Commentary & Analysis

Confidence returns to deal making

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This week’s post is by Matthew Toole, Director of Deals Intelligence.

It was the year that deal makers have been waiting for. After grappling with six years of post-financial crisis fits and starts, global deal making began firing on all cylinders over the course of 2014 with significant gains across mergers and capital markets.

Despite improving economic indicators, record corporate cash levels, a rising stock market and low interest rates, C-suite confidence seemed to be the missing component to a resounding signal that the next deal cycle had arrived. All of that changed in the first quarter of 2014 with a number of large-scale strategic bids across a number of sectors – competing bids for New York’s Time Warner Cable and France’s SFR in the Media and Telecom sectors, Facebook’s audacious $19 billion takeover of WhatsApp in the Tech sector and the beginnings of an all-time record year for Healthcare and Pharma M&A with Actavis PLC’s acquisition of Forest Laboratories. (more…)

Taking their foot(print) off the gas

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Welcome to Thomson Reuters Exchange! We created Exchange, as the name suggests, as a forum for dialogue, a digital publication where ideas and insights, information, news and analysis can be exchanged and shared across the global ecosystem of professionals in a dynamic, interactive format. We invite you to experience the rich content and interactive features on your iPad, iPhone or Android tablet by downloading it from the App StoreGoogle Play or on Amazon. Or, to learn more about Exchange and stay abreast of the latest features, functionality and content in this issue and subsequent issues, visit our website.

This week’s post is co-authored by Tim Nixon, Director of sustainability at Thomson Reuters, and John Moorhead, sustainability consultant at BSD Consulting.

With the world’s government representatives having gathered recently to discuss cuts in their greenhouse gas (GHG) emissions for the upcoming Paris talks, the timing is ripe to discuss the role of the world’s business sector in likewise reducing emissions. Are the world’s 500 largest businesses (Global 500) reducing their GHG emissions at a rate consistent with the global scientific consensus on the risks of climate change?

As discussed in a new report from Thomson Reuters and BSD Consulting, the Global 500 are directly and indirectly (through the energy they use) responsible for more than 10 percent of worldwide GHG emissions. “Responsibility” in this context is a complex concept. Nearly all of us regularly use the products from the largest emitters of GHG. We are all a part of a stakeholder network that shares in the benefits provided by modern industry, but also in the responsibility for managing the impact of that industry on our planet, and the planet that subsequent generations will inhabit. (more…)

AIFMD & IFRS: Fair value measurement & portfolio valuations

Evaluated pricing sits at the heart of fair value measurement. This hasn’t necessarily always been the case. In an interview with Finextra, Jayme Fagas, Global Head of Valuations & Transparency – Thomson Reuters Pricing & Reference Services, takes a look at the changing role of evaluated pricing for practitioners and its importance for portfolio valuations.

The significance of evaluated pricing for portfolio valuations centers and relies on the ability to defend an evaluated price. From a fair value pricing perspective, the capacity to defend an evaluated price is what’s truly needed to meet the regulatory obligations that IFRS and AIFMD as well as numerous other regulations have placed on market practitioners.

Access to market observable inputs is identified by Fagas in her interview with Finextra as one means to defend a price. Although a number of vendors do in fact offer prepackaged measurement tools, Fagas is cautious of their shortcomings resulting from a lack of clarity around how an exact measurement has been derived. Instead she asserts that the best outcome involves a combination of the measurement plus all the available market observable inputs which collectively produce a full package. (more…)

‘But is it really a pollutant? A national overview of pollution exclusion litigation,’ by Thomas F. Segalla, Esq., and James D. Macri, Esq.

 

 

For a one-minute audio intro to the commentary, click here.

WestlawNext users: Click here to read the full article on WestlawNext.

Thomas Segalla

Thomas Segalla

James Macri

James Macri

 

Risk data aggregation, reporting, & governance

There has been much said about the challenges market participants face when trying to address regulatory change. The cost and resource implications of meeting new regulatory reporting requirements and enhanced risk management obligations are both significant and unavoidable. In an interview with Finextra, Marion Leslie, Managing Director – Thomson Reuters Pricing & Reference Services, explores data management in the context of today’s demanding post-crisis risk reporting climate.

As each new regulation introduces fresh complexities for firms – market participants need to source, manage and store the relevant data, demonstrate transparency and lineage of that data, as well as show confidence in their data and underlying processes.

In the interview below with Leslie, it is revealed that banks are still often more focused on the creation of risk management reporting procedures than the actual analysis and understanding of the risks considered. There is a need to move from the understanding and implementation of regulatory and risk management requirements into derivation of business benefit.

Whilst firms must comply with risk reporting, they are equally driven by the need to reduce costs, increase automation and operational efficiency, improve the accuracy of their regulatory reporting and, ultimately, make better trading and investment decisions. In order to achieve optimal results while managing data spend, Leslie encourages firms to see that regulatory requirements are not necessarily a cost or inhibitor to growth, but are in fact a growth enabler. Adopting a proactive approach to the management of risk enables a firm to make growth-oriented decisions rather than focus purely on post-event mitigation decisions. (more…)

Sustainable development

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Welcome to Thomson Reuters Exchange! We created Exchange, as the name suggests, as a forum for dialogue, a digital publication where ideas and insights, information, news and analysis can be exchanged and shared across the global ecosystem of professionals in a dynamic, interactive format. We invite you to experience the rich content and interactive features on your iPad, iPhone or Android tablet by downloading it from the App StoreGoogle Play or on Amazon. Or, to learn more about Exchange and stay abreast of the latest features, functionality and content in this issue and subsequent issues, visit our website.

This week’s post is by Dr. Ranjit Tinaikar, Managing Director of the Advisory and Investment Management business at Thomson Reuters.

Here’s how Big Data and open standards can lower barriers to sustainable development enabling the public and private sectors to work together to achieve greater legal and regulatory transparency: (more…)

Despite the Deutsche Bank fine, an olive branch from the EU

European Commissioner for Financial Services, Jonathan Hill, speaks during a Thomson Reuters Newsmaker event

At last, there is a positive sign. After so many years of reputational damage, the financial services industry has been extended an olive branch by its regulatory masters – and it is one that should be grasped.

The most encouraging indication in many years that financial services has the opportunity to restore its reputation came last week from the summit of EU policymaking. In the midst of the UK’s election frenzy, which has seen the return of much negative comment about our industry, it was good to hear the European commissioner for financial stability issue a challenge for finance to take its rightful place as part of the solution to the EU’s economic troubles.

Lord Hill was speaking at a Thomson Reuters Newsmaker event, principally about Capital Markets Union.

Arguably no individual has greater influence over the future of the financial services industry. The Capital Markets Union he is tasked with establishing could perhaps rival the Single Market in revolutionising the fortunes of the EU’s member states, enabling Europe’s growth businesses to access funding across borders as never before. (more…)

‘When banks don’t do the right thing : Employee options,’ by Adam Augustine Carter, Esq., and R. Scott Oswald, Esq.

 

 

For a one-minute audio intro to the commentary, click here.

WestlawNext users: Click here to read the full article on WestlawNext.

Adam Augustine Carter

Adam Augustine Carter

R. Scott Oswald

R. Scott Oswald

Tracking the latest news on the Africa landscape

Sneha Shah, managing director of Thomson Reuters Africa joins CNBC Africa to discuss some of the latest news impacting the African continent. (more…)

The mobile revolution set to hit financial services

Salesman poses with two Apple Watch look-alike devices at a mall selling electronic products in China's southern city of Shenzhen

By John Manwaring, Head of Mobile and Search, Financial & Risk, Thomson Reuters

2015 is looking set to be the year when wearables will start a revolution in how we use technology in our daily lives. Last year saw a number of developments in the sector, most notably the launch of Google’s Android Wear and Samsung’s Gear S. Now, with the launch of the Apple Watch imminent, it’s not too fanciful to say that wearable devices have already begun to change the way we interact with the world around us, and reshape our expectation of what technology can – and should – be doing for us.

While devices like smartwatches are generally thought of as recreational, as consumers come to adopt them in their daily lives they will inevitably start to impact the way we work too. From tablets to smartphones, mobile technology has already become so ingrained in our daily lives that we are coming to expect there to be a seamless link between how we use technology at home and in the office, and in particular how we receive information through the working day.

At the same time, our working lives themselves are changing. The days of nine to five, of clocking in and out of the office every day, are fast disappearing as we expect more flexibility and autonomy. The financial services industry is no exception to this, and the technology used by financial markets practitioners should change to match. Technology is increasingly being relied upon to deliver information intelligently, where and when it matters most. (more…)