- Newedge Group
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Newedge Group 
Type S.A. Corporation Industry Finance Founded January 1, 2008 Headquarters Paris, France Key people Nicolas Breteau Products Financial Services Parent Calyon & Société Générale Website www.newedge.com Newedge Group is a diversified financial services group formed from the merger of Fimat and Calyon Financial, the brokerage arms of French financial giants Société Générale and Credit Agricole's capital markets business. It offers execution, clearing, prime brokerage investment, and asset financing services. Newedge is now one of the world's largest futures commission merchants and recently opened a new India-based brokerage operation as part of its growth plan for the region.[citation needed]
Contents
Background
Newedge Group, formed on January 1, 2008, is jointly owned in a 50/50 split between the two forming companies' parent banks, Calyon and Société Générale, respectively. [1] The combination of Société Générale's Fimat unit with the derivatives operation of Crédit Agricole's Calyon Financial division had pro forma revenues of €1 billion in 2007, trading a combined 5 million contracts a day and ranking among the top five FCMs (futures commission merchant) on the 10 largest global exchanges.[citation needed] Fimat was formed in 1986 following the creation of Matif, the French derivatives exchange, adding the Fimat UK and Fimat USA arms and acquiring Brody White & Co., the U.S. brokerage, in 1995. Fimat had a network of 30 offices located in 27 key financial marketplaces around the world and a staff number over 2,055. It is a member of 49 futures and options exchanges and 21 stock exchanges.
Talks between the French banks stumbled in the past over the valuation of the two businesses with Fimat roughly double the size of Calyon. There was also considerable internal resistance to the deal, which is expected to generate large synergies by eliminating overlapping teams and operations, as well as by combining technology systems on a single platform. The chairman and deputy chairman roles will alternate after two years. The sector is dominated by the big investment banks and MF Global, the largest independent broker following its acquisition of assets from Refco. UBS agreed in 2006 to buy ABN Amro's FCM unit for $386m. The rapid consolidation of the global futures exchange sector has increased pressure on the brokers to seek their own merger partners in order to increase their negotiating power with platforms such as the combination of the Chicago Mercantile Exchange and the Chicago Board of Trade.
Product and Services
Newedge Group as a financial institution offers many different products generally involved in global asset execution, global asset clearing, prime brokerage solutions, global asset financing and market research.[2] The firm is also versed in navigating money market instruments, bonds, currencies, equities, and commodities on the OTC market. In addition to these products, Newedge has a wide array of value added services[peacock term] such as an electronic platform for trading and order routing, cross margining, and the processing and centralized reporting of client portfolios. Newedge's market coverage includes ETFs (exchange traded derivatives), cash markets and OTC derivatives pertaining to fixed income, interest rates, commodities, Forex (foreign exchange), metals, equities and indexes, and energy and emissions.[2]
Newedge USA, LLC
In May of 2011, Newedge USA, LLC, the corporation's subsidiary in the United States, held a No. 1 ranking from the CFTC for Segregated Funds for clients trading US markets. Newedge USA, LLC held a No.1 ranking for both Segregated Funds and combined funds for the majority of 2009, 2010 and 2011.[3]
Newedge Broker India Pvt. Ltd.
Newedge Group launched Newedge Broker India Private Limited in November 2009 to provide financial derivatives and cash equities to institutional foreign investors in the Indian securities market.[4] The new brokerage will be based focused on providing financial derivatives and cash equities to institutional foreign investors. Newedge Broker India Private Limited employs 20 staff and holds membership and licenses to trade on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).[5] Newedge Group has identified India, alongside China, as a priority for expansion as the company continues to grow its business. Expectations for additional growth are backed by the rise in volumes on India's financial markets. The NSE ranked number 8 in the Top Derivatives Exchanges in 2008, with two of its contracts in the top 10 among Equity Index Futures and Options.[5]
Newedge Korea
As of January 4, 2010, Newedge Korea announced that it was granted a full futures license by the Korea Financial Services Commission.[6] With this license, Newedge Korea gained the ability to offer all products listed on the KRX(Korea Exchange) and established Newedge as the first of 19 foreign companies that applied for the license to get approval.[6] It has widened Newedge Korea's offerings to include cash equity, stock index contracts and stock futures and options and all the KOFEX products listed on the KRX.[6] These include interest rate products, currency products and commodity products. In addition, this full futures license will allow Newedge Korea to offer offshore Futures and Options products to domestic clients.[6]
References
- ^ "History". Newedge. http://newedge.com/web/guest/about_us/our_company/history. Retrieved 6 June 2011.
- ^ a b "Products". Newedge. http://newedge.com/web/guest/home. Retrieved 10 June 2011.
- ^ ""About Us- News"". Newedge. http://www.newedgegroup.com/web/guest/about_us/newsroom/newedge_news. Retrieved 10 June 2011.
- ^ Narayanan, Pratish (16 November 2009). "France's Newedge Launches India Brokerage Unit". Reuters. http://www.reuters.com/article/2009/11/16/newedge-india-idUSBOM43408120091116. Retrieved 10 June 2011.
- ^ a b "Newedge India Operations". Newedge. http://www.newedgegroup.com/web/guest/about_us/newsroom/newedge_news. Retrieved 11 June 2011.
- ^ a b c d "Newedge is first foreign broker to get Korean Full Futures License". Newedge. http://www.newedgegroup.com/web/guest/about_us/newsroom/newedge_news. Retrieved 11 June 2011.
External Links
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- Crédit Agricole
- Financial services companies of France
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