Monday 2nd March 2015
NEWS TICKER, MARCH 2ND 2015: Moody's has released a special edition of its compendium of Asian oil and gas research, following the collapse of crude oil prices in recent months. The compendium, covering both corporates and sovereigns in the region. "The steep drop in crude oil prices since mid-2014 will materially reduce the earnings and cash flows of Asian oil & gas companies and weaken their credit metrics in 2015," says Vikas Halan, a Moody's vice president and senior credit officer. "At the same time the low prices will benefit most Asia Pacific sovereigns, given the region's status as a net oil importer," adds Halan. Crude prices more than halved between June 2014 and January 2015, reflecting higher-than-expected oil production in the US and lower demand in emerging markets. At the same time, with the slowing growth in worldwide demand, oil markets will likely remain oversupplied in the next two years. The demand-supply imbalance may be exacerbated if China's economic growth slows sharply or if significant lifting of economic sanctions on Iran further increases oil volumes. Moody's has lowered its price assumptions for Brent crude to $55/barrel through 2015 and $65/barrel in 2016. - Businesses are increasingly collecting and using data from, and about, consumers. This includes the identity of their customers, what they consume, where they live and work and other demographic information. It also includes information on who they connect with, their interests and attitudes. The UK Competition and Markets Authority is calling for information in a fact-finding exercise to help understand fully how businesses collect and use this data for commercial purposes and the implications for firms and consumers. Response forms can be found on the authority’s website - According to local press reports, Malaysia-based healthcare group Qualitas Healthcare Corporation Ltd, will decide this week either to list on Bursa Malaysia or put itself up for sale. The estimated value for the firm is reportedly around MYR1.2bn and press reports say it is in active negotiations with at least three potential buyers – International law firm Ropes & Gray has advised Crescent Capital Partners Management Pty Limited (Crescent) on the successful establishment of the over-subscribed Crescent Capital Partners V (Crescent V). An AUD675m fund, Crescent V will seek to invest in middle market businesses primarily in Australia and New Zealand with a focus on companies worth between AUD50m and AUD300m - MEPs will this week focus on the €315bn investment plan to boost growth in Europe, discussing with experts its three pillars: an investment fund, an advisory hub and a project pipeline. On Monday afternoon the economic affairs and budget committees hold a hearing with experts to discuss the €315bn investment plan for Europe as proposed by the European Commission - permanent tsb (PTSB), the Irish retail bank, will be using SAS solutions to deliver quicker and more efficient credit-decisioning, says the bank. Analysing this data in real-time will enable the bank to make quicker decisions that reflect each customer’s circumstances - The Straits Times Index (STI) ended +1.03 points higher or +0.03% to 3403.89, taking the year-to-date performance to +1.15%. The FTSE ST Mid Cap Index declined -0.39% while the FTSE ST Small Cap Index declined -1.14%. The top active stocks were SingTel (+0.47%), DBS (-1.48%), OCBC Bank (-0.86%), Noble (-3.08%) and UOB (-0.04%). The outperforming sectors today were represented by the FTSE ST Consumer Goods Index (+0.68%). The two biggest stocks of the FTSE ST Consumer Goods Index are Wilmar International (+0.31%) and Thai Beverage (+2.14%). The underperforming sector was the FTSE ST Basic Materials Index, which declined -3.44% with Midas Holdings’ share price gaining +1.61% and Geo Energy Resources’ share price declining -1.57%. The three most active Exchange Traded Funds (ETFs) by value today were the STI ETF (-0.29%), IS MSCI India (+0.37%), SPDR Gold Shares (+1.10%).

Russian T+3 Settlement set for Mid-November

Wednesday, 25 April 2012
Russian T+3 Settlement set for Mid-November The Russian switch from T+0 settlement towards a T+3 settlement is now likely to take place in Mid-November according to an announcement made by the MICEX-RTS exchange at an event they held in London yesterday. This is later than previously suggested with the delay put down to the slower than expected introduction of a single central securities depositary (CSD) and CCP. http://www.ftseglobalmarkets.com/

The Russian switch from T+0 settlement towards a T+3 settlement is now likely to take place in Mid-November according to an announcement made by the MICEX-RTS exchange at an event they held in London yesterday. This is later than previously suggested with the delay put down to the slower than expected introduction of a single central securities depositary (CSD) and CCP.

“The current T+0 settlement system has long been an issue for international institutional investors.” claimed Denis Svechnikov, head of client relations and DMA sales at Russian broker URALSIB Capital Financial speaking at the Tradetech Emerging Markets conference also held in London yesterday. The creation of a recognised CSD should release funds from US institutional investors that had been prevented from investing by the current system. Currently many of these investors had therefore been drawn to the London Stock Exchanges International Order Book (IOB) where a large number of Russian Depositary Receipts (DRs) are listed.

Local brokers had been offering T+3 funding before this, but because of the funding requirements over the three days it had put off some investors.  Vahan Vardanian, manager of IT at MICEX-RTS felt that the creation of the CSD and the change to T+3 would remove two of the biggest obstacles to for investors though he felt that issues around transparency, reporting and corporate governance would take longer to change.



Stas Surikov, head of prime brokerage and electronic trading at BCS Financial issued a word of caution regarding the rapid changes on multiple fronts taking place in Russia. “These changes are undoubtedly much needed, but there is a concern that they will be forced through too quickly, in order to have them in place before a planned MICEX-RTS IPO”. A date for the IPO has yet to be announced though it has been reported that it has been scheduled for 2013.

The changes should attract even greater flow from the high frequency segment to the Russian market. There has been a significant increase in high frequency activity on the Russian exchange in the last 24months and MICEX’s Vardanian estimates that as much as 40% of transactions on the exchange are now accounted for by HFT. However this figure varies between product with some brokers estimating the figure to be as high as 75% in FX versus only 25% in equities.

For more information about the Russia market please register to attend FTSE Global Market’s Accessing Russian event hosted in London on 23rd May. For more information go to www.accessingrussia.com or contact Adam Cuthbert on adam.cuthbert@berlinguer.com">adam.cuthbert@berlinguer.com

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