Goldman Sachs is launching a new trading platform as an insurance policy. Here’s why.


Goldman Sachs is being forced to open a new stock-trading hub in Paris, due to uncertainty surrounding Brexit and London’s future as a European center for the trading of equities.

The investment-banking giant announced on Tuesday that it would open the new hub before the end of the year, pending regulatory approval. The facility, Sigma X Europe, will be an additional offering to an original, U.K.-based platform called Sigma X.

The Paris facility will begin trading shares in companies across 15 European markets regulated under the European Union’s framework, while Sigma X in London will continue listing both U.K. and EU stocks.

“We want to ensure that our clients continue to have access to all of our key liquidity sources post-Brexit,” said Liz Martin, Goldman Sachs’s global co-head of futures and equities electronic trading.

So, why is Goldman Sachs — like others in the financial-exchanges business — opening new facilities in the EU?

When the U.K. completes its exit from the EU on Dec. 31, at the end of the Brexit transition period, it will lose access to the bloc and be automatically excluded from the regulatory framework that has facilitated pan-European stock trading in London.

The EU requires investment firms and traders based in the bloc to trade shares in EU-listed companies on EU-regulated exchanges.

If investors want to trade EU shares on a non-EU exchange, which the London Stock Exchange and others will be in 2021, regulators from the bloc must consider the jurisdiction to have “equivalence” with EU regulations.

Regulators from the EU have yet to grant this to the U.K., meaning that, come 2021, the U.K. will lose the rights to host EU investors trading shares in most EU companies.

In the U.K., the financial regulator has said it would allow British investors to continue using exchanges in the EU after the end of the transition period.

Goldman Sachs
GS,
-0.40%
follows the London Stock Exchange
LSE,
+1.44%,
Cboe Europe
CBOE,
-0.22%
and Aquis Exchange
AQX,

in opening new hubs in Paris to ensure access to the stock markets regulated by the EU.



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LVB stock market suspension: Trading in Lakshmi Vilas Bank shares to be suspended from Thursday: NSE


Shares of Lakshmi Vilas Bank will be suspended from trading from November 26, the National Stock Exchange (NSE) said in a statement.

“Members of the Exchange are hereby informed that the trading in equity shares of Lakshmi Vilas Bank Limited shall be suspended w.e.f November 26, 2020 (i.e. closing hours of trading on November 25, 2020) on account of gazette notification dated November 25, 2020 issued by Department of Financial Services, Ministry of Finance,” NSE said.

Earlier in the day, the Reserve Bank of India said the amalgamation of the bank with DBS Bank India will come into force from November 27 and the moratorium imposed on the crisis-ridden lender will be removed on that day.

The RBI issued the statement within hours of the Cabinet clearing the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).

“The amalgamation will come into force on the appointed date, i.e., November 27, 2020. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from this date,” the RBI said.

Depositors of LVB will be able to operate their accounts as customers of DBS Bank India with effect from Friday.

“Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date,” it said.

The RBI had superseded the board of LVB on November 17 following the imposition of a moratorium on the private sector lender.

DBS Bank India is making necessary arrangements to ensure that services, as usual, are provided to the customers of Lakshmi Vilas Bank, the RBI added.

As of end of September, a total of 12 foreign institutional investors (FIIs) held 8.65 per cent stake in the bank. They have consistently reduced their holding in the bank since at least 5 quarters from 16.45 per cent at the end of June quarter. Mutual funds on the other hand, hiked their stake in the lender to 6.40 per cent in the September quarter, from 4.78 per cent in the quarter before.

Retail investors have been consistently raising their stake in the lender so far this year, and own nearly 23.98 per cent stake, compared with 21.14 per cent at the end of December 2019.

Earlier this month, LVB said its net loss widened to Rs 397 crore in the quarter ended September, compared with a net loss of Rs 357 crore in the year-ago period. Its net interest income dropped 28 per cent to Rs 79.5 crore. The gross NPA stood at 24.45 per cent as at end September, compared with 21.25 per cent a year ago.





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ASIC investigating four-hour ASX trading outage


“ASIC is concerned that there have been further issues with infrastructure at ASX and is working with stakeholders to ensure that any impact on the fair, orderly and transparent operation of the markets is minimised,” ASIC said in a statement last Tuesday.

The benchmark index paused unexpectedly at 10.24am last Monday and was frozen for more than four hours. The ASX later said the outage was due to glitches caused by the launch of a new ASX matching system, Centre Point, and trading was called off for the day at 3pm.

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It was the worst trading outage for the ASX in four years and the latest system malfunction since it relaunched its public-facing website in October, that has been plagued by technical difficulties and design flaws.

ASIC said the glitch should serve as a reminder for traders to have “sufficient flexibility” for alternative trading venues in the event of another outage. “ASIC expects market participants that have not already done so to take reasonable steps to remove their reliance on Centre Point swiftly and safely.”

Trading competitor Chi-X chief executive Vic Jokovic did not want to comment on ASIC’s investigation but said the company had seen heightened activity on November 16 and subsequent days.

“Short-term, it’s more significantly higher. There’s the prospect we will see some of that continue into the longer-term.”

Vic Jokovic, CEO of trading competitor Chi-X, did not want to comment on ASIC’s investigation but said the company had seen heightened activity on November 16 and subsequent days.Credit:Louie Douvis

However, Pengana chief investment officer Rhett Kessler said he expected more from Chi-X.

“I was surprised by Chi-X not picking up the slack given it’s the first time we’ve had visibility of the ASX not being available,” Mr Kessler said.

Two companies, Native Mineral Resources and Universal Store Holdings, were due to launch initial public offerings on the day of the trading outage. However, it’s understood ASIC has not received any complaints from companies about the outage.

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Is it time for the AFL to take the “training wheels” of future draft pick trading?


This week in the NBA we have seen trades flying left and right featuring future first round picks.

The New Orleans Pelicans received a huge package of picks for guard Jrue Holiday, who was moved to the Milwaukee Bucks.

Part of that package included selections in the 2024, 2025, 2026 and 2027 NBA drafts.

The idea of trading something seven years in the future is foreign to the AFL, with the movement of future picks currently limited to just the one year in advance.

The trade period has just closed and it goes without saying that greater flexibility to exchange draft selections beyond 2021 would have helped accelerate some of the bigger deals.

Veteran AFL opposition analyst and strategy coach Rob Harding believes the time has come for the league to allow teams the ability to trade picks beyond the one-year limit.

“This is a changing landscape and you talk about the NBA and the future picks that get traded there, I’d like to see in the long-term us do the same thing and open up the range of picks available to be swapped,” Harding told SEN’s Bob and Andy.

“It would allow for a bit more movement and a bit more creativity and then potentially you can have a crack in one year, but also look to make some trades for future years and balance it out a little bit more.”

Playing devil’s advocate, Andy Maher stated why he thinks the AFL would be concerned about such trade freedom.

“I feel like the AFL doesn’t trust clubs not to mismanage this. If they do open it up, I think the fear is some clubs will make some mistakes that could prove catastrophic and they want to guard against that,” Maher said.

However, Harding believes the AFL should trust its 18 teams and also feels the league should not get in the way of their list management decisions.

“It’s not a concern I have. I understand it from the AFL’s perspective, but it’s not up to the AFL to manipulate how club’s manage their lists and do their list management,” he said.

“I’m up for allowing the clubs plenty of freedom and letting them live or die by their decisions.”

Former Western Bulldogs captain Bob Murphy believes AFL teams would not abuse their greater freedoms.

“Don’t you think AFL footy tends to be a bit more cautious with the sort of stuff? With trading and drafting, it seems more conservative and it is the team who goes bold who is successful, then that lifts the watermark for everyone else,” Murphy said.

“So I’m not sure we need these training wheels on the trades and the picks.”

NBA teams have mortgaged their futures in the past by trading future picks.

The most infamous trade of this type saw the Brooklyn Nets acquire ageing stars Paul Pierce, Kevin Garnett and Jason Terry from the Boston Celtics in exchange for three future first round picks.

The Nets’ roster quickly fell apart in the ensuing years, handing the Celtics draft capital they would use to land Jayson Tatum and Jaylen Brown, who are now the cornerstones of the franchise. They used the third pick to trade for superstar point guard Kyrie Irving.







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Wall Street reaches new records off the back of Moderna coronavirus vaccine news, investors hope ASX will reopen after trading glitch



US stocks have reached more record highs as another potential coronavirus vaccine being developed by pharmaceutical firm Moderna boosted hopes of eradicating COVID-19.

However, rising infections and new shutdowns threaten to hinder a global recovery from the pandemic recession.

Shares which stand to benefit from a COVID-19 vaccine, including aviation and travel stocks, gained.

Moderna said its experimental COVID-19 vaccine was 94.5 per cent effective in preventing infection based on interim late-state data.

Its shares jumped 11 per cent to $US99.20.

It is the second pharmaceutical firm in two weeks to announce promising trial data in the development of a vaccine.

Last week, rival Pfizer said its potential vaccine was 90 per cent effective against coronavirus.

While Pfizer’s shares surged last week, the news about Moderna saw Pfizer shares drop 3.6 per cent to $37.24 because Moderna’s vaccine is more easily transportable and can be stored at normal fridge temperatures.

Peter Tuz from Chase Investment Counsel in the US said the Moderna trials were good news.

“We have another vaccine that down the road that will enable us to get back to life as we used to live it,” he said.

Aviation, travel and cruise ship companies were among those who gained.

That’s despite US infections surging past 11 million with record infections in 40 states, prompting states to toughen social distancing rules.

At 7:00am AEDT, the S&P 500 and the Dow Jones index were on track for record closing highs.

The Dow Jones index reached a new record high during the session and closed in on the 30,000 point mark.

It rose 1.2 per cent or 357 points to 29,846.

The S&P 500 put on 0.8 per cent to 3,612 and the Nasdaq gained 0.4 per cent to 11,882.

European stocks also rose on the Moderna news.

In London, the FTSE 100 increased 1.7 per cent or 6,422, the DAX in Germany rose 0.5 per cent to 13,139, and the CAC 40 put on 1.7 per cent to 5,472.

All eyes on ASX after market outage

Investors will be closely watching the opening of trade at 10:00 am AEDT on the Australian share market today after software issues saw trading shut down for most of the day yesterday.

At 7:00am AEDT, in futures trade, the ASX SPI 200 was flat at 6,484.

The Australian dollar rose on the optimism about another potential vaccine.

It is buying around 73.13 US cents, up 0.6 per cent on a weaker greenback.

The prospect of an end to coronavirus lockdowns boosted oil prices.

West Texas crude rose 3.1 per cent to US$41.37 a barrel, while Brent crude, the international benchmark, gained 2.6 per cent to $US43.87 a barrel.

Spot gold fell slightly as investors turned to riskier assets

It lost 0.1 per cent to $US1,886.58 an ounce.



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Elders Ltd reports increased profit despite tough trading conditions


Despite drought, fires and COVID-19, Australian agribusiness Elders has reported $123 million statutory profit in the 12 months to September.

Those results were an 80 per cent increase on the previous financial year, and as a result, the South Australia-based company will pay a fully-franked final dividend of 13 cents per share, taking the total dividends paid for the year to 22 cents.

The underlying profit after tax was $109 million.

Managing director and CEO Mark Allison attributed the outcome to the company’s long-term strategy.

“We took a call back in the first eight-point plan that for agriculture we need to have the costs and capital base to allow us to make good money in bad years, and the great money in good years,” Mr Allison said.

“Last year is an example of a bad year where we did quite well under difficult circumstances and this year, once we established agriculture as an essential industry … we were able to do everything we could to support regional and rural Australia.”

That meant the company was able to continue trading during COVID-19: It increased its workforce and did not rely on any Government support through JobKeeper.

There has been some movement within the company with Elders putting on 417 additional staff and purchasing rural supplies wholesaler Australian Independent Rural Retailers (AIRR) and crop protection company Titan.

AIRR added $44 million in wholesale gross margins in the company’s results which Mr Allison said was in excess of projections.

Elders financial year ends on September 30.

Elders Managing Director Mark Allison(Supplied: Elders)

2021 Outlook

With summer plantings expected to increase and the prospect of rain, Mr Allison said demand for crop protection and fertiliser would likely recover.

Mr Allison said from an agricultural, seasonal and commodity viewpoint the outlook was positive with cattle prices expected to remain high, if softer than 2020.

Elders was working on the assumption that reduced consumer demand for clothing and increased levels of unsold textiles and raw fibres would probably suppress wool prices in the short term.

Mr Allison also viewed the recent signing of the Regional Comprehensive Economic Partnership as a benefit to the agribusiness.

“If you see that as additional market access and opportunity to diversify our product.

He explained that the company already had strong market relationships with Indonesia, South Korea, Japan and China.



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AFL trade news, rumours, whispers 2020: Jaidyn Stephenson interview, Collingwood, Nathan Buckley, Trading Day, North Melbourne


New North Melbourne recruit Jaidyn Stephenson’s broadside at Collingwood coach Nathan Buckley has left onlookers baffled and questioning if there’s more to the story behind his shock departure.

Stephenson, Atu Bosenavulagi and Pick 39 arrived at North Melbourne on Thursday night in exchange for Picks 26, 33 and a future fourth-round selection.

In an explosive interview on SEN, Stephenson claimed he had called Pies coach Nathan Buckley for clarity on his future, which ended with the 21-year-old being told he should pursue a trade and didn’t open up to the playing group enough.

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Fifteen countries, including China, agree to form world’s largest trading bloc | World News


China and 14 other countries agreed to set up the world’s largest trading bloc – accounting for almost a third of all global economic activity.

Many in Asia hope the pact will hasten recovery from the shock economic impact of the COVID-19 pandemic.

The Regional Comprehensive Economic Partnership (RCEP) was signed virtually on Sunday at the annual 10-nation Association of Southeast Asian Nations (ASEAN) in Vietnam.

The host country’s prime minister Nguyen Xuan Phuc said: “I am delighted to say that after eight years of hard work, as of today, we have officially brought RCEP negotiations to a conclusion for signing.”

He added: “The largest free trade agreement in the world, will send a strong message that affirms ASEAN’s leading role in supporting the multilateral trading system, revitalising the supply chains disrupted by COVID-19 and assisting the post-pandemic recovery.”

The accord will build on existing free trade agreements.

It is also less complex than the 11-nation trans-Pacific trade deal that US president Donald Trump pulled out of shortly after his election four years ago.

Including the 10-member ASEAN group, the new bloc includes China, Japan, South Korea, New Zealand, Australia.

The United States is not included within this new economic pact.

Image:
Mr Trump’s ‘America first’ policy means the US is not a signatory on the new pact

It’s understood that the accord is still open for India to join – after the country dropped out after domestic opposition to its market-opening requirements.

The deal demonstrates that despite Mr Trump’s “America first” policy of forming trade deals with individual countries, Asia remains committed to multi-nation efforts towards freer trade.

China’s involvement – a country with the largest eastern market with more than 1.3bn people – is a coup for the country.

Vietnam's PM Nuguyen Xuan Phuc says he hopes the pact will assist the 'post-pandemic recovery'
Image:
Vietnam’s PM Nuguyen Xuan Phuc says he hopes the pact will assist the ‘post-pandemic recovery’

Beijing will be able to market itself as a “champion of globalisation and multilateral co-operation”, with the new pact allowing it greater influence over rules governing regional trade, said Gareth Leather, senior Asian economist for Capital Economics.

China’s official Xinhua News Agency quoted Premier Li Keqiang celebrating the agreement as a victory against protectionism.

ASEAN members include Cambodia, Indonesia, Laos, Burma, the Philippines, Thailand, Brunei, Singapore, Malaysia and Vietnam.



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Caffè Nero to look at restructure after pandemic ‘decimates’ trading


Caffè Nero has been forced to launch a restructuring of its business following the second lockdown.

The coffee chain is launching a Company Voluntary Arrangement (CVA) which will allow it to renegotiate terms with its landlords and other creditors.

Caffè Nero, which employs 6,000 workers, said “the pandemic has decimated trading”.

It said it was able to navigate the first shutdown but the subsequent fire break necessitated “further action”.

The company trades across 800 shops in the UK and a further 200 sites overseas. A company facing insolvency can use a CVA to continue to trade while paying creditors such as landlords over a fixed period – if those creditors agree.

Caffè Nero said it had converted many of its shops to takeaway-only services during the first lockdown in March.

But following the second shutdown, it said that, “with many people continuing to work from home, ongoing limits to social interaction and a sustained reduction to footfall in city centres, it is unclear how long this will impact Caffè Nero”.

It add that the CVA would allow the company “to better manage its fixed costs moving forward”.

“Like so many businesses in the hospitality sector, the pandemic has decimated trading, and although we had made significant progress in navigating the financial challenges of the first lockdown, the second lockdown has made it imperative that we take further action.” said Gerry Ford, the chain’s founder and chief executive.

‘Devastating’ impact

Accountancy firm KPMG has been appointed to oversee the CVA process, and landlords and creditors have until 30 November to vote on the proposal.

It is understood Caffè Nero is proposing to move most sites to turnover-based rent, and that any store closures it is forced to make will be minimal.

The hospitality sector has been one of the worst affected industries by the coronavirus pandemic because of a dearth of office workers and commuters, which are key customers.

In the summer, Pret a Manger announced it was cutting 3,000 jobs, around a third of its workforce while Costa Coffee said it would axe 1,650 roles.

“Like many others across the sector, the impact of measures introduced in response to the Covid-19 pandemic has been devastating,” said Will Wright, head of regional restructuring at KPMG.

“In putting forward this CVA proposal, the directors have worked hard to strike a fair compromise with stakeholders to provide the flexibility the business urgently needs to get it through the pandemic.”





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AFL 2020, AFL trades, Jeremy Cameron, Geelong, GWS, trade targets, talk, news, updates, Trading Day, Fox Footy


Former Hawthorn goalsneak Ben Dixon believes the Cats should sell the farm in order to snare GWS’ Jeremy Cameron, with a possible deal likened to that of Tim Kelly’s move west.

The Giants and Cats are at a stalemate with GWS potentially wanting a player involved in a trade, rather than taking multiple first round selections from Geelong.

After dealing Tim Kelly to West Coast for three picks inside 25, Geelong could be forced to part with a similar array of selections to get the free agent, after their offer was matched by GWS.

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The Cats currently hold Pick 13, 15 and 20, with Dixon believing the pairing of the key forwards could ensure their forward line becomes one of the best since the 2000s.



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