse to deepen its client service capabilities in important Asian markets such as India, as well as strengthen the strategic alliance between the two exchanges.

“By partnering with BSE we give customers access to the full suite of real-time, delayed and end-of-day data products offered by both exchanges under a single license agreement. This approach meets clients’ market data needs while reducing their administrative requirements and increasing overall efficiency,” said Georg Gross, Head of Front Office Data + Services, Deutsche Börse.

“BSE is once again happy to partner with Deutsche Börse as this will enhance BSE’s visibility with international clients in the area of market data and information products. BSE will also get access to the innovative product development expertise of Deutsche Börse, which shall help BSE to provide an improved customer experience,” said Balasubramaniam Venkataramani, Chief Business Officer, BSE Ltd.

Under the new cooperation, Deutsche Börse will be responsible for sales and marketing of all BSE market data products to customers outside of India, while BSE continues to serve its domestic clients. Deutsche Börse will also share joint responsibility for product development and innovation, which includes extending its existing and the creation of new market data solutions and infrastructure to support BSE’s product offerings.

Products covered under the cooperation agreement include Real-time, Delayed and End-of-day data for BSE’s Equity and Derivatives markets, corporate data such as Results, Announcements, Shareholding Patterns and Corporate Actions as well as Real-time and Delayed Indices.

This market data agreement also further strengthens the cooperation between Deutsche Börse and BSE that began earlier this year. In March 2013, the two exchanges announced a long-term technology partnership in which BSE will deploy Deutsche Börse Group’s trading infrastructure.

Source: Bobsguide, 07.10.2013

Filed under: Data Management, Data Vendor, Exchanges, India, Market Data, , , , , , , , , ,

PERSEUS launches Precision Time Service in CME AURORA Data Center

CHICAGO and NEW YORK, October 3, 2013 – Perseus Telecom and CME Group, the world’s leading and most diverse derivatives marketplace, today announced a new service offering called High Precision Time™. This enables customers to synchronize their time systems across a multitude of data centers where Perseus offers this service and is available at CME Group’s data center in Aurora, IL effective immediately.

 The service includes access to a National Institute of Standards and Technology (NIST)-certified GPS antenna as well as Network Time Protocol (NTP) and Precision Time Protocol (PTP) connectivity with nanosecond accuracy to the Coordinated Universal Time UTC(NIST) timescale.

 “The build out of High Precision Time™ with the CME Co-location Services Group in Aurora, was an important undertaking in helping our mutual customers mitigate the risks of poor or out of sync time stamps when disseminating and trading on sensitive market information,” said Andrew Kusminsky, Chief Operating Officer at Perseus Telecom. “We look forward to serving trading firms and vendors such as those within CME Group’s data center which require a high level of responsibility in compliance and high precision trading.”

CME Co-Location Services will provide cross-connect access to High Precision Time™ with the following services now available:

  • Certified NIST GPS Antenna access
  • Certified UTC(NIST) timescale accuracy and reporting
  • Choice of delivery protocols: NTP (Network Time Protocol) and PTP (Precision Time Protocol)
  • Choice of connectivity access: RJ45 copper, COAX Cable, 1Gbps, 10Gbps and  Dedicated fiber cross connect

“We are committed to providing the CME Group trading community with the proper and relevant technology needed in a high-tech datacenter environment,” said Craig Mohan, Managing Director, Co-Location and Data Center Services for CME Group. “We have partnered with Perseus Telecom to make this service available to all customers located in Aurora at a time when regulatory changes and the need to have more precision in reporting trading events are crucial to sound risk management.”

Source: Perseus, 03.10.2013

Filed under: Exchanges, Trading Technology, , , ,

Pioneers and Leaders of Emerging Markets Trading Launches: Marco Polo New World

Marco Polo New World redefines global trading solutions through innovation and reliability

Perseus Telecom providing ultra-low latency connectivity and infrastructure to Marco Polo New World

NEW YORK – 30 September 2013 – Recently acquired Marco Polo Securities today announced that it has integrated with ‘Marco Polo New World.’ The Marco Polo New World vision encompasses new management along with next generation technology, befitting the firm’s testament to reliability and performance that have kept loyal financial services customers in place for fourteen years.

Cliff Goldman, CFO and President of Marco Polo, stated, “Launching Marco Polo New World coincides precisely with the strategic repositioning the firm has made, in the context of being a vendor of strength and reliability for the customers we serve in developed and emerging markets.”

Established in 2000, the original firm set out to overcome the barriers to investing and trading between developed and emerging markets. Today Marco Polo New World, with its new focus and technology, has in place a global electronic trading platform which currently provides connections to 70 plus countries representing more than 100 markets. This trading platform has an extensive global network of broker dealers and asset managers that enjoy neutrality and flexibility, all whom are backed by an experienced and knowledgeable service team that works around-the-clock.

Defining global trading solutions

  • Premier global electronic trading provider with experienced and professional customer support
  • Committed to continually providing new gateways to Emerging Markets
  • Strong new leadership and vision, committed to innovation and reliability

Anthony Orantes, Managing Director of Marco Polo New World, says, “Customer feedback has been phenomenal throughout the Marco Polo New World launch. We have strong support and backing by Perseus Telecom, which helps our customers take advantage of the Perseus global ultra-low latency connectivity to exchanges and trading venues. We also selected a world-class management team comprised of executives with significant experience operating in global markets, who understand market structure, advanced technology, and electronic exchange trading,” he concludes.

‘Defining global trading solutions’ is central to the Marco Polo New World value proposition. “Our New World brand name, and even our logo, is based on innovation, technology, and connectivity.  This core value reinforces what we are committed to deliver to our global customer base,” said Kamran Rafieyan, Director of Marco Polo New World. “With the new leadership in place our firm can deliver a higher level of service for our current and future customers.”

With the new management team of Dr. Jock Percy, Marco Polo New World Chairman, Cliff Goldman, CFO and President of Marco Polo Securities, Anthony Orantes, Managing Director Sales, and newly appointed Kamran Rafieyan, Director of Marco Polo New World, the company’s vision is being executed by a team of trusted, experienced, and performance-driven partners.   Under the guidance of this leadership, Marco Polo New World will work closely with its customers to help them navigate through the array of complexities in today’s global trading markets.

Perseus provides network and infrastructure to Marco Polo New World resulting in significant advantages for the firm and its customers. In addition to more efficient operations for the company, by utilizing the Perseus award winning ultra low latency network, Marco Polo New World customers will be availed to increased trading speeds.

Marco Polo New World, through its local exchange and brokerage relationships, offers intra-market connectivity and routing to brokers and exchanges in more than 100 markets. “Perseus Telecom is a global market-to-market exchange connectivity provider with the lowest latency available, and it is now supercharging the Marco Polo New World platform,” said Dr. Jock Percy, CEO of Perseus Telecom. “Perseus serves a significant number of trading firms, exchanges and technology providers with unsurpassed speed and precision,” Percy added.

Source: MarcoPolo & Perseus,30.09.2013

Filed under: Asia, Latin America, Trading Technology, , , , , , , , , , , ,

NYSE Launches Data-as-a-Service

NYSE Technologies, the commercial technology division of NYSE Euronext (NYX) and First Derivatives, a provider of software and consulting services to the capital markets industry, are collaborating to create a new suite of historical data ‘as a service’ solutions.

Combining NYSE Technologies’ historical and real-time data expertise covering cash, options, futures and corporate actions with First Derivatives’ products and market expertise, the Tick as a Service offering will build into a suite of innovative market services for clients to gain efficient access to large data stores for analytical back testing and compliance.

“By integrating First Derivatives’ suite of services with our diverse portfolio of technology solutions, including our consolidated feed service, we can offer comprehensive data collection, storage, and analysis ‘as a service’ to our entire global trading community,” said Jon Robson, CEO, NYSE Technologies. “This new service will allow participants to move from a client deployed to managed service for the storage, support and delivery of tick history infrastructure to back-test their algorithms and interrogate their data through a flexible, fully-managed solution.”

The Tick As A Service is the first of a number of historical data solutions NYSE will offer.

“Our collaboration with NYSE Technologies will deliver substantial benefits to clients – improving time to market while efficiently minimizing operational overhead and reducing costs,” said Brian Conlon, CEO, First Derivatives. “I am delighted that First Derivatives is forging a relationship with one of the most capable service providers in the global capital markets community who understand that the community needs managed solutions to address commoditized services and thus release capital for differentiating opportunities.”

NYSE Technologies offers a diverse array of products and services to the buy side including order routing, liquidity discovery and access to a community of over 630 broker-dealers and execution destinations globally; and to the sell side, including high-performance, end-to-end messaging software and market data products; and market venues and exchanges, including multi-asset exchange platform services, managed services and expert consultancy.

NYSE Technologies’ technology portfolio includes a broad array of real-time, historical and reference data alongside the capital markets community cloud, a hosted consolidated feed service (SuperFeed), and one of the world’s largest FIX-based order routing networks (Marketplace), all available across the Secure Financial Transactions Infrastructure (SFTI) network.

First Derivative’s flagship Delta suite of products include Delta Flow, Delta Data Factory, Delta Algo, Delta Margin and Delta Stream which are used in high volume, low latency environments. Combining key elements of each company’s product sets and unique functionality, NYSE Technologies and First Derivatives will develop a one-of-a-kind solution delivering an innovative suite of high-performance services that enhance real-time trading, CEP, market data and trading applications.

Source: NYSE Tech, 18.09.2013

Filed under: Data Management, Data Vendor, Market Data, , , , , , , ,

VAM: Vietnam Market Analysis August 2013

Admist concerns on capital outflows due to U.S Fed tapering and fear of Syria war, the market retreated quite badly in August with foreign net selling of USD 41.8mn across the 2 bourses. By the month-end, VN Index lost 3.7% to close at 472.7 whilst VN30 tumbled 1.72%. HNX was the best performer of the 3 indices when it only edged down 0.49%, closing at 61.19.

Read full analysis VAM Monthly Newsletter – August 2013.

Buoyant FDI continues to support recovery

As of 20th August, registered FDI reached USD 12.6bn, soaring 19.5% from a year earlier.Thiswas backed by 768 new projects mostly focusing on the manufacturing sector. Meanwhile, the FDI disbursement edged up 3.8% y-o-y to USD 7.6bn and became a key factor contributing to the marked improvements in production activities. Indeed, while the employment index for the manufacturing sector in SOEs and private sector showed a negative growth, that in FDI sector still increased 5.6% y-o-y. Besides, FDI enterprises continued to be the main driving force to push export as they are contributing more than 60% of export and USD 2.7bn of trade surplus. YTD export turnovers advanced 14.7% y-o-y as of end August, however the YTD trade balance still suffers little deficit of USD 577mn due to a higher pace of import growth.

CPI accelerates but is still under control

The August general consumer price index edged up 0.83% m-o-m compared to previous month. Consequently, the year on year headline CPI was lifted up to 7.5% y-o-y, from 7.29% y-o-y in July. While aggregate demand was still weak, cost push effect became the primary reason for the return of inflation, in which electricity and gasoline price was adjusted up 5% and 2%, respectively. The healthcare basket, which was adjusted up remarkably in Hanoi, clearly produced the strongest effect. Fortunately, it only contributed little effect to the month-on-month CPI growth. The government’s inflation target of 7-8% would likely be met provided that there is no significant shock of gasoline price in the rest of this year.

Fast tracking VAMC

Sector-wide NPL figure at the end of 1H2013 was announced at 4.65%. This figure was indeed encouraging as NPL has fallen sharply from 8% by the end of 2012. 30 credit institutions that had NPL higher than 3% will be forced to bring down NPL level to 3% by selling bad debts to VAMC. In a recent interview, VAMC’s CEO said that in the next 2 months VAMC will issue bonds to swap for VND 10 trillion worth of bad debts of 10 banks. Banks with highest NPL will be given priority to sell bad debt to VAMC. The speedy execution of VAMC hopefully would help to clean up sector-wide bad debt more swiftly by year end.

More banking resolution to restructure banking system comprehensively

The PM signed a Resolution that allows SBV to assign financially strong banks or SBV itself, if there is no appropriate bank, to purchase stakes in weak banks which were unable to increase their capital or restructure themselves. Strong banks are requested to assist weak banks in both finance and management until their conditions come back to normal or acquired by other parties. This supportive resolution, together with VAMC formation, has clearly demonstrated the government’s determination to restructurethe banking system and tackle the NPL issue.

 More details on raising foreign ownership limit (FOL) plan available

According to the HOSE, the proposal on issuing Non-Voting Depository Receipts (NVDRs) was submitted to MoF. With the same model as Thailand NVDRs, an SBV subsidiary will buy and hold 10% of total outstanding shares of listed companies and issue equivalent NVDRs to foreign investors. Foreign investors holding NVDRs will be fully entitled to company financial benefit, but not voting rights. NVDRs will be converted to normal shares when foreign room is open. This NVDRs model will be applied to all companies. However, we do not think it will happen soon this year due to the amount of preparation required.

 Our View – 8 months of the year has passed and the economy has started showing some modest improvements. Inflation is under control and the government’s target would be likely to be met.  More affordable borrowing cost is supporting production activities and making business environment more attractive.  In addition, gold market has been gradually stabilized as the gap between domestic and global prices has been falling to half of previous high level. These improvements in economic conditions have prompted us to believe that the economy seems right on track for a gradual recovery.  Furthermore, the government’s serious effort in restructuring the banking sector and the future lifting of foreign ownership limit gave us reasons to be (cautiously) optimistic about the market despite recent pullbacks due to external factors, which actually revealed buying opportunities for some good stocks we have been watching.

Source: VAM, 11.09.2013

 

Filed under: Services, Vietnam, , , , , , , , ,

Brazil:XP Investimentos offers Global ULL Access to BM&F Bovespa with Perseus

XP Investimentos connects with the Perseus ULL network for order routing to BM&F Bovespa

XP Investimentos choose RCB compliant Perseus network for sponsored international trading

SAO PAULO and NEW YORK – 28 August 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity global networks today announced that XP Investimentos with offices in Sao Paulo and New York, has established an ON-NET presence on the Perseus Telecom global exchange network.

XP Investimentos is a market leading broker dealer and the largest independent broker dealer in Brazil. XP executes approximately seven percent of the Bovespa equity volume on a daily basis and is responsible for twenty percent of all options volume on the Bovespa. XP Investimentos is also the second largest Ibovespa futures broker on the BM&F making it a full service broker deal in all Brazilian exchange securities.

The strategic network connection with Perseus allows XP Investimentos clients in the US, Europe and Asia to access Brazilian exchange market data and trade execution over the Global Telecoms Business Innovation Award winning link to Brazil.  An XP customer connects through sponsored access over the Perseus ultra low latency network with more than sixty global points-of-presence.

Perseus has operated the fastest market-to-market network connection between New York and Brazil from the datacenters of Nasdaq OMX and the BM&F Bovespa for almost two years while working tirelessly to enhance performance. Dozens of companies within financial markets including exchanges, banks, brokers, high frequency traders, market data and order management vendors have all found advantageous opportunities with accelerated speed over this unique Perseus network.

Customers have selected Perseus Telecom for the fastest connections from Chicago to New York, New York to Brazil, New York to London, London to Frankfurt and with other key market-to-market connections. Moreover, Perseus customers rely on best-in-class speed to market backed by a performance driven “Walk-Away” Service Level Agreement (SLA).

Brian Sweeney, Managing Director of XP Securities in New York, said, “the Brazilian trading market continues to expand its appeal around the world, making it more important for XP to offer simplified access to our customers and interested counter parties.”

Marcio Castro, Chief Information Officer of XP Investimentos and XP Securities added, “By having the Perseus connection in place, XP will provide clients with the option for the fastest sponsored access to the BM&F Bovespa from many points around the world.  Mr. Castro added, “XP chose Perseus because it is the fastest network between our two most important markets New York and Brazil. It is highly reliable and meets the RCB compliant features needed to move trades into the BM&F Bovespa exchange.”

Dr. Jock Percy, CEO of Perseus Telecom, commented, “Perseus has built a global network from market to market precisely for major market leading broker dealers such as XP Investimentos. We are very happy XP has chosen to allow its buy-side customer to connect with XP over Perseus, further bringing markets together regionally and internationally.”

Source: Perseus, 28.08.2013

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, Trading Technology, , , , , , ,

Option the Dragon: Stock Options set for launch in China

On August 6, 2013, Chinese securities companies received ‘the notice of preparing the initiating stock options full simulating trading works’ sent by the Shanghai Stock Exchange. This information implies that SHSE is already fully prepared for the launching of stock options. Although there is no clear timetable for launching the stock options, it is likely that they will appear in Chinese capital markets in 2013 or 2014.

Exchange traded stock options are new to Chinese capital markets and these derivatives provide a number of benefits. For one, both long and short-term trading are accessible and, similar to other derivatives such as futures, t+0 is allowed. Another benefit, which is an advantage over futures, is that leverage is provided but buyers can only lose the amount that they paid for the option. Options traders can also execute more complicated strategies through the combination of buying and selling call and put options, including straddles and spreads. Moreover, stock options are perfect hedging tools for individual stocks. Currently, Chinese stock index futures can only hedge the risks of the CSI 300 index and can not directly hedge non-systematic risks from individual stock options. And, despite providing leverage, security companies charge high transaction fees and interest rates for customers interested in selling short and buying long. Furthermore, the introduction of stock options comes with a high minimum threshold, which may largely change the structure of investors in the stock market by increasing the proportion of institutional investors. Thus the introduction of stock options may largely change the landscape of Chinese stock markets and may stimulate trading volumes.

However, there are also potential problems and doubts from the public that my come with the introduction of Chinese stock options. One issue regards the minimum threshold for investors of stock options. Some market analysts estimate that this threshold could be as high as one million yuan, which is higher than thresholds for index futures and securities lending services from securities companies. Currently, only 1% of accounts in the stock market can meet this requirement. Critics argue that stock options may serve as a tool to short the market by institutional investors and rich individuals, who may be in a disadvantaged position. But there are also analysts stating that the threshold may be lower, which would give normal individual investors a better opportunity to participate. The minimum threshold will depend on the final decision from CSRC.

Another problem has to do with the underlying stock that stock options are based upon. Currently, it seems as though only very large blue chip listed companies can enjoy stock options, so not all stocks can be optioned. Because large-cap stocks fluctuate less dramatically than small-cap and medium-cap stocks, the meaning of stock options may not be as transparent as in the fully opened western markets. But for institutional investors like mutual funds, as large-cap stocks take larger proportions of their shares, stock options may be an ideal hedging tool for stabilizing the performance of their portfolios. As current stock markets have adopted t+0 and t+1 trading, short-term day trade for hedging is not feasible. Thus traders may either choose longer-term hedging strategies or speculate through high-frequency intra-day trading.

Furthermore, large amounts of speculation in stock options may lead to dramatic fluctuations in stock prices. Similar to trades within A-share markets, the cost of short-selling is much higher than longing the stocks. So under the current unbalanced system, both hedgers and speculators may choose short in the stock options and the performance of A-share markets in the future may weaken. This has already been proven from the stock index future’s impact on A-share stock markets.

In conclusion, despite the risks, the launching of stock options is important for the development of Chinese capital markets.

Source: KapronAsia, 20.08.2013

Filed under: Asia, China, Exchanges, News, Risk Management, , , , , , , ,

Mexico: FIBRAS (REIT´s) drive BMV Mexicos Stock Exchange listings

17 Placements that have been made in the Bolsa Mexicana de Valores (BMV) so far in the year, five correspond to Fideicomisos de infraestructura en bienes raíces (Fibras).

These five trusts represent 34% of all placements in the year. This percentage shows the strength they mean to the Mexican stock market.

In addition, the participation of Fibras is remarkable for its amount of placement, since participates with 46.377 billion pesos, of the approximately 120 billion pesos collected until now.

But if the historical figure of Grupo Financiero Banorte is not considered- 27.815 million pesos-the capital gathered at the BMV is 91.568 billion pesos and of this amount, the resources obtained through the Fibras is close to 51%.

Then, five Fibras have collected slightly more than half of the resources at the BMV only from January 30 to July 24 this year.

The percentage of resources obtained by the trusts gives certainty and reflects a favorable perspective that constitutes one of the main platforms of financing for companies operating in the country, as well as an important investment vehicle.

Given the positive evolution of the Fibras in so far this year, José Manuel Allende, Deputy general director of promotion and planning of the BMV, did not rule out that in the remainder of the year new placements of these trusts could be announced .

The launch of a new Fibra, of Grupo Danhos is expected for next September. While today there are six trusts from investment in real estate listed in BMV: Fibra UNO, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra and Fibra Shop.

Performance and operability of the Fibra has excelled since they went to the Mexican stock market, already reaching high levels of operation and in accordance with the liquidity, the BMV index, two trusts are in the segment of high liquidity and three more are in a midrange, said Jorge Placido, director of analysis and investment strategy of Vector.

No doubt it was an instrument with very good acceptance among investors and is expected to grow interestingly in the future, because it has several advantages.

For the real estate sector, the arrival of the Fibras brought important benefits that will also impact on the growth of the productive sector construction Mexico and represents one of the best ways to access funding.

Listings  BMV 2013 from January 30 – till July 24, 2013

DATE

ISSUER

AMOUNT

(MXN)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

(Judith Santiago / Mexican Business Web)

Related posts:

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Mexico: Fibras acaparan la colocación bursátil MBV

De las 17 colocaciones que se han realizado en la Bolsa Mexicana de Valores (BMV) en lo que va del año, cinco corresponden a los Fideicomisos de infraestructura en bienes raíces (Fibras).

Estos cinco fideicomisos representan 34% de todas las colocaciones en el año. Dicho porcentaje muestra la fortaleza que significa la actividad inmobiliaria para el mercado bursátil mexicano.

Además, la participación de las Fibras es destacable por su monto de colocación, ya que emite 46,377 millones de pesos, de los aproximadamente 120,000 millones de pesos hasta ahora recabados.

Pero si no se considera la cifra histórica del Grupo Financiero Banorte -27,815 millones de pesos-, el capital recabado en la BMV suma 91,568 millones de pesos; de este monto, los recursos obtenidos por medio de las Fibras representa una participación cercana a 51 por ciento.

Entonces, las cinco Fibras han recabado poco más de la mitad de los recursos en la BMV tan solo del 30 de enero al 24 de julio de este año.

El porcentaje de recursos obtenidos por los Fideicomisos da certeza y refleja una perspectiva favorable de que constituye una de las principales plataformas de financiamiento para las empresas que operan en el país, así como un importante vehículo de inversión.

Dada la evolución positiva de las Fibras en lo que va del año, José Manuel Allende, director general adjunto de Promoción y Planeación de la BMV, no descartó que en lo que resta del año se anuncien nuevas colocaciones de estos Fideicomisos.

Para septiembre próximo se espera el lanzamiento de una nueva Fibra, la de Grupo Danhos. En tanto que a la fecha hay seis Fideicomisos de inversión en bienes raíces listadas en la BMV: Fibra Uno, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra y Fibra Shop.

El desempeño y operatividad de las Fibras ha destacado desde que salieron al mercado de valores en México, ya alcanzan altos niveles de operación y de acuerdo con el índice de bursatilidad de la BMV, dos Fideicomisos se encuentran en el segmento de alta bursatilidad y tres más están en un rango medio, dijo Jorge Plácido, director de Análisis y Estrategia de Inversión de Vector.

Sin lugar a dudas ha sido un instrumento con muy buena aceptación entre los inversionistas y se prevé que tenga un crecimiento interesante en el futuro, ya que tiene diversas ventajas.

Para el sector inmobiliario, la llegada de las Fibras trajo importantes beneficios que impactarán también en el crecimiento del sector productivo construcción México y representa una de las mejores vías para acceder a financiamiento.

EMISIONES BMV 2013  DEL 30 DE ENERO AL 24 DE JULIO

FECHA

EMISOR

MONTO

(*MDP)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

* Millones de pesos  (Judith Santiago / Mexican Business Web)

 Artículos relacionados

  1. Fibras tras proyectos de infraestructura
  2. Fibras aportan liquidez a desarrolladores inmobiliarios
  3. Fibras impulsan construcción de corporativos

Source: MexicanBusinessWeb, 19.08.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Risk Management Mexico PRMIA: Retos y Riesgos de la Industria de la Construcción en México

Retos y Riesgos de la Industria de la Construcción en México: el caso de las empresas desarrolladoras de vivienda

Los retos que enfrenta la industria de la Construcción, particularmente dentro del sector de la Vivienda, han sido producto de diversos cambios y políticas de carácter económico. Se analízarán estos impactos y las perspectivas que se tiene sobre la industria en el corto y mediano plazo.

Contenido:

- Entendimiento del entorno económico actual de México
- Modelo de Riesgo Industria
- Riesgos que enfrenta la industria de la Construcción
- Análisis de los principales indicadores del sector
- Situación actual de las constructoras de vivienda en México

Impartido por: Mtro. John Soldevilla
Director General ECOBI (Economy, Business & Indicators)

Fecha: Agosto 22, 19:00 hs

Lugar: Escuela Bancaria y Comercial, División de Posgrado
Centro de Estudio y Convivencia
Dinamarca no.32 esq. Hamburgo, Col. Juárez  México, D.F.
 
Registro y Detailles ver: PRMIA Mexico
 
SOURCE: PRMIA Mexico 15.08.2013

Filed under: Events, Latin America, Mexico, Risk Management, , ,

London Stock Exchange to supply technology to Argentinian CSD

The London Stock Exchange (LSE) is to become the technology provider to Caja de Valores (CVSA), the Argentinian central securities depository (CSD). The two parties signed a partnership agreement ahead of the depository’s immediate priority which is to support the country’s new Bolsa & Mercados Argentinos (BM&A) exchange.

The deal means the LSE’s trading platform will shortly be rolled out in the country. MillenniumIT, the LSE’s technology arm, is the partner who will provide the capital markets technology and expertise to CVSA, which will then use it to support the new Argentinean exchange.

B&MA is a partnership between the Buenos Aires Stock Exchange and Merval, the association of Argentine brokers responsible for market operation in Buenos Aires. The joining of the two venues has been spurred on by Argentina’s Congress who last year approved a sweeping capital markets reform package.

Commenting on the deal, Ernesto Allaria, director of B&MA, said: “Selecting MillenniumIT as our technology provider offers B&MA significant opportunities to take advantage of more globally interconnected markets. This represents an important step forward for B&MA as well as the rest of Argentina’s capital markets.”

Source: Bobsguides, 01.08.2013

Filed under: Argentina, Exchanges, Latin America, , , , , , ,

Follow

Get every new post delivered to your Inbox.

Join 76 other followers