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Thomson Reuters MiFID Market Share Reports October 2009
November 6, 2009--The spreadsheets below provide monthly reports at a summarised level by markets and index constituents in Pan European Equities. These show the market share in terms of all trades published across the different European exchanges and other reporting venues.
View 2009 Market Share Report (Jan - Oct) XLS
View 2008 Market Share Reports XLS
From March 2009 the Monthly Equity Market Share reports are being sourced from our recently launched Equity Market Share Reporter. Both the Volume and Turnover data are now calculated based on each individual trade reported by all European Exchanges, MTFs, and OTC trade reporting venues rather than the accumulated volume figures for each stock as published by the Exchanges. Trades reported after trade-date are now reflected in these statistics. We are also able to separately identify the trading volumes of the Independent Dark Pools.
The report most recently published spreadsheet for January to July 2009 reflects separate values for all trades published through MiFID trade publication services with the venue name and " - OTC". This reflects feedback to the data published last month requesting that these trades be split out from the totals per venue for trade executed on those venues or reported under the rules of those venues.
This classification of OTC trades differs from that previously used where only trades on the exchanges' MiFID trade reporting services were categorised as OTC. However in our recent review and categorisation of trades into our seven standard trade classifications it was clear that for a number of exchanges including the LSE and NASDAQ OMX, that trades published through their MiFID reporting services in stocks traded on their exchange, trades were included in their main feed with trade flags to identify them as such. As a consequence the totals for OTC trades in the January to July 2009 is higher than previously identified.
The Equity Market Share Reporter in addition provides:
data broken down into more granular trade types such as Transparent Order Book, Dark Order Book, On-Exchange Reported & Off-Exchange (OTC), and
analysis of the trading liquidity of any stock for which trades have been published by any of the comprehensive list of Exchanges, MTFs, Dark Pools & OTC reporting venues covered, and
easy downloading of the data into Excel.
For further information about the Monthly Market Share reports or to request to be added to our distribution list for notification of when new reports are posted please email: mifid@reuters.com.
FSA sets out new prudential regime for personal investment firms
November 6, 2009--The Financial Services Authority (FSA) has today set out its new prudential regime for personal investment firms (PIFs) to ensure that they are better capitalised to withstand any future financial shocks.
Under the new rules, all PIFs will have to hold capital resources worth at least three months of their annual fixed expenditure in realisable assets such as cash. The minimum capital resources threshold for any firm will be set at £20,000.
Requiring PIFs to hold more capital resources will enable firms to provide redress for consumers and limit the compensation due from the Financial Services Compensation Scheme (FSCS) in the event that they are wound up.
Following feedback from the industry, the transition to the new regime has been extended by a year to 31 December 2013, allowing firms more time to comply with the requirements. Firms will also be able to take into account any changes arising from the Retail Distribution Review.
Paul Sharma, FSA director of prudential policy, said:
One of the lessons learned from the current crisis is that firms need to hold enough capital resources in order to weather future financial storms. Having a clear, consistent regime for all personal investment firms will provide better protection for consumers and the industry from the fall-out when firms fail.
"We have listened to the industry and are phasing in the new regime to allow time for them to adapt to the changes. However, we expect firms to start considering now what resources they will need to have in place."
As a follow-up to the consultation, the FSA is considering how expenditure-based capital resources requirements can be applied consistently to all PIFs, particularly those with commission-based business models. The FSA will also consult in 2010 on an appropriate prudential regime for pension and third party administrators.
Deutsche Bank has appointed Nick Shellard as UK head of exchange-traded fund sales.
November 6, 2009--Deutsche Bank has appointed Nick Shellard as UK head of exchange-traded fund sales.
Shellard, who has over a decade of experience in ETFs, joins from Barclays Global Investors, where he was previously head of iShares ETF sales for the UK and Switzerland.
Tim Hart, co-head of equity sales for Europe, says: “The UK is a strategically important growth market for ETFs.
Eurozone retail sales slide further
November 5, 2009-- Retail sales in the 16 nations using the euro fell again in September, continuing a downward trend as consumers remained cautious, according to official EU data released on Thursday.
The volume of retail sales in the eurozone fell 0.7 percent over the month in the eurozone and 3.6 percent compared to sales in September 2008, the European Union's Eurostat data agency said.
Across the 27-nation bloc as a whole, retail trade also weakened, contracting by 0.4 percent in September and by 2.5 percent over one year.
UK investors believe economic recovery will be short lived
November 5, 2009--UK investors believe any economic recovery will be short lived, with the majority of investors positioning their portfolios in preparation for a W shaped recession, according to a survey by iShares.
The survey, which collated over 200 responses for each question, asked ETF investors to consider answers relating to some of their key investment challenges.
It found that 61 per cent believe the recovery will take the shape of a W as opposed to a U or a V, and 78 per cent think the emerging markets will come out on top at the end of the recession versus the west.
Deutsche Börse AG, Q3/2009: Solid Result Despite Continued Weak Market Activity
Stable business performance compared to Q2/2009/ Costs in first nine months at 2008 level despite higher expenses for growth initiatives/ Earnings per share €0.85 (Q2/2009: €0.89)/ Cost target for 2010 shall not exceed 2009 cost guidance of €1,280 million
November 5, 2009-- Deutsche Börse Group in the third quarter 2009 once again generated a solid result. Market activity has stabilized at second quarter 2009 levels despite seasonally weaker activity in July and August. Clearstream’s post-trading activities also showed stable performance. Assets under custody rose quarter-on-quarter in both the international and the domestic business. Overall, it was not possible to achieve the level of revenue seen in record year 2008. Nevertheless, Deutsche Börse Group considers this development to be further proof of the stability of its broad based business model, even in weaker market phases.
Sales revenue for Deutsche Börse Group decreased slightly against the second quarter of 2009 to €500.9 million (Q2/2009: €515.6 million, –3%). The decline is largely due to price changes in trading of US options and in the settlement of German securities as well as effects caused by the weaker US dollar. In comparison to the extraordinarily strong third quarter 2008, sales revenue decreased by 19 percent (Q3/2008: €616.1 million). Net interest income from the Group’s banking business fell in the third quarter, particularly due to a continued decline in short-term interest rates to €21.9 million (Q2/2009: €25.9 million, –15%; Q3/2008: €55.7 million, –61%).
Total costs in the third quarter of €306.7 million were down slightly quarter-on-quarter (Q2/2009: €322.5 million, –5%), as well as year-on-year (Q3/2008: €311.2 million, –1%) due to the ongoing efficiency measures. The cost forecast of around €1,280 million for financial year 2009 remains unchanged. Overall, Deutsche Börse thus generated EBITA of €243.7 million in the third quarter (Q3/2008: €385.0 million, –37%). Net income for the period amounted to €158.3 million (Q3/2008: €257.3 million, –38%). Basic earnings per share stood at €0.85 based on the average 185.9 million outstanding shares in Q3/2009. This corresponds to a decline of 4 percent over the second quarter 2009 (Q2/2009: €0.89). In the prior-year quarter this figure amounted to €1.35 based on 190.5 million shares.
Sales revenue for the nine months to September 2009 amounted to €1,556.3 million (Q1-3/2008: €1,846.1 million, –16%). Despite an increase in organic growth investments, costs at €926.8 million remained stable compared to the previous year (Q1-3/2008: €924.3 million). This shows that the Group’s efficiency measures prove effective. EBITA amounted to €804.1 million (Q1-3/2008: €1,185.9 million, –32%). With a tax rate for the Group of 27.0 percent (Q1-3/2008: 28.9 percent), net income for the period amounted to €529.1 million (Q1-3/2008: €810.9 million, –35%). Basic earnings per share amounted to €2.85 (Q1-3/2008: €4.23, –33%).
For 2010, the Executive Board of Deutsche Börse AG plans to further increase the expenses for organic growth initiatives and at the same time aims at not exceeding 2008 costs and the 2009 cost guidance of around €1,280 million also in 2010.
Reto Francioni, CEO of Deutsche Börse AG, said, “Third quarter business activity stabilized at second quarter levels despite negative seasonal effects. As a result of our strict cost management, we achieved stable costs in the first nine months compared to 2008 despite higher expenses for organic growth initiatives. Overall, we once again generated a solid result in an environment which continued to be influenced by market participants’ reluctance to trade. Our ambition is to continue Deutsche Börse’s long standing track record for profitable growth. Against this background, the Executive Board plans to further increase the expenses for organic growth initiatives. At the same time, total costs for 2010 shall not exceed the level of around €1,280 million in 2010.”
Segment reporting
The reluctance of participants on the equity markets observed since the beginning of the year also continued in Q3/2009. However, Xetra trading volumes stabilized at the level of the first six months of 2009. The number of transactions on the electronic trading platform Xetra thus fell only slightly quarter on quarter to 41.7 million (Q2/2009: 43.2 million transactions, –3%). Single counted order book volume remained stable at €266.2 billion (Q2/2009: €265.0 billion). As trading volumes were significantly below the record levels of 2008, third quarter sales revenue decreased to €63.1 million (Q3/2008: €99.9 million, –37%). As a result, EBITA also fell to €23.3 million (Q3/2008: €56.7 million, –59%).
Eurex trading activity in Q3/2009 declined against the previous year (–22%), as well as against the previous quarter (–10%), with 636.8 million contracts traded. The quarter-on-quarter decline is largely due to significantly lower volumes in European equity derivatives (–47%). These volumes declined as expected after the end of the German dividend season. The decline was partially compensated, however, by a rise of volumes in index and interest rate derivatives (+3%). Due to the higher profitability of both these product groups, sales revenue declined only slightly to €191.5 million quarter-on-quarter (Q2/2009: €201.0 million, –5%). The fall in sales revenue is also due to a weaker US dollar in relation to the International Securities Exchange (ISE) contribution and a price change in trading of US options. Overall, a decline of 26 percent in sales revenues was recorded compared to the strong third quarter 2008 (Q3/2008: €257.5 million). The segment’s EBITA fell to €92.6 million (Q3/2008: €153.0 million, –39%).
The post-trading segment Clearstream once again contributed in the third quarter 2009 to Deutsche Börse Group achieving a solid overall result. The average value of securities held in custody stood at €10.5 trillion, which corresponds to a rise over the previous quarter (Q2/2009: €10.2 trillion, +3%) and a decline compared to last year’s strong third quarter (Q3/2008: €10.8 trillion, –3%). Of the third-quarter custody volumes, €5.5 trillion was attributable to international securities, a 3-percent increase, and €5.0 trillion to German securities, a 9-percent decrease compared to the third quarter of 2008. The primary reason for the decrease in German securities was lower equity indices compared to the prior-year period. The number of settlement transactions in Q3 stood at 25.5 million, a stable development quarter-on-quarter (Q2/2009: 25.4 million) and a slight decline year-on-year (Q3/2008: 26.7 million, –4%). Of this number, 5.5 million settlement transactions were attributable to international securities traded off-exchange in the third quarter – a rise of 10 percent over Q3 of the previous year. Average monthly outstanding volumes in the Global Securities Financing (GSF) business of €483.7 billion represented stable quarter-on-quarter development (Q2/2009: €484.8 billion) and a 23-percent year-on-year increase (Q3/2008: €394.1 billion). Despite stable business performance compared to the second quarter 2009, sales revenue of €176.6 million in the Clearstream segment declined slightly (Q2/2009: €181.1 million, –2%). This decline is largely due to a price change for settlement of German securities with effect from 1 July 2009. Sales revenue declined by 7 percent over last year (Q3/2008: €189.2 million) because of the more favorable market environment in 2008. Average customer cash deposits of €5.7 billion for the third quarter decreased from the previous quarter (Q2/2009: €7.9 billion, –28%), as some major clients reduced their deposits. Due to this decline and new lows in short-term interest rates, net interest income of €21.9 million was generated in the third quarter (Q2/2009: €25.9 million, –15%). As a result, third-quarter EBITA in the Clearstream segment amounted to €78.1 million (Q3/2008: €118.9 million, –34%).
In the Market Data & Analytics segment, third-quarter 2009 sales revenue of €45.4 million was comparable to that of the previous quarter and previous year (Q3/2008: €46.1 million, Q2/2009: €46.6 million). Decreases in the number of data package subscribers were largely offset by new products as well as the consolidation of the US financial news agency Market News International Inc. (MNI), which was acquired in the first quarter 2009. EBITA in this segment of €24.6 million stood below that of the same period in 2008 (Q3/2008: €30.5 million, –19%). The drop in operating income is largely due to a particularly low cost level in Q3/2008.
Third quarter 2009 external sales revenue in the Information Technology segment of €24.3 million charted a positive development (Q3/2008: €23.4 million, +4%). EBITA in this segment declined year on year to €30.3 million (Q3/2008: €31.9 million, –5%), which was largely because of higher costs in this segment as part of the investments in growth initiatives.
view Interim Report 3/2009 - Deutsche Börse Group
BM&FBOVESPA Will Launch Tomorrow Office Of Representation In London
November 5, 2009-The Brazilian Securities, Commodities and Futures Exchange – BM&FBOVESPA is setting up a representative office in London. The objective of the office is to promote the Brazilian equities and derivatives markets in Europe, Africa, and the Middle East. Besides the new office in the British capital, the Exchange also has representative offices in New York and Shanghai.
In order to commemorate the new office, BM&FBOVESPA will host a luncheon, tomorrow, November 6, at 12 p.m., at the Mansion House, the official residence of the Lord Mayor of the City of London. Among the Brazilian and British dignitaries attending the event will be BM&FBOVESPA’s CEO, Edemir Pinto; the president of Brazil’s Central Bank, Henrique Meirelles; and the president of the Brazilian Development Bank - BNDES, Luciano Coutinho. During the event, Brazilian economist, Eduardo Loyo, will present a lecture on “Investment opportunities in Brazil”. The event will also celebrate the launching of the new BNDES subsidiary in London.
BNP sees benefits of Fortis purchase
November 5, 2009--A strong rebound in investment banking profits drove better-than-expected third- quarter results at BNP Paribas yesterday, as France's biggest bank reaped the benefits from its recent acquisition of Fortis bank.
BNP Paribas reported net profit of €1.3bn ($1.9bn) in the three months to the end of September - up 45 per cent on the same quarter last year - of which €277m was contributed by the core of Fortis, the Belgian bank acquired earlier this year.
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Pension insurance deficit doubles
November 5, 2009--The deficit at the nation’s pension insurance fund roughly doubled in the year to the end of March as a wave of insolvencies led to a rise in claims on the fund.
The Pension Protection Fund, the government-sponsored, employer-financed body that insures the pension promises of insolvent companies, said that its deficit for the year to March 31 rose from £517m to £1.2bn ($857m to $1.9bn), with £1.3bn in new claims adding to the shortfall.
DB Index Research -- Weekly ETF Reports -- Europe
November 4, 2009-Highlights
Highlights
ETF Volume
Exchange based Equity ETF turnover rose by 6% on the previous week. Daily turnover for the previous week was E1.5bn. European fixed income ETF turnover rose by 2.2% to E184.6m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, db x-trackers II EONIA TR Index ETF has the highest daily turnover of E19.63m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E80.07m.
There were 7 listings in the last week. db x-trackers cross listed 7 ETFs on Borsa Italiana.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E439m accounting for 29.89% of total ETF turnover, followed by European Regional ETFs with total turnover of E394m with 26.82% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E210m across the nine listed products and accounting for 14.3% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 14.3% of turnover trading E210m per day with liquidity split across 26 ETFs and 42 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.2% of total turnover. The Euronext NextTrack platform has 21.7% market share. The LSE’s combined Italian Exchange and London market share is now 26.0%.
Assets under Management (AUM)
Total European Equity related AUM declined by 2.6% to E98.2bn during last week. AUM for DJ Euro STOXX 50 ETFs was E18.8bn accounting for 19.2% of total European AUM. Fixed Income ETF AUM remained at about the same level at E34bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E4.7bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.2bn.
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