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jerryking : bourses   14

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
TMX’s Eccleston says Canadian exchanges need new technology - The Globe and Mail
The Globe and Mail
Published Wednesday, Dec. 03 2014

The new head of TMX Group Ltd. says the stock exchange company needs to diversify and develop new technology products to help counter the impact of Canada’s highly cyclical commodity-dominated markets...“What we can’t do is simply let them all sit as totally separate entities,” he said. “They all run as verticals. But the challenge is how do you take those things and understand how to use the capabilities to create more integrated solutions that give you some competitive advantage?”...he needs to create a strategy for a portfolio of TMX businesses.

“I think it’s time to start thinking about TMX as not a group of exchanges and clearing businesses, but really a very strong technology-based organization that happens to manage exchanges, clearing businesses, risk-management business, data businesses and a number of other things,” he said.
TMX  Lou_Eccleston  product_development  stockmarkets  first90days  trading_platforms  bourses  Bay_Street  capabilities  competitive_advantage  diversification  new_products  portfolio_management  systems_integration 
december 2014 by jerryking
At the Big Board, Seeking Rejuvenation in Consolidation - NYTimes.com
December 20, 2012, 9:15 pm 1 Comment
At the Big Board, Seeking Rejuvenation in Consolidation
By MICHAEL J. DE LA MERCED
bourses  stockmarkets  mergers_&_acquisitions  IntercontinentalExchange 
december 2012 by jerryking
ICE Has Expanded Aggressively - WSJ.com
December 20, 2012 | WSJ | By LESLIE JOSEPHS And JACOB BUNGE.

In 2008, as the credit crisis revealed risks lurking in off-exchange markets for byzantine derivatives such as credit-default swaps, ICE struck a deal with a consortium of banks to form a clearinghouse to back up credit derivatives. The move anticipated regulators' mandate to clear such contracts to reduce systemic risk represented to the broader financial system.
bourses  commodities  derivatives  financial_system  clearinghouses  futures_markets  IntercontinentalExchange 
december 2012 by jerryking
Exchange Sale Reflects New Realities of Trading - NYTimes.com
December 20, 2012 | NYT | By BEN PROTESS and NATHANIEL POPPER.

(Idea for the Ontario Food Terminal and the OPMA??) the firm, IntercontinentalExchange, or ICE, an electronic operator of markets for derivatives and commodities, is buying the symbolic cradle of American capitalism, the New York Stock Exchange,for $8.2 billion....ICE was founded in 2000 by Mr. Sprecher, who began his career developing power plants. In the 1990s, he saw that many power companies and financial firms wanted to hedge their investments in energy with financial contracts, but the market for these contracts was disorganized and opaque.

Mr. Sprecher bought an obscure exchange for buying and selling electricity in Atlanta and turned it into ICE with financing from BP and Wall Street firms, including Goldman Sachs and Morgan Stanley.

Banks were drawn to the idea of a standardized place to buy and sell derivatives tied to the value of oil and other commodities. But they also hoped to create a competitor to the virtual monopoly position being built up by the Chicago Mercantile Exchange in futures trading....ICE also decided to fashion its own clearinghouse, rather than tap an outsize firm. It expanded through acquisitions, planting the seeds for growth in 2008, when it took over the Clearing Corporation, home to a popular derivative known as a credit-default swap.

The Dodd-Frank overhaul may provide additional benefits for ICE. Under the law, exchanges must turn over public and private information to outside data warehouses, which will, in turn, share the information with regulators. Sensing an opportunity, ICE created its own warehouse, named ICE Trade Vault.

ICE and its Chicago rival, CME Group, have also moved in recent months to convert swaps trades, which are facing more scrutiny under Dodd-Frank, into old-fashioned futures contracts. Futures trading is lucrative territory for the exchanges in part because they can shut out competitors.

“The reality is that there are incentives to convert swaps into futures, where there’s less competition,” said Richard M. McVey, chief executive of MarketAxess, an independent trading platform that is expanding into the swaps business. “There’s no requirement for CME and ICE to open their futures clearinghouses to other exchanges.”
contracts  stockmarkets  mergers_&_acquisitions  M&A  derivatives  Dodd-Frank  trading_platforms  bourses  OFT  hedging  opacity  public_information  private_information  disorganization  clearinghouses 
december 2012 by jerryking
Market Shift Leads NYSE To Sell to ICE - WSJ.com
December 20, 2012| WSJ |By JENNY STRASBURG and ANUPREETA DAS.

The New York Stock Exchange, the cornerstone of American capitalism for 220 years, agreed to be sold as part of an $8.2 billion takeover by IntercontinentalExchange Inc.

If regulators and shareholders approve, the combined company would own 14 stock and futures exchanges and five clearing operations that serve as middlemen between buyers and sellers of futures and other contracts, doing more things in more places than any other rival.
mergers_&_acquisitions  stockmarkets  bourses  trading_platforms  NYSE 
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
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
Commodities Report: Mining Start-Ups Look for Northern Exposure - WSJ.com
NOVEMBER 30, 2010 | | Phred Dvorak. The Toronto bourse
estimates Canada has snagged more than a third of the world's equity
financing by mining companies during the past 10 years, and 55% in the
first three-quarters of this year.

The flow of mining deals comes amid a boom in commodities prices that
has pushed gold and copper to records and silver to near 30-year highs.
Canada  Canadian  mining  finance  start_ups  TSX  stockmarkets  TMX  commodities  commodities_supercycle  bourses 
november 2010 by jerryking
Book Review: "For Crying Out Loud" - WSJ.com
NOVEMBER 16, 2009 | Wall Street Journal | By DAVE KANSAS. From
Screams To Screens. 'Open outcry' made the Merc seem magical. But
electronic trading made it ready to compete in global markets.
book_reviews  electronic_trading  commodities  traders  trading_platforms  stockmarkets  bourses 
november 2009 by jerryking
Those were the days;
06-25-2004 G & M RoB Magazine article by Doug Steiner on
the behaviour changes occurring in Bay Street among the brokerages.

First Marathon--led by Lawrence Bloomberg--and Gordon Capital, Connacher's secretive institutional boutique, were the Street's two toughest and savviest firms. First Marathon helped pioneer the discount brokerage concept in the early 1980s with Marathon Brown (which TD Bank bought in 1993). Bloomberg also perfected the "eat what you kill" compensation plan of fat bonuses for partners and employees who put together lucrative deals. It changed the payouts of almost every trader and investment banker on Bay Street, Howe Street and Ren Lvesque Boulevard....By 1995, the internet was changing trading forever. Disnat, E*TRADE Canada and other on-line dealers pushed the banks into flat-fee trading. Within three years, commissions for small trades tumbled 70%.

Yet Canada still had five stock exchanges: Vancouver, Alberta, Winnipeg, Toronto and Montreal. TSE president Rowland Fleming urged the exchanges to modernize, and the TSE closed its trading floor in 1997. His pugnacious leadership style helped persuade the dealers to remove both him and their own duplication of costs by consolidating the exchanges.

The culture was changing as well. Watering holes in Toronto, Montreal and Vancouver lost customers. Alcohol was no longer greasing the wheels of fortune. It was being replaced by MBAs, CFAs and hard work.
'80s  Bay_Street  behavioral_change  bourses  brokerage_houses  cultural_change  culture  Doug_Steiner  eat_what_you_kill  Gordon_Capital  hard_work  reminiscing  stockmarkets 
january 2009 by jerryking

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