Newedge
From MarketsWiki
| Newedge | |
| |
| Founded | 2007 |
|---|---|
| Headquarters | Paris |
| Key People | Patrice Blanc, CEO; Richard Ferina, deputy CEO; Philippe Rucheton, CFO; Cynthia Zeltwanger, COO; Marc Schultz, CEO Americas; Jean-Luc Savignac, COO Americas; Nicolas Breteau, CEO Europe and the Middle East; Wessel Van Der Scheer, CEO Asia-Pacific; Marc Litzler, chairman; Philippe Collas, deputy chairman |
| Products | Multi-asset execution and clearing, prime brokerage and asset finance |
| Web site | http://www.newedgegroup.com |
Newedge is a diversified financial services group formed from the merger of Fimat and Calyon Financial, respectively the brokerage arms of Société Générale and Credit Agricole's capital markets business.
The company is one of the world's largest futures commission merchants, and also offers execution and clearing across a range of asset classes, as well as prime brokerage, investment and asset financing services.
Contents |
History
| This page is sponsored by... |
 |
The 50/50 joint venture between the two French banks was was first reported in late 2006[1] but officially announced in August 2007 and launched on January 2, 2008. The partners also plan an initial public offering of the business within 18-24 months of launch[2].
The combination of SocGen's Fimat unit with the derivatives operation of Crédit Agricole's Calyon Financial division had pro forma revenues of €1bn in 2007, trading a combined 5m contracts a day and ranking among the top five FCMs on the 10 largest global exchanges.
Fimat was formed in 1986 following the creation of Matif, the French derivatives exchange, adding the Fimat UK and Fimat USA arms and acquiring Brody White, the US brokerage, in 1995. Fimat had a network of 30 offices located in 27 key financial marketplaces around the world and a staff number over 2,055. It is a member of 49 futures and options exchanges and 21 stock exchanges.
Talks between the French banks stumbled in the past over the valuation of the two businesses, with Fimat roughly double the size of Calyon[3]. There was also considerable internal resistance to the deal, which is expected to generate large synergies by eliminating overlapping teams and operations, as well as by combining technology systems on a single platform. The chairman and deputy chairman roles will alternate after two years.
The sector is dominated by the big investment banks and MF Global, the largest independent broker following its acquisition of assets from Refco. UBS agreed in 2006 to buy ABN Amro's FCM unit for $386m.
The rapid consolidation of the global futures exchange sector has increased pressure on the brokers to seek their own merger partners in order to increase their negotiating power with platforms such as the combination of the Chicago Mercantile Exchange and the Chicago Board of Trade.
Products and Services
Newedge offers clearing and execution services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, currencies, equities, and commodities on OTC markets. Newedge also provides value added services, including prime brokerage, asset financing, an electronic platform for trading and order routing, cross margining, and the processing and centralized reporting of client portfolios.
News
On July 24, 2008 Newedge Group, announced the appointment of John Browning as head of Metals in the Hong Kong office.
References
- ↑ Agricole and SocGen to combine derivatives. Financial Times. Retrieved on January 4, 2008.
- ↑ Press Release. Calyon Financial. Retrieved on January 4, 2008.
- ↑ Agricole and SocGen to combine derivatives. Financial Times. Retrieved on January 4, 2008.
