Exchanges/Platforms

China’s market reformers face a changing America

3 Oct 2019

U.S. politicians are mulling whether to delist over 150 Chinese firms and curb American investment in their securities. Once a vocal proponent of open markets, some in Washington seem to be having second thoughts. That may undermine those in Beijing pushing for liberalisation.

U.S. online stockbrokers reap what they once sowed

2 Oct 2019

The industry has lost some $19 bln in value after Charles Schwab set trading fees to zero. The onetime disruptor now faces its own threats, but is better placed than E*Trade or TD Ameritrade. The price war is a kind of karma for the financial giants the online upstarts targeted.

Nasdaq finds odd time for right move on IPOs

30 Sep 2019

The U.S. bourse is making it hard for small overseas firms to go public amid concerns about governance and liquidity. That makes sense. But the tweaks are snaring companies from the People’s Republic. With the U.S. trade war raging, Nasdaq risks looking like it’s currying favor.

HKEX bids $37 bln to halt London rival’s escape

11 Sep 2019

Hong Kong’s exchange is dangling a 23% premium to LSE shareholders if they reject a $27 bln deal with data provider Refinitiv. It’s a last-ditch attempt to snag the perennial takeover target. But the tie-up has only vague financial benefits and faces a tricky political reception.

Hong Kong businesses pick an ill-timed ESG fight

13 Aug 2019

A stock exchange plan to increase disclosure on green issues and governance has met resistance from local firms, wary of extra costs. The city already lags the likes of Singapore on such reporting; protests are hardly adding to its appeal. A corporate victory would be pyrrhic.

Viewsroom: Vicious trade cycle traps U.S., China

8 Aug 2019

The White House’s decision to brand Beijing a currency manipulator is the latest move in a conflict riven by miscommunication, unrealistic expectations and no obvious way out. Plus: Why the LSE is paying $27 bln for Refinitiv, and which of the data firm’s owners comes out on top.

Refinitiv’s unequal exchange

1 Aug 2019

As the London Stock Exchange reveals plans to merge with data provider Refinitiv, run the numbers to see which of the target’s backers, Blackstone and Breakingviews parent Thomson Reuters, comes off best.

Thomson Reuters beats Blackstone in Refinitiv deal

1 Aug 2019

If the financial data provider clinches a $27 bln takeover by the London Stock Exchange, the buyout firm will make a handsome return. Yet an insurance policy designed to protect its downside works in its Canadian co-investor’s favour. Thomson Reuters may almost triple its money.

LSE’s data download needs growth to add up

1 Aug 2019

The stock exchange operator confirmed its $27 bln takeover of financial information provider Refinitiv. To earn an adequate return on investment, CEO David Schwimmer will have to cut costs, but also find new sources of revenue. LSE shareholders’ expectations are already high.

Just Eat satisfies hunger for takeaway Dutch CEO

29 Jul 2019

The leaderless UK food delivery group is selling to rival Takeaway.com in a 5 billion pound all-share deal. Just Eat gains a new boss and ally in the battle against Uber and Deliveroo. The Dutch company, meanwhile, uses its highly-valued equity to join the UK food fight.

Asia can lead an equity research rethink

29 Jul 2019

Thin capital markets, opaque companies and the diversity of a region stretching from Tokyo to Karachi makes it even harder for banks to make money from analysing stocks. But schemes like Singapore's analyst grants suggest Asia may also be a testing ground for new business models.

Alibaba stock should have local staying power

16 Jul 2019

The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.

Shanghai’s new board could lead to a bigger trade

9 Jul 2019

Suzhou HYC Technology became the first company to price an IPO on the hyped Star Market. Investors disappointed by similar past efforts will be waiting for more signs of success. They should have some soon, given it seems to be a prelude to liberalising China’s main exchanges.

EU sacrifices own market principles in Swiss row

1 Jul 2019

By cancelling Zurich’s status as an approved stock market, the European Union has undermined its objectives for making equity trading cheaper and more transparent. Swiss bourse SIX will enjoy higher volumes. Meanwhile European investors will have fewer places to trade.

EU-Swiss bourse punch-up foreshadows Brexit pain

28 Jun 2019

Bern’s failure to agree a pact with Brussels will see its stock markets stripped of preferential EU treatment. Transactions will be more costly, cumbersome and opaque. The UK faces similar issues if it crashes out, but the hit will be worse, and London’s defences weaker.

Deutsche Boerse FX deal stretches financial limits

11 Apr 2019

The German stock exchange operator has confirmed negotiations to buy foreign exchange businesses from Refinitiv. CEO Theodor Weimer could afford to spend around 1.5 billion euros and stay within his debt target. A bigger outlay could mean shareholders stumping up.

Euronext-Nasdaq row tests Norway’s market faith

4 Apr 2019

The $800 mln takeover battle for Oslo’s stock exchange should reside solely on financial logic. The cash offers are identical. But Euronext wooed more investors. Allowing Nasdaq to tweak the rules of engagement would be a defeat for capital markets, and Norway.

Cleaning up Hong Kong’s small caps is dirty work

22 Mar 2019

Scandals and high fees doom over 1,000 companies listed in the city to low valuations and feeble trade. The exchange may cut transaction costs to boost turnover, but that won’t solve deeper issues. Delisting would be a better solution for many, even if the process will be grimy.

Chinese stock xenophobia is a problem for MSCI

11 Mar 2019

After expanding the weight of A-shares in its benchmarks, the index provider had to drop a popular tech stock thanks to policies capping foreign shareholdings. If it happens too often, MSCI indexes will be less representative of demand. It’s a bad look for China’s market opening.

Battle for Oslo Bors shows bidders’ fatigue

4 Mar 2019

Nasdaq has hiked its offer for the Norwegian exchange to 158 Norwegian crowns a share, or $788 mln, on a par with an already raised bid by Euronext. Its scale in the region gives it a minor edge. But the face off shows both suitors are already at the limit of financial logic.