Thursday 28th July 2016
NEWS TICKER: JULY 27TH 2016: The ESMA registers portal will undergo a technical update tomorrow. The machine-to-machine service will no longer support connections via SSL v1, SSL v2, SSL v3 and RC4 - All machine-to-machine services will be available via HTTPS only while HTTP connectivity will no longer be available. Full details are available on the portal itself – Twitter looked to have missed second-quarter revenue numbers and gave a gloomy outlook for growth in Q3. Q2 revenues of $602m and earnings per share of 13 cents disappointed analyst, who expected revenues of c.$607m, while EPS beat estimates of $0.10. Twitter says Q3 revenue will be somewhere between $590m and $610m. Twitter’s shares have dropped 20% year-to-date, and fell by more than 11% in after-hours trading after its results were announced. The firm says it believes advertising will migrate to video and explained that is why it secured streaming rights to NFL and NBA games in the US. Chief operating officer Adam Bain says, “There is a whole new set of video budgets out there today. These are these online video budgets. It’s about a $10bn marketplace in the US. These are video budgets that today we basically don’t qualify for, since the spend is going in other areas.” However, investors look to be wary of whether user growth (up only 1%) will meet expectations. The next benchmark report will be from Facebook (expected today), which analysts think will be strong. - Deutsche Bank AG reports that its second-quarter net income fell 98% from a year earlier, hurt by weaker performances in trading and investment banking, as well as restructuring costs. John Cryan, chief executive officer of the German bank, said that more needs to be done to control costs and that low interest rates will increasingly affect customers -- Verizon Communications has agreed to a $4.83bn cash deal for Yahoo's web assets as it looks to grow its digital media and advertising business - Apple reports a 15% drop in Q3 revenues because of falling iPhone sales, revenue and average selling price. Moreover, the firm’s market share of global smartphone shipments also fell off in Q1 by as much as 3 percentage points to 14.8% following a couple of years’ worth of impressive growth, particularly in China. Apple is meeting growing competition from Chinese smartphone vendors such as Huawei, Oppo and Xiaomi. Apple reported an overall decline in revenues of $7bn to $42.4bn in Q3, down 15% year on year, mostly due to a drop in iPhone shipments - The Catalan Parliament has voted 72-10 in favour of the conclusions of a pro-independence "constituent process" report today, a move that opposition parties, two of which abandoned the chamber in protest, described as "wholly illegal". MPs from the Popular Party in Catalonia (PPC) and Ciudadanos left the chamber in protest before the vote took place. Catalan Socialist Party (PSC) MPs remained seated but did not vote. The report, commissioned by separatist parties in the parliament, recommend measures that could lead to a unilateral declaration of independence. Earlier this month, the Spanish Constitutional Court warned the Catalan Parliament that its commission could not study "the opening of a constituent process in Catalonia that leads to the creation of a future Catalan constitution and an independent Catalan state". Esquerrra (ERC) leader Oriol Junqueras tweeted that "we have the democratic mandate to build a new country, clean and fair, and a mandate, for us, is a duty!" -- Jan Dehn, head of research at Ashmore, in a client note today made the case for allocating to emerging markets, even if uncertainties linger in developed markets. He suggests that whilet there are some risks involved, they are fairly priced, and insists that the fears pertaining to EM are misplaced. “Emerging Markets (EM) have performed a lot better this year than for some time. EM currencies are outperforming the Dollar and EM local bonds are up strongly year to date in Dollar terms. Despite the rally EM bonds still pay about 5-6 times higher yield than similar duration bonds in the US, while many other developed market bonds pay negative yields. The reasons for EM’s better performance are many, including better valuations, stronger technicals and improving relative and absolute fundamentals. As recently as last week, the IMF revised down developed market growth again, including -0.2% revisions of US and UK growth. China’s growth forecast was revised up.” -- The EBRD is considering extending a loan of up to $180m to RGP Kazvodkhoz (the "Company"), wholly owned by the Government of Kazakhstan, for rehabilitation of the water supply and irrigation infrastructure in South Kazakhstan, Zhambyl and Aktobe regions of Kazakhstan. The loan will be backed by a sovereign guarantee -- The unit of Royal Dutch Shell Plc plans to launch an IPO in October involving up to 330m primary and secondary shares (some 18.6% of the company’s shares) at up to P90 per share, with a listing on the Philippine Stock Exchange tentatively set for November 10th. The IPO is now awaiting regulatory approval and follows on from the recent$532m maiden issue by cement maker Cemex Holdings Philippines. Manila’s benchmark stock index touched a 15-month high last week, with investor confidence boosted by the country’s economic performance --

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Much ado about HFT

Wednesday, 23 May 2012
Much ado about HFT FIA EPTA debunks high-frequency trading myths at MiFID II paper launch http://www.ftseglobalmarkets.com/

FIA EPTA debunks high-frequency trading myths at MiFID II paper launch

Launching its position paper on the review of the EU’s Markets in Financial Instruments Directive (known as MiFID II), FIA European Principal Traders Association has addressed what it claims to be  misconceptions surrounding high-frequency trading (HFT).“It’s time to bring more balance to the HFT debate, which until now has been driven by emotive language, anecdotes and fabrications rather than hard fact,” says FIA EPTA chairman Remco Lenterman. “For example, many people don’t realise that market abuse—as well as being morally reprehensible—comes at a hefty price for the market. So principal trading firms such as our members have a very real economic incentive to fight market abuse and back regulatory reform,” Lenterman adds, claiming that the industry’s critics have chosen to overlook the value that principal trading firms add to the real economy in terms of lower transaction costs and greater liquidity.

FIA EPTA is an association of European principal traders formed in June 2011 under the auspices of the Futures Industry Association (FIA). FIA EPTA represents more than 20 principal trading firms that, on a combined basis, are responsible for very significant volumes of trading in many asset classes on European regulated markets and multilateral trading facilities (MTFs). On average and across the main trading venues in Europe, one in two transactions in futures and one in three transactions in equities very likely have an FIA EPTA member firm on one or both sides of the transaction.



The position paper highlights FIA EPTA’s backing for a comprehensive regulatory framework and the regulation of all market participants with memberships to regulated markets and multilateral trading facilities. It also argues for well calibrated order-to-trade ratios determined by trading venues to ensure orderly trading on their platforms. Equally it expects trading venues and market participants to have robust risk controls in place to address risks inherent in electronic markets as well as ESMA’s guidelines on systems and controls in an automated trading environment, and supports transparent and open markets along with pre- and post-trade transparency measures and on-exchange trading. “We strongly support measures that ensure safer, more resilient markets, but we urge policymakers to carefully weigh the costs of such measures. No one benefits if badly designed regulations disrupt liquidity and drive up costs for traders and investors,” Lenterman said.

FIA EPTA represents firms that trade their own capital in the European exchange-traded markets. The association estimates that its members are responsible for a substantial part of the traded volumes on European exchanges and multilateral trading facilities.

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