June 2014

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Interdealer Brokers: FX Volume Falling YoY

For investors in equities like Compagnie Financière Tradition (SIX: CFT) the following graphs illustrate one of the problems facing the interdealer brokers: Falling Volume, Structural Changes in the Market   The SNB today discussed the reasons for this falling volume in the primary interbank market: 1. Internalising Flows 2. Banks are providing liquidity over alternative plattforms 3. Smaller banks are now often clients of the mega banks The reasons above…

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Politics & Their Influence on Equities; Example Alpiq

The above chart shows the second largest swiss utility (Alpiq; ALPH) share price over the last six months. The green line depicts the SPI (broad swiss performance index). Oh, and the T’s depict management transactions (just some small purchases). A performance difference vs the broad market of over 30% has occured. Factors behind this: – Uncertainity about major shareholders like EDF, and their plans to divest their holdings. So basically…