Newedge
From MarketsWiki
| Newedge Group | |
| |
| Founded | January 2, 2008 |
|---|---|
| Headquarters | Paris |
| Key People | CEO Patrice Blanc |
| 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, the brokerage arms of French financial giants Société Générale and Credit Agricole's capital markets business, and offers execution, clearing, prime brokerage, investment and asset financing services. Newedge is now one of the world's largest futures commission merchants and recently opened a new India-based brokerage operation as part of its growth plan for the region.
Background
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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 Jan. 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 5 million 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 U.S. 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.
Newedge Group launched Newedge Broker India Private Ltd. in November 2009 to provide financial derivatives and cash equities to institutional foreign investors in the Indian securities market.[4] The new brokerage will be based in Mumbai with a staff of 20 and trade on the National Stock Exchange of India and the Bombay Stock Exchange.[5] Newedge has identified India and China as major growth markets for the future, especially in commodities and derivatives.
In January of 2010, Newedge announced that its Korea office had been granted a full futures license by the Korea Financial Services Commission. Newedge was the first foreign company out of the 19 foreign companies that applied for the license. With the full futures license, Newedge Korea became able to offer all products listed on the Korea Exchange (KRX) including equities and derivatives as of Jan. 4, 2010.[6]
Also in January of 2010, Newedge announced that Laurent Cunin had been appointed head of the Asia Pacific region for the firm, and Pierre Gay had been named global head of fixed income, currency and commodities. Gay would remain based in Hong Kong at least during the first quarter of 2010, making the transition with Cunin, who would be replacing him at the head of Asia Pacific region. Cunin was acting CEO Americas and head of sales Americas. He previously spent a total of eight years in Asia, and until 2005 was the head of Fimat’s Tokyo office.
Key People
- CEO, Patrice Blanc
- COO, Cynthia Zeltwanger
- Chairman,Marc Litzler
- Deputy Chairman, Philippe Collas
- Head Of Americas Region, John Fay
- Global Head Of Sales And Front Office, Nicolas Breteau
- Global Head Of Financial Futures And Options (FF&O) Execution John Ruskin
- General Counsel, Gary DeWaal
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.
- ↑ France's Newedge launches India brokerage unit. Reuters. Retrieved on November 17, 2009.
- ↑ Newedge Launches Indian Operations. Newedge Group. Retrieved on November 17, 2009.
- ↑ Press Release. Newedge Group. Retrieved on January 5, 2010.
