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Trading: Liberum launches LibBlock using Turquoise Block Discovery™

13 November 2014 | Mentions of Liberum

Liberum is to meet strong client demand for better liquidity in the trading of large blocks using the new Turquoise Block Discovery™ service, one of the first brokers to be able to offer it.

The development of LibBlock, Liberum's proprietary routing tool, opens up a new destination for large-block trades that meets buy-side demand for priority by size, which can boost fill rates for larger orders. Minimum execution sizes can also be defined, contributing to lowering the end-to-end cost of trading.

Liberum, a seven-year-old independent London investment bank, is one of the first brokers to be able to offer the service.

“Regulatory changes are beginning to meaningfully impact the electronic trading landscape, and Turquoise Block Discovery™ is a smart mechanism to meet demand for block trades at mainstream destinations,” Liberum’s Head of Trading, Dominic Lowres, said.

“We’ve seen remarkably strong support from our clients for what this service can potentially offer,” Lowres (pictured below) added.

Dominiclowres

“Turquoise is delighted Liberum is adding Turquoise Block Discovery™ to enhance service to customers that know Liberum for its strength in UK Small and Mid Cap securities with plans to grow in European names and sectors. Turquoise Block Discovery™ is an innovation responding to investor demand for large-in-scale trading and MiFID II.” said Robert Barnes, Chief Executive Officer of Turquoise.

Societe Generale provides access to Turquoise Block Discovery™, extending Liberum’s partnership with the bank and its portfolio of electronic trading tools.

LibBlock is available to clients as a third route to dark liquidity. This is in addition to LibDX1 and LibMid which means that the full optimized suite of dark venue access across all trade sizes is available in one place with one set of proprietary tools.

Turquoise Block Discovery™ aims to increase probability of anonymous matching in larger sized orders within Turquoise Uncross™, the periodic random uncrossing mechanism within the Turquoise Midpoint Dark Book. Turquoise Block Discovery™ identifies potential matches from block indications and firm resting orders in Turquoise Uncross™, where members have opted in to use the service. If a potential match is found, the owner of the original indication has 0.5 seconds to send a firm qualifying block order to Turquoise Uncross™, thereby maximising available liquidity for customers of both services. 

About Liberum

Liberum, voted this year as the number two Small & Mid Cap Brokerage in the Thomson Reuters Extel survey of institutional investors, is expanding into Continental European large cap companies and recently began coverage of companies such as RWE, E.ON, JC Decaux and Stroer, with more to come in the coming weeks.

We trade in more than 900 stocks in 15 European markets and access 24 markets with our low-touch electronic services. We are a pan-European investment bank founded in 2007 providing research, sales, trading and corporate advice to European and North American institutional investors and companies. We cover 334 stocks in 18 sectors with 42 analysts and are owned by our 172 staff. The bank has been involved in 25 IPOs and raised £1.7 billion for clients in the year to October 2014.

About Turquoise

Turquoise is the pan-European equities multi¬lateral trading facility majority owned by London Stock Exchange Group in partnership with the user community. Turquoise provides members with a single connection to trade shares, deposi¬tory receipts and exchange-traded funds of 18 European countries with an efficient trading and interoperable post-trade model that delivers economies of scale. Mem¬bers include banks, brokers, specialist trading firms and retail intermediaries.

Review the trading service description by Turquoise >>

Contact

Dominic Lowres, Head of Trading, Liberum +44 (0)20 3100 2103 dominic.lowres@liberum.com

Michael Wackar, Electronic Trading Products, Liberum, +44 (0) 20 3100 2104 michael.wackar@liberum.com

Liberum's Atherton: UK energy debate opens up

16 October 2014 | Mentions of Liberum

This comment is published by Liberum Utilities Analyst Peter Atherton (pictured below), shortlisted for City AM's Analyst of the Year 2014. 

Email Peter here >>

Follow him here >>

Peter Atherton

In a nutshell

Speech by Former Secretary of State for the Environment, Owen Paterson MP, indicates the current political consensus on energy policy maybe be challenged.

Public and political debate is only likely to grow as inherent contradictions and unforeseen consequences of current policy become more apparent.

Current EU/UK energy policy is deeply flawed and utility companies and public market investors will be wary of committing further capital to support and deliver it. 

Last night the former Secretary of State for the Environment, Owen Paterson MP, delivered the Annual Lecture to the Global Warming Policy Foundation. The speech has generated considerable press coverage. The full text can be seen here >>

In his speech Mr Paterson challenges the direction and basis of UK / EU energy policy. He states that current energy policy is failing to deliver the key goal of emission reduction whilst proving to be both un-affordable and a significant threat to security of supply. Mr Paterson recommended a change of course with a return to a more market based energy policy that would encourage technological innovation that in turn would reduce carbon emissions in a more affordable manner.

Gas Diesel Food SIGN 500X500px

In practical terms Mr Paterson calls for the suspension / abolition of the Climate Change Act 2008 which provides the legal framework for current energy policy and puts into UK law various climate change targets, most notably the 2050 target to reduce greenhouse gases by 80% versus 1990. In order to secure affordable energy whilst reducing emissions Mr Paterson recommended that the UK focus R&D and investment in four areas; local shale gas, modular small scale nuclear, demand side management, and local combined heat and power. 

Is the speech important for the Capital Markets?

The speech is the first time to our knowledge that a senior Conservative politician (recently in government) has called for a fundamental change of course on energy policy and explicitly for the abolition of the Climate Change Act. As the 2013 Energy Act is in effect an instrument to implement the Climate Change Act then the abolition of the latter would naturally lead to the abolition / revision of the former.

Wind Turbines

Mr Paterson's speech is an indication that the monolithic political consensus in favour of the UK's climate change driven energy policy is fraying somewhat. We are now seeing some recognition from politicians that current policy is struggling (to say the least) to satisfy the conflicting goals of reduced emissions, security of supply and affordability. For the public capital markets perhaps the only surprise is that it has taken so long for the political debate to begin.

However, Mr Paterson's speech is so far just an isolated event. As yet the political support for both the Climate Change Act and the Energy Act remains strong with all three of the main parties in favour.

The coming general election

Energy policy is likely to be an important issue in the forthcoming general election. It is likely in our view that all three main political parties will maintain their support for the current policy direction. Indeed, the Labour Party has stated that it intends to legislate, should it form the next government, to impose a 50g CO2 per KWh maximum carbon intensity for the power generation industry (compared to c.500g now) by 2030. Such a policy would re-enforce the existing targets.

The Liberal Democrats have of course held the energy brief in the current coalition government so are highly unlikely to signal a change of course. The Conservative party voted overwhelmingly in favour of both the Climate Change Act and the Energy Act and whilst Mr Paterson's speech indicates some growing dissent from within the party the chance of a radical shift in policy direction appear slim for now. 

The Conservatives have indicated that, should they win a majority, that support for on-shore wind would be curtailed but have not suggested that they would move away from either the 2020 renewable target or the 2030 emission reduction target. However the rise of UKIP, who propose to abolish 'green levies' may force the Conservatives to a more sceptical stance on current policy, especially support for renewables. 

Electricity Pylon

The Liberum View

Mr Paterson's speech is worth noting by the capital markets as it indicates that the current political consensus on energy policy maybe be challenged going forward. In our view the public and political debate is only likely to grow as the inherent contradictions and unforeseen negative consequences of the current policy become more apparent as time goes on. We have long argued that current EU / UK energy policy is deeply flawed and that utility companies and public market investors should be wary of committing further capital to support and deliver it. Advice which has been increasingly accepted in recent times. After all, an energy policy that has the Hinkley Point C contract and off-shore wind as its two flagship achievements must eventually collapse under the weight of its own idiocy. 

Click on the video below to hear Peter talk about energy policy in the run-up to the UK general election in May 2012 (shot before the Scottish referendum, which he mentions).

 Atherton Video

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Press Enquiries: Redleaf Polhill

Emma Kane 
George Parrett
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+44 (0)20 7382 4747
liberum@redleafpr.com

Why households’ repair, maintenance and improvement outlook isn't grim (8-pg PowerPoint)

10 October 2014 | Mentions of Liberum

Headline data for UK mortgage approvals that suggest a softening of the households’ repair, maintenance and improvement (RMI) cycle is misleading and a closer inspection shows a far healthier position, Liberum Building Materials and Housebuilders Analyst Charlie Campbell (pictured below) says.

Charliecampbell

In an eight-page PowerPoint, Charlie puts into context stock market anxiety about residential RMI, flagging that mortgage approvals have been ahead in six of the eight months in 2014 to date and are up 15% overall.

RMI

Activity in July 2014 was a post-crisis high and “we are also encouraged by the recent Credit Conditions Survey which showed banks expecting to increase mortgage supply in the fourth quarter, which may lead to lower mortgage rates,” Charlie said.

Good mortgage supply should continue to fuel rising transactions, the main driver of RMI, which were up 15% in 2013 and 20% in 2014 to date, he adds.

Charlie has covered the sector for 17 years.

For Charlie’s analysis of RMI drivers and the outlook, download his Powerpoint here >>

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Press Enquiries: Redleaf Polhill

Emma Kane 
George Parrett
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+44 (0)20 7382 4747
liberum@redleafpr.com

Volution appoints Liberum Joint Corporate Broker

29 September 2014 | Corporate Brokerships

Volution Group plc (Ticker: FAN LN), a leading supplier of ventilation products to the residential construction market, has named Liberum as Joint Corporate Broker. 

Volution

The company operates five key brands - Vent-Axia, Manrose, Fresh, PAX and inVENTer - and is focused primarily on the UK, Swedish and German ventilation markets. It has two divisions. The Ventilation Group principally supplies ventilation products for residential and commercial construction applications and Torin-Sifan supplies motors, fans and blowers. 

The company sold approximately 20 million ventilation products and accessories in the financial year ended 31 July 2014. 

In June 2014, Liberum acted as joint bookrunner on Volution’s £100m initial public offering on the London Stock Exchange. The IPO attracted a number of high-quality institutional investors, despite volatile market conditions for new issues. 

Company website >>

Next Event : Full-year 2014 Results on October 23, 2014

Follow or Contact Liberum

Twitter: @LiberumToday

LinkedIn: Liberum 

Press Enquiries: Redleaf Polhill

Emma Kane 
George Parrett
Karl Wiseman 

+44 (0)20 7382 4747
liberum@redleafpr.com

Christopher Lewey joins Liberum as Head of Sponsor Coverage

24 September 2014 | People

Liberum has appointed Christopher Lewey as Head of Sponsor Coverage, adding 21 years of corporate finance experience gained at Close Brothers, Betfair and law firm Irwin Mitchell. He starts on 29 September 2009. 

“Christopher will develop and manage Liberum's relationships with the private equity and venture capital community,” said Peter Tracey, Liberum’s Head of Investment Banking. “He has a track record that makes him perfect for this role, having experience of both advisory and client side work.”

Christopher qualified as a Chartered Accountant before moving to a corporate finance role with Rea Brothers in 1993 and subsequently became Head of Leisure and Retail in 2001 at Close Brothers Corporate Finance. 

He joined Betfair in 2007, where he was responsible for M&A and new ventures. This role included management of Betfair's initial public offering in October 2010.   

Christopher comes to Liberum from Irwin Mitchell, which he joined in May 2011, where he was again responsible for M&A strategy and execution as well as wider strategy development. 

His appointment follows that of Anna Hartropp to the investment banking team at Liberum earlier in September, bringing nine years of FTSE100 and FTSE250 experience from Marks & Spencer, Cookson and, most recently, global technology company Laird PLC. 

Liberum celebrated its seventh anniversary on September 10th and over that period it has played a role in 25 initial public offerings, most recently those of GAME Digital, Volution and P2P Global Investments. 

Some £12.6 billion has been raised by Liberum and syndicates on behalf of companies and Topps Tiles and Photo-Me International are the most recent to join its roster of corporate clients.

Liberum provides research, sales, trading and corporate advice to European and North American institutional investors and companies. It covers more than 380 stocks that constitute 80% of the FTSE100 and 50% of FTSE250.

Click on this infographic here >> to know more about Liberum's growing business.

Follow or Contact Liberum

Twitter: @LiberumToday

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Press Enquiries: Redleaf Polhill

Emma Kane 
George Parrett
Karl Wiseman 

+44 (0)20 7382 4747
liberum@redleafpr.com

Tom Gadsby joins Liberum as Retail Analyst

23 September 2014 | People

Tom Gadsby is to join Liberum as a research analyst on September 29 to cover the Retail Sector.

He brings more than 18 years' markets experience including, most recently, nearly ten years at Societe Generale as both retail analyst - where he was highly ranked in the independent Extel Survey two years in a row - and retail specialist sales.

Prior to that, Tom worked for Wiliams de Broe, also as a retail analyst, where corporate clients included Majestic Wine and Laura Ashley, and Buchanan Communications advising companies on corporate transactions.  

Tom was educated at Winchester College, Durham University and the Royal Military Academy, Sandhurst after which he spent five years as an infantry officer in the Royal Gurkha Rifles.

Click on this infographic here >> to know more about Liberum's growing business.

Follow or Contact Liberum

Twitter: @LiberumToday

LinkedIn: Liberum 

Press Enquiries: Redleaf Polhill

Emma Kane 
George Parrett
Karl Wiseman 

+44 (0)20 7382 4747
liberum@redleafpr.com