Day: March 8, 2019

The Institutionalisation of Crypto: Patience Required

Institutional investors will start to trade in cryptocurrencies, but the price crash last year has put a hold on their plans. That said, as David Mercer, CEO of LMAX Exchange, which owns the institutional crypto platform LMAX Digital, observes, “All the names you’d expect are looking seriously at crypto.”
LMAX Digital was launched into a bear market, something Mercer wryly suggests is something you wouldn’t choose to do, but he remains optimistic in the long term. “We set up LMAX Digital purely for the institutional space, but at the moment it is probably at one-to-five percent of its potential – it remains largely retail-orientated,” he says

CTAs See Performance Improve in February

The SG CTA Index was up by 0.42%, whilst the SG Trend Index was up by 0.81%. Short term strategies struggled and underperformed other strategies, with the SG STTI down by 1.19% for the month. The SG Trend Indicator attributed February’s positive results to gains in currencies and a selection of commodity markets, as well as trends in interest rate markets. Long positions in bond markets reverted slightly, leading to small losses, whilst positions in equity markets began to adapt to the renewed upward trend. “We’ve seen an uptick of performance in February, and we maintain the benefits CTA strategies can have in diversified portfolios. It will be interesting to observe if CTAs can continue this upward trend as we look towards March and the rest of the year,” says Tom Wrobel, director of alternative investments consulting at Societe Generale Prime Services.

Who Are the Potential Buyers of Refinitiv?

n October 2016 Profit & Loss published an article: “Who Are the Potential Buyers of NEX?” This time around, Galen Stops applies the same type of analytical treatment to Refinitiv.In October 2018 a consortium, led by the private equity firm Blackstone, concluded a deal to acquire 55% of the equity in Thomson Reuters Financial & Risk (F&R) business, now rebranded as Refinitiv. No one in the market is under the illusion that Blackstone intends to maintain its ownership of Refinitiv, least of all the staff that work there.