Saturday 29th August 2015
NEWS: Friday, August 28TH: The Hong Kong Monetary Authority says it has granted a restricted banking licence to Goldman Sachs Asia Pacific Company Limited (GSAPCL) under the Banking Ordinance. GSAPCL, incorporated in Hong Kong, is a wholly-owned banking subsidiary of the Goldman Sachs Group, Inc. The number of restricted licence banks in Hong Kong is now 24 - Apple launched its first Australian dollar corporate bond issue, raising $1.2bn within two hours this morning. Strong demand for the US tech giant’s fixed and floating, four and seven year Kangaroo bonds saw the firm outstrip predictions it would raise between $500m and $1bn. Apple bonds are popular because the AA+ rated company is considered an ultra-safe investment, although yields are correspondingly low — about 3% on four-year bonds and about 3.8% on seven-year bonds - The European Securities and Markets Authority (ESMA) has published the responses received to the Joint Committee Discussion Paper on Key Information Document for PRIIPS. The responses can be downloaded from the regulator's website - Romania’s MV Petrom reportedly is planning a secondary listing on the London Stock Exchange. According to Romanian press reports, the local investment fund Fondul Proprietatea may sell a significant stake in the company via public offering on the Bucharest Stock Exchange and London Stock Exchange. OMV Petrom, with a current market capitalisation of €4.85bn has announced that it will ask its shareholders’ approval for a secondary listing in London. The general shareholders meeting is scheduled for September 22nd. Austrian group OMV, holds 51% of the company’s shares; other shareholders include the Romanian state, via the Energy Ministry, with a 20.6% stake, and investment fund Fondul Proprietatea, which holds 19%. The remaining 9.4% is free-float - Morgan Stanley (NYSE/MS) today announced the launch of a new fund, the IPM Systematic Macro UCITS Fund, under its FundLogic Alternatives plc umbrella. The fund provides exposure to IPM’s Systematic Macro strategy, which is based on IPM’s proprietary investment models that provide unique insights into how fundamental drivers interact with the dynamics of asset price returns. The FundLogic Alternatives Platform currently has more than $2.6bn in assets under management (as of 31 July 2015) and this latest addition expands Morgan Stanley’s offering of global macro strategies - Equities sold off hard this morning as continued pressure on Chinese stocks rippled throughout world markets. Chinese government intervention brought the Shanghai Composite back a positive close; but the question is now, has confidence eroded so much that the market will continue to depend on the government to prop it up? The other key element to consider today is the outcome of the debate in the German parliament on the Greek bailout. Last month, a record 65 lawmakers from the conservative camp broke ranks and refused to back negotiations on the bailout. The daily Bild estimated that up to 120 CDU and CSU members out of 311 might refuse to back the now-agreed deal. However, Chancellor Merkel is looking to secure support from the Social Democrats (SPD), Merkel's junior coalition partner, and the opposition Greens which will likely swing the final decision Greece’s way. However, a rebellion by a large number of her allies would be a blow to the highly popular Chancellor.

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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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