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Tullett Prebon to pay out over BGC data misuse

Tullett Prebon has agreed to pay $800,000 to its US rival BGC after misuse of data by some of its brokers, closing one chapter in a long-running legal battle between the two interdealer brokers.

The settlement, which was ordered by a US arbitrator, is smaller than Tullett had expected, and far lower than the sum sought by BGC, which claimed it had suffered damages of “hundreds of millions of dollars”. The arbitrator found that BGC was not the “prevailing party”, meaning it was not entitled to reclaim legal costs from Tullett.

The dispute related to trading data provided by BGC that Tullett packaged with its own data and sold to information providers such as Reuters and Bloomberg. Under the terms of the deal between the two groups, Tullett’s brokers were not allowed to use the BGC data after January 25 last year but some continued to do so.

In Tullett’s latest full-year results statement it reported a provision of £12.4m to cover the anticipated cost of settling the data misuse case and the costs of two other cases it is pursuing against BGC. Those cases relate to BGC’s alleged “poaching” of more than 50 brokers from Tullett’s US division in late 2009. Last year BGC made an out-of-court payment to settle a similar claim relating to Tullett’s UK business.

Source: FT, 22.03.2012 by Simon Mundy

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Filed under: Data Vendor, Market Data, , , , , ,

BGC Partners Finalizes Acquisition of Brazil’s Liquidez DTVM

BGC Partners, Inc. (Nasdaq: BGCP), a leading inter-dealer broker of financial instruments, today announced the completion of its acquisition of Liquidez DTVM Ltda. (“Liquidez”), a leading Brazilian inter-dealer broker of foreign exchange derivatives, commodities, credit, equities, and interest rate products.

Founded in 1985, Liquidez is amongst Brazil’s top inter-dealer brokers, accounting for 13.7% of all contracts traded in May 2009 on the BM&F segment of BM&FBOVESPA. The Brazilian Mercantile & Futures Exchange (BM&F) recently merged with BOVESPA to create BM&FBOVESPA, the world’s fourth largest exchange by market capitalization according to the Financial Times.

The deal marks an important step for BGC Partners, Inc. as it looks to further increase its presence in Latin America. Brazil is the largest market in the region and continues to grow despite challenging conditions in the global financial markets, achieving over 5% per capita GDP growth in 2008 according to the IMF1.

Lee Amaitis, Vice Chairman of BGC Partners, Inc. said: “We are very pleased to have finalized this deal with Liquidez. Liquidez has a long and impressive track record in Brazil and a highly professional team of brokers. Latin America is a key area of growth for BGC and Brazil is a particularly attractive market for us, given its continued growth and strong fundamentals. The Brazilian financial markets are also among the most broadly and cautiously regulated in the world2. The acquisition of Liquidez gives us a significant platform for future growth in the region.”

Arnaldo Cezar Coelho, President and CEO of Liquidez, added: “BGC’s global reach and sophisticated proprietary technology opens up tremendous opportunities for our Brazilian clients, giving them access to BGC’s extensive range of products and significant liquidity. BGC’s global customers will also now have access to local products on the Brazilian Exchange, increasing business for the Brazilian markets.”

Source:Bobsguide, 18.06.2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, Services, Trading Technology, , , , , , , , , , ,