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French regulators propose two step approach to T+1 in Europe

The TRADE

In the event of this happening, the AMF and Banque de France have suggested that rules should be carefully designed to ensure the continued attractiveness of European instruments to foreign investors. One such theme noted by traders is the Thursday conundrum. Its final report will be published at the end of this year.

Trading 64
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The Thursday T+1 trading conundrum

The TRADE

Given that the settlement cycle is now shorter in the US trading volumes on a Thursday have dropped off significantly thanks to funding requirements that require brokers to fund a position for an additional three days on Friday, Saturday and Sunday given the slightly longer settlement cycle in Europe, the UK, and most of Asia Pacific.

Trading 59
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Nuclear fusion: the start-ups chasing energy’s holy grail

Growth Business

Tokamak Energy signed an agreement with UKAEA in October to closely collaborate and will build a new tokamak at Culham, due to be fully operational in 2027. Is there enough funding for nuclear fusion? Investment into nuclear fusion is heating up. investment into fusion energy between 2009 and 2019. That makes it about 30 years away.

Funds 98
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Food and Beverage Industry: Dairy Sector Spotlight

Focus Investment Banking

CAGR through 2027. By May 2024, Bloomberg updated its reporting to indicate that PAI was considering keeping its share by forming a continuation fund. This growth is driven by rising consumer demand for indulgent treats and innovative product offerings. The take-home segment dominates, accounting for $17 billion of the market.

Food 52
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Fireside Friday with Brown Brothers Harriman’s… Brendan Burke

The TRADE

In Asia, the focus is a bit different and the theme we’re seeing and hearing about is around pre-funding the FX settlement-related trades. In addition, there are various trade types to account for, such as corporate actions or investor flows, that are different from the traditional security RVP/DVP FX transaction.

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SEC chair Gary Gensler urges UK to set T+1 transition date

The TRADE

The current timeline for the UK appears to include a plan being put in place in 2025 with the implementation of a T+1 settlement cycle in UK occurring no later than 31 December 2027. Mutual funds and ETFs in the US have largely adopted a one-day settlement cycle by business practice, aligning portfolios from treasuries to equities.

Trading 64
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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

If you think about a standard DCF, metrics like Unlevered Free Cash Flow and Levered Free Cash Flow are a bit “imaginary” – because no company distributes them to its investors. The normal WACC formula does not apply since WACC is linked to all investors in the company (Enterprise Value).