360T sold to Deutsche Boerse

7 comments / July 26, 2015
360T Chainsaw

My 360T chainsaw

Summit Partners sees the peak of the financial market. Sold their stake in Flow Traders two weeks ago, now they are selling forex trading platform 360T in an auction to Deutsche Boerse.

3rd largest FX spot market

While 360T may not directly ring a bell to everyone, it’s one of the largest independent (=non bank) foreign exchange platforms. They are said to trade 100 billion in the forex spot market every day. Ranking third in the global market after Reuters owned FXAll and FX Connect – and just ahead of Bloomberg.

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TOM and Euronext claim victory

7 comments / July 23, 2015

Jeuj gewonnen!This Wednesday there was a decision in the Court of The Hague in the never-ending story of lawsuits of Euronext against TOM. It’s a long read, but if it’s your thing you can find the (Dutch) ruling here.

Very confusing. Both exchanges claimed victory. To me it seems like a draw. To cut a long story short, Euronext won a few points. But almost all of these points are matters from the past. Nothing will change.

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Flow Traders Bell ceremony

Flow Traders’ opening bell

14 comments / July 21, 2015

FlowTraders-nI wasn’t too enthusiastic about the long term prospects of investing in Flow Traders. A quiet and boring year at the stock market would probably crush their earnings. Then again, it’s a well run firm which could surprise everybody.

Anyway, the IPO was priced at the lower end of the range at €32 – while the IPO was oversubscribed multiple times. Stock jumped on the first day with some 12%, meaning they left a lot of money on the table. Stock continued to rise to €38.  Given it’s only a small stake, it’s more important to be a “success” than running the risk of a failed IPO (with a few extra initial millions)

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Why I won’t invest in Flow Traders

27 comments / July 7, 2015

FlowTraders-nFlow Traders is aiming for a valuation between €1.35 and €1.7 billion. That’s a lot, more than three times the market cap of a stock like Binck. It seems excessive for an IPO. After all the company made only 68m profit last year. That’s a multiple of more than 21. Not cheap.

2015 will be a great year

However, it’s safe to say the current year will be much better than the last. We’ve seen some rocky days. In the first 6 months Flow made a profit of around 55m. Predicting the yearly result is tricky, but 100m doesn’t look unrealistic. That would indicate a forward PE ratio of 15. More or less the same as rival trader Virtu. See the growth in their yearly profit.

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Optiver killed it in 2014

23 comments / June 26, 2015

Optiver reported a record profit of € 246.9 million over 2014. This is better than the previous record from 2008 (€228 million) and once again they are the smartest kids in the room. They’ve beaten rival trading firms. Didn’t really come as a big surprise. Apart from an informed comment on this website, even traders from IMC Financial Markets realized their record year would be improved by Optiver.

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