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ADVISORY, Sept. 12, 2019 -- What:SmileDirectClub, Inc. (Nasdaq: SDC) (“SmileDirectClub”), the industry pioneer and first direct-to-consumer medtech platform for teeth.
(Bloomberg) -- The expulsion of Einar Aas from Nasdaq Inc.’s commodities unit in Europe is continuing to rattle power markets a year after the trader racked up more than $100 million in debt from bets he couldn’t repay.The default of the Nordic market’s most successful trader forced Nasdaq to focus on restoring confidence to the market. Buying and selling of electricity has been on the decline for years, and the Aas scandal only made matters worse. Activity in 2018 dropped to the lowest in two decades and volumes are down another 21% this year through August. Less trading has widened spreads, especially on contracts for the years ahead, according to market participants.“If there had been 10 traders as big as Einar Aas in the market, the other nine would probably have seized the opportunity and moved in to fill the gap,” said Arne Bergvik, head of analysis at Swedish utility Jamtkraft AB. “Unfortunately, there’s now a void.”His demise took many in the market by surprise. After all, regulators around the world had spent a decade shoring up rules to avoid another default after the collapse of Lehman Brothers Holdings Inc. in 2008. Aas, who traded on the world’s oldest power exchange for his own account, slipped through the net because of his stature, and rival traders had to pitch in to cover his losses.What Has Nasdaq Done Since the default?The exchange shored up rules on trading and capital requirements to make less likely another event like the default of Aas. Those changes include, increased requirements for how much capital and liquidity members of the clearing house has available.“You can never get to a 100% guarantee that this kind of event never happens again, but the actions we are taking now are significantly reducing the risk,” Georg Aasen, vice president for Nasdaq Commodities, said by phone.What are traders and utility executives saying?There’s an open question about how a single trader could be allowed to take the kinds of risks Aas racked up, said Marcus Annell, head of financial trading at the utility Bixia AB. Confidence in the exchange and its risk management has taken a knock.But while the lack of trust in the exchange has meant some business has gone elsewhere, Annell says there will always be a need for utilities to buy and sell power in advance. That means opportunities for traders, albeit at a smaller scale. The default means it will be even more difficult for Nasdaq to regain volume.The exchange should also be wary of too much increased regulation. If paperwork becomes too burdensome for smaller traders, then there’s a risk that the market will just have a handful of giant producers left, Annell said.Simon-Erik Ollus, head of trading at Fortum Oyj, doesn’t blame Nasdaq alone for the failure. In a bid to keep a lid on trading costs, it was a “Nordic compromise” to allow traders to become direct clearing members. But now, “we can probably call it a failure in the design of risk management,” he said.Fortum had to pay 20 million euros ($22 million) into Nasdaq’s default fund to help cover the losses, and has called for more product development in the Nordic market to boost trade. That is a focus right now, he said.Anna Borg, chief financial officer at utility Vattenfall AB, says that’s although volumes are declining it’s premature to call the market’s demise just yet. More regulation makes trading even more complex, but it’s also reducing risk, and this is where the market and the exchange jointly need to find the right balance.“Nasdaq has shot itself in the foot,” said Fredrik Bodecker, head of adviser Bodecker Partners AB and a former trader. While there are potentially new types of market participants, including wind power producers, the increase in margins and compliance is forcing smaller traders and producers on to the bilateral market, where they are instead trading directly with utilities, he said.What action has the regulators taken?Norway’s financial supervisory authority, after carrying out an audit of Nasdaq’s Norwegian unit, concluded in January that the exchange had lapsed in its oversight of Aas. It found that he had other people trading on his account, even if it was solely personal. There wasn’t sufficient investigation by the bourse and in the aftermath, Nasdaq had failed to disclose such vital information voluntarily.Sweden’s FSA, which oversees Nasdaq’s Nordic clearinghouse in Stockholm, still has separate investigations underway into the company, focusing on risk management, participation requirements, default management procedures and margin calculation.Have others markets benefited?“Not yet,” said Steffen Riediger, director of European power derivatives at the European Energy Exchange AG, a rival bourse. The company said in the aftermath of Aas’s default that it would expand in the Nordic power market. Volumes are up, but to a small extent he said, adding that more participants are setting up the product now.What about Aas himself?Aas, who declined to comment when reached by phone, avoided bankruptcy after striking a deal with the other traders and utilities at Nasdaq who were forced to top up the clearing house’s default fund.He got to keep his main house in Grimstad, a few hours’ drive southwest of Oslo. But he has sold other assets to settle claims, including sea-side properties, a mountain cabin, shares in an oil company and a painting by Andy Warhol.So far, those sales have brought in more than 160 million kroner ($18 million), according to Bloomberg calculations based on reports in Norwegian media. A few other major assets remain: investments in real-estate projects in Spain, and a possible tax refund stemming from a rule that would let Aas deduct 2018 losses from income in earlier years.“The sales process involving the Spanish real-estate investments is in full swing,” Aas’s lawyer, Marius Moursund Gisvold, said by phone, declining to provide any other details.The book value of his Spanish investments was set at 258 million kroner in the 2018 annual report of Aas’s investment firm Toppen Invest AS. The tax refund could be worth more than 200 million kroner, according to calculations published by local paper Agderposten.\--With assistance from Mathew Carr.To contact the reporters on this story: Lars Paulsson in London at firstname.lastname@example.org;Jesper Starn in Stockholm at email@example.com;Mikael Holter in Oslo at firstname.lastname@example.orgTo contact the editor responsible for this story: Reed Landberg at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK, Sept. 11, 2019 -- At the end of the settlement date of August 30, 2019, short interest in 2,370 Nasdaq Global MarketSM securities totaled 8,308,462,471 shares.
For the best part of 2019, the cloud software companies have lorded over the public markets. Paying silly times sales for anything with a share price chart that goes steeply up and to the right, and has a vague business model semblance to crown-ruler Adobe.
It looks like Nasdaq, Inc. (NASDAQ:NDAQ) is about to go ex-dividend in the next 3 days. Ex-dividend means that...
Cboe Global's (CBOE) Options, Futures and U.S. Equities volume reflect year-over-year increase in August. However, European Equities and global forex decline.
Digitizing board management can take board productivity to the next level. Answering these important questions will help you select the right technology to support your boardroom. Download the checklist from Nasdaq, Inc.
CME Group's (CME) August volumes of 24.3 million contracts reflect an increase of 53% year over year. Treasury futures and Metals marks record volumes.
NEW YORK, Sept. 04, 2019 -- Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for August 2019, on its investor relations website. A data sheet showing the monthly volumes.
An index released by the Institute for Supply Management fell below 50, the level that marks contraction in the sector. The data “will undoubtedly add to fears that more weakness is ahead”, said Jim O’Sullivan, chief US economist at High Frequency Economics.
(Bloomberg) -- It’s an arcane, technical part of stock-trading, part of the hidden plumbing behind every click to buy or sell.But for those who run, regulate and trade in U.S. equity markets, it’s become a battlefield.At issue are rebates -- the payments that exchanges make to top traders and brokers for sending them their business. The point of contention is a two-year government pilot program -- a Securities and Exchange Commission experiment -- designed to determine whether rebates influence the locations where trades are made.The dispute pits the New York Stock Exchange, Nasdaq Inc. and Cboe Global Markets Inc. -- which run the top U.S. marketplaces -- against the SEC, asset managers and pension funds such as the California Public Employees’ Retirement System. Money managers say rebates can create conflicts of interest. The agency wants to determine whether this is true, but exchanges say the study would needlessly disrupt markets. Personal attacks have been lobbed. Industry panels have devolved into mudslinging. Lawyers have been unleashed.“Everyone’s suing each other,” said Spencer Mindlin, an analyst at Aite Group LLC. “It’s crazy.”The tone is so heated that Mindlin used the tagline “an age of outrage” for a June conference in New York. Several speakers said the description was spot on.Just about all participants agree that U.S. stock markets are the most efficient in the world. Their relative transparency means that when the SEC proposes changes to market rules, or exchanges request permission to alter their operations, the agency receives a deluge of feedback.What’s different this time is the rancor.The SEC program, approved in December, is called the Transaction Fee Pilot. The study would temporarily divide stocks into three groups: one would ban exchanges from offering rebates to brokers, another would cap fees at $0.001 a share and the last would be a control group. The aim is to figure out whether the fee structures are good or bad for the market, according to a filing. It’s now being held up in court.‘Power Grab’The program represents a “remarkable regulatory power grab,” according to the three exchanges, which sued the SEC in February. They say it could harm investors who may have to pay higher prices for stocks, and hinder companies that issue stock from raising money. They say the “fatal shortcoming” in the SEC’s plan is that its drawbacks are likely to outweigh the benefits. Exchange executives argue that Main Street investors have never had it better: It’s easier, faster and cheaper than ever to buy and sell shares.“It’s in part contentious because it’s so damn complicated,” Chester Spatt, a finance professor at Carnegie Mellon University and former SEC chief economist. “The rebate is going into the brokers’ pockets and it doesn’t go to the customer.”Some of the world’s biggest asset managers and pension funds, including CalPERS and the Ontario Teachers’ Pension Plan, support the pilot. Industry groups representing funds that manage almost $70 trillion argue that the rebates can tempt traders to seek profits at investors’ expense.In separate comment letters in May, BlackRock Inc. and Vanguard Group Inc. both said they “strongly” support the pilot’s goals.Data FeesAnother subject of debate: market-data fees charged by the exchanges. The costs are a lightning rod for banks and buy-side firms that purchase super-fast, detailed information about stock-trading in order to show that they’re getting the best deal for clients.The Securities Industry and Financial Markets Association, which represents U.S. broker-dealers, estimated its members’ spending on NYSE market data rose 1,100% between 2010 and 2017. Exchange executives say that revenue from market data has grown modestly.A federal appeals court is reviewing an October ruling by the SEC that found NYSE and Nasdaq had failed to justify some data-fee increases. The regulator also refused to approve other fee increases that were contested by Sifma and Bloomberg LP, the parent company of Bloomberg News, which is an associate member of the industry group.In the past year, legal clashes over the pilot program have injected an unusual level of drama into relationships that in the past have been collegial.“A lot of people are angry,” said Mehmet Kinak, global head of systematic trading and market structure at asset manager T. Rowe Price Group Inc., which is among the pilot’s backers. “It’s much more confrontational than it used to be.”Privately, current and former SEC officials say they’ve never seen anything like it.Wall StreetCase in point: In June, NYSE and Nasdaq alleged Brett Redfearn, the director of the SEC’s trading and markets division, had “improperly influenced” commission proceedings on market data because of his Wall Street background. Before joining the regulator in late 2017, Redfearn was global head of market structure for JPMorgan Chase & Co.’s corporate and investment bank, as well as chairman of SIFMA’s equity markets and trading committee. The SEC’s process was “tainted” by Redfearn’s involvement, the two exchanges said in a legal filing.Targeting Redfearn was a step too far, said several industry executives. They praised Redfearn for his intelligence and knowledge of equity-market structure.“Brett has done and continues to do important work on behalf of investors and our markets,” SEC spokesman John Nester said in a statement. “His participation in this matter has been thoroughly vetted and deemed permissible by our ethics office.”New ExchangesThe infighting has created an opening for new marketplaces, such as Long-Term Stock Exchange, a Silicon Valley startup that won approval from the SEC in May to open a new trading venue. IEX Group Inc. is a regular critic of the legacy players. It supports the SEC pilot and doesn’t offer rebates or charge for market data. And some of the biggest U.S. market makers, including Bank of America Corp., Citadel Securities, E*Trade Financial Corp. and Virtu Financial Inc., formed their own Members Exchange earlier this year.The situation has become even more tense as participants come under pressure to cut costs at a time when profits from equity trading are shrinking.“Every fee you charge is a nickel out of my pocket, and the revenue is not enough to float all the boats -- all the boats are starting to attack each other,” said Larry Tabb, founder of research firm Tabb Group LLC. “This is worse than I’ve ever seen it. I’ve been in the industry since the 1980s. I’ve never seen this level of acrimony.”\--With assistance from Ben Bain.To contact the reporter on this story: Lananh Nguyen in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Bob Ivry, Rob UrbanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day 19 years ago, Swedish company OM Group made a $1.2-billion hostile takeover ...
NEW YORK, Aug. 27, 2019 -- Who: Nasdaq CFO Michael Ptasznik What:Barclays Global Financial Services Conference 2019 When:Wednesday, September 11, 2019 10:30 am.
NEW YORK, Aug. 26, 2019 -- At the end of the settlement date of August 15, 2019, short interest in 2,378 Nasdaq Global MarketSM securities totaled 8,255,813,521 shares compared.
Nasdaq's commodities exchange plans to launch its day-ahead auction market for electricity in Germany, France and the Nordics around April 2020, its head of European Commodities told Reuters on Thursday. Currently Nord Pool is alone in the Nordics in offering day-ahead electricity trading, but will be joined by EPEX SPOT at the end of the year. "We look to launch the day-ahead market in the first half of 2020.
Nasdaq will file a Form 25 with the Securities and Exchange Commission to complete the delisting for each of these companies. The delistings become effective ten days after the Form 25 is filed. For news and additional information about the companies, including the basis for the delistings and whether the companies’ securities are trading on another venue, please review the companies’ public filings or contact the company directly. For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com.
The liquidity of Britain's short-term power markets is likely to fall by 10-20% if the country leaves the European Union without a deal at the end of October, a senior executive at the EPEX SPOT power exchange told Reuters. Britain is due to leave the European Union on Oct. 31. If it does so without a deal, it would no longer be coupled to European power markets.
Could Nasdaq, Inc. (NASDAQ:NDAQ) be an attractive dividend share to own for the long haul? Investors are often drawn...