Exchanges/Platforms

Bigger DAX is still too small for Germany

24 Nov 2020

Exchange operator Deutsche Boerse is expanding the blue-chip benchmark by a third to 40 members. Including a larger slice of the country’s listed companies is a good thing. But given the ubiquity of family-owned mid-sized firms, investors are still missing much of the action.

March’s market bailout demands regulatory payback

23 Nov 2020

Central banks were right to prop up financial markets when the pandemic caused panic. But their support exposed structural flaws and may lead to future recklessness. Preventing that requires regulators to extend their reach. Compared to 2008, the reforms are less obvious.

Deutsche Boerse jumps on ESG train with ISS deal

18 Nov 2020

CEO Theodor Weimer is spending $1.8 bln on 80% of the U.S. proxy adviser after missing out on Italy’s bourse and an FX trading platform. Accurately scoring companies’ environmental, social and governance credentials is a growth business. But it’s also a crowded field.

Corona Capital: Mixed market messages, Chile votes

26 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Global stocks slumped on Monday as Covid-19 cases rose – yet some prognosticators are readying for major stimulus; and Chile has shown that pandemics don’t have to squash voter turnout.

Guest view: Ways to defuse currency wars

13 Oct 2020

Weak economic activity is giving countries an incentive to use exchange rates to win a competitive edge in trade. Mark Sobel, a former U.S. Treasury official, argues that the world’s biggest economy is no innocent bystander this time round and explains how to calm tensions.

Borsa gives Euronext a strong Italian accent

9 Oct 2020

The pan-European exchange has seized Milan’s bourse with a 4.3 bln euro cash bid. The chunky price reflects Borsa’s scarcity value. By teaming up with investors, including an arm of the government, CDP, Euronext hopes to avoid political landmines and lessen the financial pain.

Hadas: Markets’ risky fling is far from over

24 Sep 2020

Fears of returning Covid-19 and revelations like Nikola’s non-driving trucks have restrained investors a bit. But the financial world’s careening exuberance will keep going long after the economy stops benefitting from massive support. Higher asset prices mean bigger risks.

Euronext gain is LSE loss in flawed Italian sale

18 Sep 2020

The French group is in exclusive talks to buy Borsa Italiana despite submitting a lowball bid. Open meddling by Rome has skewed the London Stock Exchange’s attempts to run an auction. Still, avoiding a state veto and completing its $27 bln Refinitiv deal may justify the discount.

Corona Capital: Millionaire tax, Rent the Runway

18 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: New Jersey taxes the rich to help close a budget gap; and high fashion has trouble competing against sweats.

Italy is fumbling as striker and referee on Borsa

11 Sep 2020

Rome is tipping the scales for Euronext’s Milan bourse bid via its sovereign fund, frustrating other bidders. LSE will struggle to freely pick a winner in a race including Deutsche Boerse and SIX. State meddling isn’t new, but this deal may further raise Italy’s cost of capital.

Rocket’s $3 bln delisting leaves investors adrift

1 Sep 2020

Even as tech stocks surge, Oliver Samwer’s German investment vehicle has concluded it doesn’t belong on the public market. His plan to take Rocket Internet private gives small shareholders two unappealing options: cash out with no premium or hang on with little hope of liquidity.

Swiss outsider has a chance in Borsa Italiana race

27 Aug 2020

Deutsche Boerse and Euronext have been favourites for buying the Milan exchange operator, worth at least 3 bln euros. Unlisted SIX has deep pockets, big ambitions, and tolerance for lower returns. Despite a non-EU base, it could be a worthy contender.

ICE deal risks giving private equity a good name

7 Aug 2020

Thoma Bravo is making around a fourfold return in 16 months selling mortgage processor Ellie Mae to the bourse operator for some $9 bln plus debt. But ICE boss Jeff Sprecher isn’t overpaying. The pandemic, low rates and the target’s growth make this a smart deal for all.

Tricky bidding war brews over LSE’s Italy bourse

31 Jul 2020

The London exchange may sell Borsa Italiana or the unit’s stake in the MTS bond trading platform to win EU approval for its $27 bln Refinitiv bid. Likely buyers Euronext and Deutsche Boerse would find themselves in a messy three-way tussle if Rome weighs in with a domestic bid.

Zimbabwe launches quixotic war on modern finance

14 Jul 2020

The government is blaming South African insurer Old Mutual and phone-based payment systems for a currency collapse. Its fondness of money printing is the more likely culprit. Attacking the stock market and mobile money will damage savings and confidence, and spur capital flight.

Corona Capital: Ice hockey

13 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The National Hockey League and its players make the kind of deal Major League Baseball sluggers and owners should have been pitching for.

TransferWise sellers get the best of $5 bln deal

7 Jul 2020

Investors in the UK fintech may cash out at a 30% premium to a similar transaction last year, Sky News reported. The valuation only makes sense if revenue withstands a Covid-19 slump. Since that’s unlikely, the buyers are taking a dicey punt on the currency-exchange specialist.

China-UK stock link’s glitches go beyond politics

17 Jun 2020

China Pacific Insurance is just the second Shanghai-listed company to offer shares in London, raising $2 bln. Political tension between Britain and the People’s Republic may be a factor. But lack of liquidity and trouble hanging onto foreign investors are the bigger impediment.

Hong Kong bourse walks fine line on CEO succession

7 May 2020

Boss Charles Li plans to step down by October 2021. Ample lead time helps HKEX shareholders and should ensure a clean handover, but he also risks becoming a long-term lame duck. Finding someone equally able to balance the interests of Beijing and foreign investors will be tough.

Bond ETF turmoil exposes credit’s faulty wiring

27 Mar 2020

The share price of some of these funds plummeted below the value of the less liquid assets underpinning them, upping selloff fears. But ETFs aren’t really to blame; rather it’s the corporate debt market’s opaque pricing. Uncle Sam’s new role as a buyer could spur change.