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Technological advancements and the demand for low-cost, fast trade executions could drive growth for electronic trading companies.
CME Group Inc.
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Thomson Reuters Corporation
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MarketAxess Holdings Inc.
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Virtu Financial, Inc.
BGC Partners, Inc.
Sprecher has informed the Atlanta Committee for Progress that he is resigning from the board. It also is expected that Sprecher scale back his other civic roles.
In order to boost operating efficiency and profitability, Barclays (BCS) signs a deal to divest its U.S. automated options trading division.
Turkey’s central bank has slashed its benchmark interest rate for the fourth time this year as it pushed ahead with a drive to kick-start lending and revive economic growth. Under the watch of President Recep Tayyip Erdogan, a notorious opponent of high interest rates, the bank had already cut the rate by 10 percentage points since July. On Thursday, its monetary policy committee (MPC) announced a fresh reduction of 2 percentage points, bringing the one-week repo rate down to 12 per cent.
An underlying measure of US whole sales prices was unexpectedly unchanged in November, signalling inflation remains subdued. So-called core US producer prices, which strip out volatile components like ...
Cboe Global (CBOE) agrees to the acquisition of the remaining stake in equities clearing house, EuroCCP to enhance derivatives trading and clearing capabilities.
(Bloomberg) -- Amazon.com Inc.’s purchase of a minority stake in Deliveroo may get an extended review by U.K. antitrust regulators, who said the purchase could hurt competition by discouraging the American company from re-entering the British food-delivery market on its own.The Competition and Markets Authority will continue to review Amazon’s investment in the fast-growing startup unless they offered remedies to address competition concerns within five days. The investigation, which began in October, may go into a second phase and could eventually result in the blocking of the investment of around $500 million.Over the next four years, the food-delivery business is estimated to increase 12% a year, to $76 billion in 2022, according to investment firm Cowen Inc. While the U.K. market is competitive, Amazon’s size makes it a major force in any sector. The CMA said the deal might end Amazon’s interest, discussed in internal documents, in re-entering the British market through the purchase of another platform. It shuttered its Amazon Restaurants delivery unit in 2018.“Evidence examined in the CMA’s investigation indicated that Amazon has a strong continued interest in the restaurant delivery sector,” the regulator said Wednesday. “The CMA believes that Amazon’s investment in Deliveroo was strategic and that offering rapid food delivery is important to Amazon, and so it may have looked to invest in an alternative business absent the merger.”The original decision to investigate the deal was unusual for the CMA as it doesn’t typically review minority acquisitions. Fears of damage to competition may have been fed by previous mergers by tech giants that were let through by regulators, such as Facebook Inc.’s acquisition of messaging service WhatsApp.Amazon’s British Takeout Leaves an Unpleasant Taste: Alex WebbThere is a “real risk” that Amazon’s investment “could leave customers, restaurants and grocers facing higher prices” because of reduced competition, CMA Executive Director Andrea Gomes da Silva said in the statement.A spokesman for Deliveroo said the company is “confident” it can persuade the CMA the investment will “add to competition,” while an Amazon spokesman said Deliveroo should have “broad access to investors and supporters.”The decision may cause concern for the internet giant, which has already faced European hurdles.It closed its own U.K. food-delivery service in December 2018, with the U.S. unit following the same path several months later. Amazon was among the five big businesses singled out in December by the Labour Party, which said they “exploited, ripped off and dehumanized” their workers, just after regulators in Europe said over the summer that they would start looking into how tech companies protect customers’ privacy.Difficult DecisionsThe CMA has offered Amazon and Deliveroo the chance to avoid an extended probe if they offer changes to its competition worries. Alan Davis, a competition lawyer at Pinsent Masons, said it is “difficult to see immediately what remedies they could offer at Phase 1 to resolve the concerns.”The U.K. food delivery sector is dominated by three players, Just Eat Plc, Uber Technologies Inc.’s unit Uber Eats and Deliveroo. Competition between them is considered fairly fierce, making it difficult to make money. Deliveroo has never made a profit, losing 232 million pounds ($305 million) last year.Meanwhile, Just Eat, the U.K.’s biggest food deliverer by market share, has been in talks with Prosus NV about a possible bid for the firm. The company advised shareholders to reject Prosus’s latest 740 pence-per-share offer Tuesday, preferring them to stick to an all-share combination with Netherlands-based Takeaway.com NV.The CMA decision also puts the undisclosed rights that Amazon acquired as part of the acquisition in the spotlight.“The nature of the CMA’s concerns seems the rights that come with the minority holding,” said Josh Buckland, a competition lawyer at Linklaters. “One potential solution could be to relinquish those rights and stay on board as a minority shareholder.”It’s very likely that the deal would be referred to an in-depth investigation, Buckland said.The CMA also expressed concern about how Amazon’s investment might change the online convenience grocery delivery market outside food. Deliveroo is focused on food delivery, and supermarket chains may rely on it to deliver “ultrafast” groceries because their own logistics providers can’t meet the tight deadlines, the CMA said.“The CMA believes that both parties have major expansion plans in this area which would bring them in closer competition in the future,” the regulator said. “The merger would result in the combination of two of the largest and best established suppliers of online convenience groceries. Most competing grocery retailers that are trialing propositions in this market are reliant on a single logistics supplier” without the scale of either Deliveroo or Amazon.(Updates with comments and detail from seventh paragraph onwards.)To contact the reporter on this story: Eddie Spence in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Elser at email@example.com, Giles TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
DEEP DIVE As we approach the end of 2019, it’s time not only for year-end lists, but end-of-decade lists. U.S. stocks have had what can only be called an excellent decade. MarketWatch will feature a number of forward-looking articles building on the past decade’s action.
Fintech—the nexus of finance and technology—is undeniably a huge investment opportunity. After all, there’s a big difference in between a fintech investment strategy that bought shares of credit card and digital payments companies (MA) (ticker: MA), (PYPL) (PYPL), (SQ) (SQ) and (V) (V), and one that invested in pure-play fintech lenders (ELVT) (ELVT), (LC) (LC), and (ONDK) (ONDK).
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Our research shows that most of the stocks that smart money likes historically generate strong […]
Cboe Global Markets said on Tuesday it would take full control of EuroCCP, Europe's largest clearing house for stock trades, to bolster its post-Brexit base in Amsterdam and diversify into derivatives. It is the latest deal in a rapidly consolidating market where the Swiss Exchange has bid for its Madrid counterpart and the London Stock Exchange is buying financial market data company Refinitiv. Cboe, the biggest pan-European share trading platform, already owns 20% of EuroCCP.
The trend of human tasks being replaced by algorithms is a perennial and understandable focus for the debate about how technology is changing capital markets. Policymakers, however, are already focusing on a longer-term trend: how the benefits of scale in digital industries will concentrate activity among a smaller number of investment providers. Technology has also facilitated new investment strategies, in particular algorithmic trading.
At Insider Monkey, we pore over the filings of nearly 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of September 30. In this […]
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for...
How do we determine whether MarketAxess Holdings Inc. (NASDAQ:MKTX) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows […]
"The global economic environment is very favorable for investors. Economies are generally strong, but not too strong. Employment levels are among the strongest for many decades. Interest rates are paused at very low levels, and the risk of significant increases in the medium term seems low. Financing for transactions is freely available to good borrowers, […]
Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 of 2018 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat […]
(Bloomberg) -- Robots have replaced thousands of routine jobs on Wall Street. Now, they’re coming for higher-ups.That’s the contention of Marcos Lopez de Prado, a Cornell University professor and the former head of machine learning at AQR Capital Management LLC, who testified in Washington on Friday about the impact of artificial intelligence on capital markets and jobs. The use of algorithms in electronic markets has automated the jobs of tens of thousands of execution traders worldwide, and it’s also displaced people who model prices and risk or build investment portfolios, he said.“Financial machine learning creates a number of challenges for the 6.14 million people employed in the finance and insurance industry, many of whom will lose their jobs -- not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms,” Lopez de Prado told the U.S. House Committee on Financial Services.During the almost two-hour hearing, lawmakers asked experts about racial and gender bias in AI, competition for highly skilled technology workers, and the challenges of regulating increasingly complex, data-driven financial markets.Other comments from the hearing:Kirsten Wegner, chief executive officer, Modern Markets Initiative:“As bad actors become more sophisticated, it is vital that financial regulators have the funding resources, technological capacity and access to AI and automated technologies to be a strong and effective cop on the beat.”Martina Rejsjö, head of Nasdaq Surveillance North America Equities, Nasdaq Inc.:Nasdaq runs more than 40 different algorithms, using about 35,000 parameters, to look for market abuse and manipulation in real time.“The massive and, in many cases, exponential growth in market data is a significant challenge for surveillance professionals,” she said. “Market abuse attempts have become more sophisticated, putting more pressure on surveillance teams to find the proverbial needle in the data haystack.”Rebecca Fender, senior director, CFA Institute:Forty-three percent of CFA members and candidates expect their roles to change significantly in the next five to 10 years, according to a survey of more than 3,800 respondents. The three roles most likely to disappear are sales agents, traders and performance analysts.Charlton McIlwain, professor of media, culture and communication at New York University:“Racial groups that are already extremely underrepresented in the financial services industry will be most at risk in terms of automation and the escalation of fintech development. This is especially true given the vast underrepresentation of African-Americans and Latinx in the adjacent technology sector workforce.”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, Daniel Taub, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The U.S. Securities and Exchange Commission (SEC) has rejected a proposal by the New York Stock Exchange for a rule change that would allow U.S direct listings to raise new capital like in an initial public offering (IPO), NYSE said on Friday. The rejection is a setback for NYSE's attempts to marry some of the benefits of direct listings with those of IPOs.
The market has been volatile in the last few months as the Federal Reserve finalized its rate cuts and uncertainty looms over trade negotiations with China. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 10 percentage […]
to allow companies to raise capital through direct listings, setting back efforts to expand the low-cost alternative to traditional initial public offerings. NYSE proposed the changes last month in a regulatory filing in which it set out rules for “primary direct floor listings” in which companies could raise a minimum of $250m. “We remain committed to evolving the direct listing product,” an NYSE spokesperson said in a statement.
New Jersey-based BlockFi is extending their services to allow customers to trade their cryptocurrencies with zero fees attached.
Georgia’s Republican governor has chosen a wealthy businesswoman and political newcomer to fill an upcoming vacancy in the U.S. Senate, flouting President Donald Trump’s preferred candidate in a play for moderate suburban voters.