3.42k followers • 11 symbols Watchlist by Motif Investing
Technological advancements and the demand for low-cost, fast trade executions could drive growth for electronic trading companies.
Allies of Boris Johnson are pressurising the UK prime minister to deliver on promises to suspend the loan charge , as key deadlines loom for tens of thousands facing the controversial tax. The charge requires ...
(Bloomberg) -- Intercontinental Exchange Inc., the parent of the New York Stock Exchange, won an approval that clears the way for its Bakkt unit to allow investors to buy derivatives that pay out with Bitcoins for the first time.The New York State Department of Financial Services on Friday granted a charter to Bakkt Trust Co. to hold custody of customers’ tokens. The futures had already gotten a green light from the U.S. Commodity Futures Trading Commission under a self-certification process. The first contracts will be offered Sept. 23.“We believe that the availability of a benchmark that can be referenced globally will create confidence in the true price of Bitcoin,” Kelly Loeffler, Bakkt’s chief executive officer, said in a telephone interview. “It’s an important step in creating more trust.”Despite its status of the world’s most valuable cryptocurrency, Bitcoin is known for wild price swings that some say are the result of manipulation. Digital tokens trade on platforms that face far less regulatory scrutiny than exchanges for stocks or derivatives. Many of the venues are also located outside the U.S.According to Loeffler, the fragmented nature of Bitcoin trading means that there’s a lack of confidence of prices. She said that ICE’s futures contracts will lead to a new one-year price curve for Bitcoin that traders can use to express views on the cryptocurrency as they would with other asset classes.Some of the brokerages who already work with ICE to trade futures have agreed to also handle the crypto contracts, according to Bakkt.ICE has said its ultimate goal is to create an ecosystem that would encourage pension funds, endowments and other institutions to invest more money in cryptocurrencies, and make it much easier for consumers to buy products with the cryptocurrency. The venture, announced to much fanfare in August 2018, has lined up big-name backers, including Starbucks Inc. and Microsoft Inc.The goal is to have Bakkt serve as backbone of digital payment infrastructure at retailers starting in 2020, Loeffler said.Bakkt had faced months of delays amid skepticism from the CFTC officials around how clients’ tokens would be stored, and thus safeguarded from possible theft and manipulation, according to people familiar with the matter. The concerns prompted ICE to seek the license from New York.While ICE’s Bakkt futures won’t be the first Bitcoin futures to be listed on a major U.S. derivatives exchange, they could be the most significant for the burgeoning crypto industry. CME Group Inc. and Cboe Global Markets Inc. launched contracts in December 2017 that pay out in U.S. dollars on expiration, not actual Bitcoin. The Cboe no longer offers them.When Bakkt’s one-day and one-month contracts expire they would pay out in Bitcoin tokens instead of U.S. dollars. The futures will be exchange-traded on ICE Futures U.S. and cleared on ICE Clear US, which are federally regulated by the CFTC.Bitcoin erased losses of as much as 6% to trade little changed at about $10,400 after the announcement. The largest cryptocurrency has dropped about 13% this week. It traded around $7,400 when the the venture was first announced.(Adds comments from Bakkt CEO in fourth and fifth paragraphs.)\--With assistance from Olga Kharif.To contact the reporter on this story: Ben Bain in Washington at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave Liedtka, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Intercontinental Exchange, the world’s second-largest exchange group by market value, is to launch trading in bitcoin futures next month, in a long-awaited bid to lure more Wall Street investors into the sometimes treacherous world of crypto. Bakkt, the business set up by the Atlanta-based group a year ago to develop infrastructure for trading digital assets, said on Friday that it would launch two physically delivered bitcoin futures contracts on September 23, one of them monthly and one daily. of crypto assets has been a big concern of institutional investors, because exchanges have repeatedly suffered hacks and outages.
Could Nasdaq, Inc. (NASDAQ:NDAQ) be an attractive dividend share to own for the long haul? Investors are often drawn...
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...
Interactive Brokers (IBKR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
US equities fell 3 per cent on Wednesday after disappointing data from China and Germany increased fears over global growth and bond markets signalled the chances of a recession were mounting. In Asia, Japan’s Topix was down 1.9 per cent, erasing gains for the year, while the S&P/ASX 200 in Australia fell 1.2 per cent. Hong Kong’s Hang Seng index and China’s CSI 300 were down 0.67 per cent and 0.91 per cent respectively on opening. “I think that the US economy has enough strength to avoid [a recession].
Shares of CME Group and Intercontinental Exchange are at record highs, underscoring investors’ enthusiasm for companies that run the infrastructure for global markets. With equity capitalisations of $77bn and $52bn, respectively, the US duo are the most highly-valued of the clutch of trading venues specialising in stocks, bonds, futures, derivatives and foreign exchange. Over the past decade, the Dow Jones Global Exchanges index has produced total returns of 163 per cent, more than double the 79 per cent return for the MSCI World Banks index.
MarketAxess, the US corporate bond trading venue, is to compete with CME Group and Tradeweb in the $14tn US Treasury market after agreeing a deal to buy LiquidityEdge, a small electronic marketplace, for $150m. It will pay $100m in cash and $50 in MarketAxess stock for Liquidity Edge, which is majority-owned by former ICAP executive David Rutter. Shares in MarketAxess rose 0.4 per cent to $364 on the news on Tuesday.
Despite being approved to list its shares on the Nasdaq, this niche cannabis stock has chosen to stay on the over-the-counter exchange.
(Bloomberg) -- Shares of Virtu Financial Inc. plummeted 18% on Thursday to the lowest since December 2017 after reporting results that raised questions about volatility and the profitability of trading. Tradeweb Markets Inc. also fell 3.5% to the lowest since early July, despite its better-than-expected earnings.Virtu’s second-quarter profit missed the lowest analyst estimate, while CEO Douglas Cifu on the company’s conference call said that “market volume in this quarter presented one of the lowest market making opportunities in many years,” including “significantly less retail engagement.”Cifu also said he hoped President Trump would keep tweeting -- which can spur volatility -- as “that’s a good thing for our business.” August, which has featured an increase in U.S.-China trade tensions after Trump tweeted about higher tariffs, has seen a “material increase” in volatility after July’s market conditions were similar to those in the second quarter, Cifu said.Virtu’s trading activity fell in a “muted environment,” though August has so far been better, Jefferies’ analyst Daniel Fannon wrote in a note. Compass Point’s Chris Allen wrote that “we were expecting a soft quarter, but even in that context results were disappointing.”Shares of Tradeweb, an electronic trading platform that trades Treasuries, bonds and derivatives, initially rose after its second-quarter revenue and adjusted earnings per share topped analysts’ estimates. Yet, the stock erased the gain to fall as much as 5% by mid-morning.On his conference call, Tradeweb CEO Lee Olesky said the company reported record results amid “a challenging environment for trading in a market characterized by low volatility.”“Wholesale and institutional channels are much more active in volatile movements and we expect to continue to see that,” Olesky said on the call. Retail brokers, however “tend to be less inclined to buy bonds at the same clip as other sectors during bouts of volatility.”Citi analyst Ben Herbert noted that Tradeweb’s July equities average daily volume of $5.3 billion missed his estimate of $6.4 billion. Overall, he found “not much to dislike” in the results.Retail broker clients account for only about 10% to 12% of revenue, according to Tradeweb. Equities accounts for 4% to 5% of total revenue, the company said.Exchange stocks, including Intercontinental Exchange Inc., Cboe Global Markets Inc. and CME Group Inc. underperformed financial stocks as a whole on Thursday, as did trading-sensitive Goldman Sachs Group Inc. In Canada, though, Toronto Stock Exchange parent TMX Group rose to a record high.The worst performer -- and only decliner -- in the S&P 500 Financials Index early Thursday afternoon was Charles Schwab Corp., which extended losses for a second day after Fidelity said it would automatically direct investors’ cash into higher yielding options.(Adds size of retail and equities business in seventh paragraph. A previous version of this story corrected an analyst name and details of the results.)To contact the reporter on this story: Felice Maranz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Courtney DentchFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Virtu Financial (VIRT) delivered earnings and revenue surprises of -42.86% and -6.85%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Senator Jeff Merkley once shadowed a cannabis grower and dispenser as he tried to pay his state taxes. He stuffed a backpack with $70,000 in $20 bills and drove 50 miles -- unguarded -- with the bulging bag in the back seat. Once he arrived at the Oregon Department of Revenue, he went through multiple rounds of security to deposit his satchel in a room packed with guards looking after the millions of dollars pouring in from other cannabis companies.Merkley, a Democrat from Oregon, likes to recount the story to show the lunacy of the federal government’s treatment of the cannabis industry. Legal sales exceeded $10 billion in 2018, the annual Marijuana Business Factbook reported, and are expected to hit $80 billion by 2030, according to research firm Cowen Inc. Yet the substance remains illegal on a national level, so banks must forego a lucrative revenue stream -- or risk prosecution or the loss of their charter.Operating a business in cash isn’t just inconvenient. It also leaves thousands of growers, retailers and employees vulnerable to crime and handicaps growing businesses. Banks can’t accept cash deposits, process credit-card payments, clear checks, make loans or underwrite stocks and bonds, even though tax authorities have figured out workarounds. Like Oregon, the Internal Revenue Service has built “cash rooms” to receive federal taxes paid by marijuana companies, Treasury Secretary Steven Mnuchin said in April.The door to a solution may finally be opening. On Aug. 5, Rodney Hood, the chairman of the National Credit Union Administration, said his agency won’t punish federally chartered credit unions for working with cannabis companies in states where marijuana is legal. Credit unions still must follow anti-money-laundering and other banking laws. Some state-regulatedcredit unions have already been providing banking services to pot companies, but often charge higher prices because of the extra paperwork and risks involved.Credit unions, though, are only a partial answer. A new regulator could easily reverse Hood’s policy. “The crux of it is that it’s still illegal,” said Joanne Sherwood, the chief executive officer of Colorado’s Citywide Banks and chair of the Colorado Bankers Association. “We need to make cannabis legal or we need” a federal law to clarify the rules for banks, she said.A growing number of U.S. lawmakers from both parties is trying to do just that. A House measure that would protect financial institutions that serve cannabis businesses now has 206 cosponsors and is teed up for a floor vote in the fall.Most of the Democrats seeking the 2020 presidential nomination would also make marijuana legal nationally. Former Vice President Joe Biden is a notable exception, yet even he would decriminalize the drug so that the national ban would remain but sanctions would be lighter.But perhaps the biggest breakthrough came on July 23 at a Senate Banking Committee hearing. Its Republican chairman, Idaho Senator Mike Crapo, for years refused to even discuss letting banks serve the cannabis industry. So it was a surprise when he agreed to use his committee as a platform to consider ways around the cash conundrum.That’s when Merkley told his story and explained how legislation he is proposing, the Secure and Fair Enforcement Banking Act, would help. His measure would provide a safe harbor for banks by barring federal law enforcement and regulatory agencies from punishing banks for working directly or indirectly with cannabis-derived cash.Merkley’s tale dates back to 2016. Since then, the federal-state conflict has only gotten worse: Marijuana is now legal for recreational use in 11 states and allowed for medicinal use in another 22. More than half of Americans live in those 33 states.Idaho isn’t among them. It hasn’t legalized pot for recreational or medicinal use. And Crapo for years has publicly resisted green lighting financial industry involvement. Just in April he said it would be “difficult” as long as cannabis is illegal under federal law.Behind the scenes, though, the pressure for him to reconsider has been mounting. Earlier this year, the Idaho Bankers Association began talking to the senator about the issue for the first time. When Trent Wright, the group’s chief executive officer, asked Crapo to hold a hearing, he was surprised when the answer was yes.Meanwhile, a consensus has been building among other senators, Wright said. Colorado Republican Cory Gardner, whose state pioneered liberalization of marijuana laws and who is co-sponsoring the SAFE Banking legislation, might have been especially persuasive. “I have spoken many times with Senator Gardner on this bill,” Crapo said at the hearing.National associations have also been weighing in, according to James Ballentine, the executive vice president of congressional relations at the American Bankers Association. Lately, Ballentine has sensed a change in the air. “When Crapo started looking at this issue five to six years ago, there weren’t 33 states that had legalized marijuana in some form,” he said. “I’m sure he’s now been hearing quite a bit on this issue, and I think the groundswell of input” convinced him to take a deeper look.An April letter to Crapo from Don Childears, president of the Colorado Bankers Association, explained how cash generated by out-of-state marijuana businesses can end up in Crapo’s state.For example, a bank in Idaho might open an account for a commercial property owner whose tenants operate a marijuana dispensary in nearby Washington. In that case, it’s the bank’s responsibility to close that account or face possible money-laundering charges or regulatory action. Similarly, an Idaho utility that sells power to a marijuana grower in Oregon could risk its own banking relationship by accepting cannabis cash.“The reality is that marijuana businesses will go wherever they can to get services, even to states where marijuana is illegal,” he told Crapo in the letter. “Banks in every state are vulnerable.”Childears said other Republican politicians have found their comfort level with cannabis banking after realizing how difficult it is to deal with large amounts of cash. John Boehner, the former House speaker, is an example. In 2011, he wrote to constituents that he was “unalterably opposed to the legalization of marijuana.”But in 2018, less than three years after leaving office, he joined the board of cannabis investment firm, Acreage Holdings Inc. In April, Acreage agreed to sell itself to Canada’s Canopy Growth Corp. for $3.4 billion, contingent on the U.S. legalizing weed at the federal level.That’s where Boehner comes in: In February, he formed the National Cannabis Roundtable to lobby for marijuana reform. He now calls for removing the drug from Schedule I, the federal government’s list of the most dangerous substances. A lower classification would ease restrictions on research, allow the U.S. Department of Veterans Affairs to prescribe weed as an opioid alternative and allow financial companies to provide services to growers and dispensers.“It’s just taking that cultural change in and realizing at the same time there are tremendous economic benefits,” said Terry Holt, a roundtable spokesman. The benefits for Boehner could also be huge: His 625,000 Acreage shares would likely jump in value if the Canopy deal closes.Even U.S. Attorney General William Barr seems to be coming around. In April, he said he would address the conflict between federal and state laws by allowing states to opt out of the federal pot prohibition. Senators Elizabeth Warren of Massachusetts and Colorado’s Gardner back that route.But Christopher Barry, a lawyer who advises cannabis companies on regulatory matters, said that that could be even harder to get through the Senate. An incremental approach -- one that just deals with the banking problem -- is more realistic, he said.That’s why Crapo’s hearing mattered. A hearing isn’t the same as lending support, of course, but finance industry officials believe it has built momentum behind the SAFE Banking proposal, which could result in a breakthrough in the coming year. “We continue to believe this Congress will enact legislation by end of 2020 to give cannabis firms access to banking services,” Cowen analyst Jaret Seiberg wrote on Aug. 6.Even Crapo seems to agree. “This is a very important and complex issue that we need to get right,” Crapo said. “At this point, we’ve got a lot of interest and information coming in to us. And we’re going to work to see if we can find the answers to these questions.”\--With assistance from Austin Weinstein.To contact the reporter on this story: Elizabeth Rembert in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Paula Dwyer, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The global energy market is comprised of 3-distinct groups. The producers search for energy which includes crude oil and natural gas. The consumer uses the end product that is created for them by the refiner. The refiner’s role in the process is very important and sometimes is lost when traders evaluate the energy sector.
Until this week’s trade-related falls, global equity markets had performed strongly this year, advancing as investors moved to discount possible monetary stimulus — and some fiscal expansion in various countries as well. The earlier sale of the position in Germany, which is most exposed to the trade war and manufacturing downturn, will help protect the fund a bit more in the sell off. , investors need to ask themselves will the combined monetary and fiscal stimulus live up to expectations?
(Bloomberg) -- President Donald Trump said he’s prepared to deliver more aid to farmers hurt by the trade war with China, but concerns are growing that the U.S. agriculture industry could suffer a long-term loss of market share as other countries rush in to fill Chinese orders.The nation’s leading farm group on Monday called China’s decision to halt imports of U.S. agricultural products “a body blow” to the nation’s farmers, a crucial constituency for Trump.The president responded with assurances of continued assistance to farmers in a tweet Tuesday morning, suggesting he would add to the $28 billion in trade aid he has approved for farmers over the past two years.“As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do,” Trump said in a tweet. “And I’ll do it again next year if necessary!”Trump so far has maintained support among the rural voters who overwhelmingly backed his 2016 election with federal assistance partially making up for farmers’ losses from tariff dispute. But farmers and their lobbyists in Washington increasingly respond with demands for “trade not aid” as shifts in global trading patterns harden.Brazil and Argentina are capturing larger shares of soybean sales to China, the largest export market for the oilseed. Total U.S. soybean exports in the 2018-2019 growing season dropped to 46.3 million metric tons from 58.1 million the prior year. At the same time, Brazil and Argentina’s combined soybean exports rose to 86 million metric tons from 78.3 million prior the year, according to the U.S Department of Agriculture.Farmers in Brazil are also investing to convert more land to soybean production to satisfy Chinese demand, raising the country’s long-term capacity to grow crops. Fertilizer Giant Yara International ASA forecasts Brazil’s soybean planted area will rise 2.5% this year as farmers shift pasture land and sugar-cane areas to the crop.The chairman of the trading arm of China’s top food company told an industry event in Sao Paulo on Monday that his company expects to increase soybean purchases from Brazil by 5% a year for the next five years. Johnny Chi, chairman of Cofco International, also said his company plans to boost investments on logistical supports in Brazil.Archer-Daniels-Midland Co. Chief Executive Officer Juan Luciano said on an Aug. 1 conference call with analysts that the damage to U.S. agriculture grows the longer the tariff dispute continues, though he doesn’t think it has yet done irreparable harm.“People find alternatives and eventually they become a little bit more comfortable with those alternatives,” Luciano said. “So this is not good for the U.S. farmers.”‘Cannot Last Forever’Zippy Duvall, president of the the American Farm Bureau Federation, the nation’s largest and most influential general farm organization, said Monday U.S. farmers are “grateful” for the money the Trump administration has given them so far but “we know that aid cannot last forever.”He said China’s import cut-off was “a body blow to thousands of farmers and ranchers who are already struggling to get by.”Roger Johnson, president of the National Farmers Union, the nation’s second-largest general farm group, said Trump’s “strategy of constant escalation and antagonism” has “just made things worse.” America’s family farmers and ranchers “can’t withstand this kind of pressure much longer.”Duvall said the tariff war is worsening the plight of a farm sector already reeling from low commodity prices and bad weather. U.S farm exports to China had already fallen $1.3 billion during the first half of the year, he said.“Now, we stand to lose all of what was a $9.1 billion market in 2018, which was down sharply from the $19.5 billion farmers exported to China in 2017,” Duvall said.Trade AidLast year, the administration announced $12 billion in aid to farmers hurt by the spat. Trump followed that up with another $16 billion in trade assistance this year.Prior to Trump’s tweet, U.S. Agriculture Secretary Sonny Perdue had warned farmers not to count on more trade aid. Agriculture Department spokeswomen didn’t immediately respond to requests for comment on Trump’s tweet.Trump won overwhelming backing from rural voters in 2016 and their continued enthusiastic support is crucial to his re-election bid. In June, 54% of rural voters approved of Trump’s job performance compared with a national approval rating of 42%, according to a Gallup survey of 701 self-identified rural voters.Farmers optimism rebounded in July, after the latest tranche of trade aid was announced and before the escalation in the trade war. The Purdue University/CME Group’s agricultural sentiment index increased to 153 points in July from 126 in June, according to a survey of 400 agricultural producers.(Adds export data in sixth paragraph.)\--With assistance from Michael Hirtzer and Dominic Carey.To contact the reporters on this story: Mike Dorning in Washington at email@example.com;Mario Parker in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Joe Sobczyk at email@example.com, ;James Attwood at firstname.lastname@example.org, Laurie AsséoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.