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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

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

Tullett Prebon in first LatAm move with Brazil purchase plan of Convenção Corretora de Valores e Câmbio

Tullett Prebon on Tuesday became the latest British inter-dealer broker to highlight growing interest in the Brazilian capital markets by saying it would buy Convenção Corretora de Valores e Câmbio, a leading Brazilian inter-dealer broker, for an initial cash payment of R$20m (£7.3m).

The increasing significance of Brazil for international investors has acted as a magnet on the world’s inter-dealer brokers – brokerages that specialise in trades between big market dealers rather than individuals, typically operating with large volumes at low margins.

Tullett’s move also will give it a physical presence in Latin America for the first time.

It comes four months after rival BGC Partners completed the purchase of Liquidez, another Brazilian inter-dealer broker. In November last year, Icap bought Arkhe, an independent Brazilian broker it had dealt with for several years.

Convenção was founded in 1973 by Eduardo da Rocha Azevedo, a former president of the Bovespa stock exchange, now part of BM&F Bovespa, the Brazilian stock and derivatives exchange.

The Brazilian firm is being sold by Mr Azevedo, Eduardo Nogueira da Rocha Azevedo, and Marcelo Taiar Arbex. The senior management of Convenção will remain with the company after the acquisition is completed, Tullett Prebon said.

In addition to the initial purchase price, Tullett Prebon has also agreed to pay “deferred consideration” of up to a maximum of R$30.3m (£11m), payable in cash “subject to achievement of future revenue and profit targets”.

For the year to December last year, Convenção reported revenues of R$21.9m (£8m).

Tullett Prebon said it planned to establish a presence “in key countries throughout the Latin American region commensurate with its position as one of the world’s leading inter-dealer brokers”.

The acquisition was conditional on approval from the Brazilian authorities, including the central bank, and was expected to complete in the second quarter of 2010.

Terry Smith, chief executive of Tullett Prebon, told the FT recently that the inter-dealer broking business had been “going onshore” in recent years, to places like Brazil, rather than automatically being done in the biggest financial centres in the northern hemisphere.

”If you’d gone back five years you would have found that the vast majority of [Brazil-related] business was conducted via New York. Increasingly it’s being done by brokers operating out of São Paulo. Some of those brokers have developed in to very credible operations; it’s by no means the wild west there.”

Source: FT, 13.10.2009

Filed under: Brazil, Latin America, News, , , , ,

CFETS-Icap Resumes FX Swaps, Forwards Trading in China April 2009

CFETS-ICAP International Money Broking Co. resumed broking yuan swaps and forwards last Monday, just over a year after it and another broker were stopped from broking them by China’s foreign exchangeregulator.

CFETS-ICAPis understood to be the first interdealer broker to receive a license from the State Administration for foreign exchange (SAFE). The license allows the firm to broker yuan-denominated swaps, forwards and cross-currency swaps an ICAP spokesperson tells Squawkbox.

While the firm received the green light to trade  non-yuan swaps in February this year, China’s regulations exclude brokers from trading on the country’s  foreign exchange spot market.

CFETS-ICAP is a joint venture formed in 2007 by ICAP and the China Foreign Exchange Trade System   & National Interbank Funding Center, or  CFETS the trading platform and clearinghouse run by the People’s Bank of China.

In late February last year, CFETS-ICAP and Tullett Prebon SITICO (China), a joint venture between Tullett Prebon and Shanghai International Trust & Investment Corp., were stopped from providing quotes due to compliance reasons. Brokers said at the time that they were operating in a regulatory grey area where the rules under which they could do business in China didn’t bar them from broking swaps, but SAFE hadn’t explicitly issued rules regulating how it was to be done (Squawkbox, 25 February, 2008).

Under new regulations, money brokers must post the price of all transactions publicly on China’s CFETS trading platform, and report the details of all transactions to CFETS at the end of the day.

Tullett Prebon SITICO (China) Ltd., the other money broker that applied for a license, has reportedly yet to receive it. The company declined to confirm this or comment.

Source: Squakbox 30.03.2009

Filed under: China, Exchanges, News, Trading Technology, , , , , , ,

CQG Teams with Tullett Prebon Information to Provide Latin American Fixed Income, Foreign Exchange, Money Markets, and Derivatives Market Coverage

CQG, the leading analytics and order routing platform for global electronically-traded futures markets, has announced that it is adding the distribution of data for Latin American products (LatAmMarker) offered by Tullett Prebon Information, Ltd, the leading global provider of financial market data.

CQG is adding LatAmMarker to its existing coverage of debt markets, foreign exchange, money markets, and derivatives from Tullett Prebon Information. LatAmMarker includes accurate and timely prices for the region’s government debt, foreign exchange, derivatives, and local benchmarks. It also includes information from global fixed income, commodities, and money markets that correlate with the Latin American markets.

Customers utilizing CQG market data will be able to access Tullett Prebon Information’s Brazil Key Market Rates, Zero Coupon Notes, NTN-Fs, and Globals; Colombia Key Market Rates, UVRs Inflation Linked Bonds, TES, and Globals; and Mexico Key Market Rates, Cetes, UDI, M Bonds, Globals, and Swaps Composite Page in the Latin American Marker.

Mike Kirby, Head of the Americas at Tullett Prebon Information, said, “We are delighted that CQG has chosen to extend its range of data from Tullett Prebon Information to include Latin American products. We have a long-standing and successful relationship with CQG and will continue to enhance our high quality and independent financial data offering to CQG’s customer base and other clients globally.” “We are really pleased to add the Tullett Prebon Latin American coverage,” said Rod Giffen, Global Head of Sales and Support. “It’s a great complement to our multi-asset class market data offering.”

Source: Tullett Prebon 08.01.2009

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Data Management, Data Vendor, FIX Connectivity, Islamic Finance, Market Data, Mexico, News, Reference Data, Trading Technology, , , , , , , , , , , , , , , , , , , , , ,