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jerryking : stockmarkets   27

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 High-Speed Trading Behind Your Amazon Purchase - WSJ
By CHRISTOPHER MIMS
Updated March 27, 2017

Beneath the placid surface of product pages lies an unseen world of bots, algorithms, flash crashes and fierce competition......Just beneath the placid surface of a typical product page on Amazon lies an unseen world, a system where third-party vendors can sell products alongside Amazon’s own goods. It’s like a stock market, complete with day traders, code-slinging quants, artificial-intelligence algorithms and, yes, flash crashes.

Amazon gave people and companies the ability to sell on Amazon.com in 2000, and it has since grown into a juggernaut, representing 49% of the goods Amazon ships. Amazon doesn’t break out numbers for the portion of its business driven by independent sellers, but that translates to tens of billions in revenue a year. Out of more than 2 million registered sellers, 100,000 each sold more than $100,000 in goods in the past year....It’s clear, after talking to sellers and the software companies that empower them, that the biggest of these vendors are growing into sophisticated retailers in their own right. The top few hundred use pricing algorithms to battle with one another for the coveted “Buy Box,” which designates the default seller of an item. It’s the Amazon equivalent of a No. 1 ranking on Google search, and a tremendous driver of sales.
fulfillment  Amazon  pricing  back-office  third-party  bots  algorithms  flash_crashes  competition  retailers  e-commerce  product_category  private_labels  stockmarkets  eBay  Wal-Mart  Jet  Christopher_Mims 
march 2017 by jerryking
Meet the SEC’s Brainy New Crime Fighters - WSJ
By SCOTT PATTERSON
Updated Dec. 14, 2014

The SEC is mustering its mathematical firepower in its Center for Risk and Quantitative Analytics, which was created last year soon after Mary Jo White took charge of the agency to help it get better at catching Wall Street misconduct. The enforcement unit, led by 14-year SEC veteran Lori Walsh, is housed deep within the warrens of the SEC’s Washington headquarters, and staffed by about 10 employees trained in fields such as mathematical finance, economics, accounting and computer programming.

Ms. Walsh says access to new sources of data and new ways of processing the data have been key to finding evidence of wrongdoing. “When you look at data in different ways, you see new things,” she said in an interview
alternative_data  analysis  analytics  arms_race  data  data_driven  enforcement  fresh_eyes  hiring  information_sources  mathematics  misconduct  models  modelling  patterns  perspectives  quantitative  quants  SEC  stockmarkets  Wall_Street 
december 2014 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
Africa’s stocks beckon, but there's a hitch - The Globe and Mail
Apr. 30 2013 | The Globe and Mail | DAVID BERMAN.

Mohamed El-Erian, best known as the chief executive of Pacific Investment Management Co. LLC, the $2-trillion (U.S.) asset manager, gushed over Africa in the latest issue of Foreign Policy.

He argued that the region is moving beyond its reputation as an operations base for multinational commodity producers and is now seeing economic diversification in the form of homegrown small-and medium-sized enterprises.

The World Bank, he noted, reckons that these firms add 20 per cent to Africa’s gross domestic product and generate some 50 per cent of new jobs in sub-Saharan Africa.

“These successful businesses are giving rise to internationally competitive companies, thereby providing access to global markets, new business models and technologies, and higher wages and salaries,” Mr. El-Erian said in the article.

Published
Tuesday,
Africa  commodities  investing  Mohamed_El-Erian  Nigeria  SMEs  stockmarkets  sub-Saharan_Africa 
may 2013 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
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
Google carrying real-time data from EU exchanges
Associated Press | Posted: Tuesday, February 21, 2012

Google's real-time stock quotes are a potential threat to financial information providers such the Thomson Reuters Corp. and Bloomberg L.P., which earn revenue through the provision of up-to-second market data to traders and analysts. Units of Reuters and Bloomberg compete with The Associated Press.

In an email, Google said it was trying to "provide consumers with the best information as quickly as possible."
data  competingonanalytics  stockmarkets  EU  Thomson_Reuters  Bloomberg  Google  disruption  information  information_flows  real-time  financial_data 
february 2012 by jerryking
globeadvisor.com: Living in the real world of finance
December 9, 2011 | G&M | by David Parkinson.
Both a scientist and financial guru, Emanuel Derman warns of relying on mathematical models to predict stock movements. As David Parkinson reports, investors should beware the wild card of human nature...Mr. Derman was in Toronto discussing his new book, Models. Behaving. Badly: Why Confusing Illusion With Reality Can Lead to Disaster, on Wall Street and in Life.

DAVID PARKINSON
boundary_conditions  finance  quantitative  Wall_Street  Colleges_&_Universities  books  physics  models  mathematics  stockmarkets  biases  modelling  dangers  false_confidence  human_factor  stock_picking  illusions  oversimplification  in_the_real_world 
january 2012 by jerryking
Fooling some of the people all of the time : a long short story
Fooling some of the people all of the time : a long short story
by Einhorn, David. Year/Format: 2008, 332.62097 EIN
In 2002, Einhorn spoke publicly about Allied Capital--a leader in the
private finance industry--presenting it as an excellent short
opportunity. Einhorn describes the incredible events that followed his
speech and how Allied and the investment community attacked him to
protect the company--and its stock price. Informative and intriguing,
"Fooling Some of the People All of the Time" details how the current
environment on Wall Street--and the world of hedge funds in particular--
not only allows for such behavior, but how it protects the companies
and attacks those who attempt to uncover them.
David_Einhorn  short_selling  TPL  books  investing  investment_advice  investment_research  Wall_Street  hedge_funds  stockmarkets 
march 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
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
China's stockmarket : a guide to its progress, players and prospects
2003 | The Economist in association with Profile Books | By: Green, Stephen Paul, 1972
China  stocks  future  stockmarkets 
april 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
FT.com / Wealth - Star performer’s secret: he is smart
November 13 2006 12:26 | Last updated: November 13 2006 12:26
FT.com By John Authers reviewing Anthony Bolton's "‘Investing with
Anthony Bolton – the Anatomy of a Stock Market Winner’, by Anthony
Bolton & Jonathan Davis. Harriman House Publishing, £12.99."
book_reviews  stocks  equity_research  stock_picking  investing  stockmarkets  books  research_analysts  smart_people 
march 2009 by jerryking
Stock Sleuthing 101: Talk to the company's customers
June 30, 2007 column by AVNER MANDELMAN counseling investors to
avoid fixating on the numerical side of the analysis to the detriment
of talking to a company's customers to understand truly the business'
strength or franchise.
stocks  Avner_Mandelman  market_research  sleuthing  personal_knowledge  scuttlebutt  due_diligence  biases  stockmarkets  primary_field_research 
january 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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