Sunday 19th April 2015
NEWS TICKER FRIDAY APRIL 17TH 2015: -On June 9, 2015, the Federal Trade Commission will host a workshop to examine competition, consumer protection, and economic issues raised by the proliferation of online and mobile peer-to peer business platforms in certain sectors of the economy, often referred to as the “sharing economy.” The workshop will take place in Washington, D.C., at the FTC’s Constitution Center conference space. Peer-to-peer platforms, which enable suppliers and consumers to connect and do business, have led to the emergence of new business models in industries that have been subject to regulation. The FTC’s sharing economy workshop will explore how regulatory frameworks can accommodate new sharing economy business models while maintaining appropriate consumer protections and a competitive marketplace. “We are seeing a dramatic growth in products and services that are built on peer-to-peer platforms, such as ride-sharing and property rentals, as more entrepreneurs harness the power of technology to reach more consumers,” says FTC Chairwoman Edith Ramirez. “The resulting business models have great potential to benefit our economy and consumers. Through our workshop, we want to better understand the competitive impact of these new business models, as well as their interactions with existing regulatory frameworks.” - he Straits Times Index (STI) ended 6.42 points or 0.18% lower to 3525.19, taking the year-to-date performance to +4.76%. The top active stocks today were Keppel Corp, which declined 2.01%, DBS, which gained 0.91%, SingTel, which gained 0.23%, UOB, which gained 0.38% and ComfortDelGro, with a 1.70% advance. The FTSE ST Mid Cap Index fell 0.30%, while the FTSE ST Small Cap Index rose 0.06%. The outperforming sectors today were represented by the FTSE ST Utilities Index, which rose 1.60%. The two biggest stocks of the Index - United Envirotech and Hyflux – ended 5.12% higher and 2.09% lower respectively. The underperforming sector was the FTSE ST Basic Materials Index, which slipped 1.82%. Midas Holdings shares declined 2.56% and Geo Energy Resources remained unchanged - It has been a testing day in the markets, with most stock markets reporting substantial losses. The spectre of another crisis in Greece as the IMF talked tough on the country adhering to its repayment schedule, a terminal outage at Bloomberg and a clampdown on OTC and short selling in China combined to test investor sentiment. The FTSE 100, fell briefly below 7000 to end up finding support at 7007; however Spain's Ibex and Italy's FTSE MIB were both 2% down while the German DAX 30 slid 1.8% and France's CAC 40 fell 1.2% - The outage impacted the UK DMO’s offer of £300m 1 month bill, due 18-May-2015(ISIN GB00BDNKWT09); the £1,000m 3-months bill due 20-Jul-2015 (ISIN GB00BDNLZ833), and the £1,500m 6-months bill due 19-Oct-2015 (ISIN GB00BDNNDG38) was conducted between midday and14.30 today. Any bids submitted in the aborted operation earlier this morning were deemed null and void - Catastrophe bond issuance is forecast to have risen almost 30% so far this year, though the size of the market remains modest. The increase in demand for cat bonds means that some bonds are now trading at a discount to their original issue price for the first time in years. Issuance for the year through to mid-April is predicted to be up 27% on 2014, at around $2.1bn, The full-year trend also looks positive, following on from a record cat bond issuance of $8.4bn in 2014 - Moody's Investors Service has described in detail the approach it takes to allocating expected credit losses across the various classes of debt issued by banks in the US, the EU and Switzerland. The liability hierarchy or "waterfall" that Moody's employs to allocate estimated losses to debt classes in these three jurisdictions incorporates the implications of key structural differences in their bank resolution and bail-in frameworks. In this way, the liability hierarchy aims to capture the prioritisation authorities will give different debt classes when apportioning losses to creditors in the event of a bank's failure. The construction of a given bank's liability structure at failure serves as the starting point of Moody's Loss Given Failure (LGF) analysis, instituted as part of its new bank rating methodology. The LGF framework is used to assess and differentiate creditor risk across banks' liability structures, as detailed in Moody's report "How Resolution Frameworks Drive Our Creditor Hierarchies." The bank resolution and bail-in frameworks in the US, EU, and Switzerland all aim to limit the use of public funds in bank resolutions while mitigating risks to financial stability. Important differences in these frameworks include the degree of power authorities have to write down or convert capital instruments, differences in depositor preference, and variations in the obligations of holding companies to their operating companies - Close Brothers has reportedly acquired advisory firm Mackay Stewart & Brown for an undisclosed amount. Andy Cumming, head of advice at Close Brothers Asset Management, said the acquisition would strengthen the national advice firm’s Scottish operation.

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

Related News

Related Articles

Related Blogs

Related Videos

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