Exchanges/Platforms

Europe’s listless IPOs are red flag for big floats

31 Jul 2023

The region’s string of mostly mid-sized initial public offerings this year are now just 3% above their listing price on average. Such poor performance will make investors wary of backing new ones. That will give larger float candidates, like CVC and Galderma, pause for thought.

Coinbase is a crypto conundrum, squared

20 Jul 2023

The exchange boasts powerful Wall Street allies like BlackRock’s Larry Fink, and a recent court decision gave its shares a boost. But its future still hangs on unpredictable judges and politicians. The real unknown? Why the market thinks Coinbase is worth anything like $25 bln.

Research U-turn is poor fix for vanishing stocks

18 Jul 2023

The UK and EU may let investors pay for equity analysis through trade commissions again. The hope is that this will lead to more research and help small firms list. Yet asset managers will fear higher costs, and the IPO market faces bigger headwinds than a writeup shortage.

Winklevoss twins take strike two with crypto hype

11 Jul 2023

The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.

Watchdog with teeth can help EU hunt unicorns

11 Jul 2023

Europe’s companies need capital to grow. Yet the bloc’s share of global capital markets is just 9%. A patchwork of national rules stymies Brussels’ efforts to foster cross-border investment. Creating home-grown corporate stars requires a securities regulator with real powers.

Hydropower IPO tests appetite for weather risks

28 Jun 2023

Hidroelectrica’s market sale in Bucharest could value the renewable energy supplier at 10 bln euros, Europe’s largest IPO so far this year. High margins, low debt and fat dividends make the offer palatable. But as droughts intensify, water scarcity may prove a headache.

Hong Kong’s yuan-trading push is a long-term bet

19 Jun 2023

The city’s bourse operator will allow investors to trade some stocks in yuan. The hope is to eventually lure more mainland Chinese and offshore investors. But as with the near decade-old trading link with China, any tangible financial benefits will take a while to flow through.

Shelved soda ash IPO is a UK wake-up call

15 Jun 2023

Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.

Nasdaq futureproofs itself, but at 2021 prices

12 Jun 2023

Buying fintech firm Adenza for $10.5 bln adds vim to CEO Adena Friedman’s plan to reduce Nasdaq’s reliance on volatile markets. Yet the price, which includes a 15% stake for seller Thoma Bravo, is high. To justify it, Friedman needs bubbly tech valuations to make a comeback.

Coinbase investors are still aiming for the moon

9 Jun 2023

A lawsuit from the US Securities and Exchange Commission poses an existential risk for the crypto exchange. Yet it’s still valued at more than $11 bln, excluding spare cash. Loyal shareholders are betting CEO Brian Armstrong can avoid the crackdown – and find new ways to grow.

Capital Calls: Bitcoin is last crypto standing

6 Jun 2023

Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.

Binance charges are a last gasp for crypto

5 Jun 2023

The SEC sued the world’s largest cryptocurrency exchange saying it misled investors and evaded securities law. Even if Changpeng Zhao’s firm works through regulatory investigations, dabblers will become even more shy, and diehards will pivot further to decentralized exchanges.

EU-UK clearing drama heads for prosaic finale

2 Jun 2023

The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.

IPO pops are iffy adverts for Gulf capital markets

1 Jun 2023

ADNOC L&S, like other floats by the UAE energy giant, surged on its first day of trading. Yet the 50% rise looks contrived. Abu Dhabi’s listings boom is narrow, and mostly involves state-linked firms. Its dreams of being a go-to destination for global capital are remote.

ECB’s crisis tool works best if it’s never used

30 May 2023

The European Central Bank is touting its powers to buy sovereign bonds if they come under attack from the market. That has kept traders in check, so far. The trick for Frankfurt officials is to convincingly threaten to deploy emergency measures without ever having to.

UK listing shakeup requires double dose of hope

3 May 2023

Britain’s financial watchdog wants to spur domestic IPO markets by weakening shareholder protections. Yet making London appealing to fast-growing foreign firms requires wider reforms that may not occur. And lower standards are only a good idea if investors punish bad governance.

Slowing growth will crash European stock party

2 May 2023

The region’s shares have risen 22% since September, trouncing their US peers. A resilient economy and low valuations lured investors. Aggressive rate hikes and falling earnings will drive them away. High-quality bonds and emerging markets’ equities are good alternatives.

Deutsche Boerse data pivot comes at a price

27 Apr 2023

Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.

Hong Kong bourse’s profit pop looks passive

27 Apr 2023

Earnings popped 28% last quarter, but mostly thanks to the exchange operator’s investments gains; its core business of listings and trading was lacklustre. Boss Nicolas Aguzin can only hope IPOs and transactions revive in case returns from HKEX’s own trades aren’t sustained.

Exploring the City of London’s existential dread

25 Apr 2023

The global financial centre is suffering a spasm of anxiety about its status, while the government is pushing post-Brexit reforms. In this Exchange podcast William Wright, founder of the New Financial think tank, discusses the roots of the malaise and what can be done to fix it.