Archiv: November 2006

Cheap computers for the poor

When computer industry executives heard about a plan to build a $100 laptop for children in the developing world, they generally ridiculed the idea. How could you build such a computer, they asked, when screens alone cost about $100? That advance and others have allowed the project, One Laptop Per Child, to win over many skeptics in the past two and a half years. The cost is now closer to $150, but five countries - Argentina, Brazil, Libya, Nigeria and Thailand - have signed on to put the computers into the hands of millions of students, with production expected to begin by mid-2007.

Read the full story by John Markoff (published in The Internatonal Herald Tribune).

Equador's government bonds drop to six week low

Equador's government bond prices dropped to a six week low on Monday. The investors reacted to the outcome of Equador's presidential election, which was won by leftist economist Rafael Correa. On Sunday Correa had declared his intention to negotiate the reduction of the foreign debt. According to Correa a unilateral moratorium could not be excluded. Equador's foreign debt amounts to $11 bln. Equador is an oil producing country and currently profits from the high oil prices. With his new initiative Correa had already sent shudders through the market, but his declarations on Sunday have given no clue if this intentions are serious or just a rhetorical maneuver.

Source: Neue Zürcher Zeitung

Implicit ratings contributing to fundamental analysis

Rating agencies or banks are sometimes slow to react, when it comes to respond to changes relating to the creditworthiness of corporations. Implicit ratings, which exploit information from the capital markets, could be a useful contribution to the classical fundamental analysis.

Specialists of rating agencies assess the creditworthiness of a company by using a fundamental analysis. The financial and business risks of corporations together with the probability of illiquidity are expressed in a rating. As these ratings should be sustainable (at least on a mid-term basis) rumours and speculations do not serve as solid facts when assessing the company. It may be that the rating agency puts a firm on a watch list, but a change of rating is only considered when rumours turn into factual evidence.

Market prices, on the other hand, are very sensitive to existing rumours and speculation. Traders and market makers often anticipate the probability of future repercussions by making higher or lower bids. When the facts are finally evident to everyone, analysts often lag behind with their assessment much to the dissatisfaction of banks, who would then condemn the inefficiency of ratings. The concept of implicit ratings may bring an innovative solution to this dilemma. Existing market data is structured in such a way that every bond price can be converted into a implicit rating.

Investors may benefit from implicit ratings when they need to detect a possible over- or undervaluation. Analysts, on the other hand, receive some important indications for delivering reliable assessments. In the Swiss capital markets, where illiquidity is rare, the correct assessment of creditworthiness is a complicated task and is often done in consideration of various external factors. A discrepancy between implicit and fundamental rating does not always force the analyst to react, as this may often be the case due to the strong volatility of implict rating. But an ongoing discrepancy would give the analyst a signal to reconsider the current fundamental rating.

Source: Neue Zürcher Zeitung

New Valordata display features

Telekurs Financial is pleased to announce a number of enhancements to the Valordata service for reference and corporate actions data. This document provides a summary of the main new functions and data content. These new features refer to the presentation used in the Valordata browser. Appearance and navigation may vary slightly between the various products. The new data content will be available in all display products from 27 November 2006. New links and search parameters are scheduled to be integrated into Telekurs iD in the first 2007 minor release.

Read the full description of the new release (download 290 KB).

A useful guide to islamic banking

Islamic banking is based on islamic law, which is also called Sharia. Sharia law derives from the Qur'an (the holy scripture of the islamic world) and the Sunnah (description of the words and deeds of the Prophet Muhammad). As the Qur'an does not support the division of religion and state, every economic transaction has a moral dimension and should be beneficial to society.

A central piece of islamic banking is the prohibition of interest (Riba) which is clearly defined as sinful in the Qur'an. Interest transactions are considered unproper (haram). Financial transactions where only one party carries the risk (e.g. certain derivative instruments) are equally prohibited. This also entails a prohibition of instruments with a certain 'gambling' character, such as options, futures, hedge funds, day trading and short positions. This might come as a blessing for some investors, as the exclusion of the latter instruments makes islamic banking less risk sensitive.

Equity financing, however, is permitted (halal) but one should be careful about choosing the right company. Tobacco firms, entertainment industry or corporations from the conventional finance sector are definitely on the black list. But that's not all. A 'compliant' firm has to abide to some financing rules. Bond capital of halal firms may not surpass one third of its market capitalisation. Additionally, some cash flow figures must be in certain limits, as hoarding of money is also considered haram. Six percent of the benefits must be given to charity.

Although the rules (and prohibitions) are numerous, islamic finance covers a vast product palette:

Equity financing (Mudarabah) is the alternative for a traditional credit transaction. The bank is the lender of capital and receives a contractual participation in project revenues. If the bank also provides some management services, this financing is consired as Musharakah.

Halal corporations can borrow capital in the form of islamic bonds (Sukuk). Instead of interest bond holders receive some participations rights in real estate leasing revenues (Ijarah).

Islamic investment funds: the Dow Jones Islamic Market (DJIM), which covers 1993 international 'halal' companies, is the the benchmark for sharia-compliant investments. These funds are offered by islamic but also by a growing number of Western banks.

Islamic insurance (Takaful): A certain amount is deducted from the insurance premium and given to charity. The Takaful market is the smallest segment of islamic finance with a current volume of only five billion US-Dollars. However this segment is growing faster than others with a growth rate of 25 percent per year.

Derivatives: are forbidden in islamic finance, but it is possible to buy basket certificates of halal shares.

Source: Schweizer Bank

Pentagon chooses IBM and Cray in its search for supercomputers

The Pentagon awarded almost $500 million in two contracts Tuesday to International Business Machines and Cray to design a supercomputer several times as fast as today's most powerful systems. The Cray contract is for $250 million and the IBM contract is for $244 million, to be spent during the next four years. They prevailed over Sun Microsystems. The contracts are part of the High Productivity Computing Systems program being led by the Pentagon's research arm, the Defense Advanced Research Projects Agency, or Darpa. The program aims to achieve and surpass the ability to calculate more than a quadrillion mathematical operations per second - a milestone known as a petaflop.

Read the full article by John Markoff (International Herald Tribune).

The growth of Islamic banking

Presently, 270 institutes specialize in islamic banking with around $300 bln assets under management. The sector is definitely growing on a worldwide scale. In Europe British banks have taken the lead as they regognized the trend much earlier. In Switzerland the new financial sector has also gained some momentum. UBS, for instance, is currently integrating its wholly owned subsidiary Noriba, while Credit Suisse develops sharia-compliant standard products with the intention to offer them for customers in the Gulf region. Resinsurance leader Swiss Re launched the first islamic familiy resinsurance this June in Dubai. The decision of major Swiss financial institutes to expand its offering seems logical as the market grows globally by 15 to 20 percent per year.

Although islamic finance develops wordlwide, the Gulf region remains the strongest market. Most of the islamic assets belong to this region. The region consists of Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman. Together these countries form the economic cooperation council GCC. The GCC plans to introduce a common currency for its member states for 2010. The GDP of the Gulf region will probably continue to grow by 10 percent per year due to the ongoing price surge in oil and gas. However, the Gulf region also suffered a negative impact in 2006 with stock prices of the GCC stock markets dropping by 50 percent.

Yet, this setback has had no influence on the growth of the islamic finance branch so far. The leading banks in this sector, namely Gulf Finance House (Bahrain) and Dubai Islamic Bank were able to increase their profits by 87 percents and 56 percent respectively. Thus, Islamic banking is slowly developing from a niche market into main stream banking. The biggest bank of Saudi Arabia, the National Commercial Bank (NCB) has recently modified its classical banking services to become totally sharia-compliant. Discontent with the negative performance of their portfolios more and more investors turn to sharia-compliant investments. These investments present less risk as hedge funds, day trading, options and futures contracts are not permitted by the islamic legislation.

Seen from the perspective of Western analysis, islamic finance and its products do not fit a standard matrix. The product theory often consists of various legal recommendations (fatwas) and some local conditions depending on the respective issuing islamic country. This makes these products hard to classify. End of July saw the opening of a subsidiary of the Islamic International Rating Agency in the Dubai International Financial Centre (DIFC). This rating agency for islamic finance intermediaires was founded in 2002 in Bahrain with the aim to develop a standard procedure for classifying sharia-compliant financial services.

Source: Schweizer Bank

Dubai exchange plans IPO

The Dubai Financial Market (DFM) will be the first Middle-East exchange to envisage an IPO. Notwithstanding the current market environment - the index of DFM has been loosing around 64 percent since the beginning of the year - representatives of the bank syndicate are confident that the operation will succeed. According to Bloomberg the banks estimate that the IPO will be oversubscribed up to 50 times. The subscription period for the shares will end on 23 November 2006. The Dubai government, which is the major shareholder of DFM, will contribute its stake of 20 percent or the equivalent of Dh. 1.6 bln (around $438 million). The suscription price per share will be 1 Dh. (plus a management fee of Dh. 0.03 per share), but suscription will be restricted to government employees, investment banks and companies listed at the DFM. Currently 44 shares, 6 issues and 11 investment funds are traded at the DFM.

Source: Neue Zürcher Zeitung

Telekurs Financial - Most innovative Data Aggregator

In conjunction with feedback from leading analyst firms and consultants covering the wholesale transaction banking space, the magazine financial-i has compiled a list of companies it considers to be innovation leaders in categories encompassing:
- Securities services
- Treasury & FX
- Network services
- Risk management
- Data management
In the category "Data Management" Telekurs Financial has been nominated to be the most innovative data aggregator of the year 2006. Please read here the full text of the press release.

Credit Suisse goes onshore in Russia

Credit Suisse has launched its onshore private banking in Moscow. Since October Credit Suisse offers its Russian clients investment counseling for the Russian stock and bond markets as well as classical bank offerings, such as savings accounts and investment portfolios. In the future, the offering should be extended to international stocks, investment funds and structured products. Credit Suisse has been active in the region for 30 years, but the expansion strategy was only reinforced two years ago with the opening of representative offices in Moscow and St. Petersburg.

Source: Schweizer Bank

First Chinese bank licensed in Dubai

For the first time a Chinese financial institute has received a banking license for the Dubai financial market. So far only Western banks were given a license in this market. The First Eastern Group has been active in the Middle-East for 15 years. With its new base the First Eastern Group plans to offer its investment bank services for the entire Gulf region and hopes to profit from the good relations between China and the Gulf states. Furthermore, the new bank will allow Chinese corporations to list their stock at the Dubai exchange.

Source: Schweizer Bank

Islamic banking starts in Switzerland

Switzerland gets its first private bank with a focus to islamic banking. After receiving its banking license from the Swiss Federal Banking Commission in October, Faisal Finance changed changed into Faisal Private Bank (Switzerland). The majority shareholder of Faisal Private Bank is Ithmaar Bank, which is located in Bahrein.

Source: Schweizer Bank

Increasing demand for family offices

For roughly the past century, families with vast fortunes have channeled the management of their finances through family offices - structure entirely dedicated to meeting their needs for advice on investments, taxes, accounting or property management. One of the first family offices was set up in the late 19th century to manage the Rockefeller fortune. Nowadays, strong wealth creation means that family offices are expected to multiply over the next five years, consultants and bankers say.

Read the full article by Sue Landau (International Herald Tribune).

Nasdaq makes GBP 2.7bn offer for LSE

A takeover offer worth £2.7bn ($5.1bn) has been tabled for the London Stock Exchange (LSE) by the US Nasdaq market. Nasdaq also said it had paid £87.8m to buy 7 million LSE shares, raising its stake in the group to 28.75%.
Shares in the London market have surged more that 124% over the past year amid ongoing speculation that it will be subject to a takeover offer.

Read the full story by BBC News.

Deutsche Boerse quits takeover battle

The German stock exchange Deutsche Boerse will no longer pursue its takeover bid for the pan-European exchange Euronext, as the corporation announced on Wednesday. Euronext prefers to merge with the US-exchange NYSE.

Read this related topic:
Euronext in favour of alliance with Deutsche Boerse.

Investment banks launch 'Multilateral Trading Facility'

According to an official statement released on Wednesday, seven leading investment banks have decided to join forces in establishing a pan-European trading platform for shares. The platform which was dubbed "Multilateral Trading Facility (MTF)" will be located in London and regulated by the British Financial Services Authority (FSA). MTF will be in direct competition with the traditional stock exchanges. The project includes Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley and UBS.

This project is seen as a response to the new EU regulation MiFID (Market in Financial Instruments Directive), which will come into force in November 2007. An important aim of MiFID is to enhance competition in the European stock trading. One of the effects will be that investors will no longer be bound to stock exchanges for trading or settlement operations.

The new platform should commence trading within the coming year. The founding investment banks will be inviting other financial institutions to join the project within the coming weeks. It is not yet clear if only banks are admitted as members or if hedge funds or other funds might also join. But one thing seems certain. This initiative will certainly put some pressure on stock exchanges to reduce their trading fees. As revenue-oriented corporations the exchanges profit from higher trading costs. On the other hand, they may also benefit from investing in measures to reduce their charges. The London Stock Exchange (LSE), for instance, was able to achieve higher revenues as reduced trading costs led to a higher trading volume. Even if the new MTF plaform fails to generate a considerable market volume, the "threat of alternative" becomes a strong disciplinary instrument.

Lastly, the initiative will also stir up the clearing and settlement business. To enhance competition in a segment, which generates higher costs than stock trading, the investment banks plan to connect different clearing and settlement organisations to their platform.

Source: Neue Zürcher Zeitung

Marshall Wace listing at Euronext confirms industry trend

At the start of this week the British hedge fund group Marshall Wace announced its decision to have its new company MW Tops listed at the pan-European stock exchange Euronext. Marshall Wace is one of the leading British hedge funds with a long-short-equity strategy. Representatives of fund of hedge funds declared that they present better conditions for a public offering. The chairman of the fund Paul Marshall has rebuked this argument. According to Marshall MV Tops invests in liquid stock market which would allow to sell 95 percent of the positions within a single day. In contrast, fund of hedge funds present less liquidity as they invest in single hedge funds with lock-up periods going from one to three months.

Investors should profit from a special trading mechanism provided by Marshall Wace. The hedge fund keeps a reserve to repurchase 15 percent of the shares for the case that the share price should drop below the net asset value of the fund. If the price drops below the mark of 5 percent, the directors will have to ask the sharesholders if they wish to dissolve the hedge fund. According to Paul Marshall these two mechanism should give the investors a protection against price losses. He also said that fund of funds could not guarantee such a protection.

Marshall Wace has chosen a listing in Amsterdam following the general trend for hedge funds. Hedge funds generally prefer Euronext to the London Stock Exchange (LSE), as the latter exchange imposes certain restrictions to investment corporations regarding short positions.

Source: Neue Zürcher Zeitung

Bank benefits from strong Singapore economy

The Singapore economy is recovering from three recessions in six years, helping banks increase loans and improve the quality of assets used as collateral. Oversea-Chinese Banking is also expanding beyond Singapore and Malaysia, its two biggest markets, by buying stakes in Bank NISP in Indonesia and Ningbo Commercial Bank in China.

Read the full article by Michele Batchelor (published in International Herald Tribune).

Wireless: The battle of the standards

Most cellphone users do not know what kind of network their service provider runs, nor whether it is 2G or 3G. Yet behind the scenes, industry lobbies and makers of network equipment and cellphone chips jockey for position as they struggle to make their technology dominant. Though the front line of the battle is shifting to 3G - or so-called third- generation - technologies, which offer more capacity on their networks and faster data transmission speeds, the previous generation of networks may ultimately determine who comes out on top, because service providers tend to use the same family of technology when they migrate to faster networks.

Read the full article by Eric Sylvers (International Herald Tribune).

Find out more about Telekurs Financial's mobile financial information offering Telekurs iD mobile

Press Release: Trace Financial and Telekurs Financial announce Enhanced Delivery Mechanisms for Corporate Actions in ISO15022 format and Valordata Feed

Trace Financial is able to offer enhanced delivery mechanisms for the Telekurs Financial Valordata Feed (VDF) as well as VDF corporate actions data in ISO15022 format through the Trace Financial product suite.
Read full text of this press release (download 45 KB).

Telekurs Financial rising to the challenge of MiFID

Telekurs Financial announces its initial plans for the introduction of reference and market data designed to help clients address the challenges posed by the Markets in Financial Instruments Directive (MiFID).

Telekurs Financial has been playing an active role in the European industry groups established in response to MiFID and has been working with clients, investment firms and other key market players to assess the impact of the Directive. In practice, the company is well positioned to meet the changing data requirements that MiFID presents since it already holds a large proportion of the required reference data within its extensive data solutions and has the technology to support and provide all the real-time price transparency data that MiFID is expected to generate.

Reference data

A broad range of reference data will be available to help clients apply their own client classifications and best execution policies more easily. Some of this data is already available from Telekurs Financial and new reference data will be added. For instance, new markers will be introduced to identify MiFID liquid shares and shares admitted to trading on a Regulated Market within the MiFID zone. These markers should help clients to determine which level of reporting an instrument is liable to under MiFID regulations. Identifiers to show places of quotation and trade will also be provided.

From early 2007, Telekurs Financial will issue International Business Entity Identifiers (IBEIs) for companies registered in Switzerland and Liechtenstein. Other National Numbering Agencies will start allocating IBEIs in their respective countries. The IBEI code will be made available through Telekurs Financial's flagship, Valordata Feed (VDF). It will join Telekurs Financial's existing range of company identifiers (e.g. D-U-N-S ® numbers, Danish CVR numbers, Moody's institution identifiers, Fitch Issuer IDs and UK company registration numbers) as an integrated element of the company's core data model, rather than as a bolt-on solution.

VDF has carried Classification of Financial Instrument Codes (CFI Codes) for a number of years, Telekurs Financial provides a unique benefit to its clients by allocating CFI codes on a global basis for some 2.8 million instruments globally, even where the local issuer has not provided a code. The CFI code will help Telekurs Financial's clients identify whether a product is suitable and appropriate for their own clients.

Market data

Telekurs Financial continues to make significant investment to build a new data collection and dissemination platform which will have sufficient capacity and throughput to deliver the real-time price transparency data from MiFID data sources in a timely manner. The new platform supports the Telekurs Financial real-time data feed, Market Data Feed (MDF).

Telekurs Financial will continue to work with regulated markets and contributors and will approach data aggregators, Systematic Internalisers and Multilateral Trading Facilities to collect and disseminate pre- and post-trade data as required by MiFID transparency rules.

In order to facilitate timely collection of data, Telekurs Financial will accept data in multiple data formats; the company supports the use of industry standards for data dissemination.

Impacted products and services at Telekurs Financial

MiFID relevant data will be made available throughout the Telekurs Financial range of products as appropriate. VDF will cover the reference data and summary pricing; MDF will deliver the pre- and post-trade data and relevant items of reference data and the Intraday Pricing Service will provide price snapshots from all the incoming data sources.

For further details on the Valordata Feed (VDF) please click here.

As the implementation of MiFID continues across the MiFID zone, Telekurs Financial will maintain its dialogue with its clients, the industry and the MiFID working groups and will remain flexible in providing products and services to meet the changing needs across the industry.

For further information on Telekurs Financial's MiFID plans, please click here or contact us by email or call on Tel. +44 (0)20 7550 5000.

Shareholder's letter 2006

The Telekurs Group achieved numerous strategic goals in the current year and further improved its positioning. Transaction volumes for the most important services grew positively while the cost base was effectively improved. From the present perspective, both the Group’s operating income and the financial result lie well above the prior year. Contributing to the good result are the extraordinary earnings from the IPO (Initial Public Offering) of MasterCard International.

Read the fulll text of the Shareholder's letter 2006 (download 57 KB).

Pressemitteilung: Telekurs Group am Zuercher Finance Forum 2006

Am diesjährigen Finance Forum in Zürich motivierte die Telekurs-Gruppengesellschaft Telekurs Financial zahlreiche Messebesucher zu einer innovativen Aktion: Ein am Messestand abgegebener Schrittzähler registrierte die geleisteten Schritte der Teilnehmer zugunsten eines Schweizer Kinderhilfswerks.

Lesen Sie den Volltext dieser Pressemitteilung (Download 53 KB).

EU code of conduct for trading settlement

With the new code of conduct, which was presented in Brussels on Tuesday, European exchanges and settlement operators wish to bring more transparency and competition into the post trading segment. This code of conduct is aligned with the policy of the European Union which aims to make this market more efficient and more competitive and also extend it beyond the EU-borders.

According to the code of conduct the first measures regarding price transparency are expected to be taken until the end of this year. The subsequent measures, i.e. a standardised accessibility and the inter-operability between organisations, are scheduled for end of June 2007. A third phase, which is due for 2008, will focus on the "unbundling" of services. All of these measures should ensure that market participants are given the possibility to freely choose their service provider for every part of the transaction chain and that EU cross-border transactions should be made in the same manner as domestic transactions.

Swiss financial industry corporations, namely the Swiss exchange SWX and the post-trading operator SIS Group, have welcomed the "European Code of Conduct and Settlement" in a joint statement and declared their support for this initiative. SWX and its subsidiary exchange virt-x already signed the code of conduct. SIS SegaInterSettle and SIS x-clear, both subsidiaires of the SIS Group, signed a letter of intent and are awaiting the approval of their respective Board of Directors.

Source: Neue Zürcher Zeitung

Tech start-ups snub the big money

When Seth Sternberg and two colleagues started Meebo, a Web-based instant-messaging service, they did not go looking for venture capitalists. They financed the company by each contributing $2,000 from their credit cards. It was enough to cover their biggest expense, leasing a few servers at $120 a month each. Within a month of its introduction in September 2005, Meebo was getting as many as 50,000 log-ins a day, and it became clear that it needed more servers. By then, Meebo was being courted by venture capitalists, or VCs, but it decided to take a modest $100,000 from three "angel" investors, people who typically contribute small amounts and make few demands.

Read the full article by Miguel Helft (published in International Herald Tribune).

Around 520 participants of Telekurs Group at the Finance Forum Sponsor road race

On Sunday around 520 participants of Telekurs Group joined the 6th Finance Forum Sponsor road race, the biggest sports charity event of the Swiss financial world. The event was organized by the Finance Forum and attracted a total of 1400 participants. Other financial service providers, such as Siemens (Switzerland) or Zurich Cantonalbank, also sent their staff to the road race. The Finance Forum organization made a donation to the Swiss charity fund Kinderschutz Schweiz for each race round achieved. A total of 180'000 Swiss francs were donated to the charity fund.


Press release: first steps towards MiFID readiness

Telekurs Financial announces today its initial plans for the introduction of reference and market data designed to help clients address the challenges posed by the Markets in Financial Instruments Directive (MiFID).
Read the full text of this press release (download 30 KB).

Second term of Lula nurtures hope in financial markets

Government bond holders are satisfied with the reelection of President Lula da Silva of Brazil. It is generally assumed that Lula will continue its economic policy of stability during his second term, which starts on 1 January 2007. Lula had essentially supported Brazil in its foreign debt management. Compared to other Latin Amercian countries, Brazil's economic policy and debt management has brought some tangible and satisfying results. At the end of this year the foreign debt of Brazil will only amount to $65 bln, which is 8.4 percent of the GDP, compared to $110 bln at the end of 2002 (24 percent of the GDP). Presently no one doubts the determination of Lula and his centre-left cabinet to continue on this path. A strong contrast to just four years ago, when the election of the former union leader Lula had plunged the Brazilian financial word in a state of shock.

Lula has already announced that he would make no substantial changes in his policy. The next milestone on this route would be to reach the investment grade, which is an important qualification for the rating agencies. This would be a chance for Brazil to enlarge the group of potential internatinal investors and motivate risk-sensitive institutional investors, such as pension funds, to invest in Brazilian government bonds. In Latin America only Mexiko and Chile were granted investment grade, whereas among the emerging countries, such as Russia, China and India, it was only Russia that was able to qualify.

However, it seems that Brazil's chosen policy is not sufficient to convince the rating agencies. Standard & Poor's, for instance, praises the achieved targets but remains cautious. S&P critzises that the GDP investment quote for Brazil is only 20 percent, whereas Asian emerging countries reach 30 percent. According to S&P this lower investment quote is caused by the "crowding out" effect: the Brazilian state would spend too much, which reduces the investments for the public sector. Also, corporations would be levied with too many taxes, which would lower their investement capacity. Lastly, it would seem necessary at this point to reduce the so called "Brazil costs", i.e. the additional expenditure caused by corrruption and bureaucracy. S&P also sees some improvement potential in infrastructure improvements, in a more flexilble labour market, in trade liberalisation measures and in the reduction of "distortion" in financial markets.

So far, President Lula has not given details about the economic policy for the second term and how he aims to achieve the already declared growth target of 5 percent. But is is highly probable that the investment grade will be on his priority list.

Source: Neue Zürcher Zeitung

Download the latest issue of the realtime magazine

The news magazine of Telekurs Financial covers many aspects of a changing technological and financial environment.

Find the latest issue 03/06 (download 3 MB) and…

…don’t miss the following articles:

- Using VDF to service the needs of the UK financial industry
- Telekurs iD delivers added value to customer advisory
- The coming challenges for reference data
- Singapore: A private banking tiger

To download the entire issue or separate articles (English, German and French versions), please visit

Our readers will discover at a glance what’s happening in the world of finance and technology.

DWS Switzerland enters into market for structured products

The investment fund corporation DWS Investments (Switzerland) has announced its plan to enter into the market for structured products. Last Thursday the German DWS Investment, which belongs to the Group of Deutsche Bank, had declared they would be the first corporation of the Geman investement fund branch to issue such instruments. During an event on Tuesday in Zurich, DWS Switzerland declared that "a similar offer" was planned for Switzerland for the beginning of 2007, but no further information was given by representatives of DWS Switzerland.

This move of DWS is almost considered a "small revolution" in the investement fund branch. So far investment funds had been sceptical about the success of structured products and were looking for ways to respond to this development. But the ongoing growth of this segment now seems to have dissipated the lingering doubts of the branch.

In Switzerland the market for structed products is expanding with a 20 to 30 percent growth rate. According to the Swiss Structured Product Association (SVSP) Switzerland is the biggest market worldwide for structured products. End of last May, for instance, volumes grew by 66 percent to 237 bln Swiss Francs. Market observers estimate that around 600 000 investors in Switzerland hold structured productions in their portfolios.

Source: Neue Zürcher Zeitung

You may also read this related topic:
Switzerland has biggest market share for structured products

NYMEX releases details for IPO

The commodity exchange New York Mercantile Exchange (Nymex) has released details for its forthcoming IPO. Under the terms of the IPO Nymex wants to issue 6 million shares (or 7 percent of its capital) at a price ranging from 48 to 52 cents. 4.89 million shares will be offered by Nymex and 1.1 million shares by the owners, namely Bear Stearns, Calyon Financial and Man Group Finance. The average price of 50 cents will generate revenues for Nymex of $300 million. After deduction of costs Nymex will receive net revenues of $220 million, which will be used for investments and working capital. Listing start is scheduled for 17 November.

Source: Neue Zürcher Zeitung

First Russian energy IPO oversubscribed

The IPO of United Energy Systems (UES), one of the first IPOs of the newly formed Russian energy corporations, was oversubsribed 8.6 times at the higher end of the price scale (7.6 to 9.5 US cents) and 10 times at the lower end. UES finally alloted the shares at 9 cents. This will result in a market capitalization of of $3.2 bln. Strategic investors will receive 5 percent of the shares and other investors the remaining 9 percent of the total of 14.4 percent allotment. According to finance sources the energy holding Gazprom intially wanted to buy the entire issue, but according to UES, no strategic investors currently holds more than 1.1 percent of the shares.

Source: Neue Zürcher Zeitung

China 'driving global chip sales'

China's growing demand for computers and mobile phones will fuel strong growth in the global microchip market, an industry body has said. Worldwide chip sales are expected to rise by 8.6% next year and then grow 12.1% in 2008, the World Semiconductor Trade Statistics (WSTS) has forecast.

Read the full article by BBC News.





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