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

Latin America: Investor News Letter 18 January 2013

Mexico
Mexican Peso Slides on Carstens Hint at Interest-Rate ReductionMexico’s peso fell the most in four weeks after central bankers signaled that a further slowdown in inflation could prompt them to lower interest rates.
Nieto seeks to open Mexican energy sector
Los Tres Amigos: Positioning Your Portfolio In Mexican Peso Denominated Deb
Most U.S. funds missed Mexico gains, Brazil drop in 2012
Japanese investments in Mexico steady
Region completes work on international infrastructure project with Mexico

Brazil
Brazil’s Real Declines on Inflow Concern; Swap Rates Climb
Brazil: Daylight piracy
“SQUEEGEE merchants of the seas”: that is the nickname shipping companies have bestowed on the pilots who guide ships into Brazilian ports. Their legal monopoly and unregulated fees place them among the country’s highest earners: 150,000 reais ($73,500) a month, estimates the shipowners’ association. It costs twice the OECD average to import a container to Brazil, says the World Bank—and since that excludes bribes and fees for go-betweens, the true figure is surely greater.
Brazil Seeks Private Partners to Operate Rio de Janeiro, Belo Horizonte Airports
Brazil announces regional airport infrastructure investment plans
Brazil aviation faces turbulence after rapid ascent
Brazil ports starved of investment, buried in red tape-group
Guyana, Brazil sign on to infrastructure plan
Brazilian municipality of São Bernardo do Campo to improve sustainable urban mobility with loan from IDB

Latin America
Argentina: Tax & Estate Planning
Argentina rapidly changing oil/gas industry levies to attract foreign investment
Bolivia takes over Spanish-owned Iberdrola energy suppliers
Colombia: ANI to launch four new public infrastructure concessions valued at US$1.95bn
Colombian Peso Advances on Foreign Investment Outlook
Chile: First Solar Stakes Claim in Latin America
Peru’s investment opportunities attracts Qatar’s firms Peru: Infrastructure gap put at $88bn
Peru-based AFPs invest over US$3.5bln in infrastructure
Cement Industry Figures In Peru: Btg Pactual Begins Coverage Of Cpac With A Buy Recommendation
Peru to invest over US$701mln in access infrastructure projects
Peru: Ezentis shifts focus to Latin America, helped by $64M Telefónica Peru contract
Peruvian entrepreneurs expect investment to continue growing in 2013
Venezuela: What Hugo Chavez’s Illness Means for Venezuelan Mining

Latin America and Caribbean PhotoVoltaic Demand Growing 45% Annually Out To 2017 
Latin American ports record strong performance in 2012
South America: A Powerhouse, Not a Circus
10 Latin American startups to look out for in 2013

Filed under: Argentina, Brazil, Chile, Colombia, Energy & Environment, Japan, Latin America, Mexico, News, Peru, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

Japan:ICAP extends data partnership with QUICK

Tokyo; London – 5 March 2012  ICAP, the world’s leading interdealer broker, announces today that it has extended its long-established distribution partnership with Japan’s QUICK Corp. (QUICK), one of the leading suppliers of real-time financial information.  The new three-year agreement will continue the provision of ICAP’s data products and services to QUICK customers in Japan and internationally via QUICK’s ActiveManager and Astra product series.

ICAP Information Services is responsible for the collection, storage, packaging and delivery of data, sourced from ICAP’s award-winning global interdealer trading platforms. ICAP works with market participants and market data distributors to provide key real-time, snapshot, end-of-day and historical data to financial institutions and corporations.

ICAP data provides unique market insight to customers seeking to apply authoritative transactional data to a range of business activities. ICAP real-time data offerings cover an extensive range of asset classes and instruments, including Interest Rates, FX and Fixed Income products.

Damien Fitzpatrick, Head of Asia Information Sales ICAP said, ‘The renewal of this agreement underscores the strength of our longstanding relationship with QUICK and our continued commitment to providing critical financial information to the Japanese market.  We are delighted to extend our contract with QUICK, under which we will continue to supply critical OTC market data.’

Gakuji Takahashi, Executive General Manager of QUICK said, “QUICK is pleased to renew our contract with ICAP Information Services and continue our long standing and very active business partnership. ICAP’s data services are pivotal to our customer base when making trading decisions in the OTC markets. This agreement with ICAP will enable us to continue to provide our customers with authoritative market data across Japan and worldwide.  Cooperating with ICAP, QUICK works positively to meet the clients’ high expectations.”

Source: Bobsguide, 05.03.2012

Filed under: Data Vendor, Japan, News, , , ,

NYSE Technologies opens Tokyo liquidity centre

Nyse Technologies, the commercial technology division of Nyse Euronext, today announced the opening of its latest Liquidity Center installation located in Tokyo, Japan.

With growth in Asian markets outpacing many others in the world, the NYSE Technologies Tokyo Liquidity Center offers customers the ability to access these markets with unparalleled speed and reliability with minimal infrastructure costs and a dramatically decreased time to market of only a few weeks to begin trading.

As a result of several recently deployed trading platforms and enhanced data feeds, Tokyo markets have experienced increased trading activity and a consolidation of liquidity from a robust community of traders and vendors, many of which are already members of the Metabit network acquired by NYSE Technologies in September 2011. Through the Liquidity Center’s low-cost, high performance product suite, customers can access key Asian markets, market information and other essential electronic trading infrastructure services utilizing NYSE Technologies’ SFTI network and other familiar infrastructure services, including the Capital Markets Community Platform. The Tokyo Liquidity Center joins existing facilities in the U.S. and London with additional centers launching in Toronto and Brazil in the coming months.

“In working with our customers to identify their primary trading needs and opportunities, we found that Tokyo and the surrounding Asian markets were a very high priority,” said Stanley Young, CEO, NYSE Technologies. “Our Tokyo Liquidity Center addresses those needs with a powerful blend of proven, familiar NYSE Technologies services with seamless connections to all major Tokyo markets. With little to no hardware investment or complicated maintenance, we can have customers connected in just a few weeks as compared to the challenging expense and arduous process of designing, building and maintaining a similar infrastructure themselves.”

The NYSE Technologies Tokyo Liquidity Center was built to facilitate seamless access to key markets and market information in Asia, including the Tokyo Stock Exchange’s new Tdex+ system and arrowne arrownetTM network. Offering a fully managed, broker neutral trading infrastructure solution that utilizes the technology expertise and customer network recently acquired in the Metabit transaction, the liquidity centers also feature many of the same components customers already use to access NYSE Euronext’s global exchanges. Each installation will feature a turn-key portfolio of trading products that include full-featured connectivity, market data, order transmission and risk management services with world-class customer support.

About the Liquidity Center Network
The NYSE Technologies Liquidity Center Network was created to provide a base set of trading, data and connectivity applications that enable traders to quickly and easily enter key global markets that may have been prohibitively difficult or expensive to access in the past. Customers will benefit from reliable, cost effective low-latency solutions for trading and market data services. Strategically located around the world, these facilities will offer many of NYSE Technologies core services, including Metabit MLH which provides low latency, risk-managed access to markets; SuperFeed™, an industrial strength, high-performance market data ticker plant and distribution system; and Marketplace™, one of the largest and most diverse FIX-based trading communities with more than 1,200 market participants.

Source, Finextra, 15.12.2011

Filed under: FIX Connectivity, Japan, Trading Technology, , , , , , , , ,

NYSE Technologies extends CameronTec FIX enginee relationship in Asia Infrastructure

 CameronTec, the global financial industry’s long-standing provider of FIX infrastructure and connectivity solutions and wholly owned subsidiary of Orc Group (SSE: ORC), today announced an agreement with NYSE Technologies to continue providing the CameronFIX and Catalys technologies for its Asian operations.  Signed in August, the agreement also covers reseller rights for CameronTec products in Japan and is based on CameronTec’s licensing subscription model.

NYSE Technologies recently acquired Metabit, the Tokyo-based provider of high performance market access products that includes a trading community of more than 140 trading firms throughout Japan and Asia.  Continuing the existing relationship between Metabit and CameronTec, CameronFIX has powered many of Metabit’s valued market assets and solutions since 2002.

“Japan and Asia are key priorities for NYSE Technologies and our global customers.  Our products are built in Asia for the local market and CameronFIX has been an important part of that strategic offering since 2002,” said Daniel Bürgin, Head of Asia Pacific, NYSE Technologies. “As a new product line within NYSE Technologies, Metabit will continue to work with CameronTec to provide high performance connectivity to Japan’s exchanges while offering local market participants access to and support for Cameron’s suite of solutions.”

“We are especially pleased to be working alongside NYSE Technologies to continue to deliver FIX technology as part of the Metabit product suite and have them support our products throughout such a critical market as Japan,” says Anders Henriksson, CEO, CameronTec. “CameronTec is continuously working to improve the standard in FIX infrastructure and to provide our markets with cutting edge innovation for which we are renowned. These developments are a further demonstration that CameronTec continues to lead the industry in FIX innovation.”

At the core of CameronTec technology is a unique understanding of the FIX world that comes from a concentration of the world’s largest FIX deployments. With a host of industry-firsts, Catalys and CameronFIX technology provide unprecedented levels of flexibility and innovation that firms need to sustainably differentiate in today’s markets.

Source: NYSE Technologies, 07.12.2011

Filed under: Asia, Hong Kong, Japan, Korea, Malaysia, Singapore, , , , , , , , , , ,

Japan: Tokyo and Osaka exchanges to merge into world’s 2nd largest exchange

Tokyo Stock Exchange Group Inc. and Osaka Securities Exchange Co. decided Tuesday to merge on Jan. 1, 2013, to create the world’s second-largest bourse, amid consolidation moves among international rivals, they said.

The total market capitalization of companies listed on the two bourses stood at $3.67 trillion, or 280 trillion yen, at the end of September, placing them only behind the New York Stock Exchange.

The two bourses will merge into a holding company, tentatively named Japan Exchange Group Inc.

TSE President Atsushi Saito will become chief executive officer of the holding company and OSE President Michio Yoneda will be its chief operating officer, they said.

“We are confident that this merger will be the cornerstone in reviving Japan’s economy,” Saito said at a joint press conference held in Tokyo.

In the run-up to the merger, privately held TSE will buy OSE shares for 480,000 yen per share through a public tender offer to acquire a 66.6 percent stake in OSE by next summer.

OSE, a publicly traded company, will be the surviving company in the merger at a ratio valuing TSE at around 1.7 times OSE.

The resulting company will be listed on the First Section of the Tokyo Stock Exchange and run four subsidiaries for stock trading, derivatives trading, clearing services and regulatory operations, according to the bourses.

The merger decision comes amid an international reconfiguration of stock exchanges. NYSE Euronext, which owns the New York Stock Exchange, has agreed to merge with Deutsche Boerse AG by the end of this year.

It also comes as the Tokyo and Osaka bourses are engaged in fierce competition with global rivals such as the bourses in China and South Korea.

“Unless we increase (market) liquidity, there will be companies that will head to overseas bourses,” Saito said, adding, “More than just preventing such moves, we intend to attract them.”

The combination of the TSE with its focus on actual shares and the OSE on derivatives will result in “great synergy” with the ability to provide a variety of financial products, cut costs for running systems and enhance global competitiveness, the two bourse operators said.

While the initial news of the bourses’ intention to merge broke in March, nine months elapsed before the two sides formalized an agreement on Tuesday.

On the length of time they required, Yoneda said, “We have a history of operating separately for 133 years, and there was also the difference of being listed and unlisted, but we’ve cleared each step one by one and now we’re at a starting point,” adding they want to speed up the process from now.

The announcement was generally well received by analysts and other key figures in Japan.

“A bourse with a good balance between cash equities and derivatives would emerge,” said Sadakazu Osaki of Nomura Research Institute, calling it a starting point to compete with other Asian and European bourses.

“Listed companies and investors may not see the merits immediately, but in the long run, it would help avoid the risk of bourses stagnating in Japan,” he said.  Meanwhile, Chief Cabinet Secretary Osamu Fujimura said the government “welcomes” the planned merger.

“It’s an important challenge for our country’s financial market to try to strengthen its competitiveness through the enhancement of its presence as an international financial center,” he said at a press conference.

Filed under: Asia, Exchanges, Japan, News, , , , , , ,

NYSE Euronext Completes Acquisition of Metabit

NYSE Euronext (NYX) announced September 2 the completion of its acquisition of Metabit, a leading Tokyo-based provider of high performance market access products with a trading community of more than 140 trading firms throughout Japan and Asia. As announced previously on Aug. 1, 2011, Metabit will operate as a product line within the NYSE Technologies portfolio (further enhancing service to the Asia-Pacific region). Terms of the acquisition were not disclosed.

Daniel Bürgin, formerly CEO of Metabit, will head the NYSE Technologies Asia business and report to Stanley Young, Chief Executive Officer of NYSE Technologies. Peter Tierney, Managing Director of NYSE Technologies will become the Chief Operating Officer of the combined business in Asia, and he, with Mr. Bürgin, will lead the Asian business operations.

Source: NYSE Technologies, 01.09.2011

Filed under: Asia, FIX Connectivity, Hong Kong, Japan, News, Trading Technology, , , , , , , , , , , , , , , , , ,

NYSE Euronext Accelerates Growth in Asia with Strategic Acquisition of Metabit, a Leading Provider of Market Access Products

– Strategically complements NYSE Technologies’ product portfolio and Asian offerings

– Addresses growing customer interest and expanding Asian financial marketplace

– In-line with NYSE Technologies’ strategy of building a global liquidity network

 New York and Tokyo – August 1, 2011 – NYSE Euronext (NYX) announced today it has entered into a definitive agreement to acquire Metabit, a leading Tokyo-based provider of high performance market access products throughout Japan and Asia. Metabit will operate as a product line within the NYSE Technologies portfolio. The transaction is expected to close in third quarter of 2011. Terms of the acquisition were not disclosed.

Skilled with in-depth experience and understanding of financial markets in Asia, Metabit specializes in streamlined, low-latency technology solutions that enable industry-leading access to financial markets across Asia. Metabit’s products connect buy-side order flow with sell-side exchange participants and are designed exclusively for low latency direct market access (DMA) and exchange connectivity to markets through-out Asia. The company is headquartered in Tokyo, with offices in Australia and Hong Kong. Metabit has built a trading community of more than 140 trading firms in Asia.

“Metabit’s products are built in Asia for Asia, and this combination fits our strategy, our connectivity business and our customer interests,” said Stanley Young, CEO of NYSE Technologies. “Metabit has a highly experienced and respected management team, and we recognize and value the success Metabit has had in Asia, especially in Japan. We will continue the further development of this local focus while also maximizing the value of the NYSE Euronext brand and relationships.”

Mr. Young continued: “Furthermore, Japan and Asia are priorities for NYSE Euronext and we believe this is absolutely the right time to further invest in the region. We fully expect this transaction to accelerate our efforts as a leading technology provider across the Asia-Pacific region. We look forward to welcoming Metabit and its customers to NYSE Euronext, and to delivering the benefits of Metabit to our customer community.”

Daniel Burgin, CEO of Metabit, said: “Our combination with NYSE Technologies will be highly beneficial to delivering innovative solutions to our customers and to accelerate achieving our long-term business goals. We remain committed to our local business focus and service quality in Japan and throughout Asia, whilst being strengthened by NYSE Technologies’ product suite that is highly synergetic to our local solutions. The people and products of our combined companies will provide significant expertise and scale to NYSE Technologies’ business in the region. Joining forces represents a truly exceptional opportunity to build on our local success in order to increase our value proposition to our Japan and Asia customer base. We now have the opportunity to leverage our assets with NYSE Technologies and move to the next level. For the benefit of Asia-based customers, we will now expand our reach and capabilities globally.”

 Metabit’s Asia franchise has seen excellent growth as a result of a persistent product and client strategy and investments into Asia. Today, Metabit covers all DMA sectors outside Japan, ranging from China (“B” shares), India, Hong Kong, Korea, Singapore, Taiwan, Thailand, Philippines, Malaysia, Indonesia, Pakistan, Australia and New Zealand. Metabit’s products, being built in Asia for Asia, focus to connect the local broker community in each country, in combination with the traditional group of global trading firms. Metabit will continue to resell and provide support to users of CameronFIX as they have since 2002.

 Upon closing, Mr. Burgin will head the NYSE Technologies Asia business and report to Mr. Young. Peter Tierney, Managing Director of NYSE Technologies will become the Chief Operating Officer of the combined business in Asia, and together they will lead the business operations.

Source; NYSE Tech, 01.08.2011

Filed under: Asia, Australia, China, FIX Connectivity, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

ETF Industry Highlights – April 2011 – BlackRock

Global ETF and ETP industry:

Record April net inflows with US$25.3 Bn.

Record YTD net inflows in the first four months with US$67.2 Bn through the end of April 2011.

The global ETF industry had 2,670 ETFs with 6,021 listings and assets of US$1,469.8 Bn, from 140 providers on 48 exchanges around the world at the end of April 2011. This compares to 2,189 ETFs with 4,354 listings and assets of US$1,113.1 Bn from 122 providers on 42 exchanges, at the end of April 2010.

The global ETF and ETP industry combined, had 3,819 products with 7,893 listings, assets of US$1,670.9 Bn from 176 providers on 52 exchanges around the world. This compares to 2,967 products with 5,453 listings, assets of US$1,295.1 Bn from 150 providers on 44 exchanges, at the end of April 2010.

United States ETF and ETP industry:

Record April net inflows with US$22.4 Bn.
Record YTD net inflows in the first four months with US$51.5 Bn through the end of April 2011.
The ETF industry in the United States had 972 ETFs and assets of US$997.3 Bn, from 29 providers on two exchanges at the end of April 2011. This compares to 839 ETFs and assets of US$764.0 Bn, from 28 providers on two exchanges at the end of April 2010.
US$22.4 Bn of net new assets went into United States listed ETFs/ETPs in April 2011. US$16.7 Bn net inflows went into equity ETFs/ETPs, of which US$9.8 Bn went into ETFs/ETPs tracking US equity indices and US$3.5 Bn went into ETFs/ETPs tracking emerging markets equity indices. Fixed income ETFs/ETPs saw net inflows of US$2.9 Bn, of which US$0.7 Bn went into corporate bond ETFs/ETPs and US$0.6 Bn went into Government bond ETFs/ETPs. Commodity ETFs/ETPs saw net inflows of US$1.8 Bn, of which US$2.4 Bn went into ETFs/ETPs providing exposure to precious metals, while ETFs/ETPs providing exposure to energy experienced US$0.9 Bn net outflows in April 2011.
Of the US$45.5 Bn of net new assets in United States listed ETFs in April 2011, Vanguard gathered the largest net inflows with US$13.2 Bn, followed by iShares with US$12.7 Bn net inflows, while Bank of New York had the largest net outflows with US$1.4 Bn in 2011 YTD.

European ETF and ETP industry:

The European ETF industry had 1,128 ETFs with 3,952 listings and assets of US$328.2 Bn, from 39 providers on 23 exchanges at the end of April 2011. This compares to 932 ETFs with 2,748 listings and assets of US$234.3 Bn from 36 providers on 18 exchanges, at the end of April 2010.
US$3.6 Bn of net new assets went into European listed ETFs/ETPs in April 2011. US$2.8 Bn net inflows went into equity ETFs/ETPs, of which US$1.6 Bn went into ETFs/ETPs providing emerging markets exposure while ETFs/ETPs providing broad European exposure saw net outflows of US$1.2 Bn. Fixed income ETFs/ETPs saw net outflows of US$0.4 Bn, of which money market ETFs/ETPs experienced US$0.3 Bn net outflows while high yield ETFs/ETPs saw net inflows of US$0.2 Bn. US$1.1 Bn net inflows went into commodity ETFs/ETPs, of which US$0.5 Bn went into ETFs/ETPs providing exposure to precious metals and US$0.4 Bn went into ETFs/ETPs providing broad commodity exposure.
Of the US$2.8 Bn of net new assets in European listed ETFs in April 2011, Source Markets gathered the largest net inflows with US$0.9 Bn, followed by db x-trackers with US$0.6 Bn net inflows, while iShares and Lyxor Asset Management had the largest net outflows with US$0.2 Bn.


Asia Pacific (ex-Japan) ETF industry:

The Asia Pacific (ex-Japan) ETF industry had 250 ETFs with 362 listings and assets of US$58.6 Bn, from 63 providers on 13 exchanges at the end of April 2011. This compares to 168 ETFs with 267 listings and assets of US$44.4 Bn, from 53 providers on 13 exchanges, at the end of April 2010.


Japan ETF industry:

The Japanese ETF industry had 84 ETFs with 88 listings and assets of US$29.4 Bn, from seven providers on three exchanges at the end of April 2011. This compares to 70 ETFs with 73 listings and assets of US$26.3 Bn from six providers on two exchanges, at the end of April 2010. There are 178 ETFs which have filed notifications in Japan.


Latin America ETF industry:

The Latin American ETF industry had 27 ETFs, with 407 listings and assets of US$10.4 Bn, from four providers on three exchanges at the end of April 2011. This compares to 21 ETFs, with 243 listings and assets of US$9.1 Bn from three providers on three exchanges, at the end of April 2010.


Canada ETF industry:

The Canadian ETF industry had 180 ETFs and assets of US$43.1 Bn, from four providers on one exchange at the end of April 2011. This compares to 134 ETFs and assets of US$33.0 Bn from four providers on one exchange, at the end of April 2010.

Source: BlackRock, Carral, May 2011

Filed under: Asia, Latin America, News, , , , , , , , , , ,

ETF Landscape: Industry Review – Q1 2011 – BlackRock

At the end of Q1 2011, the global ETF industry had 2,605 ETFs with 5,905 listings and assets of US$1,399.4 Bn  from 142 providers on 48 exchanges around the world. This compared to 2,131 ETFs with 4,133 listings and assets of  US$1,081.9 Bn from 123 providers on 42 exchanges at the end of Q1 2010.  ETF Industry Review_Q1-2011

Additionally, there were 1,119 other ETPs with 1,835 listings and assets of US$183.7 Bn from 58 providers on 23 exchanges. This compared to 718 ETPs with 1,025 listings and assets of US$153.6 Bn from 42 providers on 18 exchanges at the end of Q1 2010.

Combined, there were 3,724 products with 7,740 listings, assets of US$1,583.2 Bn from 178 providers on 52 exchanges around the world at the end of Q1 2011. This compared to 2,849 products with 5,158 listings, assets of US$1,235.4 Bn from 147 providers on 44 exchanges at the end of Q1 2010.

Below is a list of some upcoming events where we will be presenting:

Asia Trader and Investor Convention 2011, Singapore 07-08 May 2011
Complimentary passes are available
www.theatic.net

2nd Annual Inside ETFs – Europe Conference, Amsterdam, 05–06 May 2011
Complimentary passes are available for institutional investors.
www.indexuniverse.eu

Turkey Investment Summit, Istanbul, 09–11 May 2011
www.terrapinn.com

iShares Investment Konferenz, Frankfurt, 11 May 2011
www.ishares-events.com

22nd Annual Conference on Globalisation of Investment Funds, Boston,
15–18 May 2011
www.int-bar.org

ETF & Indexing Investments, New York, 16–18 May 2011
www.terrapinn.com

Factset Investment Process Symposium, Monaco, 23–25 May 2011
www.cvent.com

ASX ETF Institutional Conference, Sydney, 02 June 2011
www.asx.com.au

The 10th Annual Canada Cup of Investment Management, Toronto,
07–08 June 2011
Complimentary passes are being offered by IMN to attend this event to investment professionals at Pensions, Foundations, Endowments, Hedge Funds, Insurance Companies as well as for Registered Investment Advisors. Please contact Jackie Rubbo at jrubbo@imn.org.
www.imn.org

ETF & Indexing Investments, Madrid, 15–16 June 2011
www.terrapinn.com

The Mondo Visione Exchange Forum, London, 15–16 June 2011
www.mvexchangeforum.com

Africa Investment Summit, Johannesburg, South Africa 20–23 June 2011
www.terrapinn.com

European Cup of ETFs and Investment Management, London,
19–20 September 2011
Complimentary passes are being offered by IMN to attend this event to investment professionals at Pensions, Foundations, Endowments, Hedge Funds, Insurance Companies as well as for Registered Investment Advisors. Please contact Jackie Rubbo at jrubbo@imn.org.
www.imn.org

ETF & Indexing Investments, London, 17–19 October 2011
www.terrapinn.com

Please join ETF Network on Linkedin at www.linkedin.com.

Source: BlackRock, 06.05.2011

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

Metabit Expands Asian Trade Connectivity

Tokyo/Hong Kong, 29 March 2011: In the past year, Tokyo-based Metabit has concentrated on building its connectivity across Asia.  The company aims to be the local face of execution destinations in Asia and over the past eight months, it has added an extra 13 domestic DMA destinations, expanding domestic and cross-border access to Asian markets.

“Metabit is at the heart of  connectivity in Asia” comments Daniel Burgin, CEO of Metabit, “not just for providing access to Asia for global players, but also in particular for the local and domestic  industry in this region.”

“For example, in India we have 20 execution destinations of which 10 are domestic Indian brokers.  We are similarly successful with increased connectivity in other countries such as Korea and Taiwan.”

Overall, Metabit’s trading access has been extended to many markets ranging from Indonesia to Pakistan and Mainland China to Australia.  The company now has access to over 250 execution destinations, across all active DMA markets in Asia, including Japan.

“We want to maximise connectivity to and within Asia for our client base, who can directly access all execution destinations across the major and emerging markets in Asia either through Metabit’s intuitive XiliX trading platform, or through our MLH via a single FIX connection.”

Burgin adds a final comment, “Situated where we are in Tokyo, with offices in Hong Kong, Dalian and Sydney, we understand the needs of Asia market players, whether they want to trade globally or locally. You could say the mindset of Asia is in our blood – we think Asia, so our clients can trade Asia.”

About Metabit

Uniquely placed in Asia, with global experience and a real knowledge of Asian markets, Metabit provides the technology and support to help clients trade and connect effortlessly and efficiently.  The company delivers an intuitive trading platform that encompasses a well-established trading community and unrivalled exchange connectivity solutions.

Metabit provides ultra low latency DMA trading solutions for Asian markets, serving buy side and sell side clients.  It specialises in comprehensive compliance controls, whilst reducing transaction times and facilitating trading opportunities across all major markets across 14 Asian countries, including Japan.

Metabit’s flagship solutions are XiliX intuitive buy side trading platform and MLH a vendor neutral Market Liquidity Hub.  Alpha provides ultra-low latency exchange connectivity and Exsim simulates Asian and Japanese exchanges.  All Metabit’s products are powered by the CameronFIX engine.

Source: Metabit, 29.03.2011

Filed under: Asia, Australia, China, FIX Connectivity, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, News, Singapore, Thailand, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Financial Market Predictions for 2011 by BlackRock’s Bob Doll

US STOCKS WILL RECORD  3rd STRAIGHT YEAR OF DOUBLE DIGIT GAINS
Market Risks Will Be “To the Upside”
As Improving Economic Growth,
Consumer/Business Confidence Boost Stocks
US Real GDP Will Hit All Time High in ’11,
Marking Economy’s Transition from Recovery to Expansion
 Stocks Will Outperform Bonds and Cash as Flows to Equities Accelerate
 
 
New York, January 5, 2010 –- US stocks in 2011 will record a third straight year of double digit percentage returns, the first time this has occurred in more than a decade, according to Robert C. Doll, Chief Equity Strategist for Fundamental Equities at BlackRock, Inc. (NYSE: BLK). In the new year, risk assets in general and equities in particular will draw strength from continued improvement in US economic growth—in particular, a more sustainable growth path—coupled with improved business and consumer confidence, and a less hostile capital markets attitude in Washington, D.C., according to Doll. “By the close of 2011, the S&P 500 Index will be at 1,350-plus, a target that implies that the market will appreciate at least in line with corporate earnings,” Doll said. The S&P 500 Index closed out 2010 last Friday, Dec. 31, at 1,257, rising over 15% for the year. “Our expected gains for the equity markets for 2011 are not much different from what we expected for 2010,” he said. “What’s different for 2011 is that market risk will be more to the upside than was the case in 2010.” The possible upside factors include an acceleration in jobs gains, a surprise in real GDP, earnings exceeding expectations as occurred in 2010, and Washington D.C. beginning to address the nation’s fundamental debt and budget problems.

 On the other hand, Doll’s “what can go wrong?” list includes the possibility of credit problems resurfacing (including US housing, sovereign nations, and state and local governments), commodities price increases causing profit margin pressure, inflation fears, a greater than expected rise in interest rates, undue emerging markets tightening to curb asset bubbles, and currency and capital flow concerns leading to protectionist trade wars.

 Additionally, Doll indicated that the magnitude of the market return since the August 2010 lows (US stocks rose over 20% from mid August through the end of the year) means equity markets may have come too far, too quickly. “I do have a concern that the exceptionally strong returns we have seen over the last couple of months may mean that we ‘borrowed’ some of 2011’s returns in late 2010,’ Doll said.

 “The upside possibilities could lead to stock market appreciation of 10% to 20% more than we expect,” Doll said. “The downside issues could result in low double-digit percentage loss.”

 US Real GDP Hits All Time High in 2011
 Doll has been publishing his annual “10 Predictions” for the year ahead in the financial markets and the economy for over a decade.

 In 2011 the ongoing cyclical recovery will continue, Doll believes, but economic growth will continue to proceed at a less-than-normal pace due to the structural problems that continue to face most of the developed world.

 In the United States, although the recovery remains subpar, real GDP will move to new all time highs sometime during 2011’s first half, Doll said. “Real final sales will increase from around 2% to almost 4% as the impact of the government stimulus program and inventory restocking wanes,” he said. “The good news is that this kind of growth is more sustainable and therefore ‘higher quality.’

 “Hitting a new high for real GDP also means, of course, that the economy will have moved into a truly expansionary mode,” he said.

 In this environment, the Federal Reserve is unlikely to increase interest rates in 2011. “Assuming our growth outlook is correct, the Fed is likely to keep rates at near-zero through the year, although we think it’s possible that by the end of 2011 the futures curve may begin to price an increase into the markets,” Doll said.

 Unemployment Dips to 9 Percent

 Job growth also will improve as 2011 progresses, with unemployment falling to around 9% from the current 9.8% rate. “We believe the removal of the Bush tax cut uncertainties and the fears of a double dip recession as well as improved confidence will lead to more hiring,” Doll said.

 The likely employment trend in 2011 is historically associated with solid market performance, Doll said. “Compared with any other time, equity market returns have been most ebullient when unemployment rates have been high and falling,” he said.

 Stock On Pace to Outperform Bonds, Cash

 As they did in 2010, stocks will outperform both bonds and cash in 2011, Doll said.

 “Stocks pulled ahead of bonds in 2010’s fourth quarter, and we expect that trend to continue in 2011,” he said. “Interest rate risk will be to the upside, given accelerating economic and job growth, the revival of business capital investment, the likelihood that bonds inflows will slow, and fading deflation fears.”

 Because the recovery remains “sub par,” the Federal Reserve will likely remain accommodative, which will probably result in some further steepening of the yield curve, Doll believes. Equities are likely to take over from fixed income as the preferred asset class, both in terms of price appreciation and investor flows.

 US Markets Set to Continue Their Dominance

 In an outcome that surprised many, the United States was one of the world’s strongest markets, and US stocks outperformed the MSCI World Index in 2010—a trend Doll expects will be maintained in the new year. “Strong balance sheets and free cash flow income statements will likely lead to significant increases in dividends, share buybacks, merger and acquisition activity, and business reinvestment,” he said. “Companies delivering earnings with solid growth prospects will likely lead the way, as high intra-stock market correlations continue to fall.”

 At the same time, differences between developed and emerging markets will be less pronounced in 2011 than before, Doll believes. “The gap between higher growth rates in the developing world and the lower ones of the developed world will likely shrink somewhat in 2011, causing continued less differentiation in equity returns.”

 Predictions for 2011

 Here are Doll’s predictions for 2011 with his full commentary on the key trends.

 1.     US growth accelerates as US Real GDP reaches a new all time high.

Not only is US growth likely to be stronger in 2011 than it was in 2010, but more importantly, the quality of growth will improve. Economic growth in 2010 was based heavily on government stimulus and inventory rebuilding. Both of these factors will be less significant in 2011 than they were in 2010, meaning final demand is going to make up the slack. In particular, we believe that real final sales will increase from around 2% to almost 4%. This sort of growth is healthier for the economy and more sustainable. Additionally, we believe that economic growth in 2011 will be supported by an increase in money growth, a steeper yield curve and easing credit conditions. Nominal gross domestic growth in the United States already reached a new all time high in 2010, and we expect real GDP growth to also reach a new high at some point during the first half of 2011. Despite this outlook, however, we would caution that growth levels will still remain below trend.

2.     The US economy creates two to three million jobs in 2011 as unemployment falls to 9%.

We expect improved job growth as 2011 progresses, finally making some dent in the unemployment rate. Our prediction represents a clear acceleration over the 1 million plus number of new jobs that were created in 2010 and, in effect, would represent a doubling in the rate of jobs growth. It takes approximately 125,000 jobs per month to accommodate new entrants into the labor force and our view is growth will be noticeably higher than that, averaging 175,000 to 250,000 per month. We believe the removal of the Bush tax cut uncertainties and the fears of a double-dip recession as well as improved confidence will lead to more hiring. Leading indicators of hiring, including hours worked, productivity, initial jobless claims and profitability all point to more jobs. We note with interest that new hiring plans on the part of corporations have improved as well. Historically, equity market returns have been most ebullient when unemployment rates have been high and falling than at any other time.

 3.     US stocks experience a third year of double-digit percentage returns for the first time in over a decade as earnings reach a new all time high.

The last time the stock market had three annual double-digit percentage gains in a row was the late 1990s. Our view is a double-digit percentage return again for 2011 is certainly possible. We expect earnings growth to continue to be better than economic growth, stocks are reasonably inexpensive and confidence levels are improving. We are using a 1,350 target as a floor for our 2011 S&P 500 forecast, which is consistent with expected earnings gains. Our view is that the risks in 2011 are more to the upside when compared with the downside risks of 2010 meaning that, if anything, our 1,350 target may be overly conservative. Should business and consumer confidence levels continue to improve, if credit problems remain manageable and if politicians remain reasonably capital markets friendly, then we could see some valuation improvements, which could push market prices even higher. Regarding the earnings component of this prediction, operating earnings per share achieved an all time high of $91.47 for the S&P 500 in June 2007, and we believe corporate earnings will exceed that number sometime around the middle of 2011. We note that in recent months earnings revisions have again turned positive after faltering in mid 2010.

 4.     Stocks outperform bonds and cash.

While stocks did outperform bonds and cash in 2010, it wasn’t until the fourth quarter that stocks pulled ahead of bonds. We expect that environment to continue in 2011. Assuming that stocks have any sort of positive return in 2011, they will outperform cash investments, since short-term interest rates (and cash returns) are essentially stuck at just over 0%. The bigger question is bonds, but we believe that interest rates are likely headed higher given accelerating economic and jobs growth, the revival of business capital investment, the likelihood of bond fund inflows slowing and deflation fears fading. At present, there is still a wide gap between the S&P 500 earnings yield and BAA corporate bond yields in favor of stocks, and we expect that gap to close somewhat in 2011 as stocks outperform bonds.

 5.     The US stock market outperforms the MSCI World Index.

Before 2010, there was a multi-year pattern in which the MSCI World Index outperformed US stocks. In a surprise to many, that streak ended last year with US stocks beating the MSCI World Index in 2010 by nearly 400 basis points. We think 2011 will mark the second year of US outperformance. Compared with the rest of the world, the United States is benefitting from more fiscal and monetary stimulus, and has a more innovative economy and better earnings growth prospects, all of which should help US stock market performance. We also expect that emerging market economies will perform well, but that the gap between emerging and developed economies is likely to narrow in 2011 (which should also help US stocks on a relative basis). In other markets, we expect Europe will continue to struggle with credit and sovereign funding issues and Japan’s secular growth problems will likely remain.

 6.     The US, Germany and Brazil outperform Japan, Spain and China.

2010 was a year in which geographic allocations played an important role in determining investors’ overall portfolio returns, and we think 2011 will see a continuation of this trend. From our perspective, we favor markets that have evidence of accelerating economic momentum and low levels of inflationary threats. We also prefer to avoid markets that are facing significant credit risks. As a result, we are predicting that a basket of US, German and Brazilian stocks would outperform a basket of Japanese, Spanish and Chinese stocks. As we indicated in our fifth prediction, there are a host of reasons to favor US stocks, including its improving quality and quantity of economic growth. Germany is exhibiting strength in manufacturing and exports and Brazil is benefitting from a rapidly growing middle class and solid consumer spending levels. On the other side of our equation, Japan is suffering from persistently slow growth and Spain has a troubled banking system and ongoing credit woes. Regarding China, we expect economic growth will remain strong, but that market is in the midst of a tightening cycle designed to combat inflation—an environment that does not bode especially well for market performance.

 7.     Commodities and emerging market currencies  outperform a basket of the dollar, euro and yen.

As long as global growth is at least reasonably strong (as it was in 2010), commodities prices should appreciate in 2011. We believe that oil could top $100 per barrel at some point during the year due to better macro demand and continued inventory declines and since gold is “the only currency without debt,” gold prices are likely to move higher over the course of the year (albeit at a slower pace and more irregularly than it has over the past couple of years. Additionally, industrial commodities such as copper should benefit from continued global growth and urbanization in emerging markets. As we indicated earlier, we expect the growth differential between emerging market countries and developed markets will narrow in 2011, but we remain preferential toward emerging market currencies over a basket of the dollar, euro and yen.

 8.     Strong balance sheets  and free cash flow lead to significant increases in dividends, share buybacks, mergers & acquisitions and business reinvestment.

Corporations in America are doing very well. Balance sheets are strong and income statements are showing high levels of free cash flow. This backdrop led to high levels of M&A activity and business reinvestment in 2010, and in the year ahead we are calling for double-digit increases in dividends, buybacks, M&A and business reinvestment. We believe the key to getting this prediction right is for business confidence to improve, signs of which became evident toward the end of 2010. In addition we would argue that unlocking the 2+ trillion dollars of cash on corporate balance sheets is a significant key to better and more sustained US GDP growth.

 9.     Investor flows move from bond funds to equity funds.

Should the economic and market backdrop play out as we expect, we should see fixed income flows slow and equity fund flows pick up materially in 2011. This would reverse a multi-year trend in which investors have been embracing bond funds and shunning equity funds. Indeed, we began seeing this reversal happen in the fourth quarter of 2010 when equities began to noticeably outperform fixed income. Flows tend to follow prices, and we would expect that during the course of this year, we will see a noticeable slowdown in bond fund flows and the switch into equity funds. The “era of fear” that we have seen in equities in the last couple of years is in contrast to the “era of greed” we saw in the late 1990’s.

 10.  The 2012 Presidential campaign sees a plethora of Republican candidates while President Obama continues to move to the center.

Election seasons  seem to grow longer every cycle, and already there appears to be a long list of potential GOP presidential candidates. While it is impossible to know exactly who will run, our view is that many will declare their intention to run for president during 2011. Meanwhile, after a very difficult election for President Obama in November of last year, his move toward the political center is likely to continue as  he attempts to be more business- and capital markets friendly. It is clear that elections are decided by independents and the President needs to increase his support within the independent ranks significantly in order to have a chance for reelection.

 The 2010 Scorecard

 In 2010, risk assets continued the choppy advance they began in 2009. “The S&P 500 ended the year up a double-digit percentage and close to our 1,250 target, as US stocks outpaced most developed markets and many important emerging markets,” Doll said.

 Real GDP growth continued in a positive direction but remained subpar compared with most recoveries. In the United States, jobs growth was not strong enough to reduce the unemployment rate.  Inflation remained a non-issue in the developed world but began to rear its ugly head in some emerging economies. Government deficit spending and debt levels continued to haunt investors but corporate financial health remained remarkably strong both in balance sheet and income statement terms. “Corporations produced fantastic earnings gains despite mediocre economic growth,” Doll noted.

 “To sum it up, although we missed on a couple of the predictions made one year ago, most did come to pass,” he said.

 1.     The US economy grows above 3% in 2010 and outpaces the G-7.

Score = Correct

Although final fourth-quarter growth numbers will not be available for a while yet, economists are currently revising their estimates upward, and it looks like GDP will have grown in the fourth quarter by around 3%. Also, it is looking like US growth for all of 2010 should just clear the 3% hurdle. Among other G-7 countries, other than Canada, no other country’s growth level will surpass that of the United States.

2.     Job growth in the United States turns positive early in 2010, but the unemployment rate remains stubbornly high.

Score = Correct

It would have been almost impossible to have phrased this prediction any better, since this exactly described what happened on the labor market front in 2010. Employment growth did turn positive toward the end of the first quarter, but gains were not strong enough to lower the unemployment rate.

 3.     Earnings rise significantly despite mediocre economic growth.

Score = Correct

When we made this prediction at the beginning of the year, our point was that earnings improvements would outpace the broader improvements in the overall economy, and that is exactly what came to pass. In many ways, the degree to which corporate America weathered slow levels of economic growth, ongoing credit issues and a still-troubled financial system was quite a surprise.

 4.     Inflation remains a non-issue in the developed world.

Score = Correct

While there have been some inflationary concerns in areas of the developing world, for the developed markets, deflationary pressures persisted through 2010. We acknowledge that in the years ahead, inflation may become a concern given high deficits and some of the structural problems facing the United States, but such an environment is not likely to develop in the near future.

 5.     Interest rates rise at all points on the Treasury curve, including fed funds.

Score = Incorrect

This is a prediction that we will have to mark in the “incorrect” column for this year. Some might say that we were not exactly wrong on this call, but just early since interest rates have begun to climb strongly over the last several weeks. For the year as a whole, however, credit concerns, quantitative easing and deflationary issues pushed the yield curve lower. On the fed funds front, rates are likely to remain lower for some time, and we have no expectation that the Fed will raise the fed funds rate at any point in the coming months.

 6.     US stocks outperform cash and Treasuries, and most developed markets.

Score = Correct

The broad asset class call we made at the beginning of the year has come to pass. With US equity market returns well into the double-digits, US stocks handily outperformed Treasuries (which came in at less than 10%) and cash (which returned just over 0%). With few exceptions, US stocks also outperformed other developed markets.

 7.     Emerging markets outperform as emerging economies grow significantly faster than developed regions.

Score = Correct

Economic growth in emerging markets has been much stronger than in the developed world, and emerging markets on balance have outperformed. The degree of outperformance, however, was narrower than we expected.

 8.     Healthcare, information technology and telecommunications outperform financials, utilities and materials.

Score = Incorrect

This is a prediction that came down to the wire, as going into the last week of the year we were slightly in the “correct” column on this one. Unfortunately (for our predictions scorecard) we were wrong on this call, if only barely, since a basket of healthcare, information technology and telecommunications stocks very slightly underperformed a basket of financials, utilities and materials stocks.

 9.     Strong free cash flow and slow growth lead to an increase in M&A activity.

Score = Correct

Strong free cash flow and strong balance sheets allowed companies to put their cash to work by ramping up merger-and-acquisition activity. Dividend increases and share buybacks also increased strongly this year.

 10.  Republicans make noticeable gains in the House and Senate, but Democrats remain firmly in control of Congress.

Score = Half-correct

We got the first part of this sentence correct, but the second part wrong, since Republicans did, of course, take over the House of Representatives. In retrospect, there was a much larger non-incumbent wave that dominated the midterms than we expected.

 Final 2010 Scorecard:

Correct:           7

Half-Correct:    1

Incorrect:         2

Total:               7.5/10

Opportunities  for Investors

 The start of a new year is always a good time to review your investment goals and asset allocation with your financial professional, and to make portfolio changes where necessary. With that in mind, following are some ideas investors may wish to consider:

 Retain equity overweights: A combination of supportive fiscal and monetary policy, decent economic growth, low inflation, strong corporate earnings and decent valuations should be a recipe for stock prices to move higher in 2011. As such, retaining overweight positions in equities relative to cash and bonds could be beneficial.

 Focus on free cash flow: One of our primary investment themes for the coming year will be to focus on companies that have high levels of free cash flows, and we are seeing opportunities across capitalizations, investment styles and geographies.

 Think about geography: As indicated by our overall market outlook and our specific predictions, we expect US stocks to continue to outperform most other global markets. US economic growth should be stronger than almost any other developed market, as should corporate earnings growth. At the same time, it remains important to keep some allocation to better-positioned international markets, including emerging markets.

 Stay with commodities: Gains will likely be uneven, and volatility in the commodities markets is likely to remain high, but long-term investment in commodities continues to make sense.

 Remember that gains will be harder to come by: In many ways the “easy money” in this bull market has already been made. The year ahead will likely see ongoing volatility and heightened dispersion between the winners and the losers. In this sort of environment, selectivity will be critical.

Source: BlackRock, Carral Sierra, 05.01.2011

Filed under: Asia, Latin America, News, , , , , , , , , , , ,

Metabit launches simulator for new Osaka Stock Exchange

As the industry eagerly awaits the launch of the Osaka Stock Exchange on 14 February 2011, Metabit has been authorised and licensed by NASDAQ OMX to build an exchange simulator against their OMNetAPI.  Metabit has leveraged its extensive experience of exchange simulation to launch Exsim for J-GATE on the 2nd of December, enabling sell side organisations to comprehensively simulate the new exchange’s APIs, prior to the exchange going live.

Daniel Burgin, CEO of Metabit, commented:

“We are delighted to be the first software vendor to launch an exchange simulator for J-GATE.  Companies will need to thoroughly test out different transaction scenarios before J-GATE goes live and after, when Exsim becomes an integral part of a broker’s internal testing facilities.  Exsim for J-GATE will enable them to do so realistically and effectively as well as supporting the onboarding process for the broker members’ institutional buyside clients on an ongoing basis.”

Exsim for J-GATE is independent of geographical location and time zones.  Organisations using Exsim can simulate the behaviour new J-GATE API for order execution as if were up and running now.

Metabit is headquartered in Japan, with offices in Australia, Hong Kong and Mainland China.  For further information about how Exsim for J-GATE could help your organisation, please contact Kenichi Morita on +81-3-3664-4160, mail sales@meta-bit.com or see http://www.meta-bit.com.

Source: Metabit, 24.11.2010

Filed under: Exchanges, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , ,

Singapore-Australia exchange tie up threatens Tokyo; Controversy Grows

Japan’s top exchange will seek its own alliances if a planned multi-billion dollar merger of the Singapore and Sydney stock exchanges goes ahead, the bourse’s head said in a report Wednesday.

Atsushi Saito, chief executive of the Tokyo Stock Exchange, told the Financial Times that if SGX’s 8.2 billion dollar offer for ASX went ahead, it would be not be “a good story” for Tokyo.

“If Japan becomes isolated on the international stage — that is not good,” he said. “There are many options. There could be a combination of TSE and others on an international basis.”

Saito’s remarks illustrate how the proposed offer by Singapore’s SGX for ASX has ruffled the region.

“The consensus (among officials at Asian exchanges before the proposed deal was announced) was that such a thing would be impossible in Asia” due to the differences in culture and sense of values, Saito told the newspaper of the proposed deal.

Saito added that if the deal were to go ahead, it could result in a loss for the TSE, which is SGX’s second largest shareholder with 4.9 per cent, the Financial Times said.

“Our shareholdings will be diluted, with our stake falling to about 3.1 per cent. It’s possible we’ll have a loss of hundreds of millions of yen,” he said.

The proposed merger aims to create the world’s fifth biggest exchange with a market capitalisation of about 12.3 billion US dollars, although it first needs to pass regulators and a growing political backlash in Australia.

Analysts say sticking points may include the Singapore government’s large stake in the SGX, which could raise sovereign ownership concerns, and the board’s composition with 11 Singapore representatives and four from Australia.

Source: AFP, 27.10.2010

Controversy grows over SGX’s takeover bid for ASX

The Singapore Exchange’s S$10.7 billion takeover bid for Australia’s ASX Limited faces a difficult road ahead amid political backlash in Australia and shareholder reservations over the deal.

For the transaction to push through, the Australian parliament, currently controlled by a coalition led by the ruling Labour party, would need to lift the 15 percent ownership cap on the ASX bourse. The Australian Treasury could grant a waiver, but the Business Times reports that this could be stymied if any party demands a vote.

Bob Brown of the Greens Party, a key Labour ally, said he was not supportive of the deal given Singapore’s human rights record and the city-state’s execution of an Australian drug smuggler in 2005.

“This is a state that tramples all over freedom of speech, democracy, the rights of oppositions, the ability for public discourse,” he was quoted in a report by the Associated Press. A few other lawmakers also indicated they were inclined to oppose the takeover.

Aside from regulatory approvals, the merger of the two exchanges will also be subject to shareholders’ approvals. But, already, one SGX shareholder has expressed a negative view over the issue.

Under the deal, SGX will issue new shares and pay ASX shareholders a combination of A$22 or S$28.04 in cash and 3.472 new ordinary SGX shares for each existing ASX ordinary share or equivalent to A$48 per share.

Atsushi Saito, chief executive of the Tokyo Stock Exchange (TSE), was quoted by the Financial Times as saying that the transaction could result in a loss for the Japanese exchange, which is SGX’s second largest shareholder with a 4.9 percent stake. He told the UK paper that if the deal were to push through it would not be “a good story” for Tokyo.

Some analysts said the planned acquisition looked expensive. Gabriel Yap, executive chairman of investment firm GCP Global, said the price of A$48 per share “is too high” as it represents 25 times price-to-earnings ratio while the estimated cost synergies and savings at 20% is higher than that achieved in other mergers and takeovers of other exchanges before.

From the point of view of ASX shareholders, “Christmas has come early,” said Yap.

The SGX-ASX deal aims to create the fifth-largest exchange in the world with a market capitalisation of more than US$12.3 billion and to capitalise on opportunities for growth in Asia-Pacific.The press statement on the proposed merger enumerates other benefits.

Source: Fit To Post Singapore, 27.10.2010

Filed under: Australia, Exchanges, Japan, Singapore, , , , , , ,

Metabit -Asia’s Trading Hub- Rebrand Marks 10th Anniversary

Metabit is celebrating its tenth anniversary in Tokyo on the 6th October 2010.  In acknowledgement of this milestone, the company which specialises in intuitive institutional trading platforms, exchange connectivity and a well established trading community, has commissioned a new corporate identity, website and advertising campaign.  These are to be launched at The FPL Japan Electronic Trading Summit 2010 on 6th October.

Daniel Bürgin, CEO of Metabit commented:

“We wanted to bring home to our clients and the market at large that our systems have been built out of Asia, for Asia.  It was important to demonstrate our intimate knowledge and understanding of Asian markets.“

“Metabit’s new brand image had to not only represent our commitment to Asia, but demonstrate our unique approach to client solutions and innate dynamism.  Our new positioning, Think Asia, Trade Asia, was developed to convey who we are and our area of speciality.”

A new advertising campaign will also be launched at the conference.  Metabit’s Metamorphosis Campaign, which features a butterfly with a map of Asia superimposed upon its wing, was chosen to symbolise the way in which the company operates. Bürgin continues:

“We wanted an original look that represents our approach. The metamorphosis theme was chosen to reflect the way we help clients transform and develop their business, enabling them to trade effortlessly and efficiently.”

Metabit has four offices in Japan, Australia, Hong Kong and Mainland China.  For more information about Metabit, visit www.meta-bit.com or see the company at Stand 9 at the FPL Summit in Tokyo.

For more information, contact Claus Kwon on +852 3752 0674 or Kenichi Morita on +81-3-3664-4160 or mail to sales@meta-bit.com .


MetabitAd(LowRes).jpg

Filed under: Asia, Australia, China, FIX Connectivity, Hong Kong, Japan, Market Data, News, Trading Technology, , , , , , , , , , , , , ,

BlackRock Bob Dolls: 10 prediction for the next 10 years

“10 Predictions for the Next 10 Years” by BlackRock’s Bob Doll and what it means to investors:

  1. U.S. equities experience high single-digit percentage total returns after the worst decade since the 1930s.
  2. Recessions occur more frequently during this decade than only once a decade as occurred in the last 20 years.
  3. Healthcare, information technology and energy alternatives are leading growth areas for the U.S.
  4. The U.S. dollar continues to be less dominant as the decade progresses.
  5. Interest rates move irregularly higher in the developing world.
  6. Country self-interest leads to more trade and political conflicts.
  7. An aging and declining population gives Europe some of Japan’s problems.
  8. World growth is led by emerging market consumers.
  9. Emerging markets weighting in global indices rises significantly.
  10. China’s economic and political ascent continues.

Read Bob Doll’s full report  10 Predictions for the next Decade

Source:BlackRock / Carral Sierra, 02.08.2010

Filed under: Banking, Brazil, China, Energy & Environment, Japan, Korea, Mexico, News, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

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