Tuesday 7th July 2015
NEWS TICKER, TUESDAY, JULY 7TH: Moody's Investors Service (Moody's) has assigned definitive B2 rating to the €400m senior secured notes issued by Senvion Holding GmbH and guaranteed, among others, by Rapid TopCo GmbH, following a review of the final bond documentation. The corporate family rating (CFR) of B1 and the probability of default rating (PDR) of B1-PD of Rapid TopCo GmbH remain unchanged. The outlook on all the ratings is stable. - Interactive Data, a provider of fixed-income evaluated pricing, will provide hourly snaps from its continuous evaluated pricing feed to Algomi Honeycomb (Algomi). Interactive Data will provide evaluated prices to the Honeycomb platform for high-yield and investment-grade US and European corporate bonds. The data will be available to help Algomi buy-side clients to achieve increased pre-trade transparency and price discovery. “Our goal is to give our clients the ability to access pre-trade price data which can be used to help facilitate trades in increasingly illiquid markets,” said Usman Khan, Chief technology officer and co-founder of Algomi. “Our Honeycomb buy-side clients will have access to Interactive Data’s evaluated prices as an important additional reference point that can be considered when comparing dealer bid and offer levels for execution,” he adds. Interactive Data’s continuous evaluated pricing launched in 2014 against a backdrop of a fast-evolving fixed income market structure characterized by shrinking dealer inventories, reduced liquidity, and a changing broker/dealer landscape. The continued shift to electronic trading platforms requires a supply of independent, high-quality data that allows users to assess quote quality and enhance price discovery, in the absence of traditional protocols. Continuous evaluated pricing facilitates this activity. The provision by Interactive Data of fixed-income evaluated pricing to Algomi is another deal in a succession of agreements with electronic trading and software platforms. - Federated Investors, Inc (NYSE: FII), will report financial and operating results for the quarter ended June 30th after the market closeson Thursday, July 23rd. A conference call for investors and analysts will be held at 9am Eastern on Friday, July 24th. President and chief executive officer J Christopher Donahue and chief financial officer Thomas R Donahue will host the call - Zapp today announces that Barclays has joined the financial institutions, retailers, billers and payment providers offering ‘Pay by Bank app’ mobile payments to consumers. Barclays also plans to offer ‘Pay by Bank app’ payments to customers via their existing mobile banking app later this year. Security first Pay by Bank app transactions are protected by a consumer’s existing bank app security - Singapore Exchange (SGX) reported growth in securities, derivatives and commodities activities in June. Traded value was $25bn, up 20% year on year and up 8% month on month, while daily average value was $1.2bn up 20% from a year earlier and up 8% from a month earlier. ETF trading also rose 30% from a year earlier to $237m while trading of STI stocks accounted for 68% of total trading versus 51% a year earlier. A total 37 bonds raising $12bn were listed in on SGX compared with 45 issues raising $21bn a year earlier - Following a recent Morningstar Analyst Ratings Meeting, Morningstar has moved the Kames UK Equity fund to a Morningstar Analyst Rating of Bronze. The fund was previously rated Silver. Although the fund has a strong long term track record under the current manager, Stephen Adams, returns over the medium term versus peers have been weaker. In addition, the manager has recently taken on additional responsibilities within the group, having been promoted to head of equities. Adams has passed some UK team responsibilities to his colleague Philip Howarth, but has additional non-UK equity responsibilities in his new role. Concerns over these two issues have resulted in the rating change - The Straits Times Index (STI) ended 9.79 points or 0.29% lower to 3332.94, taking the year-to-date performance to -0.96%. The top active stocks today were UOB, which declined 0.47%, Singtel, which gained 0.47%, DBS, which gained0.05%, Global Logistic, which declined 0.40% and CapitaLand, with a 0.57% fall. The FTSE ST Mid Cap Index declined 0.45%, while the FTSE ST Small Cap Index declined0.68% - Moody's Investors Service today upgraded Europcar Groupe S.A.'s (Europcar or the company) corporate family rating (CFR) to B1 from B3 and probability of default rating (PDR) to B1-PD from B3-PD. Concurrently, Moody's changed the instrument rating on the €475m senior notes due 2022, the obligations of which have been transferred to the company from Europcar Notes Limited after the completion of Europcar Groupe S.A.'s initial public offering (IPO), to definitive B3 from provisional (P)B3 and upgraded EC Finance Plc's instrument rating on the €350m senior secured notes due 2021 to B2 from B3. The outlook on the ratings is stable - CACEIS Bank Luxembourg – London Branch has received regulatory approval to provide depositary services to alternative investment funds. This enables the CACEIS group to provide a full range of depositary and custody services to alternative investment fund managers operating in the UK market. CACEIS has a long history of servicing UK clients, and with this approval, will be able to directly support these clients in their home market.

Latest Video

Blog

Regulatory Update

Traders Beware, Focus Could Shift Quickly in Your Direction

Monday, 16 July 2012 Written by 
Traders Beware, Focus Could Shift Quickly in Your Direction Some unsettling stories continue to unfold. One is Peregrine Financial Group, which managed to combine some of the most memorable red flags of the Madoff and MF Global scandals without attracting a regulatory response from the CFTC. (PFG represented that it held more than $220 million of customer funds when in reality it held approximately $5.1 million.) http://www.ftseglobalmarkets.com/

Some unsettling stories continue to unfold.

One is Peregrine Financial Group, which managed to combine some of the most memorable red flags of the Madoff and MF Global scandals without attracting a regulatory response from the CFTC. (PFG represented that it held more than $220 million of customer funds when in reality it held approximately $5.1 million.)

The second involved information stemming from the Barclay’s Libor scandal—in particular, exactly how much was known, when, and by what regulators.  The NY Fed, confirming that it received reports about Libor issues in 2007 and 2008, on Friday released documents showing it took “prompt action four years ago to highlight problems.”  The actions of Treasury Secretary Timothy Geithner, who headed the New York Fed from 2003 until 2009, may be heavily scrutinized.  So will those of the U.K. authorities.

And then there is the recent announcement by JPMorgan of possible valuation discrepancies by its traders. According to JPMorgan’s chief financial officer, a restatement may be necessary based upon facts uncovered “regarding the CIO traders’ intent as they were marking the book. And as a result, we questioned the integrity of those trader marks.”



What impact will this have on the regulatory climate?  Clearly, the regulators will be under tremendous pressure.  Richard Shelby, the top Republican on the U.S. Senate Banking Committee, noted Peregrine “raises serious questions about our current regulators and whether they are capable of doing their jobs.”  Others are also voicing concerns.  In turn, the regulators are likely to respond by increasing their oversight.

And as they do so, traders in particular may be in the line of fire.  Reflecting on LIBOR, Warren Buffett is quoted as saying, “the idea that a bunch of traders can start e-mailing each other . . . and play around with . . . [the Libor] rate . . . is not good for the system.”  This is the type of concern that prompted the CFTC this past April to pass rules for swap participants, which basically wall off traders from the rest of the firm.  Traders cannot supervise or influence the compensation of research analysts or clearing unit employees.  In some cases, communications with traders are prohibited unless the communication is made through the firm’s compliance department.  Both the Libor scandal and the J.P. Morgan trading loss, coupled perhaps with a few new situations brewing in the background, might give this type of thinking a major boost.

Deborah Prutzman

Deborah Prutzman is the founder and CEO of The Regulatory Fundamentals Group (RFG), a New York-based firm that designs and implements business and risk solutions for alternative asset managers and institutional investors. RFG's senior-led team employs a robust suite of tools, including practical alerts on new and potential industry developments and its powerful RFG Pathfinder® knowledge management platform which simplifies the challenges of operating in a regulated environment.  To learn more about The Regulatory Fundamentals Group call (212) 537-4058, email a representative at Information@RegFG.com or visit RegFG.com

Related News

Related Articles

Related Blogs

Related Videos

Current IssueSpecial Report

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP