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jerryking : lse   11

Rise of machine trading forces data providers to pivot | Financial Times
OCTOBER 30 2019 | Financial Times | Philip Stafford in London.

Financial information suppliers are on the hunt for new markets such as wealth management and corporate audiences....... the days of depending on selling information on fixed workstations, or terminals to a core group of investment bankers and fund managers — the mainstay of the industry over decades — were quickly receding........Cost-conscious banks are reducing the numbers of analysts and traders they employ, cutting research or automating processes that have long been done by humans. That wipes out a once reliable client base for terminals, leaving data specialists to shift their focus elsewhere.....Chief technology officers need to become more efficient more quickly,” “Our fastest growing segment is corporates, business development and investor relations.” This had left rivals such as Bloomberg, Refinitiv and Morningstar “in a race . . . for each others’ customers,........Demand is increasingly being driven by the need for enriched data that can be fed into computers, rather than read by humans, ....“We’re seeing a big shift to data-driven strategies, and fundamental analysis will be more data-driven,” he said. “This is where the industry is headed and where we’re going for it.”....Overall terminal sales are healthy... estimates are that the number of users of terminals, or desktops, in the investment industry will rise to 1.6m this year and hit 1.7m by 2021. Most of that growth is set to come from areas such as investment management rather than trading....Mitko Yankov, global head of platform at Refinitiv, agreed that the old model of selling data as pre-packed bundles of information was disappearing. Customers wanted richer types of data, he said. This means serving developers, data scientists, quantitative traders and even traders and analysts who can write their own code. “They really don’t appreciate monolithic bundles,”...other data providers are hoping to benefit from the rising demand for data as markets apply computing trends such as artificial intelligence and machine learning to trading and analytics. The rush has been exemplified by the London Stock Exchange Group’s $27bn deal to buy Refinitiv.
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This (old - ish) article makes one think of a couple of factors that contributed to a change of balance:
https://www.bloomberg.com/news/articles/2019-02-25/jpmorgan-s-traders-nab-market-share-while-deutsche-bank-s-slip
First is the "exorbitant privilege" of being able to print more than others, but near second is probably information and information processing power advantage By the way, the article cited is a reasonably rich source of information, not to be compared with ft's, where there is no hard data and time perspective. There is another question: How does it square up with market as a "price discovery mechanism"? With barriers to safe entry into this market in billions of investment into technology what are the mere mortals supposed to do? The market seems to be turning into an ever narrower oligopoly.
alternative_data  automation  Bloomberg  coding  CTOs  data  data-driven  data_scientists  Factset  financial_data  fundamental_analysis  investment_management  LSE  Morningstar  Refinitiv  Thomson_Reuters  traders 
9 weeks ago by jerryking
London Stock Exchange lays $27bn bet that data are the future
July 28, 2019 | | Financial Times | by Arash Massoudi, Richard Henderson and Richard Blackden.

The London Stock Exchange Group more than 300 years old, is trying to get back on the front foot with a plan for its most ambitious acquisition, one that will shape the direction of the group for years to come. It is the most striking demonstration yet of the charge among exchange operators into the business of supplying the data that is at the heart of markets....The LSE on Friday confirmed a Financial Times report that it was in talks to buy data and trading venue group Refinitiv for $27bn including debt, from a consortium led by private equity group Blackstone. If an agreement is reached for a company best-known for its Eikon desktop terminals, it would transform the LSE into a provider of financial market infrastructure and data with the scale to take on US exchange industry heavyweights Intercontinental Exchange and CME Group as well as Michael Bloomberg’s financial information empire.

“This would be a bold move in the shift among exchanges away from the matching of buyers and sellers and into the business of selling information,” said Kevin McPartland, head of market structure research at consultancy Greenwich Associates. “Data are so valuable and so is having the network of traders and investors to access that data — that’s all at play here.”......The deal would also be a defining moment for the LSE’s chief executive, David Schwimmer, just a year after the relatively unknown former Goldman Sachs banker was parachuted in to steady the ship. Its scale will bring considerable risk in execution alongside the need to convince LSE shareholders that taking on Refinitiv’s $12bn of debt will prove worth it.

Industry analysts see the strategic logic of the deal for the LSE, best known for its UK stock exchange and derivatives clearing house LCH. While revenue from initial public offerings can be more volatile, spending by everyone from asset managers to hedge funds on financial data and the analytical tools to make use of it has been going in one direction. It hit a record $30.5bn last year
.......“What’s happened is exchanges have found it more difficult to find ways of generating revenue in their traditional businesses,” “You can deliver data so easily now, there is voracious appetite from anyone making investment decisions so they can get an edge.”.....As well as winning over LSE shareholders, any deal is likely to face a lengthy period of antitrust approvals.

“There is a wider market concern about exchanges and data vendors combining,” said Niki Beattie, founder of Market Structure Partners. “The global world of data distribution is presided over by a small number of players who have a lot of power.”
asset_management  Blackstone  Bloomberg  bourses  data  financial_data  hedge_funds  inflection_points  IntercontinentalExchange  investors  LSE  mergers_&_acquisitions  M&A  Refinitiv  stockmarkets  Thomson_Reuters  tools  trading_platforms  turning_points  defining_moments 
july 2019 by jerryking
The gutting of Barrick Gold – it didn’t have to be this way - The Globe and Mail
ERIC REGULY EUROPEAN BUREAU CHIEF
ROME
PUBLISHED JANUARY 4, 2019

Most big companies Eric Reguly followed – Inco, Falconbridge, Alcan, Dofasco, Molson, Fairmont, Four Seasons, among others – were flogged to foreigners, their head offices downgraded to branch plants or eliminated. ....Canadians were sellers, not builders.....If there was one company that was safe from the takeover onslaught, it was Barrick Gold, I thought......At the time, Barrick was run by its founder, Peter Munk, the Hungarian-born Canadian patriot who wanted to build the world’s biggest gold miner. After achieving that goal, he mused about creating a diversified resources giant, the equivalent of a BHP Billiton or Rio Tinto under the Maple Leaf. But he was too late: By the time he was ready to put the pieces together, in the middle part of the previous decade, all his potential targets, including Inco, had been plucked clean from the Toronto stock market.....
Eric_Reguly  branch_plants  head_offices  hollowing_out  John_Thornton  large_companies  LSE  mining  Peter_Munk  Pierre_Lassonde  sellout_culture  TMX  Barrick  Corporate_Canada 
january 2019 by jerryking
The two faces of the 1 per cent
August 19, 2017 | Financial Times | Janan Ganesh.

On top of its book sales, film adaptation and third life as an opera, The Bonfire of the Vanities achieved a rare feat. It turned its author into a 56-year-old enfant terrible. Thirty years have passed since Tom Wolfe’s first novel imagined New York City as an opulent failed state, where millionaires are one wrong turn from barbarian mobs and race card-players on the make.
....Bonfire can be read as a book about two different kinds of elite. You might characterise them as the moneyed and the cultured. Or as private enterprise and public life.....there is a real split among urbanites, who are too often grouped together. It is one that has been lost in the negative obsession with the elite in recent years. Think of it as the difference between the two LSEs — the London Stock Exchange and the London School of Economics — or the stereotypical FT reader and the stereotypical FT writer.

When populists attack elites, they conflate people who work in the media, the arts, politics, academia and some areas of the law with entrepreneurs, investment bankers and internationally mobile corporate professionals. The Brexit campaign defined itself against high finance but also against human rights QCs and know-it-all actors — as if these fields were one.

I commit this elision in my own columns and I should know better. By dint of my job, I meet people in each world (plus a few supple characters who bestride both) and they are different. The public elite tend to the liberal left. The private elite are apolitical swing voters. Each side has little idea what the other lot does all day. They have different tastes, different idioms and they dominate different parts of their cities.

Even in London, a New York-Los Angeles-Washington hybrid in its centralisation of the public and the private, the two clans rub against each other (at the opera, at Arsenal’s stadium) without blending into one. Until Brexit put them on the same side, the cultural elite often viewed the moneyed as the enemy — mauling the skyline, pricing them out of Hampstead. Above all, each group has its own insecurity. The public elite nurse constant material worries. Despite their membership of the economic 1 per cent (something they will deny even as you show them the graphs) they fear for their foothold in expensive cities......The private elite worry that they are not very interesting. I have seen tycoons cringe in the presence of niche-interest authors. Some attempt late-career entries into public life, often through the publication of a political treatise or some involvement in the arts. Executives follow “thought leaders” who are less intelligent than they are. Politicians know the type: the loaded donor who fears to leave a campaign meeting in case a couple of young advisers, who do not earn a six-figure salary between them, mock his unoriginal contribution.

Other differences are surprising. The public elite talk a wonderful game about diversity and work in fields that have a better balance of women and men. But the private elite tend to work among more races and nationalities: some trading floors look like 1980s Benetton commercials. The same seems true of social background. I would advise a young graduate without relatives in high places to choose corporate life over the media....Creativity is more precious than wealth. There is a reason why the most fashionable members’ clubs admit freelance graphic designers, who live hand-to-mouth, and black ball superstar bankers. In a sense, Fallow’s total victory over McCoy is classic Wolfe: it lacks the nuance of great art, but it gets at a truth.
Bonfire_of_the_Vanities  Tom_Wolfe  fiction  writers  enfant_terrible  New_York_City  novels  the_One_Percent  elitism  Janan_Ganesh  insecurities  hand-to-mouth  LSE  superstars 
august 2017 by jerryking
Class notes from a course on the age of complexity
Dec. 24, 2012 | The Financial Times p8.|by John Lloyd.

Now some have developed an anxiety about muddling through, and the lack of strategic thinking among leaders in public life.

General Sir David Richards, head of the British armed forces, recently stressed the need for long-range thinking about the world's unpredictability. Conflict in the Middle East, the rise of China, the slowing of Europe, fierce competition for raw materials, demographic shifts, terrorism and international crime are only some of the vast challenges he sees.

The UK public administration select committee, which scrutinises how the government is run, produced a report in April called Strategic Thinking on Government , in which it declared "we have little confidence that government policies are informed by a clear, coherent, strategic approach".
United_Kingdom  strategic_thinking  public_sector  long-range  unpredictability  globalization  Colleges_&_Universities  executive_education  complexity  LSE  long-term 
december 2012 by jerryking
Moribund TMX-Maple deal sends all the wrong signals
April 23, 2012 |Globe and Mail | by BOYD ERMAN.

For TMX, the issue is that the company, in the meantime, is strategically stuck. Maple’s bid killed TMX’s first choice, a merger with London Stock Exchange Group PLC. Now, after agreeing to a friendly deal with Maple, TMX is prohibited under the merger contract from doing any major acquisitions without Maple’s approval.

As analyst Jeff Fenwick of Cormark Securities points out, opportunities are passing TMX by. Two prime assets that TMX could afford – a key consideration since TMX is not that big by world standards – have recently gone on the market.

The London Metals Exchange, the world’s biggest metals marketplace, is deciding whether to go ahead with a sale. The price is expected to be in the neighbourhood of $1.3-billion (U.S.), easily doable for the TMX. Imagine the strategic possibilities of tying together the stock market operator with the biggest commodities presence and the largest metals marketplace.

But it doesn’t appear TMX is in the running, though competitors such as CME Group, NYSE Euronext, and Intercontinental Exchange reportedly are.
stockmarkets  Boyd_Erman  TMX  mergers_&_acquisitions  LSE  M&A  bourses  trading_platforms 
april 2012 by jerryking
School for quants
March 2, 2012 | FT.com | By Sam Knight

The Financial Computing Centre at UCL, a collaboration with the London School of Economics, the London Business School and 20 leading financial institutions, claims to be the only institute of its kind in Europe. Each year since its establishment in late 2008, between 600 and 800 students have applied for its 12 fully funded PhD places, which each cost the taxpayer £30,000 per year. Dozens more applicants come from the financial industry, where employers are willing to subsidise up to five years of research at the tantalising intersection of computers, data and money.
United_Kingdom  quantitative  Colleges_&_Universities  finance  quants  PhDs  LSE  collaboration 
march 2012 by jerryking
Globe Correspondents - The Globe and Mail
ERIC REGULY

ROME - Globe and Mail Blog

Last updated Wednesday, Nov. 30, 2011
TSX  bourses  Eric_Reguly  LSE  TMX 
november 2011 by jerryking
Let strategic assets go forth and prosper
Feb. 16, 2011 | The Globe and Mail| Editorial TMX Group Inc. is
in a sense a strategic asset for Canada, as some people are saying, but
that is all the more reason why it should be free to expand its scope
and compete beyond Canada by merging with London Stock Exchange Group
PLC, giving Canadian issuers and investors wider opportunities. The
adjective “strategic” should not be a synonym for “to be
protected.”....Good strategy is outward-looking, not merely defensive.
TMX should be entitled to pursue its hypothesis that a transatlantic
alliance would make it, more than before, a strategic asset for
Canadians.
stockmarkets  LSE  mergers_&_acquisitions  M&A  TSX  editorials  TMX  assets  strategy  transatlantic  alliances  outward_looking 
february 2011 by jerryking

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