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Deutsche Börse Publishes Preliminary Results for 2009
Earnings of €1,053 million before interest, taxes and ISE impairment/ Sales revenue down to €2,062 million/ Impairment charge relating to US subsidiary ISE reduces earnings/ Costs below 2009 guidance before impairment/ Expenses for growth initiatives to be increased by more than 50 percent in 2010/ Streamlining of management structure/ Initiatives resolved to reduce annual costs by some €50 million/ Proposed dividend of €2.10 per share for 2009
February 16, 2010--Based on preliminary figures published by the Company on Tuesday, Deutsche Börse AG generated earnings before interest, taxes and the impairment charge for US options exchange ISE of €1,053.4 million in 2009 (2008: €1,508.4 million). Including the ISE impairment charge of €415.6 million, EBIT amounted to €637.8 million.
Sales revenue for the year was €2,061.7 million (2008: €2,455.1 million). The 16 percent decline was largely due to the reluctance of market participants to trade on the cash and derivatives markets as a result of the financial and economic crisis. Costs before the ISE impairment amounted to €1,264.4 million in 2009, down on the previous year (2008: €1,284.0 million). Net income for 2009 amounted to €496.1 million, as against the previous year’s €1,033.3 million. Adjusted for the ISE impairment, this results in a decrease in net income of 32 percent to €700.2 million.
The company’s Executive Board decided today to streamline the Group’s management structure and to implement further cost initiatives with sustainable cost savings totaling approximately €50 million per year. With these steps Deutsche Börse accelerates its ongoing efforts to further increase operational efficiency. At the same time, the Company will increase its expenses for growth initiatives in 2010 by more than 50 percent to around €100 million. The cost initiatives will be started with immediate effect and are due to be fully implemented by 2011. The Company expects implementation costs of around €40 million, the majority of which will be provisioned in the first half of 2010. The Company reduces its cost guidance for 2010 to a maximum of €1,250 million before taking into account provisions for the cost initiatives of around €40 million. The forecast includes a planned increase in expenses for growth initiatives of more than 50 percent to around €100 million in 2010. The Executive Board proposes a stable dividend of €2.10 per share. Beyond the proposed dividend, the company does not currently plan any distributions in the form of share buybacks.
Reto Francioni, CEO of Deutsche Börse AG, said, “Financial year 2009 was shaped by the effects of the financial market crisis on our clients. Nevertheless, we closed the financial year with a clear profit. This is primarily due to our diversified business model, which is already showing a return to growth in some areas and products. We will further expand our clear strengths in technology, risk management services and product innovation while maintaining our strict approach to cost management.”
Streamlining of management structure and further cost initiatives totaling around €50 million per year
The financial crisis will result in structural changes in the financial markets as well as new customer needs. We will increase expenses for growth initiatives in 2010 by more than 50 percent over the previous year, to around €100 million, in order to seize opportunities arising from the changing market environment. This will serve to expand the Company’s strengths in technology, risk management services and product innovation. At the same time, the Company continues its strict approach to cost management in light of a changing market environment.
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Source: Deutsche Börse
Fund managers desert European banks
February 16, 2010--The popularity of the European banking sector among fund managers fell by the biggest margin ever seen in a single month, according to a survey carried out by Bank of America Merrill Lynch.
The sector’s popularity rating dropped from 16 per cent in January to minus 53 per cent in February, the biggest monthly fall in the survey’s history.
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Source: FT.com
Obama's bank reforms won't work in Europe: Barnier
February 16, 2010--Banking reforms proposed by US President Barack Obama cannot be "transposed" directly into a European context, the EU's financial services chief said on Tuesday.
You can't just copy or transpose the Obama reforms to Europe," said French internal market commissioner Michel Barnier, whose appointment was initially greeted with mistrust in Britain.
He was speaking after attending his first meeting of the European Union's 27 finance ministers since taking up the key role but said he would be visiting Washington and New York in the coming days to find out more.
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Source: EU Business
Turkey to receive $150 million in FDI from India
February 15, 2010--Turkey is expected to attract three injections of foreign direct investment (FDI), worth approximately $150 million, thanks to deals reached during President Abdullah Gül’s official visit to India last week, the Anatolia news agency said on Monday.
According to officials from the Prime Ministry’s Investment Support and Promotion Agency (ISPAT), the investments are expected to create employment for 200 workers. Among the expected investments, companies from India involved in ship construction and renewable energy have expressed the intention of investing in Turkey, the officials said. Another Indian firm operating in renewable energy has plans to produce energy from forest wastes in Turkey, they added.
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Source: Todays Zaman
FSA chairman says past assumptions about the benefits of unlimited financial services liberalisation and innovation have to be challenged
February 15, 2010--Policymakers and regulators have to be prepared to challenge recent assumptions about the unlimited expansion and liberalisation of the global financial services sector, Lord Turner said today.
Speaking at the Reserve Bank of India in Mumbai, Lord Turner, chairman of the Financial Services Authority (FSA), said that both the Asian crisis of 1997 and the recent crisis had made clear that expansion in the scale and sophistication of financial activity is not always beneficial to the global economy. While a consensus has developed over the last two decades in support of ever greater growth and liberalisation of financial markets, this has been based on ideology more than on firm evidence.
Instead, the evidence of both the financial crises of the last 13 years is that there are inherent risks in this ideology. The Asian crisis was rooted in short term capital flows which proved highly susceptible to irrationally exuberant momentum effects and to sudden contagious losses of confidence. The latest crisis was “rooted in over- exuberant credit extension in developed markets, and in the development of complex and opaque forms of securitised credit and of new and risky forms of maturity transformation”. Although speculators can play a useful role in providing liquidity and market information, it is also possible for speculators to produce “destabilising and harmful herd and momentum effects”.
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Source: FSA
Windows closing for private equity
February 12, 2010--Not all private equity-backed initial public offerings are created equal.
Blackstone was forced this week to postpone the planned listings of Travelport, the reservation services company, and Merlin, the theme-park operator, while Apax Partners and Permira delayed plans to float New Look, the fashion retailer.
Yet other private equity-backed companies are still pushing ahead with plans to join the stockmarket. Promethean, which specialises in electronic whiteboards, is expected to announce plans for a flotation on Monday, valuing it at £400m-£500m.
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Source: FT.com
FSA announces annual funding requirement for 2010/11
February 12, 2010--The Financial Services Authority (FSA) has today announced its proposed annual funding requirement for 2010/11. The budget reflects the FSA’s determination to continue delivering intensive supervision and the substantial international regulatory reform agenda. It will require an increase of 9.9% in overall funding.
However, the introduction of a fairer and more transparent fee structure means 60% of firms will actually pay less. The increased cost of intensive supervision will be levied on those firms whose size and impact require the most regulation from the FSA.
The annual funding requirement for 2010/11 is £454.7m, up from £413.8m in 2009/10. The 9.9% increase reflects the FSA’s intention to minimise any fee increases by concentrating only on essential areas of work:
Continuing to deliver intensive and intrusive supervision; The delivery of the credible deterrence philosophy which is central to the FSA’s supervisory approach; The policy reform programme, driven by the Turner Review, which forms the FSA’s response to the financial crisis and covers critical issues such as reforms to liquidity and capital regimes; and Ensuring delivery of the wider policy agenda mandated by the European Union. This includes Solvency 2, the review of the capital adequacy regime for the European insurance industry, and the largest project undertaken by the FSA. Hector Sants, FSA chief executive, said:
“The way the FSA regulates has changed radically, both in approach and intensity over the last three years.
view the Regulatory fees and levies - Rates proposals 2010/11 and feedback statement on Part 1 of CP09/26-consultation paper
Source: FSA.gov.uk
Thomson Reuters MiFID Market Share Reports January 2010
February 12, 2010--Currently all data for 21st January is excluded in this report. This is because we have, so far, been unable backfill data for this date from Euronext following an outage on our data feeds for these markets on that date.
To avoid a distortion in our overall market share we have excluded data from all venues for 21st January. We will re-post the January data once we have been able to backfill the Euronext data.
view the Thomson Reuters MiFID Market Share Report-January 2010 European Equity Market report - January 2010 view the European Equity Market report - January 2010 FESE Position on Dark Pools and Broker Crossing Networks If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: Mondovisione
February 12, 2010--The ‘European Equity Market Report’ gathers data from all the market segments operated by FESE members (including Regulated Markets and Multilateral Trading Facilities) as well as from the major MTFs operated by investment firms in the European market.
The FESE Statistics Methodology used in the Report has been agreed by all the trading venues involved, both RM and MTFs. For the first time since the start of MiFID, this Report allows for an accurate comparison of trading statistics across trading venues.
Source: FESE
February 12, 2010--FESE wrote to CESR last year to urge for greater transparency on equity OTC trading in general and on crossing networks in specific. We welcome the fact that CESR has started a work stream on this subject and look forward to viewing the initial findings.
view the FESE Position on Dark Pools and Broker Crossing Networks paper
Source: FESE
