Exchanges/Platforms

LSE’s new chief faces growth conundrum

1 Mar 2019

The exchange group shrugged off market ructions and Brexit worries to lift EBITDA above 1 billion pounds. Boss David Schwimmer plans to invest in expanding areas like indexes for funds and derivatives clearing. The LSE’s punchy valuation suggests investors expect speedy results.

Only next crash will test HK bank chief’s legacy

22 Feb 2019

Norman Chan, head of the Hong Kong Monetary Authority, plans to retire. Supervision was a bigger focus than traditional monetary policy during his decade in office, using controls such as mortgage curbs to limit a housing boom. Only a downturn will determine whether that worked.

Ant steps around China tech backlash into Europe

15 Feb 2019

Jack Ma's $150 bln fintech group has snapped up UK payments outfit WorldFirst. The mooted $700 mln deal, coming a year after a failed bid for U.S.-based MoneyGram, revives Ant’s overseas push. But heightened European anxiety about China suggests future buys may not be so easy.

Norwegian investors only winners in bourse battle

11 Feb 2019

Euronext has hiked its bid for Norway’s stock exchange to $785 million. The hefty premium may no longer cover expected cost savings, and does not guarantee a victory against rival bidder Nasdaq. Shareholders in the Oslo exchange are beneficiaries of the larger groups’ largesse.

Nasdaq’s Oslo Bors assault has Nordic edge

30 Jan 2019

The U.S. group is spoiling Euronext’s party with a $770 mln cash bid for the Norwegian bourse. The new offer carries a sweetener of just 5 pct but has the backing of two big local investors. Nasdaq’s larger presence in the region could sway investors and mean bigger synergies.

Singapore’s $40 bln flash crash clouds IPO push

25 Jan 2019

Jardine Matheson shares abruptly plummeted some 80 pct before rebounding. A fat finger trade is being ruled out, but the cause remains unknown. Either way, it’s a setback for a market already plagued by outages and liquidity concerns. Attracting new listings just got tougher.

LSE Nordic raid would be expensive complication

24 Jan 2019

The London Stock Exchange is mulling a bid for Oslo Bors, says the Evening Standard. The Norwegian group is already the target of a pricey offer by Euronext, and LSE’s links with it limit cost savings. The takeover would be a costly distraction from bigger issues, like Brexit.

Messy Manila casino deal is worth the gamble

23 Jan 2019

Japanese tycoon Kazuo Okada wants to stop a backdoor listing for Universal Entertainment’s $2.4 bln resort that bears his name. Going public amid a nasty ownership brawl invites extra risks, but the fast-growing Philippine market holds too much promise. Better to roll the dice.

Jack Bogle defined value in more ways than one

17 Jan 2019

The Vanguard founder turned the once-heretical idea of indexing the broad stock market into the dominant form of investing. Instead of pursuing riches, he spread the low-cost ethos, saving investors untold billions and building a $5 trln juggernaut. Talk about wealth creation.

Wall Street’s new bourse effort challenges history

7 Jan 2019

Citadel, Morgan Stanley and seven others are launching MEMX to rival the big U.S. stock exchanges, hoping to cut costs. Past attempts stalled or were bought by the incumbents. If brokers with serious trading volume can’t give a startup more staying power, they should give up.

Euronext gives Oslo bourse surprise Christmas gift

24 Dec 2018

The pan-European group is ready to pay 625 mln euros for the Norwegian exchange. The festive offer already has the support of nearly 50 pct of investors. In the consolidating world of electronic trading, it’s getting harder to play alone. Accepting the holiday hamper makes sense.

Asian IPO slump brings welcome valuation sanity

16 Nov 2018

Having raised $62 bln in nine months via 480 listings, economic anxieties have infected overheated equity markets in Hong Kong and beyond. Deals from Tencent and others are being delayed or repriced in an overdue correction. With luck, rationality will creep in elsewhere, too.

Pharma upset derails remake of Samsung’s heir

15 Nov 2018

Jay Y. Lee championed the $20 bln Samsung BioLogics as a new engine of growth at the South Korean conglomerate. Now the arm faces delisting for breaking accounting rules ahead of its IPO. Such a punishment would be harsh but also fit with Seoul’s new resolve to rein in tycoons.

China’s abused offshore yuan is scarred for life

8 Nov 2018

As the currency nears 7 to the dollar, its weakest since 2008, officials are attacking short-sellers exploiting gaps in overseas derivatives trade. Beijing is trying to run two exchange rate regimes. A muddled strategy is making an already difficult balance unsustainable.

Xi enters Shanghai in high-stakes tech IPO race

6 Nov 2018

China's leader granted the city a new board to compete with Shenzhen and Nasdaq for startups. It also will test a looser U.S.-style registration system for new listings. The steps are overdue, but officials may rue the governance risks and trading volatility they’re apt to bring.

ASOS’ fast-fashion surge lacks high-end profit

17 Oct 2018

The internet retailer’s shares rose 12 pct after it beat forecasts, and touted its “huge” potential. But more profitable own brands made up a smaller proportion of its sales, and new ranges such as a gender-fluid style are cheaper. Competition in online retail is huge too.

Norway power failure a rehearsal for bigger shocks

14 Sep 2018

The 114 mln euros Einar Aas lost betting on energy markets was not enough to sink the clearing house backing the trades. But the damage wreaked by one man implies deeper frailties. An increasingly volatile carbon price would make the commodities market vulnerable to a repeat.

Europe’s $50 bln payment upstarts can justify hype

10 Sep 2018

Investors can’t get enough of groups like Wirecard, which is replacing Commerzbank in Germany’s main stock index. As with peer Adyen, the risk is that a crowded sector caps growth. To hit their targets, the pair need to double their share of the payments pie. That’s doable.

China’s London stock bridge goes halfway across

5 Sep 2018

Beijing has new draft rules for investing between the Shanghai and London exchanges. In theory the channel could see Chinese punters put billions into UK shares, as they have in Hong Kong. It’s otherwise more about diplomatic relations than market demand.

China’s offshore debt crackdown adds outflow risk

9 Jul 2018

Officials are curbing dollar bond issuance as the yuan weakens. Regulation of the $775 bln market has always been haphazard. This move looks reactive and clumsy. It will put more downward pressure on a faltering currency, and could inadvertently encourage capital leakage.