Jeffries Sells Bache Futures Business to Societe Generale
- Acquiring Faros Trading from FXCM to boost its FX business, Jeffries is contracting its futures trading with the sale of Bache to SocGen
Jeffries Group, the investment bank subsidiary owned by Leucadia Financial, is undergoing a business shakeup as it is exiting the derivatives brokerage business, by selling portions of its Bache futures unit to Societe Generale (SocGen). The exit occurs as simultaneously, Jeffries made a decision to boost its foreign exchange unit with the acquisition of Faros Trading from FXCM.
Acquired in 2011 from Prudential Securities for around $430 million, Bache has been a poor performer for Jeffries. The firm had announced in December 2014 that it had been seeking ‘strategic alternatives’ to dispose of Bache. The announcement followed news Jeffries was taking a $52 million impairment to goodwill due to its Bache business. Disposing of Bache, Jeffries announced that it expects to absorb a one-time expense of $66 million related to winding down the futures brokerage business. Expected to be completed at the end of Q2 2015, the deal composes the majority of Bache’s business, with Jeffrey retaining select assets.
For SocGen, Bache adds clients to their multi-asset trading business. After acquiring NewEdge in 2014 and absorbing it into their prime brokerage and trading services, SocGen has been marketing cross-asset brokerage services using NewEdge technology. Among areas of focus are asset managers and smaller multi-asset brokers, who are able to use the NewEdge platform to source Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term from numerous trading markets using one solutions. Aiming to fit a niche of multi-asset traders, NewEdge allows for customers to aggregate margin across multiple assets, rather than requiring individual credit arrangements per asset type.
"Transferred clients will benefit from the bank’s full suite of innovative solutions" David Escoffier
Commenting about the acquisition, David Escoffier, Deputy Head of Global Markets for Societe Generale Corporate & Investment Banking and CEO at Newedge stated in the firm’s public statement that “This transfer is a good opportunity which allows us to cement our leadership in the rapidly growing sector of listed and OTC derivatives clearing and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, and post-trade services whilst continuing to position ourselves favourably in the new regulatory environment. Transferred clients will benefit from the bank’s full suite of innovative solutions. All our teams are already mobilized and thrilled to welcome those new clients and facilitate their transition to our high quality service platform”.
Jeffries Group, the investment bank subsidiary owned by Leucadia Financial, is undergoing a business shakeup as it is exiting the derivatives brokerage business, by selling portions of its Bache futures unit to Societe Generale (SocGen). The exit occurs as simultaneously, Jeffries made a decision to boost its foreign exchange unit with the acquisition of Faros Trading from FXCM.
Acquired in 2011 from Prudential Securities for around $430 million, Bache has been a poor performer for Jeffries. The firm had announced in December 2014 that it had been seeking ‘strategic alternatives’ to dispose of Bache. The announcement followed news Jeffries was taking a $52 million impairment to goodwill due to its Bache business. Disposing of Bache, Jeffries announced that it expects to absorb a one-time expense of $66 million related to winding down the futures brokerage business. Expected to be completed at the end of Q2 2015, the deal composes the majority of Bache’s business, with Jeffrey retaining select assets.
For SocGen, Bache adds clients to their multi-asset trading business. After acquiring NewEdge in 2014 and absorbing it into their prime brokerage and trading services, SocGen has been marketing cross-asset brokerage services using NewEdge technology. Among areas of focus are asset managers and smaller multi-asset brokers, who are able to use the NewEdge platform to source Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term from numerous trading markets using one solutions. Aiming to fit a niche of multi-asset traders, NewEdge allows for customers to aggregate margin across multiple assets, rather than requiring individual credit arrangements per asset type.
"Transferred clients will benefit from the bank’s full suite of innovative solutions" David Escoffier
Commenting about the acquisition, David Escoffier, Deputy Head of Global Markets for Societe Generale Corporate & Investment Banking and CEO at Newedge stated in the firm’s public statement that “This transfer is a good opportunity which allows us to cement our leadership in the rapidly growing sector of listed and OTC derivatives clearing and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, and post-trade services whilst continuing to position ourselves favourably in the new regulatory environment. Transferred clients will benefit from the bank’s full suite of innovative solutions. All our teams are already mobilized and thrilled to welcome those new clients and facilitate their transition to our high quality service platform”.