Archiv: April 2007

Data storage in post-MiFID era

SunGard has recently announced the launch of its "MiFID Hub", a sofware solution which should enable financial institutes to comply with the data storage requirements of MiFID (Markets in Financial Instruments Directive). The MiFID Hub is said to contain the experiences and ideas of more than 70 financial institutes, which were participants at MiFID workshops organized by SunGard and held in Frankfurt, Brussels, London and Stockholm. More than 70 percent of the workshop participants are convinced that they need to expand their data storage functionalities in order to comply with the EU directive.

MiFID requires financial institutes to store various financial data for a minimum of five years. MiFID will also make the tasks of archiving, input and dissemination of financial data much more complex than under existing regulation or corporate strategies. Transaction and ticker data as well as client and marketing documentation, for instance, must be stored in such as way that every phase of the order execution can be reconstructed after several years.


The allure of takeovers gains strength in Europe

Most years, the United States handily beats Europe for bragging rights in deal making, based on the total value of mergers and acquisitions. But this year, Europe is pulling ahead. The current takeover battle in banking, the biggest in the industry's history, is just the latest sign of the surging deal activity on the Continent. That flurry of activity is prompting changes in corporate behavior. European companies are scrambling to put themselves in play, or fend off unwanted approaches, much as U.S. companies did in the 1980s.

Read the full article by The International Herald Tribune.

Telekurs Financial Technology Drives International ETF Valuations on the American Stock Exchange

Zurich, Switzerland. Telekurs Financial expands ETF calculation business in the US, with international funds listed on the American Stock Exchange. Read the full text of this press release (download 41 kb)

The Telekurs Group further strengthens its market position in 2006

The year 2006 saw the Telekurs Group hold its own convincingly in a challenging environment. As Walter Wirz, CEO of the Telekurs Group, puts it “The SIS Group’s computer centers were integrated into Telekurs’s computer center operations, Switzerland’s two largest retailers were supplied with the new davinci payment terminals, and data input operations in India were expanded. The Group’s major financial performance indicators all showed positive progress on the year.” Sales rose 8% to CHF 697.8 million. Operating earnings were up 12%, at CHF 64.2 million, while consolidated Group net income climbed 38% to CHF 77.7 million. These encouraging results confirm the Telekurs Group’s dynamism in all its three business areas (Card-based Payment Systems, Electronic Payment Systems and Financial Information Services).
Read the full text of this press release (download 42 kb)

EU commission urges member states to implement MiFID more rapidly

On Tuesday the EU comission started to take legal proceedings against 24 EU member states on the grounds that those states failed to enact MiFID according to the set deadlines (see also Weblog entry of 20.04.07: EU states could face rebuke for implementation delay of MiFID ). So far only Great Britain, Ireland and Romania announced the complete implementation of the directive. The directive will come into force on 1st November 2007 and the deadline for legal implementation already expired on 1st January.

EU internal market commissioner Charlie McCreevy has recently sent a letter to the finance ministers of the defaulting states, in which he expressed his great concern and required that MiFID should be on the top of their political agenda. In a press release issued on Tuesday McCreevy further reminded that more delays could harm the competitivity of banks and European securities firms. On the other hand McCreevy confirmed that most of the states committed to implement MiFID in May, June or July.

Source: Neue Zürcher Zeitung

More phones can be BlackBerries

Research in Motion (RIM) plans to roll out software that will allow multimedia mobile phones running on a Microsoft platform to work like BlackBerries. The facility will widen the choice of handsets available for Blackberry devotees who want to use its applications, such as wireless e-mail. But it will only work on mobiles with the latest Windows software.

Read the full article by BBC News.

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

SmartCo and Telekurs Financial, partners in securities data management

PARIS, France – SmartCo, the French software house specialising in data management applications for the financial sector, and Telekurs Financial, a specialist service provider in the capture, processing and distribution of international financial information, have announced the integration of Telekurs Financial's Valordata Feed data flow into SmartCo’s Smart Financial Data Hub system.
Read the full text of this press release (download 31 kb)

Barclays agrees GBP 45bn Dutch deal

Britain's Barclays bank has agreed to merge with Dutch bank ABN Amro. The £45bn (66bn euro; $90bn) deal will create one of the world's largest banks, with a total value of £94bn and its headquarters in the Netherlands. The companies said about 12,800 jobs would be cut as a result of the merger, while a further 10,800 jobs would be oved to low-cost locations. ABN has also agreed to talk to a consortium headed by the Royal Bank of Scotland (RBS) about a rival offer.

Read the full article by BBC News.

EU states could face rebuke for implementation delay of MiFID

Within the next days EU commissioner Charlie McCreevy could serve formal notice on several EU member states which failed to enact MiFID into national law until 31st January. According to a EU website only four member states have met this legislative requirement so far - Great Britain, Ireland, Lithuania and Romania. "Theoretically," says McCreevy's spokesperson, Oliver Drewes, "this could constitute a breach of contract." Within this week the EU commission will announce their decision whether or not this would result in legal proceedings. Yet, Drewes also adds that the regulative process should be based on ''common sense''. Eight member states have already announced the MiFID implementation for June. But several other member states, such as Italy, Denmark, Spain, the Netherlands, Finland and Hungary have announced that the completion of the legislative process could only be expected after the summer holidays. France, which is currently absorbed by its current presidential election, gave no indication as to their deadline, whereas Slovenia simply announced that an exact deadline would be "impossible to define".

Source: FAZ.NET

EuroCCP will be clearing and settlement partner of project 'Turquoise'

Five months ago seven investment banks announced their decision to create a Multi-Trading-Facility (MTF) and dubbed their project 'Turquoise'. This decision was seen as a reaction to high trading costs, the lack of competition in clearing and settlement and, lastly, to the EU's Markets in Financial Instruments Directive, MiFID, which will come into force in November 2007. Turquoise has now announced its decision to choose EuroCCP, a new subsidiary of the American Depository Trust & Clearing Corporation (DTCC), as a provider for clearing and settlement of their securities transactions. EuroCCP will be based in London and will be supervised by the respective British regulator. Furthermore, Citigroup's Global Transacton Services division will work in partnership with EuroCCP.

The Swiss SIS Group had also been considered as a possible partner, but it was not able to compete in the price bidding. However, this might not be the last word. According to sources close to the investment banks behind the Turquoise project, the partnership with EuroCCP will not have an exclusive character. In a second phase of the Turquoise project around mid-year 2008 there might be another opportunity for SIS Group.

Meanwhile, the Swiss exchange SWX is nourishing realistic hopes to become the trading platform for Turqouise via their London-based exchange virt-x. Turquoise will require a specific brokerage functionality, the so called Smart Order Routing Technology which is not wide-spread at the present moment. This technology allows to search for the best price of a security regardless of where it is actually traded. SWX is presently making efforts to be technologically compatible for this system.

Source: Neue Zürcher Zeitung

German shareholders embrace virtual shareholder's meeting

Paperwork is one of the tasks German shareholders could do without. That is especially true for those investors with a broad Dax portfolio that are provided with huge packs of marketing material in the voting season. Whoever finds the leisure to read the brochures will still have to spend more time filling out the voting forms. No wonder that many shareholders abstain from the entire job. During the past years the number of meeting attendees has been contiously decreasing. But there's good news. German companies have started to invest in providing electronic means to attend and vote at the annual assembly of shareholders and the number of 'virtual shareholders' is growing.

Last year more than 25 000 shareholders of the German insurance giant Allianz delivered their votes via mouse click. In the last four years Internet voting figures quadrupeled. Deutsche Telekom (around 8000 virtual votes), Deutsche Bank (more than 5000) and Munich Re Group (around 1800) are among the strong supporters of the virtual shareholder's meeting. Once the shareholder has given his approval, the entire correspondence is done electronically.

Yet, the Germany corporate law does not (yet) permit an entirely virtual meeting, but according to some economic experts an implementation of a EU directive may soon change this.

Source: FAZ.NET

General meeting announcement are part of Telekurs Financial's broad financial data range. For a regular update on the data offering subscribe to Telekurs Financial's data newsletter DATAFLASH.

IBM announces new chip-stacking technology

IBM has found a way to connect chips inside products ranging from cellphones to supercomputers, an advance that promises to prolong battery life in wireless devices and eventually speed up data transfers between the processor and memory chips in computers, IBM said Thursday.

Read the full article published by International Herald Tribune.

New feature for Swiss customers: Hemscott Company Fundamentals

With immediate effect, Swiss customers who use Telekurs iD java are now able to access the offering of an additional key supplier of fundamental company data. Hemscott Company Fundamentals publishes the key group/balance sheet figures of UK and US-listed companies as well as profit estimates and forecasts from numerous analysts. The service also offers management information, business addresses and links to company homepages.
Fact reports in PDF format provide a detailed overview of company performance and interim financial results including geographic sales analyses, profit estimates and forecasts from stockbrokers and analysts based at Merrill Lynch, UBS, Citigroup, etc.

The Hemscott Company Fundamentals data offering is subject to a charge. Swiss Telekurs iD customers can take advantage of a free trial period that runs until 16 May 2007. Contact:

Swiss fund branch monitors MiFID implementation

This year Swiss fund managers and investors will be actively monitoring the implementation of MiFID in the respective European countries. The Swiss Fund Association (SFA) is especially interested in how the EU directive will be implemented with regards to management fees and the handling of conflict of interests between the most important EU states. Switzerland will not be concerned directly by the directive, but the local financial industry does not wish to stand apart and is closely following the regulative development. In automn 2007 the EU will publish a white book which will contain, among others, a legislative frame and procedures for cross-border fund mergers.

Source: Neue Zürcher Zeitung

Market rejects Moody's ratings for Icelandic banks

Last week the rating agency Moodys published ratings for more than 40 banks, but had to place them on review for possible downgrade. This comes just after six weeks, when Moodys had published higher ratings for 150 banks according to their new rating methodology. This led to fierce criticism in the market as several Icelandic banks, such as Glitnir Bank, Landsbanki and Kaupthing Bank suddenly advanced four to five steps. These banks were given the highest 'Aaa' rating, which corresponds to the rating of US government issues, German 'Bund-Papiere' or British gilts. The ratings were done under the presumption that the Icelandic government would secure these banks against bankruptcy.

On Wednesday Moodys lowered the ratings of 44 banks, including Landsbanki, following the refinement of its bank rating methodology which incorporates joint default analysis (JDA).

Source: Neue Zürcher Zeitung

Read also the press release by Moodys (10.04.2007).

Customers boost Blackberry maker

Research In Motion (RIM), the maker of the handheld Blackberry device, saw its earnings for the three months to March boosted by strong customer growth. RIM saw profits rise ten-fold in the period to 3 March, soaring to $187m (£94m) from $18.4m a year earlier. But the results come as the US financial watchdog launches a formal stock options probe into the company.

Read the full article by BBC News.

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

Telekurs Financial and MDPUG - working towards continuously improved data consistency

Laura Fuller, Data Consultant of Telekurs (U.K.) Ltd recently became co-chair of the Market Data Provider User Group (MDPUG) to support consistent standards amongst data vendors in data delivery to clients such as corporate actions. Find out more about this initiative and what the latest project of MDPUG is.


Along with Nat Sey of Interactive Data and Perrin Mistry of the LSE, Laura Fuller attends and now co-chairs the bi monthly meetings of The Market Data Provider User Group (MDPUG), a group of data vendors who get together in order to discuss the application of the ISO 15022 Standard.

The group produces the MDPUG Principles document every six months setting down the principles that will be followed by data vendors when providing corporate actions in ISO 15022 format, and giving examples of messages containing the different Event Types, showing how the vendors will use the Standard. The Chair reviews the Principles document and comments. The chair also collates the views of the group with regards to market practice in the area of corporate actions and passes the groups view on to the SMPG (Securities Market Practice Group).

The objectives of the group are to establish principles and rules for the use of ISO 15022 MT564 and MT568 messages sent by data vendors. MDPUG aim to follow the SMPG's corporate actions document and do not want to reinvent market practice. In some cases, however, market issues are raised that have not yet been raised by the SMPG.

Amongst representatives present at these meetings are data vendors such as Interactive Data, EDI, Thomson Financial, the LSE, Reuters and DTCC.

It is a real achievement that these competitors can openly discuss corporate actions issues between them. A further and ongoing achievement is the publication of the Principles document which is the latest project of MDPUG. This latter document is looking at the changes that will need to be made for the October 2007 release of the ISO 15022 Standard. "Being part of this group demonstrates that Telekurs Financial continues to work responsibly in the market place, to best address the ISO standard and its impact on our industry for our clients", remarks Laura Fuller.

For further information on the Principles document please click here.

Market watch: Growing trading volumes for structured products

In the first three months of 2007, a total of CHF 20.6 billion worth of structured products changed hands in the Swiss market of “SWX Quotematch AG”, a jointly owned subsidiary of the SWX Group and Deutsche Börse AG. That corresponds to a 58.4 % increase over the comparable prior-year quarter and also represents the second-strongest quarter in Swiss securities exchange history. A significant increase was also recorded in total trading volume, with 674,104 trades executed in the first quarter – a 27.8 % gain compared to the same period in 2006.

On average, each month witnessed the admission of 2,000 new investment and leveraged products. The number of tradable instruments on SWX Quotematch AG at the end of March 2007 amounted to 13,257. During the initial trading days of April, an additional 400 new products were admitted to the market. As a result, investors have an increasingly wide range of products to help them implement their investment strategies in an optimal manner.

Source: SWX Group

Bahrain-based sukuk exchange in the starting block

The Bahrain-based Sukuk Exchange Centre aims to become the world's first marketplace for islamic bonds (sukuk). According to chairman Jamil Jaroudi, the new exchange will start operations in June. The Sukuk Exchange Centre could trade up to $600m Islamic bonds in its first year. According to Jaroudi new regulations by the central banks have led to a postponement of the opening of eight months. The demand for islamic bonds is constantly growing, as investors in the Gulf region are searching for alternative investments.

Source: Neue Zürcher Zeitung

Shares of NYSE Euronext begin trading

The shares of NYSE Euronext (NYSE Euronext: NYX) began trading today, first on Euronext in Paris at 9:00 a.m. (CET) and soon to follow in New York on the NYSE at 9:30 a.m. (EST). The opening share price on Euronext Paris for the newly merged company was €75. A total of 257,598,971 NYSE Euronext shares were admitted to listing. On the basis of the first price traded on Euronext, the market capitalization of NYSE Euronext stands at €19.32 billion/$25.81 billion, making the company the world's largest listed exchange group.

Source: NYSE


NYSE Euronext Celebrates Completion of NYSE Group, Inc. / Euronext N.V. Merger.

The above pictures are used with permission of NYSE Euronext.

German goverment debates over stricter regulation for closed-end funds and certificates

The German goverment plans to impose stricter regulations for closed-end funds and investment certificates. However, these investment forms should not be regulated within the scope of the "Markets in Financial Instruments Directive (MiFID)". The German conservative party (CDU) and the social democrats (SPD), both constituents of the governing coalition, are currently discussing regulatory measures, but it is yet unclear if they should be enforced by a new law.

Some regulation is already imposed for closed-end funds, such as the obligation to issue a prospectus. Since 2005 the issuers of these funds are required to have their prospectus approved by the German regulator BaFin. But compared to the stock market, regulation for these investement forms is still regarded as too lax.

MiFID, which needs to be enacted into German law, aims to enhance investor protection, requires more transparency in securities trading and finally should ensure that trading orders are executed on the most favourable terms for the client. Subsequent to the deliberation of the financial comittee, MiFID should be approved by the German parliament, the Bundestag, on this Thursday.

Source: FAZ.NET

Polar bear baby euphoria reaches Berlin stock exchange

Polar bear baby Knut was born on 5 December 2006, the first polar bear to be born in Berlin Zoo in over 30 years. Since the official public presentation of the tiny bear in March of this year, Germany but also other countries have been witnessing a genuine 'baby Knut' euphoria. Polar bear merchandising has been sweeping over Germany. It was only a question of time for the 'Knut-frenzy' to reach the stock markets. At the Berlin stock exchange the shares of the Berlin Zoo (Zoologischer Garten Berlin AG) have recently broken every record. The stock rose by 126 percent since the beginning of last week to reach 4660 euro on Tuesday.

For a very long time, the shares of the Berlin Zoo were only slowly moving between 1600 and 2300 euro. The arrival of Knut brought a bullish (and not bearish) momentum. Yet, the largest zoo of Germany is a non-profit corporation. In the previous business year the zoo recorded a market capitalisation of 51 million euro with a 204.5 loss per share. Shareholders of the zoo (so far) have been driven by idealistic motives and maybe by a special incentive: a one-time payment of 500 euro entitled the holder to a lifelong free entrance right.

Source: Neue Zürcher Zeitung


Financial sector to increase IT spending by 11 per cent

Financial services firms are set to increase their IT spending this year, but are not looking to outsource their infrastructure, according to a new report by research firm Datamonitor.

Datamonitor said it expects IT budgets to increase by 11 per cent on average across financial services firms in 2007. Nearly half of the 100 IT and business managers surveyed - from trading and brokerage, corporate banking, investments and securities, fund management and hedge funds firms - said the most important use of technology for their firm will be establishing better customer satisfaction levels.

"The necessity to offer superior technology and connectivity options to customers is driving heavy investment for these segments as competition heats up in the space," said Amit Shah a financial services technology analyst with Datamonitor and the author of the study.

Incoming regulations, such as the Markets in Financial Instruments Directive (MiFID), will bolster adoption of electronic trading, as will security issues such as phishing and anti-money laundering initiatives, said Shah.

Read the full article published by ITPro.

PayNet (Schweiz) AG becomes Telekurs PayNet AG

From 1 April 2007, the PayNet (Schweiz) AG, active in the field of electronic invoice and payment systems, now trades under the name of Telekurs PayNet AG. Read the full text of the press release of Telekurs PayNet AG, a company of the Telekurs Group (download 19 kb).

Download the latest issue of the realtime magazine with a special MiFID supplement

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

Find the latest issue 01/07 (download 3.2 MB) and…

…don’t miss the following articles:

- Innovation in derivatives settlement at Bank Julius Baer
- A new quality level for bond fair values
- Fundamental analysis in Telekurs iD: Global with a local focus
- Vienna's financial market: Swept along by eastward expansion

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

In response to growing customer requirements a special MiFID brochure has been published together with this issue of realtime. To download the entire brochure 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.





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