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Brazil: BTG Pactual Buys Generali’s BSI (Banca Svizzera Italiana) Swiss private-banking Unit for $1.7 Billion

Grupo BTG Pactual (BBTG11), the only investment bank publicly traded in Brazil, agreed to buy Assicurazioni Generali SpA (G)’s Swiss private-banking unit for 1.5 billion Swiss francs ($1.7 billion) to help build a global private-banking platform.

BTG will pay for BSI Group with 1.2 billion francs in cash and 300 million francs of shares in units listed in Sao Paulo, Generali said in a stock-exchange statement today. The Trieste, Italy-based company said it will book a loss of about 100 million euros ($136 million) for the transaction, while the deal will add about 9 percentage points to its Solvency 1 ratio.

The Brazilian lender controlled by billionaire Andre Esteves is expanding internationally as the country’s growth slows. It’s added units in Mexico and Colombia, and in January Esteves said he planned to open offices in Geneva, Houston and Singapore as the firm expanded in commodities. Last week, it agreed to acquire Global Atlantic Financial Group Ltd.’s reinsurance unit Ariel Re.

“This acquisition reflects our confidence in the tradition and strength in Switzerland as a global financial center,” Esteves, the bank’s chief executive officer, said in a statement. “It’s an opportunity to build one of the biggest global private-banking platforms.”

Photographer: Simon Dawson/Bloomberg

Assicurazioni Generali SpA Chief Executive Officer Mario Greco is selling BSI as part… Read More

BTG was unchanged at 34.15 reais at 10:31 a.m. in Sao Paulo. Generali reversed earlier gains, falling 0.1 percent to 15.38 euros in Milan, valuing the insurer at 24.1 billion euros.

Global Platform

The acquisition will almost double BTG’s assets under management to create a wealth- and asset-management business with more than $200 billion in assets, BTG said. The bank plans to keep the BSI brand for its global wealth-management platform.

“The acquisition is in line with BTG’s strategy to diversify revenue,” Ricardo Kim, an analyst at brokerage XP Investimentos CCTVM SA in Sao Paulo, said in a report today. He said the transaction was positive for BTG.

Brazil’s rising inflation and slowing growth has led to a drought in the nation’s initial public offerings, reducing investment banking revenue. BTG has been building a global commodities business since last year as part of its strategy to offset declining investment banking fees.

Brazil, which hosted this year’s World Cup, has expanded at an average annual pace of 2 percent since 2011, when President Dilma Rousseff took office, the slowest economic growth for a Brazilian administration in more than two decades. Economists expect the South American nation to expand 1.05 percent this year, according to a weekly survey published by the central bank today.

U.S. Fine

Proceeds from the sale, which is scheduled to be completed by the first half of next year, may be reduced by “any fine established pursuant to the U.S. Department of Justice’s tax amnesty program relating to Swiss financial banking institutions payable by BSI,” Generali said.

BSI is one of at least 36 Category 2 Swiss banks seeking to avoid prosecution for handling undeclared American money by joining the U.S. Justice Department’s voluntary disclosure program. The U.S. is scouring Switzerland for names of tax dodgers who used the world’s largest offshore haven to hide money from the Internal Revenue Service.

Under a program announced in August, about a third of Swiss banks with “reason to believe” they violated tax laws asked the Justice Department to forgo prosecution. In turn, banks must hand over data on undeclared accounts and pay penalties.

Revenue Goal

Generali CEO Mario Greco sold the unit to focus on the company’s main business, strengthen finances and boost profitability. The firm, which set a goal of 4 billion euros of revenue from asset sales by 2015, will have achieved 3.7 billion euros with the sale, Greco said in the statement.

“This sale completes the disposal process aimed at strengthening the capital base of the group, resolving a key issue for us, and allowing Generali to focus on driving forward with its core insurance business,” he said. “This result is a testament to our team’s ability and commitment to execute a complex transaction in a challenging environment.”

BSI Loss

BSI had a net loss of 722 million Swiss francs last year as it took writedowns faster than planned because of new regulations for accounting treatment of goodwill, the bank said in April.

Generali’s net income in the three months to March climbed to 660 million euros from 603 million euros a year earlier, the company said in May. The first-quarter pro-forma Solvency 1 ratio after the BSI sale will exceed the insurer’s 2015 target of 160 percent, it said today.

“Once the announced sale of BSI is concluded, Generali’s period of balance sheet repair will be complete,” Marcus Rivaldi, an analyst at Morgan Stanley, said in a report today. “Focus now turns to how earnings and dividends can be improved.”

 

Source: 14.07.2014 Bloomberg  by editor Elisa Martinuzzi at emartinuzzi@bloomberg.net

Filed under: Banking, Brazil, Colombia, Latin America, Mexico, News, Singapore, , , , , , , , , , ,

ICE offloads Nyfix and Metabit to Ullink

Intercontinental Exchange (ICE), the leading global network of exchanges and clearing houses, announced today that it has signed a definitive agreement with ULLINK, a provider of electronic trading and connectivity solutions to the financial community, for the combined sale of NYFIX and Metabit, both units of NYSE Technologies.

The transaction, which is subject to regulatory approval, is expected to close in the third quarter of 2014. The terms of the transaction were not disclosed.
“This agreement completes our stated goal of taking certain stand-alone NYSE Technologies businesses and positioning them with other leading technology companies that can enable them to continue to grow and innovate on a global scale,” said Ben Jackson, President and Chief Operating Officer, ICE Futures U.S. and President, NYSE Technologies. “With more than one thousand firms and order execution venues connecting to NYFIX and Metabit from key trading venues around the world, we are committed to working effectively with the ULLINK team to support this transition.”
NYFIX offers a portfolio of end-to-end technology solutions for the financial services industry with FIX-based products designed to handle a firm’s high-performance messaging, connectivity, routing and monitoring needs. NYFIX Marketplace™ is a global community of more than 1,000 trading counterparties with connections to exchanges and other electronic trading venues, including Metabit’s extensive reach in Asia.
Metabit’s operates a collection of electronic trading and connectivity solutions, including Direct Market Access (DMA) capabilities that enable access to financial markets throughout Asia. Based in Japan and built on cutting-edge technology designed in Asia for Asian markets, Metabit links more than 140 market participants in the region.

This agreement completes Intercontinental Exchange’s previously announced intention to divest certain non-exchange related assets of NYSE Technologies.

Evercore is acting as the exclusive financial advisor and Shearman & Sterling LLP as legal advisor to Intercontinental Exchange on this transaction.

 
Source: Finextra 23.06.2014

Filed under: Asia, Australia, FIX Connectivity, Hong Kong, Japan, Korea, Singapore, Trading Technology,

VAM: Vietnam Equity Market – May 2014

Market Updates – After tumbling as much as 11% in the first 2 weeks of May, to a new low of 513.9 on May 13th, due to the tension with China in Vietnam’s East Sea, the market rebounded in the second half of the month and closed down 2.8% (VNIndex) and 2.3% (VN30). The HNX lost 5.1%.

View full market analysis VAM Monthly Newsletter – May ’14.

Inflation advanced slightly in May, backed by moderate improvement in demand and supply.

May inflation was recorded at 0.2% MoM, down from April’s 0.33%. Consequently, the CPI increased only 1.08% YTD. Moderate improvement continued to be recorded in both demand and supply sides. 5M2014 real retail sales advanced 6% YoY, surpassing the same period last year’s growth rate of 4.6%, whilst the index-industry products (IIP) increased 5.6% YoY, higher than the rate of 4.8% of 5M2013.

Sustained YTD trade surplus driven by FDI sector

GSO estimated that 5M2014 trade surplus reached USD 1.6bn, a slight drop from the historic high of USD 2bn recorded for 4M 2014 in April, due to a trade deficit of USD 400mn in May. FDI continued to be the biggest contributor to the economy as the sector generated a trade surplus of USD 7bn in 5M2014 whilst the domestic sector made a trade deficit of USD 5.3bn. FDI disbursement remained steady with 5M2014 disbursed FDI recorded at USD 4.6bn, up 0.4% YoY.

FDI sector’s confidence largely restored through appropriate compensation and strong determination of the Vietnamese Government to prevent recurrence of riots

The PM has requested urgent support and compensation for businesses affected by anti-China protests and riots, including tax cuts, workers’ salary subsidy and land rental reduction etc. to offset against damages suffered. These prompt incentives and the Government’s affirmative measures to punish rioters and to avoid recurrence of such events have more or less calmed the public’s and FDI sector’s sentiment, as well as restored investors’ confidence.

Rumor about another round of currency depreciation was denied by the SBV

As the USD/VND rate has been increasing, amidst the tension with China, to 21,140 – 21,190 (official bank rates) in May, the highest level since the beginning of the year, concern about another depreciation of the Dong has again emerged. However, the SBV denied the rumor, given (1) sustained YTD trade surplus; (2) historic high FX reserves; and (3) the wide gap between deposit rates of the Dong and the USD. The SBV also affirmed that the depreciation (if any) will not exceed 1% in 2014 (down from the 2% stated at the beginning of the year) to show their confidence in maintaining the Dong’s stability.

Vietnam consumer confidence once again improving

Vietnam Consumer Confidence Index reached 99 points in 1Q2014 in the global survey of Nielsen, the highest level since Q4/2011. Consumers were found to be more willing to spend after 2 years of consumption tightening as 56% of respondents across the country had positive perception of their personal finances for the year ahead. Although saving still remained the top priority, consumers channeled more spare cash into tourism, house renovation and stock investment.

Our view The sell-off due to the political tension with China was fairly short-lived as by month end, the VNIndex was almost back to where it started for the month. We think although the tension may not go away very soon, it will not have significant long-term downside impact on Vietnam’s economy. In fact, economic stability has been maintained on the broad base since the beginning of the year with inflation under control, relatively stable exchange rate and sustained trade surplus. Discussion on amendments of the Law of Investment and a comprehensive legal framework for Public – Private Partnership (PPP) in the ongoing 7th cabinet meeting will provide investors with uniform guidance and regulations in PPP to encourage more private investment in infrastructure. This will also help to improve the administrative process in getting investment project approval to make the investment environment in Vietnam more favorable. The Government’s prompt support rendered to affected businesses in the anti-China riots has shown that FDI is still a top priority for Vietnam. We think the market will likely remain volatile in the coming weeks and we will continue to monitor it closely for buying opportunities.

Source: VAM, 13.06.2014

 

Filed under: Asia, News, Vietnam, , , , , , ,

Avaloq Group and BIL announce plans for Business Process Outsourcing centre in Luxembourg

The Avaloq group and Banque Internationale à Luxembourg (BIL) intend to forge a new strategic partnership: The international provider of banking solutions and the bank are planning to join forces to establish the first independent provider of full Business Process Outsourcing (BPO) services in Luxembourg for the Benelux and the French market.

The bank and the international provider of banking solutions today announced that they are in advanced discussions for a joint project to establish, pending amongst other, the closing of the transaction and regulatory approval, the first independent provider of full Business Process Outsourcing (BPO) services in Luxembourg for private and universal banks in the target market Benelux and France. This follows BIL’s recent decision to choose the Avaloq Banking Suite as its new core banking system after a thorough selection process.

As Luxembourg’s oldest private bank, BIL has always played an active role in the development of Luxembourg’s economy and with this decision confirms its intention of actively contributing to the ongoing transformation of the local financial industry. Avaloq, whose presence in Luxembourg goes back to 2007, has always considered Luxembourg as a key market in its strategy. Luxembourg was the first country outside of Switzerland Avaloq set foot in. Today, Avaloq counts 11 customers in Luxembourg that are either using or currently implementing the Avaloq Banking Suite as their comprehensive banking solution.

The goal of the planned strategic partnership is to offer local and foreign private and universal banks a solution to standardise and automate back office processes and to have them operated by a seasoned specialist. As an industry leader in this area, Avaloq understands the importance of fully industrialising back office processes while at the same time driving innovation and differentiation in the advisory area. This enables banks to focus entirely on their front office activities and thus to make a difference in client interaction. The BPO model also serves as the ideal solution for foreign banks wishing to use Luxembourg as an entry point into the European financial market.

The Avaloq group has already successfully implemented this independent BPO model in Switzerland and Germany. BIL and Avaloq are now planning to join forces in order to adapt the business model to the market specific requirements of Benelux and France. Furthermore, Avaloq is currently in the process of building up an international network of BPO centres, which the new BPO centre in Luxembourg would be part of. Further announcements will be made later this year.

Source: Avaloq 05.06.2014

Filed under: BPO Business Process Outsourcing, News, , , , , , , ,

China: Update on Shanghai FTZ Financial Reform

In year 2014 we expect to see numerous new policy and regulation updates on the financial reform of Shanghai FTZ. Where are we today?

Shanghai local government and Chinese central government will endeavor to expand the market functions, deepen the opening of local financial markets to foreign investors, increase the number of financial institutions in the FTZ, encourage the financial business innovation and make Shanghai more of an international financial center.

Many reform details are under consideration or have already been executed in 2014, such as setting up crude oil futures, international gold trading, financial asset trading, syndicated loan trading platforms and building nationwide trust registry service institutions. Besides, rules regarding foreign and FTZ-registered firms’ parent companies RMB bonds issuance are on the way. Moreover, Shanghai FTZ regulators will also consider introduction of free trade account management by allowing financial institutions to set up FTA (Free Trade Account) accounting units segregated for residents and non-residents. Furthermore, Shanghai FTZ regulators encourage direct investment abroad from local firms and private equity funds. The main contents of Shanghai FTZ’s reform could be described as a ‘1+4’ policy, where ‘1’ stands for risk control segregate account system; ‘4’ stands for interest rate liberalization, foreign exchange liberalization, RMB cross-border utilization and RMB capital account opening.

FX reform and FTA accounts

PBOC announced that, starting on March 17, 2014, the interbank RMB/USD spot price’s fluctuation spread increased from 1% to 2%. For commercial banks, the fluctuation range of RMB/USD spot price offering to the clients could be expanded from 2% to 3% from the mid-price calculated by Chinese interbank FX market. This is the third time for PBOC to expand the fluctuation range. Analysts say the expansion in RMB/USD spot fluctuation range is a clear signal that RMB will be internationalized in the near future and Shanghai FTZ is thought to be a test-bed for that. The most prominent aspect of Shanghai FTZ FX reform is the FTA (Free Trade Account). FTA is essentially a free trade bank account for Shanghai FTZ registered firms, very similar to an offshore bank account, which enables free capital flow inside the FTZ. FTA system allows both foreigners and local residents to get their money in and out through FTZ. Overall, there are mainly 3 types of FTA accounts. Local firms in the FTZ could open FTA accounts; individuals in the FTZ could open FTA accounts; foreign firms in the FTZ could open FTN accounts. As regulators are treading conservatively with hot money inflows and money laundering risks in mind, there is still no detailed timeline. However, we believe the FTA mechanism will be released in 2014 or 2015 as a momentous milestone in the financial history of China.

Interest rate reform

In March, 2014, a PBOC official claimed that the sequence of Shanghai FTZ interest rate reform will be ‘liberalize interest rates for foreign currencies prior to RMB interest rates; free the loan rates prior the deposit rates’.
There were actions towards interest rate reform in Shanghai FTZ from the regulators. PBOC announced that from March 1st, 2014, the deposit rate of foreign currencies below the amount of USD3 million would be liberalized, which actually removed the ceiling for foreign currencies’ deposit rate. This is thought to be an important step on the road to fully liberalized interest rate reform. The next step could be liberalization of the deposit rates of the local currency, which may not only be applicable in Shanghai FTZ, but also the rest of China.

Cross-border RMB utilization

On Feb 21, 2014, PBOC released the detailed regulation on expanding the usage of RMB overseas, which simplified the process of RMB overseas usage under current and direct investment account. However, overseas RMB financial scale and usage range will still be restricted, as well as cross-border e-commerce transactions and RMB trading services.
Six banks constitute the first batch of firms applied for the cross-border RMB settlement licenses. ICBC and Bank of China helped their clients within the zone to make an overseas RMB loan; Bank of Shanghai, HSBC and Citi Bank launched cross-border RMB current account centralized collection and payment services; Bank of Communications signed the first overseas RMB borrowing service for the non-bank financial institutions.

Capital account liberalization (to be announced)

In the future, the capital account might be opened for local and foreign investors. As Chinese reformers are relatively prudent and conservative, the liberalization process of capital accounts have been advancing relatively slowly so far. One important step in the process will be a gradual opening of commercial futures market to foreign institutional investors.

2014 version of ‘negative list’ (possibly to be released in the 1st half of 2014)

In the 1st half of 2014, a new version of ‘negative list’ will be released to update the 2013 version. Although it is not clear what items this version may include, there are two aspects which are certain. One aspect is that the contents included in the negative item list will be shortened, which implies that the restrictions on types of companies to register in the zone will be reduced. The other aspect is that Shanghai FTZ might cooperate with Hong Kong to introduce advanced practices from the city.

In-depth report on Shanghai FTZ are available here.

Source: Kapronasia, 05.06.2014

For more news and insights into Chinas Financial markets please visit www.kapronasia.com

Filed under: China, News, Risk 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, , , ,

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, , , , , , , , , , , ,

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, , ,

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