Tag Archives: securities

The SEC Moves On To Establish British-, French-Substituted Compliance – Corporate / Commercial Law | Instant News


The whole world: SEC Moving Ahead on the British Compliance Designation, French-Substituted

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SEC move forward on the determination of compliance of the proposed substitution for UK and French regulated companies registering as security-based exchange dealers (“SBSD”).

SEC the proposed order for British companies came in response to application filed by the UK Financial Conduct Authority (“FCA”) in accordance with SEA Rules 3a71-6 (“Reimbursed compliance for security-based swap dealers and major security-based swap participants”). The SEC reopened the comment period for determination of compliance of the proposed substitution For application submitted by the Autorité des Marchés Financiers (or “AMF”) and the Prudential Control and Resolution Authority (or “ACPR”).

The FCA requires surrogate compliance with requirements under the Exchange Act Section 15F (“Registration and Regulations for Security Based Swap Dealers and Primary Security Based Swap Participants”) regarding (i) risk control, (ii) recording and reporting, (iii) internal monitoring and compliance, and (iv) counterparty protection.

Under the proposed order, surrogate compliance will be provided subject to a number of conditions, including the following:

  • Portfolio appraisal disputes will be reported directly to the SEC, based on UK time requirements;
  • a company needs to (i) retain assets it is allowed in SEA Rules 18a-1 (“Net Capital Requirements for Security-Based Exchange Dealers who Are Not Prudent Regulators”), having implemented the “applicable haircut” under Basel capital standards, (ii) list quarterly records, (iii) retain $ 100 million of equity capital, as defined in the Basel capital standard, and (iv) incorporating the most recent report on financial conditions;
  • a conformance exception will be available for non-specialized entities that are “per se professional client” according to UK requirements;
  • SEC’s various listing and retention requirements (including format) will continue to apply;
  • The SEC’s financial and operational reporting requirements will continue to apply; and
  • SBSD must submit certain regulatory notices to the SEC which are required under local law.

Comments regarding proposed orders must be submitted within 25 days of their publication on the Federal Register.

Main source

  1. SEC Press Release: SEC Issues Notice of Proposed Substitute Compliance Filings and Proposed Alternate Compliance Orders for Great Britain and Reopens Comment Periods for Notices and Proposed Replacement Compliance Orders for France

The contents of this article are intended to provide general guidance on the subject matter. Specialist advice should be sought about your particular circumstances.

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Buy airline stocks because the travel recovery is just beginning | Instant News



If you think you’ve missed out on the Great Airline Recovery, Wall Street would like you to think again. Several analysts have voiced bullish views on the sector, saying stocks are still on the rise, despite gaining around 30% this year and rising 91% in the past six months. Of course, the industry is no longer cheap. But vaccine deployments and the end of the pandemic are driving demand. While still urging caution, the Centers for Disease Control and Prevention now says fully vaccinated people can fly at “low risk.” Wall Street, meanwhile, expects air traffic in 2022 to surpass 2019 levels, fueling more gains for an industry that has been one of the biggest winners from the so-called reopening of trade. “A Roaring 20s / Swinging 60s type macro environment can generate significantly higher traffic than the 2019 baseline, in a bullish deal,” writes Morgan Stanley analyst Ravi Shanker. Overall, he sees 30% higher than his price targets on long-rated stocks and 45% longer-term gains, based on consensus estimates from 2023. On Tuesday, Shanker said upgraded the Alaska Air Group (ticker: ALK) to an overweight rating and downgraded United Airlines Holdings (UAL) from underweight to tied. It increased its price targets on JetBlue Airways (JBLU), Delta Air Lines (DAL) and Southwest Airlines (LUV), reiterating the equivalent of purchase ratings. He also launched the American Airlines Group (AAL) cover with an underweight rating. Newsletter sign-up Review and overview Every night of the week, we highlight the resulting market news and explain what matters tomorrow. The trip appears to be taking off in a V-shaped recovery. Domestic passenger traffic hit 1.5 million passengers per day in early April. This compares to 108,000 last April. And it is only 38% lower from April 2019 levels of around 2.4 million daily passengers. Carriers are now adding return flight capacity and staff to handle more bookings for the summer and fall. The industry is also encouraging travel with more lenient cancellation and change fee policies, as well as ongoing efforts to reassure passengers that health security on board aircraft is relatively strong. The bullish equity deal hinges on a recovery in travel faster than consensus estimates. Shanker believes this is happening. Wall Street is now modeling 2022 revenues which are 20% lower than 2019 levels, and available seat miles – a measure of capacity – which are 10% lower. It’s too low, in his opinion. It expects capacity to return to 2019 levels by early 2022, implying a stronger revenue recovery. He also thinks the street is too conservative in modeling 2019 as a baseline for 2023. His analogy: In the 1920s revival of World War I and the Spanish flu, the number of kilometers driven by car has almost doubled in five years. Then, in the 1950s, the volume of commercial airlines increased sixfold after World War II. “While travel is certainly more mature,” he wrote, “we wouldn’t be surprised to see the ‘golden age’ of travel return in the 2020s.” Other reasons for optimism include structurally lower operating costs across the industry and jet fuel prices that remain below 2019 levels, despite a 40% jump from their troughs in the industry. last year. However, other analysts are not so optimistic. Stephen Trent of Citigroup notes that while the travel rebound has arrived, balance sheets have widened and the number of shares of some carriers has jumped since the issuance of shares during the pandemic. Industry may also add return capacity too quickly to meet demand, which puts pressure on fares prices. Trent still sees “attractive advantages” at Delta and United, which are more closely related to a recovery in international and business travel. But he demoted Spirit Airlines (SAVE) to a neutral rating, writing that the stock is now close to being measured at fair value. Bernstein analyst David Vernon reiterated an outperformance rating on Delta, writing that the airline could shift from consuming cash to earnings faster than consensus estimates. He increased his target on Delta shares to $ 64, from $ 61, based on the airline’s “earning power” in 2023. “The international recovery will take longer,” writes Vernon, “ but as we begin to reopen European markets, Delta’s historic strong position in the transatlantic area puts them in good shape to be among the first to participate in a significant international recovery. JetBlue is also trying to inflate some analysts. Raymond James’ Savanthi Syth upgraded the stock to outperform on Wednesday, based on improving booking trends, improving profitability and new revenue drivers, including an alliance with American. She sees the stock hit $ 24, up from recent prices of around $ 21. As for the American, it remains an enigma for several analysts. As the company reports stronger bookings and traffic trends, the stock has jumped 54% this year, well ahead of the industry. The US balance sheet is stressed by debt, and it has diluted its equity to consolidate its cash flow and capital base. Daniel McKenzie of Seaport Global Securities reiterated a neutral rating on the stock last week. “We’ve always liked AAL as a recovery story, but at 6.5x our 2022 Ebitdar outlook, stocks aren’t cheap at current levels,” he wrote, referring to earnings before interest, taxes, depreciation, depreciation and rent. Investors who do not want to choose sides in these debates can gain exposure to the sector through the US Global Jets ETF (JETS). It was up 1.2% Tuesday to around $ 28 and is up 25% on the year. Write to Daren Fonda at [email protected]



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KASB Securities was ranked number 1 in Asia, 2nd in North America | Instant News


KARACHI: Ali Farid Khwaja of KASB Securities is in the top 10 in three award categories. KASB was ranked No.1 in Asia, 2nd in North America and Number 6 in Europe for the Best Performance Award 2021 by TIM Group among independent research providers. This award is based on performance, consistency and volume of stock investment ideas. KASB is the only non-global investment bank that is ranked in the top 10 in three regions (North America, Europe and Asia). The TIM Group is the largest global trade ideas network. About 4,000 professionals from 300 banks and brokers participate in the TIM network where they submit their best stock investment ideas. It is the most prestigious global platform for sell-side contributors to measure the success of their stock investment ideas.

“It is a great honor and honor for us to be recognized for providing strong alpha generation ideas to our clients. It’s a privilege to be beside some of the largest global banks. This recognition will help us in our mission to bring global capital to the best-growing companies in Pakistan, ”said Ali Farid Khwaja, Chairman of KASB Securities Pakistan.

KASB’s retail trading app, KTrade is also Pakistan’s most downloaded stock trading app according to data on Similarweb. KTrade aims to democratize access to investment products for the masses.

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Airlines add routes in fight for Americans ready to travel again | Instant News



Airlines are adding dozens of US routes as they battle for travelers looking to get around the country after being locked up due to the coronavirus pandemic. In recent weeks, airlines have announced plans to fly more than 150 new domestic routes as they try to unearth pockets of demand and stimulate new markets by connecting city pairs that previously weren’t easy to navigate. Browse. These changes come as business travel remains low and many international borders are still closed. United Airlines Holdings Inc., for example, is doubling down on a strategy it first tried last summer, providing direct links between small towns in the Midwest and popular vacation destinations. Starting in late May, the airline plans to use 50-seat planes to offer non-stop flights between places such as Cleveland, Cincinnati and Milwaukee to Hilton Head, SC, Pensacola, Florida, and Portland, Maine. The airline on Thursday announced more than two dozen new domestic routes for the summer, such as non-stop service between Houston and Kalispell, at Mt., near Glacier National Park, and between Chicago and Nantucket, Mass. capacity as in 2019 ,.



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Blackstone Offer to Buy Australian Crown Resorts | Instant News


SYDNEY—

Blackstone Group Inc.

BX -0.77%

made a takeover bid for an Australian casino operator

Crown Resort Ltd.

DOG 18.46%

worth $ 6 billion, as regulators investigated Crown’s business practices and threatened to revoke its casino license.

The US investment firm has offered 11.85 Australian dollars, or the equivalent of $ 9.15, a stake for Crown, a 20% premium over last week’s closing share price, Crown said Monday. The deal is dependent on Australian gambling regulators allowing Blackstone to own and operate Crown casinos in Sydney, Melbourne and Perth.

Crown said its board had not yet decided whether to support the deal and would begin assessing Blackstone’s offer. Blackstone, which already owns nearly 10% of Crown’s shares, confirmed it had submitted the proposal. Blackstone already has real estate assets in Australia and a trail of play in other countries, including the casino and resort Cosmopolitan in Las Vegas.

The offer came at a critical time for Crown. Last month, an investigation by gambling regulators in the state of New South Wales ruled Crown was unsuitable for operating a new casino on Sydney’s waterfront.

Crown has spent an estimated $ 1.6 billion on the gleaming new skyscrapers that include hotel rooms and residences apart from a VIP-only casino. Officials in the states of Victoria and Western Australia, where Crown also operates casinos, have opened their own investigations into whether Crown remains fit to operate casinos there.

View of the Sydney Crown resort (center). Crown has spent about $ 1.6 billion on the new skyscraper, but hasn’t convinced regulators that it can run a casino there.


Photo:

Brent Lewin / Bloomberg News

A 751-page report from New South Wales, based on 60 days of public hearings that included Crown executives, found that Crown was neglecting the welfare of its employees in China by pursuing lucrative highrollers – ultimately leading to the arrest of Crown employees in China for gambling-related crimes.

Bank accounts at Crown subsidiaries are used to launder money, and Crown is working improperly with junkyard operators in Asia to bring gamblers to Australia, the report also found. Regulators began investigating Crown after questionable business matters were reported in the local media.

Crown has previously taken steps to address some of the issues raised by the New South Wales report, such as cutting off all junkets and creating a compliance and financial crime department. The report said Crown could implement certain changes to improve its suitability, and Crown said it was in discussions with regulators on the matter.

Blackstone’s bid gives Crown’s major shareholder, Australian billionaire James Packer, a chance to get out of business amid regulatory uncertainty. The New South Wales report criticized Mr. Packer, who previously sat on Crown’s board of directors but no longer does so, having too much control over the company. After the report, several members of the Crown board who had ties to Mr. Packer resigned.

Mr Packer controls about 37% of Crown’s shares through his investment company Consolidated Press Holdings. A CPH spokesman declined to comment on Blackstone’s offer.

As well as regulatory concerns, Crown’s business has taken a big hit from the coronavirus pandemic. International travel restrictions have slowed the flow of top players to Australian casinos from abroad, and have had to close casinos at various points due to local lockdowns. The company said revenue fell 62% in the six months to December, and reported a loss of half of about $ 93 million.

Crown, which operates private gaming clubs in London apart from Australian casinos, once had a wider international footprint and sought to expand further. But it pulled back from its global ambitions after the arrest of its employees in China in late 2016, and sold a stake in a Macau casino operator and pulled out of the Las Vegas casino project.

The US company has previously expressed interest in Crown. In 2019,

Wynn Resorts Ltd.

, made an indicative takeover offer that later valued Crown at $ 7.1 billion, but Wynn dropped the discussion after saying Crown had disclosed their talks prematurely.

Write to Mike Cherney at [email protected]

Copyright © 2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appears in the print issue of March 22, 2021 as ‘Blackstone Seeks Australian Casino.’

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