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Prime euro-denominated money market funds (MMFs) suffered a near 12 per cent drop in assets under management (AUM) to EUR66.1bn, as investors keep searching for higher yields, according to Moody’s.
US prime and offshore USD MMFs also recorded a decline in AUM of 3.2 per cent to USD640bn and two per cent to USD237bn, respectively, whereas sterling denominated MMFs saw an increase in AUM by 3.2 per cent to GBP118.5bn during the last quarter.
The majority of MMFs continued to increase their exposure to European banks in Q2, reflecting subsiding concerns about Europe’s financial system. Sterling-denominated and offshore
Joanna Shatney, Head of US Large Cap Equities at Schroders, comments on this week’s US GDP data…
While the Q2 GDP data was better than expected, the absolute level of growth remains low. We are optimistic that GDP growth will accelerate later in the year, after the drag from sequestration and tax increases abate – and with better demand in consumer and industrial activity. We continue to believe that higher GDP will help corporates drive earnings growth of at least 5-7% this year allowing for further upside potential in equity markets.
Actual GDP results were stronger than we expected, helped by
Alleghany has invested USD250m for a 6.25 per cent equity ownership interest in Ares Management, which is privately held, and also committed to invest up to USD1bn of capital in various existing and new Ares investment strategies.
Through its relationship with Ares, Alleghany seeks both to participate in Ares’ strong business prospects and to enhance the returns of its committed capital through Ares’ alternative asset expertise. The USD250m investment will be used by Ares as sponsor capital in its investment vehicles, which aim to deliver compelling risk-adjusted returns for investors through differentiated investment strategies.
"We believe this strategic
SunGard has released a new version of its Asset Arena InvestOne global accounting solution for asset managers, custodian banks and third party administrators.
The latest version gives firms extended accounting automation and servicing capabilities to improve operational controls and productivity and ultimately ease the burden of meeting growing regulatory requirements.
The new version is enriched with the addition of two new features. Asset Arena InvestOne’s Multiview accounting functionality is improved with new Multiple Books of Record (MBOR) capabilities. By extending the ways in which users can leverage existing datasets, MBOR provides the flexibility to support more jurisdictions and offer
Buy-side firms are unprepared for new trading mechanisms, costs and increased complexity and should partner with established providers to adapt to an evolved OTC derivatives marketplace, according to research commissioned by State Street.
The new research paper, “From Readiness to Revolution: The Implementation and Impact of Derivatives Clearing Regulatory Reform,” provides insight into preparations for swap execution facilities (SEFs), central clearing, collateral management and reporting.
State Street, which operates as a futures clearing merchant (FCM) and a SEF, commissioned the research with Aite group which surveyed buy-side firms that collectively represent more than USD6trn in assets under management.
Scotia Private Client Group has launched the Scotia Long Short Equity Fund, the first alternative investment solution available through its private investment counsel.
The new fund provides accredited investors with the ability to limit downside risk and volatility while participating in the upside potential of equity markets.
"In today’s ever-changing environment, Scotia Private Client Group continues to strategically expand our investment platform to meet the needs of high net worth investors,” says Richard McIntyre, managing director and head, Scotia Private Client Group. "We are pleased to provide this new investment solution to eligible clients. The addition of alternative
Sapient Global Markets has become a certified implementation partner of the European Energy Exchange (EEX) to facilitate regulatory reporting in the European energy wholesale markets.
Sapient Global Markets and the EEX will work together to help firms comply with new wholesale energy market reporting requirements to the Agency for the Cooperation of Energy Regulators (ACER), which was mandated by the Regulation on Energy Market Integrity and Transparency (REMIT).
REMIT requires wholesale energy market participants to disclose insider information relevant for pricing in power and natural gas trading. The rules were designed to prevent market abuse and reinforce the
NYSE Euronext has reported net income of USD173m, or USD0.71 per diluted share on a GAAP basis, for the second quarter of 2013, compared to net income of USD125m, or USD0.49 per diluted share, for the second quarter of 2012.
Results for the second quarter of 2013 and 2012 included USD22m and USD12m, respectively, of pre-tax merger expenses and exit costs.
Second quarter 2013 results also included a USD10m gain recorded for non-operating items due to the sale of a portion of its equity stake in LCH.Clearnet and a reserve release related to a favourable settlement with certain European
Range-bound volatility creates challenging market conditions for US options traders, forcing them into a more aggressive stance in a search for returns, says TABB Group in its seventh annual benchmark options trading study.
This is driving traders to refine their strategies by using options with more precise strike prices, looking for new opportunities and adjusting expectations to encompass a new environment with lower returns.
“It has become more difficult to find a profitable edge in options markets,” says Andy Nybo, TABB’s head of derivatives research and author of “US Options Trading 2013: Looking for the Edge.”
Not
The first phase of CBOE Futures Exchange’s plans to expand CBOE Volatility Index (VIX index) futures trading hours will begin in late September, with the second phase to begin in the weeks that follow.
The first phase of the expanded trading hours initiative is designed to meet demand from US customers for a post-settlement trading period by adding a 45-minute trading session to the current trading hours for VIX futures (7:00 am CT to 3:15 pm CT).
Fifteen minutes after the 3:15 pm CT close of VIX futures, the market will reopen for a new trading period from
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