Saturday 4th July 2015
NEWS TICKER: FRIDAY, JULY 3rd: Euronext says trading volumes for June 2015 and enterprise-wide activity for the first half year. During the first six months of 2015, Euronext posted the strongest six-month performance since the end of 2011 supported by favourable economic conditions. June average daily transaction value on the Euronext cash order book stood at €9,202m (+54% compared with June 2014). Activity on ETFs remained particularly dynamic last month with an average daily transaction value at €587m, up 106% compared to June 2014. Cash markets saw a material increase in trading activity across the first half of 2015, with an average daily transaction value for the period up 35% vs 2014. During this period, Euronext experienced three of the ten highest volume traded days since January 2012, and on march 20th the strongest single day of trading cash products of €18bn since the same date. In the meantime, the continued focus on nurturing domestic market share meant it returned to 65% for the month of June in a highly competitive environment - Morningstar has placed the Morningstar Analyst Rating for the Mirabaud Equities Swiss Small and Mid-fund Under Review following the appointment of new portfolio manager, Paul Schibli. The fund previously held a Neutral rating. Morningstar manager research analysts will meet with the new manager soon to reassess Morningstar’s opinion on the fund - Moody’s has today changed the outlook on all ratings of Bridge Holdco 4 Ltd, the ultimate holding company for Bridon Group, to stable from positive. Concurrently, the group's B3 Corporate Family Rating (CFR), B3-PD Probability of Default Rating (PDR) as well as the B2 instrument rating on the USD286 million senior secured first lien term loan, $40m senior secured revolving credit facility and the Caa2 rating on the $111m senior secured second lien term loan borrowed by Bridge Finco LLC have been affirmed - Subsea 7 S.A. repurchase of convertible bonds has filed a notice with the Luxembourg stock exchange that it has repurchased convertible bonds worth $10m in nominal value at an average price of 91.5 of the $700m 1% Subsea 7 S.A. Convertible Bond Issue 2012/2017 (ISIN NO: 001066116.8). Following the purchase, the Company holds bonds with an aggregate nominal value of USD 91,800,000 representing approximately 13.1% of the 1.00% Subsea 7 S.A. Convertible Bond Issue 2012/2017 - Bellpenny says that its CEO, Kevin Ronaldson, will step down later this year to become ‘Founder Director’ of the business. Nigel Stockton, who has been a director of Bellpenny since inception, will, subject to FCA approval, become the new CEO. The changes are expected to take effect in September - The Straits Times Index (STI) ended 14.89 points or 0.45% higher to 3342.73, taking the year-to-date performance to -0.67%. The top active stocks today were DBS, which gained 2.00%, Singtel, which closed unchanged, Global Logistic, which declined 0.39%, Ascendas REIT, which gained 0.42% and UOB, with a 0.43% advance. The FTSE ST Mid Cap Index gained 0.16%, while the FTSE ST Small Cap Index declined 0.30%. Outperforming sectors today were represented by the FTSE ST Financials Index, which rose 0.69%. The two biggest stocks of the Index - DBS Group Holdings and OCBC- ended 2.00% higher and 0.79% higher respectively. The underperforming sector was the FTSE ST Basic Materials Index, which slipped 0.89%. Midas Holdings shares declined 1.56% and NSL increased 0.67%.

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FTT drags down Italian stock trading volumes

Wednesday, 23 April 2014
FTT drags down Italian stock trading volumes Trading in Italian stocks has fallen by 34.2% since the introduction of a Financial Transaction Tax (FTT) twelve months ago, according to research from Credit Suisse. http://www.ftseglobalmarkets.com/media/k2/items/cache/7e19d33790d446c78d426d3c4ca1dd43_XL.jpg

Trading in Italian stocks has fallen by 34.2% since the introduction of a Financial Transaction Tax (FTT) twelve months ago, according to research from Credit Suisse.

The Swiss bank’s Trading Strategy report, released last week, finds that since the Italian FTT (IFTT) was introduced in March 2013, average daily turnover (ADT) in Italian stocks has fallen by 29.7% versus the average from January to February 2013.

Over the same time period, ADT in other European stocks increased by 4.5%; therefore, Italy has experienced a 34.2% relative decline in ADT since the introduction of the tax.



The IFTT followed the introduction of French FTT and adopts a similar model but with extended scope which includes a tax on equity-like financial instruments and derivatives, as well as high-frequency trading.

In Italy, the tax on equities levies 0.10% per exchange transaction and 0.20% on over-the-counter trades. The corresponding derivatives tax levies a fixed charge per transaction, ranging from €0.01875 to €200 depending on the instrument type, with a significant tax discount if the orders are traded on exchange.

Transactions generated by algorithmic trading incur an additional charge of 0.02%, though activities deemed to be market-making are exempt.

A crucial difference between the Italian tax and the French FTT is that CFD hedging activity is not exempt from the IFTT, meaning that it’s therefore not surprising to find that the IFTT has had a much more pronounced impact on volumes.  

“Given the specific nature of the Italian market and the dominance of retail investing, it is no surprise to see the IFTT having an effect on trading volumes, particularly as CFDs are popular instruments in the country,” says Alex Dalley, co-head of sales, BATS Chi-X Europe. “However, the 34.2% drop is certainly higher than expected.”

In France, the reports says FTT appears to have had a modest impact on overall French volumes, but may have contributed to lower liquidity in mid and small cap stocks.

In the 20 months since the FFTT was introduced, average daily turnover (ADT) in French stocks has fallen by 9.2% versus the average from January to July 2012. Over the same time period, ADT in other European stocks fell by 2.8%; therefore, France has experienced a 6.4% relative decline in ADT since the introduction of the tax.

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