This project intends to bolster the firm’s position as market leader, both through a leading worldwide clearing platform for major derivatives asset classes as well as through first-class financial products execution capabilities, offering access to wide liquidity pools.
The project aims to:
• simplify business activities and geographical footprint, with a focus on its existing core strengths;
• streamline the firm’s operational model to enhance process efficiency, risk management and cost control;
• separate financial futures & options execution and clearing into two distinct entities to allocate capital more effectively and provide a clearer client proposition.
“The listed derivatives industry is at a turning point,” said Nicolas Breteau, Chief Executive Officer of Newedge. “The pace and significance of change – driven by regulation, economic and market headwinds, and developing client needs – is set to continue.”
“The plan presented today follows a strategic review of our business and is a measured, informed response to the challenges facing the industry. It will create a firm that is leaner, more agile and client-centric, and will set the foundations for a sustainable future. We are entering the next chapter in Newedge’s development, and can see emerging from the current challenges great potential for growth, in such areas as OTC clearing.”
Crédit Agricole Corporate and Investment Bank and Societe Generale, Newedge’s joint shareholders, fully endorse the strategy proposed by Newedge management. Both shareholders are committed to supporting Newedge in its successful implementation of the project, which would reinforce the firm’s position as an industry leader.
This announcement today follows a Newedge board meeting and a presentation to the employee representative bodies (Works Council) in France.
The plan is subject to a number of conditions including information and/or consultation of local employee representative bodies and the customary approval of regulators.
PR Europe - Simon Evans
T: +44 207 307 5330 - E: simon.evans[.]capitalmsl.com.
Bill Ferri, T: +1.2127545428 - E: bferri[.]intermarket.com.
Michael Gelormino, T: +1 212 909 4780 - E: mgelormino[.]intermarket.com.
PR APAC - Tracy Ho
T: +852 3655 0515 - E: tracy[.]ryanfin.com.
Newedge (newedge.com), a 50/50 joint venture between Société Générale and Crédit Agricole CIB, is a major force in global multi-asset brokerage business, with a world-leading position in the execution and clearing of listed derivative products. With a presence in more than 20 locations in 16 countries, Newedge offers a full range of clearing and execution services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, FX, equities, and commodities on OTC markets. Newedge provides a range of value added services, including prime brokerage, asset financing, an electronic platform for trading and order routing, cross margining, and the centralized reporting of client portfolios. Newedge, which primarily serves institutional and corporate clients, provides access to more than 85 exchanges. Newedge's 3,000+ employees form a close-knit, multinational team that can innovatively respond to its clients in fast-moving markets.
This document has been produced for information purposes only and is not to be construed as an offer to buy or sell any financial instrument or security.
All information, prices or projections are subject to change without notice. Newedge makes no representation or warranty that the information contained herein is accurate, complete, fair or correct or that any transaction is appropriate for any person and it should not be relied on as such. The opinions, views and forecasts expressed herein reflect the personal views of the author(s) and do not necessarily reflect the views of Newedge. Some financial products and investments are subject to fluctuations in price and or value and investors may get back less than originally invested. Certain high-volatility investments can be subject to sudden and large declines in value that could equal or exceed the amount invested. Futures and options, as well as certain other financial instruments, are speculative products and the risk of loss can be substantial. Consequently only risk capital should be used to trade futures and options and other speculative products. Investors should fully understand the risks and potential losses and seek their own independent investment and trading advice having regard to their objectives, financial situation and needs. This information is not intended to be construed as investment advice. We do not accept any liability or loss or damage arising from any inaccuracy or omission in or the use of or reliance on the information in this document.
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“Newedge” refers to Newedge Group SA and all of its worldwide branches and subsidiaries. Newedge Group in France and its foreign branches are authorized by the Autorité de Contrôle Prudentiel and regulated by the Autorité de Contrôle Prudentiel and the Autorité des Marchés Financiers in France. Newedge UK Financial Limited is authorized and regulated by the Financial Services Authority. Newedge Group (Frankfurt, Zurich, Geneva and Dubai branches) and Newedge UK Financial Limited do not deal with, or for, Retail Clients (as defined under MiFID, FSA rules and Dubai Financial Services Authority). Only Newedge USA, LLC is a member of FINRA and SIPC (SIPC only pertains to securities-related transactions and positions). Only Newedge Canada Inc. is a member of the Canadian Investor Protection Fund. Not all products or services are available from all Newedge organizations or personnel.