The event took place place on 16-17 May in the Astoria Hotel in St. Petersburg.
Marat Sorokin, Head of Russian FI Sales Unit, BCS Global Markets, represented the investment bank during the panel discussion ‘Foreseeing is managing: Investment ideas and strategies’.
Marat clearly outlined the current trends in the bonds market and their role as a potential alternative to deposits and came up with fresh investment ideas.
Edward Golosov, Head, BCS Capital moderated the panel.
Investfunds Forum is the largest independent event for institutional investors in Russia, traditionally held in St. Petersburg in the second half of May.
The bookrunner of the issue was BCS Global Markets.The marketing range of the placement rate was 14-15% per annum. The final coupon rate was set at 14% per annum. The tenor is 2 years. Quarterly coupon payments and an amortization system of redemption are envisaged for the issue: 25% of the par value of the bonds will be repaid on the end date of coupon period 5-7. This is the debut issue of Limited Liability Company FES-Agro bonds. FES-Agro has a ruBB+ (stable) rating assigned by RAEX (Expert RA).
The bonds of the company aroused a high interest of a wide range of investors. 71 transactions were entered into during the placement.
Limited Liability Company FES-Agro is one of the largest distributors of seeds, crop protection agents and microfertilizers. The company was established more than 20 years ago (in 1996), and at present, it has 21 branch offices, its sales volume is more than RUB 5 bn, and it has more than 1750 active customers in 24 Russian regions (in the South, the Volga region and the Central Black Earth economic region). The company works with a large portfolio of products of well-known global manufacturers (Syngenta, Bayer, DuPont Pioneer, Monsanto, BASF) and has direct distribution contracts with beneficial procurement terms.
The company also provides a range of services for consultative support of use of its products as well as implementation of cutting-edge technological solutions, which helps buyers to achieve high performance results and, consequently, ensures a high stability level and growth of the client base.
The bookrunners of the issue were BCS Global Markets and IFC Solid, the co-arranger was SME Bank. The marketing range of the placement rate was 14.5-15.5% per annum. The final coupon rate was set at 15% per annum. The tenor is 3 years.
Quarterly coupon payments and an amortization repayment scheme are envisaged for the issue: 20% of the par value of the bonds is to be repaid on the end day of coupon period 4, 30% of the par value of the bonds is to be repaid on the end date of coupon period 8. This is the debut issue of TALAN-FINANCE bonds. The issuer TALAN-FINANCE has a ruBB (stable) rating assigned by RAEX (Expert RA).
The placement was in the Growth Sector of Moscow Exchange established for public placement and trading of securities of small- and mid-cap companies.
Alexey Kupriyanov, Head of Debt Capital Markets, BCS Global Markets:
BCS Global Markets actively brings new companies into the market. We conduct a great deal of preliminary work with the issuers to bring them to the public market– the companies issue IFRS reporting, get rated by rating agencies. This is the first experience of cooperation of BCS Global Markets and SME Bank. We see a good prospect in this, and we expect some more transactions this year.
Konstantin Makarov, CEO, TALAN:
Transition of development companies to escrow became an important milestone not only for the construction industry but for the finance sector, too. If previously few large developers used bond placements as an instrument, in the future medium construction companies will also become full-scale players in the capital market. We achieved success thanks to the proactive role of BCS Global Markets, and our experience shows that a stock exchange instrument can be used by numerous construction companies.
Gennady Margolit, Executive Director, Innovations and Investments Market, Moscow Exchange:
The ecosystem of the Growth Sector which is being created and includes a variety of partners and effective support instruments opens access to the capital market for moderate-size Russian companies. We observe a good demand for new securities, including from private investors which acquired nearly half of all bond issues of moderate-size companies last year. Active interaction with development institutions, market participants and regulators will facilitate emergence of new public companies.
Dmitry Golovanov, Chairman of the Management Board, JSC SME Bank:
The strategic goal of JSC SME Bank within the national project “SMEs and support of individual entrepreneurial initiatives” is to provide Russian SMEs with access to financial resources. To fulfil this task, we diversify instruments used to raise funding: they include lending, guarantees, leasing, we plan to launch factoring. At the end of last year, we rolled out a multi-originator platform for securitization of loans extended to SMEs to make lending to this segment more attractive for regional banks and banks with basic licenses. Now we have got another instrument in our portfolio - organization of securities issues for small- and mid-cap companies. For many successfully developing companies, bond issue can become a good alternative to bank lending.
A wide range of institutional (banks, asset management, insurance and investment companies) and private investors have placed 45 orders during the bookbuilding process. High demand for RUSAL bonds has made it possible to close the book at the lower end of the initial price guidance of 9,00-9,25% p.a. On the back of more than 2 times oversubscription the volume was increased form initially announced 10.0 billion rubles to 15.0 billion rubles. As a result the spread of RUSAL bonds to the yield curve of Russian Government Bonds (OFZ) was reduced by almost three times as compared with the previous issuance that took place in April 2016, and was fixed at the level of 135 basis points. “RUSAL has successfully returned to its practice of raising capital on the financial markets.
“We are glad that investors remained confident and demonstrated a significant interest to the Company that continuously invests funds in the long-term projects and develops the production of “green” aluminium, further enhancing technological base and strengthening relationship with end consumers across various industries”, - said Oleg Mukhamedshin, Director for Strategy, Business Development and Financial Markets at RUSAL. This is the first public issuance by the Company since sanction removal. In January 2018, RUSAL issued US$500 million of Eurobonds. The Company’s previous issuance on the local Russian market was back in 2016. The settlement will take place on the Moscow Exchange on April 29, 2019. The issuer is OJSC RUSAL Bratsk. The settlement agent is Gazprombank. Company profile RUSAL (www.rusal.ru) is the leader of the global aluminium industry. In 2018, the Company accounted for about 5.8% of global production of aluminium and 6.2% of alumina production.
BCS Global Markets acted as the arranger of this primary offering. The initial bond coupon rate was in the range of 8.50% - 8.60%, but upon completion of bookbuilding, the final coupon rate was reduced and fixed at 8.45%, which corresponds to 8.63% yield to put. The bonds maturity is 15 years, the coupon period is 182 days, the 3-year put option is envisaged for the issue. The issue meets the criteria for inclusion into the Lombard list of the Bank of Russia and satisfies the requirements to investment of pension savings and insurance reserves.
X5 Retail Group (the ticker at London Stock Exchange and Moscow Exchange FIVE, Fitch rating BB+, Moody’s rating Bа2, S&P rating BB, RAEX rating ruAA) is one of Russia’s leading food retailers. The Company operates several retail formats: the chain of proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand, Express convenience stores under various brands.
The company has international ratings assigned by leading global rating agencies: Fitch BB+, Moody’s Bа2, S&P BB, Expert RA ruAA.
The issue arrangers were BCS Global Markets, SovComBank, Alfa-Bank and Otkritie Bank, the issue co-underwriter was Bank SOYUZ. The marketing range of rate for placement was 10.25-10.5% p.a., upon completion of bookbuilding, the demand amounted to RUB 5,490,847. The final coupon rate was set at 10.25% p.a. Quarterly coupon payments and an amortization system of redemption are envisaged for the issue: 5.6% of the par value of the bonds will be repaid on the end dates of coupon periods 1-8, 13.8% of the par value of the bonds will be repaid on the end dates of coupon periods 9-12. At the moment, 4 issues of Element Leasing bonds are circulating in the market. The company has a rating А-(RU) assigned by AKRA (stable outlook).
OOO Element Leasing is a universal leasing company specializing in leasing of commercial vehicles, buses, special-purpose machinery and equipment primarily to SMEs.
Element Leasing firmly holds a place among top 20 Russian leasing companies in terms of financial ratios. The company has a vast regional network with 100 offices in more than 70 Russian cities, more than 35 thousand clients (with a large share of return visits – 48% of the new business). The issuer ranked 10th by the number of signed contracts among the major leasing companies of Russia in 2018.
The forum was held at Moscow’s Ritz-Carlton Hotel and attended by corporates and institutional investors
Up to 2000 officials, investors and strategists gathered at the largest annual forum to discuss investment and trading opportunities on the Moscow Exchange.
The financial policy of economic development and capital markets became the core topic of the first plenary meeting of the Forum, which was moderated by Oleg Viyugin, Chairman of Moscow Exchange Supervisory Board.
The first deputy chairman of the Bank of Russia - Sergey Shvetsov, the chairman of the State Duma Committee on Financial Market - Anatoly Aksakov, the Deputy Finance Minister - Vladimir Kolychev, the Chairman of VEB.RF - Nikolai Tsekhomsky and the Chairman of the Board of SIBUR Holding - Dmitry Konov, all took part in the first session.
The Chairman of the Board of BCS FG, Oleg Mikhasenko, took part in the second plenary session - TECHNOLOGICAL DRIVERS OF DEVELOPMENT OF THE FINANCIAL MARKET. They were joined by Andrei Zvezdochkin (ATON CEO), Sergei Storchak (Deputy Finance Minister), Alexei Timofeev (NAUFOR Chairman) and Oliver Hughes (Tinkoff Bank). The discussion was moderated by Alexander Afanasyev, CEO, Moscow Exchange.
After the lunch break, Roman Lokhov, CEO BCS Global Markets moderated a panel discussion, titled: CAPITAL RAISING: A BOOM AFTER THE DOWNTURN? The discussion was also joined by Jacob Grapengiesser (Partner, East Capital), Irakli Mtibelishvili (Citi) and Andrey Shemetov (Sberbank).
Three additional panel sessions took place in the afternoon, focusing on the boundaries between the Exchange and the OTC (moderated by Igor Marich), digital assets (moderated by Artem Duvanov), prospects for the debt market (moderated by Anna Kuznetsova), the role of the board of directors in the investment attractiveness of the company (moderated by Pavel Teplukhin, Matrix Capital) and best compliance practices (moderated by Alexander Smirnov).
The discussions were attended by representatives of major financial organizations and Russian companies, such as Sberbank, VTB Capital, ICB, Alfa Bank, Sovcombank, Otkritie Bank, Gazprombank, Citi, East Capital, Prosperity Capital, Evraz, Norilsk Nickel and AFK Sistema, to name a few.
On the second day of the forum, co-hosted by BCS Global Markets institutional investors met 1-1 with Russian corporates to discuss companies’ investment cases. Executives from 45 leading Russian corporates held one-on-one meetings with more than 100 institutional investors to give them an insight into sectors and companies where investment opportunities lie.
The Russian hedge fund and alternative investment industry’s annual flagship event took place on the 3rd and 4th April at the EXPOSED art centre and Shakti Terrace in partnership from was supported by BCS Global Markets. Management companies, investors, service providers and investment start-ups gathered to discuss the international alternative investment industry and its position amidst wider business issues.
The Moscow Hedge Fund Week 2019 started with a session for investor representatives, family officers and advisers of management companies and hedge funds. An updated report on the status of the Russian hedge fund industry at the beginning of 2019, prepared by the Club and the National Alternative Investment Management Association (NAIMA), was presented at the session.
For the first time, a workshop on automatic information exchange in family offices and private funds was conducted. The morning program was completed by a closed session for qualified investors, during which investment advisers presented hedge funds and alternative investment funds to investors.
In the afternoon of day one, two simultaneous streams were held - for those investing in public liquid strategies and for those interested in private long-term investments. Both sessions were moderated by Oleg Achkasov, head of Equity Trading, BCS Global Markets.
The first business day was concluded with a public panel discussion on investment strategies. The panel was moderated by Gary M. Esayian, CEO, BCS Americas.
The second day of the Moscow Hedge Fund Week 2019 was focused on exploring investment opportunities through the fund modality.
All major issues, from the industry basics, such as certain aspects of jurisdictions and service providers, to the principles of investment business structures roll-out and marketing, were discussed. The panel discussion of the industry service providers was moderated by Ivan Samokhin, Vice President, DMA and HFT Sales, Russia and CIS, BCS Global Markets.
The fifth anniversary Russian Hedge Fund Industry Awards ceremony took place in the Shakti Terrace, where the best hedge funds were awarded, and the industry service providers were recognised.
BCS Global Markets clients were able to participate in LYFT’s IPO, which was valued at $21 billion
1st April 2019: Initial Public Offering (IPO) of LYFT, a U.S. ride-sharing service, is the first major debut placement of a unicorn company (capitalization over USD 1 bn) this year, with a market capitalization at $21 billion.
The strategic partnership between BCS Global Markets (“BCS GM”) and Tigress Financial Partners, a women owned and independent investment banking and brokerage firm, allowed BCS’ clients the opportunity to participate in this hi-tech U.S. business and to buy shares directly in the offering, allowing Russian and international clients exclusive access to the offering. Over the years, BCS has enabled its investors to participate in high quality IPOs in the Russian markets but this is the first time they have had access to the U.S.
The partnership follows the orderly development of the BCS Global Markets’ business in the U.S., which started in 2015, when the investment bank acquired a broker and dealer company with an office in New York. The U.S. division of BCS Global Markets – BCS Americas, is predominantly focused on finding unique opportunities within the U.S. market – such as LYFT’s public offering, in order to strengthen the reach of BCS.
Gary Esayian, Director, CEO, BCS Americas, Inc. commented:
BCS Global Markets has been following the U.S. market closely and has been waiting for an opportunity of this calibre. We are delighted to have offered our clients the exciting opportunity to be able to participate in a hi-tech business, such as LYFT. Our strategic partnership with Tigress Financial Partners enabled us to provide our clients with unique access to major U.S. IPOs.
BCS is planning to partake in other similar transactions over the course of this year, as our U.S. strategy has proven to be efficient and has successfully brought tangible results for our clients.
BCS Global Markets is pleased to announce that it has entered into a partnership with leading Russian analysts, Evgeny Gavrilenkov and Alexander Kudrin, founders of GKEM
ANALYTICA, which specializes in economics and financial markets. The partnership is a strategic move to continue to strengthen our analytical coverage.
The BCS GM-GKEM ANALYTICA partnership debuts within the launch of ‘Outside the Box’ – a new Quarterly report for institutional investors who have an appetite for an alternative view on economics, sectors and financial markets, with emphasis on Russia.
Kirill Chuiko, head of the Analytical Department, BCS Global Markets:
Cooperation within which clients of BCS Global Markets will get access to the exclusive ‘Outside the Box’ product is interesting for us, first of all, due to the growing client demand for high-quality analytics. Outside the Box will reinforce our product portfolio and will satisfy clients’ needs more fully.
Analysis of development of the Russian economy is an important element in investment decision-making, so I believe that financial market participants will benefit from the joint product of BCS Global Markets and GKEM Analytical.
Due to MIFID2 regulation, foreign institutional investors began to impose stricter requirements on analytical products. Taking into account the long-term work experience of the authors of Outside the Box reviews, I am confident that they will meet the highest requirements.
Professor, Higher School of Economics. Former managing director, chief economist, Sberbank CIB. Candidate of Technical Sciences, Doctor of Economics. Institutional Investor ranked him among one of Russia’s best analysists in the Economics category on numerous occasions. He ranked first nine times, and he was the leader of the ranking for eight consecutive years. In 2011, Institutional Investor ranked him first among the EEMEA region analysists in the Economics category. He was recognized as one of the most influential Russian market analysis on numerous occasions, and Extel Survey Rating ranked him first in the Economics and Macroeconomics category.
In 2002 – 2018, he worked in Sberbank CIB. For seven years, he was the head of the debt securities market research department, in November 2014 – May 2018, he was the head of Sberbank Investment Research. The team of analysts he managed was ranked best in Russia by Institutional Investor (in 2015 and 2016) and Extel (in 2016 and 2017). Alexander was recognized as Russia’s best analyst in 2017. Besides, he is one of the three analysts in the market who were among the Top 4 analysis by Institutional Investor during the history of All-Russia Surveys (for more than 10 consecutive years), and he ranked first in 2011 and 2015. According to Extel, he was the best Russia’s debt analyst in 2013.
We are pleased to announce that BCS Global Markets has appointed Maria Merkulova as the Head of HR covering local and international entities of BCS GM and reporting directly to Roman Lokhov.
Natalia Kirilina, Elena Williams and Olga Sidleruk will stay at their positions - Natalia Kirilina as HR partner of Russian region, Elena and Olga as Heads of HR of BCS UK and BCS Cyprus accordingly.
They will report to Maria keeping reporting to their CEO’s.
Maria is Human Resources Business Partner with 10+ years leadership experience.
Prior to BCS Global Markets she took managing positions in such companies as SBERBANK CIB, TROIKA DIALOG & VIMPELCOM Group of Companies.
Leveraging Maria’s experience we hope to speed up transformation and improvement of our performance management, TD (talent development system), launching of complex programs for businesses, and building of effective corporate culture in BCS Global Markets.
Roman Lokhov, CEO BCS Global Markets:
I am very pleased to welcome Maria aboard. We have grown considerably and are now a large institution, so the HR function is more important than ever. I believe that Maria brings the requisite qualities to building a productive corporate culture and effective motivation system, which are keystones for BCS Global Markets’ global strategy of growth.
BCS Global Markets Personal Investment Bank, the HNWI investment banking unit which started its operations in 2018 under the leadership of Oleg Achkasov, has substantially strengthened its team in the last several months.
Today, we are glad to announce the following changes.
Victor Dolzhenko has joined the team as Head of Sales. Victor has vast experience in the HNWI segment. He worked at Troika Dialogue, ATON, as the Deputy Director General of the Ekaterinburg branch, and was a Deputy Minister for the Sverdlovsk region’s Ministry of Investment. Prior to joining the team at BCS Global Markets PIB, Victor headed the BCS Ultima branch in Ekaterinburg. Education: the South-Russian State Technical University.
Alexander Ikryannikov, his predecessor in this position, will be Victor’s deputy and will continue to supervise a number of significant client projects, while focusing more on his own client base.
Alexander Bobryashov has joined the team after more than 6 years of successful work in Wealth Management and Private Banking. Before BCS Global Markets, he worked in such leading financial institutions as ATON and Citibank. His last place of work was the BCS Ultima branch in Ekaterinburg.
Vladimir Volkov has joined the PIB team with more than 15 years of experience in private banking and wealth management. He used to work in management positions with HNWI clients in Otrkytie FC, OAO Svedbank, OAO MDM Bank, ZAO Raiffeizenbank Austria, etc.
Marina Mironenko has worked in Finance for more than 15 years. Prior to joining BCS Global Markets, she worked in PJSC Rosbank (Societe General Group), where she was responsible for the HNWI investment portfolio management, and before that she worked in the Moscow Chamber of Control and Accounts.
Peter Nechaev has more than 15 years’ experience in Finance in the sphere of advisory asset management for wealthy clients. Peter worked in such companies as Uralsib, Nomosbank and Citibank. Peter was also the advisor to the Deputy Chairman of the Committee for Development of Entrepreneurship and Small and Medium Enterprises of the Government of the Volgograd region. Prior to joining the team at BCS Global Markets PIB, Peter was a managing partner at ANM-Capital.
Oleg Achkasov, the head of BCS Global Markets Personal Investment Bank:
Personal Investment Bank is unique because we have made investment banking services available to high net worth individuals.
Our main goal is to give such clients access to the full range of BCS Global Markets’ investment banking services – previously, only available to institutional clients.
This means that we will offer customized products to each client, individually tailored to his or her risk profile, life plans and financial needs.
We are an investment bank for sophisticated private investors!
Together with offering new services, strengthening the sales team is a logical step in such business development.
Professionals with many years of investment banking experience have joined us.
We plan to actively develop relations with private clients, relying on the expertise and experience of our new team and the unique opportunities offered by BCS Global Markets’ investment bank.
We wish our new colleagues success and big achievements!
The program was dedicated to the Garant Invest a company which is an owner and operator of state-of-the-art shopping centers located in Moscow.
The company presented its business and placement of a new bond issue, with BCS Global Markets being the organizer. This is the fifth placement of the company but within a new strategy of “RE-novation”.
The President of Garant Invest Aleksey Panfilov and Head of Debt Capital Markets Alexey Kupriyanov spoke about the real estate market and the advantages of investing in these types of assets.
The 16th Annual Russian Bond Conference 2018 took place on the 6th and 7th December in St. Petersburg and was attended by 600 leading professionals working in the Russian and International debt markets. The annual bond conference has become one of the major events in the financial markets’ sphere and this year BCS Global Markets became a general partner of the conference for the first time.
BCS Global Markets was nominated for four awards and won all four. The categories were: "The best analysis on the bond market", "The best investment bank for working with the second and third tier issuers", "The best high-yield deal" and "The second best arranger of high-yield deals". The awards were given for achievements throughout 2018 at the awards ceremony on the 7th December in ST. Petersburg.
Alexey Vinogradov, Head of Fixed Income comments:
The 16th Russian Bonds Congress revealed a new trend –an interest in the high-yield segment of the debt market. As the rates go down, investors are increasingly interested in expanding their portfolio ranges. Quality expertise is in high demand in the segment of high-yield borrowers. The team of BCS Global Markets is equipped to provide the best expertise in this market and support high-yield borrowers.
This is evidenced by the choice of the market participants who voted for BCS Global Markets.
Aleksey Kupriyanov, Head of Debt Capital Markets Department says:
The high appreciation by debt market participants of our work in 2018 is extremely valuable to us. It is a collective success of the whole BCS GM team. It is highly important that we not only attract financing to issuers, but also make deals that are interesting to investors, regardless of the current market environment.
Maria Radchenko, Head of Fixed Income Research BCS Global Markets:
We thank investors for their appreciation of our work. BCS Global Markets fixed income analysts and trading desk team are constantly in contact with clients and partners to provide relevant research products that best meet the needs of our clients. We are very pleased to be in the top three research teams, and will continue working hard to ensure that our products are useful to investors when making investment decisions.
Tim Bevan Global Head of Prime BCS Global Markets and Co-CEO BCS UK talking to bne IntelliNews about launching in an exclusive interview.
BCS Ltd, one of the leading financial services groups in Russia, announced today that the S&P Global Credit forecast for the company has been upgraded to positive from its previous assessment of stable.
S&P also reviewed its ratings for BCS subsidiaries including BCS Prime Brokerage Ltd which saw its long and short-term rating affirmed at ’B+/B’.
The positive outlook reflects expectations that over the next 12-18 months BCS will be able to manage the risks associated with the volatile geopolitical environment and the increasing complexity of its operations while successfully transforming its business with its increased geographical diversification.
S&P noted that BCS has gradually become a more diversified group on the back of its development of prime brokerage activities via its U.K.-based subsidiary and its expansion into the U.S. market. These initiatives have reduced BCS’ exposure to Russian country risk which is considered to be extremely positive by credit analysts.
Alongside the geographical expansion, BCS has also begun to reshape its business initiatives to build on its financial services offerings. One such example is the issuance of structured products has become more reliant on derivatives to manage risks on the balance sheet which requires less wholesale funding, thus improving BCS’ liquidity position.
S&P concluded its outlook by highlighting that ratings could be upgraded as BCS manages risks associated with its growth, changes in corporate structure and hedging strategy. It would also consider an upgrade as the group achieves its aims of even stronger geographical diversification.
Roman Lokhov, CEO and Chairman of BCS Global Markets, commented
The positive S&P Global rating outlook on FG BCS LTD and its subsidiaries reflect the expansion that BCS has undertaken across the Globe and our increased research facilities.
Our development of prime brokerage initiatives in the UK and access to the U.S market have led to an expansion of BCS worldwide and we’ll continue to seek opportunities in different markets.
Plans to develop an advanced global payments service will complement the firm’s growing international expansion
The London-based business of BCS Global Markets (BCS GM) has obtained a transaction banking license to provide clients with an integrated investment banking and payment services solution. The platform will combine various new technologies with an innovative payment interface and enhanced fraud protection and will be led by Dr Evgeny Kunts.
BCS GM is entering transaction banking in response to clients’ growing interest in streamlined, efficient payments and the increasingly global footprint of BCS. Core functionality will be rolled out next year, so clients can pay and accept payments from third parties across several currencies.
Dr Kunts joined BCS last year to develop the new payments service. He is experienced in the leadership of financial services organisations including managing the setup of new business offerings.
The integrated solution will be developed in synergy with BCS’ existing prime brokerage/custody products. As the leading independent financial group in Russia, BCS has always been technologically focused and is known for its customizable high and low touch trading solutions. Transaction Banking services will be rolled out gradually as new technological partnerships are formed.
High Net Worth Individuals plus institutional and corporate clients who satisfy certain eligibility criteria will be able to conduct international business via the new offering. Earlier this year BCS opened its US office – BCS Americas and became a registered member of the New York stock exchange. A partnership with US investment bank Tigress Financial Partners allows BCS’ clients access to research in US equity markets and it recently further geographically diversified its award-winning research offering to cover new markets including Central Asia and the Caucasus.
Dr. Evgeny Kunts, Head of Transaction Banking says:
This is a major milestone in the development of BCS Global Payments and we are very proud of being a trusted and fully authorised payment institution in Europe.
As an Authorised Payment Institution, we will offer a new cash management and payment service solutions to our clients. Our payment services will enable our clients to make secure online transactions directly from their accounts with BCS Prime Brokerage.
Being digital and STP, this solution is based on new technologies which successfully combine an innovative payment interface a with global payment network and advanced fraud protection.
BCS GM Continues to Expand its Footprint Beyond Russia for Institutional and Retail Customers
BCS Global Markets (BCS GM) has partnered with Tigress Financial Partners LLC, to provide proprietary U.S. equity market research to its clients, as part of their recently-announced strategic partnership. This marks the latest stage in BCS GM’s international expansion and offerings.
Tigress, a leading women-owned institutional FINRA registered broker-dealer, was founded in 2011. Tigress currently provides strategic capital markets and M&A advisory services globally to emerging and mid-sized companies, Fortune 500 companies, government agencies, and state and local governments.
The firm is a recognized authority on U.S. equity markets, offering tailored global wealth management services for domestic and international high-net-worth individuals. Ivan Feinseth, Tigress Financial Partners’ award-winning Chief Investment Officer and Head of Research, oversees investment strategies and leads the firm’s specialized research group focused on economic profit and relative value analysis. Tigress publishes actionable investment information including a daily 360° market news report as well as actionable, in-depth investment company, sector and industry reporting based on proprietary data analysis.
This new U.S. Equity Research and Analytics offering will cover all U.S. equity markets and sectors. The Research will now be made available to BCS GM’s institutional clients, as well as high-net-worth clients of BCS GM Personal Investment Bank. Mr. Feinseth is a frequent television commentator on many financial news channels including Bloomberg TV and Radio, CNBC and FOX Business News. He has over 20 years of experience on Wall Street including holding positions in portfolio management, research, investment banking, and institutional and retail brokerage. He is an award-winning analyst having previously been ranked as "Champion Stock Picker" for the industrial sector by Bloomberg Business Week; placed first in the list of “Best Ideas" for six months, one year and three years by Barron’s; and named "Top Ranked Analyst Unknown but Unbeaten" by Fortune Magazine. Mr. Feinseth was also ranked the number two Stock picker by Thomson Reuters Starmine for 2017 in IT hardware and is a five star ranked TipRanks analyst.
Kirill Chuyko, Head of Research for BCS Global Markets commented:
The co-branded US research product that we – BCS and Tigress – are launching is unique in the Russian market, giving our clients direct access to a recognized U.S. analytical product with a very strong track record and a sought-after analyst with extensive Wall Street experience. This ranks Ivan #146 out of 11.5k experts providing share recommendations to TipRanks web portal. Such a strong and verified track record is exactly what the Russian clients market were missing and we are planning to offer this product to fill in the gap.
Earlier this year BCS Global Markets opened an office in New York, and its division – BCS Americas – has become a registered member firm of the New York Stock Exchange. Additionally, the company partnered with Moscow Exchange (MOEX), to host this year’s Moscow Exchange Forum in New York, where leaders, investors and strategists gathered to discuss and give advice on investing and trading on the Moscow Exchange and investment opportunities in Russia.
Moscow, 31 October 2018– BCS Global Markets, the investment banking division of the largest independent securities broker on the Russian exchange, has announced today its plans to open up new investment opportunities for their clients, starting with a geographic diversification of its analytical coverage.
The award-winning research team is led by Kirill Chuyko, Head of Research,and BCS Global Markets’ research offering will expand to countries in Central Asia and the Caucasus. Earlier this year, BCS GM began its expansion in Eastern Europe by offering analytical coverage on the debt markets in the Republic of Belarus.
The diversification of analytical coverage will allow clients to broaden their investment opportunities and regularly make informed investment decisions by receiving high-quality coverage of these new markets across a range of sectors.
Earlier this year, BCS ranked 1st in the 2018 Extel Survey for research among single-country brokers with several of its analysts also singled out for expertise in fields such as metals and mining, and TMT. Six new senior analysts have joined the research team in recent months to aid the expansion of high quality coverage, including former Sberbank employees Elena Tsareva and Maria Sukhanova, who focus on Financial Services and TMT, respectively. Other senior additions to the team include Anastasia Egazaryan, who joins the industrial and real estate research team from UBS, Dmitry Skyrabin, who will cover retail and utilities, and Yulia Goldina, who recently joined the equity strategy team.
The first new area to gain additional exposure via industry analysis is Ukraine’s metallurgical sector. BCS Global Markets has released the first report on Ferrexpo, a Swiss trading and mining company, which specialises in the iron ore segment with operations in Ukraine. Ferrexpo is one of the largest exporters of steel pellets to Eastern Europe and, since 2007, the company’s shares have been traded on the London Stock Exchange (LSE).
Kirill Chuyko, Head of Research, commented:
As the leading Russian private independent investment bank, we strive to respond in a timely manner to the transformation of the global financial environment. Strengthening analytics is a key strategic move and a strong team of analysts is a prerequisite for business success.
Our analysts consistently rank highly across a number of sectors, including oil, metals and mining, TMT, consumer and financial services. We are delighted to be offering coverage of new markets, selected as up-and-coming areas that any serious investor should find of interest. Our research services already include personal advisory and trading recommendations, complemented by macro analysis of the Russian economic situation – the new members of the team are highly qualified and will help us to achieve this level of coverage in the new markets specified and beyond
Russia’s economy is recovering. Incomes are rising again. The budget is in surplus. Growth has returned, albeit modest. And Russian companies are paying the highest dividends in the world. Yet none of this matters, as Russian business is entirely overshadowed by the escalating US sanctions on business and businessmen. The leading RTS index has been range bound for almost four years. How is it possible to work in these conditions?
BCS Global Markets is the new kid on the block and a fast growing broker/dealer. Having founded a successful business in Russia, it is now diversifying into western markets.
It recently became the first Russian investment bank to get access to the floor of the New York Stock Exchange and has a big office in London. Non-Russian business already makes up some 60% of its revenues and with a tie up with Tigress Partners in the US, it hopes to continue to build up this new business.
bne editor-in-chief Ben Aris sat down with BCS GM CEO Roman Lokhov on the sidelines of the annual MOEX New York investment summit to talk over the bank’s plans. Ben Aris, bne IntelliNews editor-in-chief Roman Lokhov, CEO BCS Global Markets.
New York, 5th October 2018 – More than 300 U.S. investors and members of the business community gathered for the Moscow Exchange Forum: New York Session earlier this week. The forum was held this year in partnership with BCS Global Markets, the largest independent securities broker on Moscow Exchange. The New York edition of the forum this year focused on Russia’s equity and debt markets and updated the international and US investment community on Russia’s market infrastructure.
Participants listened to four panel sessions during the day, covering topics including: oil and gas of the future, the Russian economy, investing and trading on Moscow Exchange and fintech and banks of the future. Speakers were drawn from industry and government in Russia and the US including the Deputy Governor of the Central Bank of the Russian Federation Sergey Shvetsov and Russia’s Deputy Minister of Finance Vladimir Kolychev.
Leading experts on the Russian economy such as Chairman of the Moscow Exchange Supervisory Board Oleg Viyugin shared the stage with senior executives and Board members from Russian corporates including Novatek, Yandex and QIWI. Other speakers included world-renowned experts on energy and senior emerging markets fund managers.
On the second day of the forum, executives from 15 leading Russian corporates held one-on-one meetings with U.S. institutional investors to give them an insight into sectors and companies where investment opportunities lie.
Alexander Afanasiev, CEO, Moscow Exchange said:
Despite all the geopolitical noise, U.S. investors continue to see significant opportunities on the Russian market and are investing in equities, bonds and other asset classes via Moscow Exchange. The strong response to this year’s Moscow Exchange Forum: New York Session was just one more testament to the high level of interest in the Russian market from US investors.
Roman Lokhov, CEO, BCS Global Markets commented:
Russia is a much-discussed topic at the moment, and it’s important to have conversations with investors and officials alike, and this forum provided a great opportunity to do just that. The US is also an important market for BCS strategically, given that many of our clients are based in the US.
We have a close partnership with MOEX and are pleased to have brought policymakers, market participants, brokers and investment banks together to discuss opportunities to invest and trade in Russia. It is sometimes difficult for the international investment community to assess which sectors and companies to look at within the emerging markets and Russia particularly. At BCS, a large part of our offering is to educate investors on the Russian context and investment opportunities – thus we were thrilled to be involved
As of July 1st 2018, BCS Global Markets is the arranger of 33 bond issues, totalling 192 RUB bn and 300 USD m. In six months, the debt capital markets team of BCS Global Markets has taken part in the placement of bonds of major companies such as PIK Group, AFK Sistema, MTS, X5 Retail Group and organized smaller transactions in accordance with the strategic focus on mid-cap segment companies (Leader-Invest, Element Leasing).
At present, BCS Global Markets is one of the top five leading Russian non-state arrangers in terms of the volume of the bonds placed on the Moscow Exchange.
The Debt Capital Markets Department of BCS Global Markets was formed two years ago. Since then, we have put together a very strong team which has become the market leader in bond placements — something we’re very proud of— says Alexey Kupriyanov, head of Debt Capital Markets.
BCS Global Markets took part in the Calypso conference, which was held on July 19, 2018 in Moscow. This year the main topics were: Hear about Calypso strategy and recent updates; Understand how our Treasury solution can address your challenges and reduce your operational risk; Listen from one of our Clients on how Calypso has been instrumental to the development of their activities in the market; Network with your peers and meet our Calypso team.
BCS Global Markets was invited to share the experience of the project, which was launched in 2014, namely, the implementation of Calypso's back-office system. In his presentation, Ilya Batay, the Head of IT Department, spoke on the successful outcome of the project, noting also the difficulties. Ilya focused the attention of Calypso representatives on the shortage of specialists in the Russian market, which affects both clients and the expansion of the company's presence in Russia. Also in course of the conference, further development of innovative technologies and their use in the products of Calypso - block, AI, were discussed.
As of July 1st 2018, BCS Global Markets is the arranger of 33 bond issues, totalling 192 RUB bn and 300 USD m. In six months, the debt capital markets team of BCS Global Markets has taken part in the placement of bonds of major companies such as PIK Group, AFK Sistema, MTS, X5 Retail Group and organized smaller transactions in accordance with the strategic focus on mid-cap segment companies (Leader-Invest, Element Leasing).
At present, BCS Global Markets is one of the top five leading Russian non-state arrangers in terms of the volume of the bonds placed on the Moscow Exchange.
The Debt Capital Markets Department of BCS Global Markets was formed two years ago. Since then, we have put together a very strong team which has become the market leader in bond placements — something we’re very proud of— says Alexey Kupriyanov, head of Debt Capital Markets.
BCS Global Markets today announces the appointment of Marina Atavadzhieva as Chief Risk Officer (CRO). Atavadzhieva, who was most recently the CRO of Sberbank Asset Management and Deputy CRO of Sberbank Wealth Management, will report to BCS CEO and Chairman Roman Lokhov.
A graduate of the faculty of Mechanics and Mathematics at the Lomonosov Moscow State University, she has over 17 years’ experience in risk management across several companies including Renaissance, Nikoil and Rosbank/MFK Bank. Notably, Marina played a key role in the development of risk management strategy for Aton Group, whilst employed as CRO of Aton LLC.
She is the Co-chairman of the NAUFOR Risk Committee and member of the Significant Market Deviation and Anti-manipulation Committee of the Central Bank of Russia.
We are delighted to welcome Marina to our team. Risk Management is a crucial part of our business, particularly in the current market landscape. We are committed to building a culture of continuous risk management throughout the company across all levels so that every employee can understand and identify potential risk and play a role in the process of eliminating risk. With Marina’s background of building and leading risk management offerings at a range of businesses, we have no doubt she will be a fundamental and knowledgeable part of our team.— Roman Lokhov, CEO and Chairman of BCS Global Markets commented.
BCS Global Markets team wishes Marina success in her new role!
Elena Tsareva has joined the BCS Global Markets Research Team as the senior banking analyst, enhancing the investment bank’s coverage of a major sector of the Russian economy and satisfying growing client demand for banking research.
Elena, an experienced and accomplished analyst, has more than ten years of equity research experience, specializing in banking. In the Emerging EMEA – Russia Survey, Elena ranked #4 among bank sell-side analysts in 2018, and #3 and #2 as a buyside analyst in 2016 and 2017, respectively.
Prior to joining BCS, Elena plied her skills as an equity analyst for Sberbank Asset Management and Sberbank CIB. Before that, she worked in various positions in the equity portfolio management team of Renaissance Asset Managers.
It is a great pleasure for us to announce that such a high caliber professional as Elena has joined our team. BCS Global Markets has ambitious plans and every opportunity to take leading positions in the market – the research team is one of the key components in investment banking. With Elena on the BCS Global Markets Research Team, we will offer banking sector expertise for our clients.— said Kirill Chuyko, Head of Research
BCS Financial Group became a winner of the national contest “NAUFOR Elite of Stock Market” in four nominations at once – “The Company of the Equities Market”, “The Company of the Derivatives Market”, “The Company of the FX Market” and “The Brokerage Company of the Year”.
The award ceremony took place on 13 June in the Moscow City Golf Club. The traditional venue of the contest brought together the best companies and the most prominent representatives of the Russian securities market, including the regulators – the Central Bank of the Russian Federation, the Ministry of Finance and Moscow Exchange. Oleg Mikhasenko, President of BCS Financial Group, went on the stage to receive the main award, “The Brokerage Company of the Year”.
BCS has won the “Securities Market Elite” awards in various prestigious nominations many times. In particular, BCS was recognized as “The Company of the Equities Market” at least three times – in 2016, 2014, 2013. The company won awards in the nominations “The Company of the Derivatives Market” twice, in 2015 and 2016, “The Best Brokerage Company for Institutional Investors” in 2014 and 2015, “The Best Company of the Year” in 2012 and 2014. The company’s status as the best company of the East-Siberian region was reaffirmed nine times – in 2004–2008 and 2010–2013. In 2016, it also won the awards “The Best Brokerage Company for Retail Investors” and “The Best Business Development”.
“Securities Market Elite” is the oldest and one of the most prestigious annual contests for companies - participants of the securities market. Its history started in 2000. Its organizer is the National Association of the Securities Market Participants. The key objective of the contest is to identify the Russian securities market participants who proved to be most successful and demonstrated the best performance results in the previous year.
BCS FG is one of the leading operators of the Russian securities market (over 300,000 clients are serviced at the stock exchange via BCS), providing financial services to individuals and legal entities. In its many years of operation in the securities market, BCS gained a well-deserved reputation of a reliable partner both among investors and in the professional community.
BCS Global Markets’ Research placed 1st in the 2018 Extel Survey for research amongst single-country brokers.
BCS Global Markets has built on its success in 2017 in two key sectors, namely Metals & Mining and Small & Mid-cap Research, ranking amongst the top three houses.
Moscow, June 06, 2018 – BCS Global Markets announced today its results in the Extel Survey for 2018, where it maintained a significantly competitive position, despite industry wide limitations from Mifid II. The Extel Survey is the foremost independent evaluation of quality across the European equities investment industry, recognizing excellence and performance in the buy-side, sell-side and corporate communities.
BCS Global Markets Research retained a top position amongst all key Russia research teams globally and ranked 1st in research amongst single-country brokers. In addition, the Fixed Income Research Team ranked amongst the top 10 for the first time, as 7th, a significant milestone for BCS’ research teams.
BCS Global Markets Research built on its success of 2017, ranking amongst the top three houses in two key sectors. It ranked 3rd in Metals & Mining and Small & Mid Cap Research, matching last year’s Metals & Mining 2nd and Equity Strategy 3rd places.
On the individual level, Metals & Mining again posted high with Head of Research Kirill Chuyko as 2nd and Oleg Petropavlovskiy as 4th. Mitch Mitchell ranked in the top 3 amongst Small & Mid Cap analysts.
Head of Research team, BCS Global Markets said: “The results indicate continued success across our sectors and teams – despite the initial challenges posed by Mifid II. It is great to be acknowledged for the industry-leading efforts our research teams contribute to clients on an on-going basis. We’re continuing to develop our offerings and products into 2018 and beyond to continue to enhance our relationship as a leading Russian investment bank and independent brokerage”.
By Jake Rudnitsky and Anna Baraulina (Bloomberg) - As sanctions force Russia’s VTB Group to retreat to its home turf, a private broker founded in Siberia has seized the opportunity to expand into foreign markets and sell them Russia Inc.
VTB, long Russia’s biggest investment bank abroad, plans to cut its headcount by a third in London, from 250 currently, Chief Executive Officer Andrey Kostin said in an interview in St. Petersburg Friday. Part of that is due to the relocation of some lending activities to other offices in response to tighter capital requirements imposed by U.K. supervisors, First Deputy CEO Yuri Soloviev said separately.
Sanctions imposed in response to Russia’s role in the Ukraine crisis have made it harder for the country’s state- controlled banks to operate abroad and forced them to rein in their international plans. The latest cuts will leave headcount at VTB’s London office at one-third of its level before the annexation of Crimea in 2014.
At the same time, western lenders including Deutsche Bank AG, Royal Bank of Scotland Group Plc, Barclays Plc and BNP Paribas SA have curtailed their coverage of Russia as its growth has slowed well below the kind of rates traditionally demanded by global investors in emerging markets. According to data compiled by Bloomberg, bank analysts see gross domestic product growth stuck below 2 percent for the next three years. That’s giving BCS the chance to take a larger piece of a smaller pie.
“Russia isn’t booming, but with international players leaving the market and the biggest local banks facing their own issues, we have found a niche to grow in,” Lokhov told Bloomberg in an interview. The investment bank will grow by about 20 percent this year from 400 currently, he said. That will require, among other things, a move to larger premises in the City of London.
Despite the headwinds, BCS has flourished in the last few years: the number of domestic retail investors -- on whom it built its business -- is up by half over the last five years, according to Moscow Exchange data. The brokerage’s parent group has more than tripled its revenue since 2013, while net income rose nearly nine-fold to $113 million between 2013 and 2016, the most recent data available.
Things have gone so well that its distribution partner, London-listed credit-card issuer TCS Group Holding Plc, has now struck out on its own, developing a full-fledged broker after receiving a license in March. While the joint venture will continue to service their existing 80,000 clients, future growth will accrue to TCS alone.
BCS also faces competition at home from a bulked-up VTB, which this year merged its retail brokerage with its investment bank’s investment consulting, brokerage and asset-management teams. That created a unit that manages over 1 trillion rubles ($16 billion).
In that context, the relative lack of competition to sell Russia abroad is welcome. BCS bought the North American business of Alfa-Bank JSC in 2016 and is currently the only Russian lender with a seat on the New York Stock Exchange trading floor. Renaissance Capital, a competitor with an international footprint, has shifted its focus to other, ‘frontier’ markets while it braces for more anti-Russia sanctions from Washington. State-owned banks are, more broadly, returning home as sanctions make their life increasingly difficult. Sberbank PJSC announced last week the sale of its Turkish subsidiary for over $3.2 billion, intending to re-deploy its capital at home. And Sberbank and VTB have both started withdrawing from Ukraine, where their connection with the Russian state is toxic for their respective brands.
Another factor indirectly helping privately-owned BCS is the problems its state-owned competitors make for themselves. Sberbank roiled some clients last week by firing an award- winning oil analyst, Alex Fak, for a research note that claimed two of President Vladimir Putin’s close friends are the main beneficiaries of profligate investment by state-run Gazprom. Alexander Kudrin, Sberbank’s head of research, also left the bank as a result.
Sberbank Chief Executive Officer Herman Gref said Fak was fired for “factual errors.” A Gazprom spokesman said it never asked for the report to be withdrawn. The incident nonetheless prompted criticism that Sberbank had sacrificed its researchers due to political pressure.
“These practices are vicious and far from the ‘global best practice’ that we regularly say we are striving to adhere to at state-sponsored conferences,” Kirill Tremasov, chief analyst of Moscow-based Loko-Invest, told Bloomberg. “Such practices undermine investor confidence in Russia and, accordingly, our global competitiveness.”
St.Petersburg’s Fabergé Museum and Investment Bank BCS Global Markets (Financial Group BCS) organized a ceremonial reception for partners, clients and business leaders on the first day of the St. Petersburg International Economic Forum.
A magnificent program was prepared for the gala party participants in the historic interiors of the Shuvalov Palace. It included a performance by the famous St. Petersburg Eifman Ballet ensemble and a solo concert of Valeriy Syutkin, an Honored Artist of Russia.
The dancers presented pieces from legendary performances causing admiration in the public of major global cultural centers, such as “Eugene Onegin", “Anna Karenina", “Rodin, Her Eternal Idol", "Requiem", and others.
After the meeting with Boris Eifman , one of the leading choreographers in the world, the guests listened to Russian rock-n-roll icon Valery Syutkin, the famous lead singer of the band "Bravo”. His performance combined rock-n-roll, blues, jazz and rockabilly. He performed in the courtyard of the Fabergé Museum.
“The St. Petersburg International Economic Forum is amazingly multifaceted,” said Oleg Mikhasenko, President of Financial Group BCS. “The Forum has not only become a major international platform for discussion of global economic and political challenges but also known for its varied cultural program and social events such as the ceremonial reception of BCS Global Markets in Fabergé Museum. We believe this makes the St. Petersburg International Economic Forum a truly unique event.”
“The ceremonial reception held in the Shuvalov Palace has become a popular annual tradition. Each year, we try to provide an outstanding program for our guests and based on the fact that the number of attendees surpassed all our expectations this year, we feel we are succeeding in doing so.” added Roman Lokhov, Chief Executive Director, BCS Global Markets.
“We highly appreciate our friendship with Investment Bank BCS Global Markets, and we are happy that together we can hold such wonderful evenings for the Economic Forum participants each year,” said Vladimir Voronchenko, Director of Fabergé Museum, addressing the guests.
Fabergé Museum in St. Petersburg opened in 2013 and became the first private museum of federal importance in modern Russia. The founder of the museum is The Link of Times Foundation established in 2004 by a Russian entrepreneur Viktor Vekselberg with the mission to repatriate items of cultural significance to Russia. The core of the exhibition is a collection of works by the Fabergé firm, which is without a doubt the best in the world in terms of its size, diversity, and the quality of the art objects. The museum is based in the Shuvalov palace, one of the most beautiful palaces in St. Petersburg.
BCS Global Markets is a private independent investment bank in Russia belonging to Financial Group BCS and providing brokerage services in the capital markets, prime brokerage and investment banking services for institutional, corporate and private investors; the largest broker executing transactions with securities on Moscow Exchange. The share of the company is 25% of turnover in all asset classes.
BCS Global Markets became the official partner of the largest Russian event for institutional investors in St. Petersburg. For the ninth year in a row, more than 200 leading representatives of the investment markets, including SRO and market infrastructure leading figures, brokers, banks, as well as insurance and asset management companies are attending this conference in St. Petersburg.
The conference consisted of sessions, discussions and keynote presentations to allow the delegates to expert more detailed a number of key issues such as regulation of financial markets, the prospects of the pension industry development, investment ideas and strategies.
Evgeniy Alexandrov, Head of Sales, Fixed Income Department participated in one of top sessions where the main topics were: how to find high profitability in traditional instruments, factors for making investment decisions and external and internal risks.
The main strategic goal of this decision is to expand the product line and to provide a comprehensive range of products to corporate clients.
In order to achieve this, the team of the Corporate Bank of FG BCS has joined BCS Global Markets, to work under the joint management by Konstantin Khlyzov, Deputy CEO, BCS Global Markets, and Alexey Gonus, a new team member of BCS GM, Managing Director.
Alexey will report directly to Roman Lokhov, CEO, BCS Global Markets. At the moment, there are 22 people in the corporate bank team, and there are plans to expand it to 30 employees.
Alexey has more than 25 years of experience in the banking sphere. Prior to joining BCS, he worked in such positions as Chairman of the Management Board at Otkritie and the First Vice-President and then Deputy Management Board Chairman at Uralsib. From May 2013 to June 2014, he was a member of the Board of Directors at Otkritie. In 1993, he graduated from Novosibirsk State University, majoring in economic cybernetics, with qualification of an economist-mathematician.
Kirill Bulatov joined BCS Global Markets as Managing Director and will be in charge of REPO, derivative and structured financing deals with large corporate clients. Before joining BCS GM team, Kirill worked for over 8 years in VTB / VTB Capital, where for the last 2 years he was covering holding companies and family offices, and before that was running structured finance and derivate transactions. From 2003 through 2009 Kirill was with ING and BNP Paribas London, after graduating from MGIMO economics school in 2003.
Pavel Taratorin joined BCS Global Markets team as Managing Director and will be responsible for lending business with mid-sized fast growing corporate clients. Prior to joining BCS GM Pavel was Head of Lending at the Industrial Development Fund – one of the most dynamic Russian sovereign development funds (2015-2017). Earlier he worked at VTB, BNP Paribas, IMB, Promsvyazbank – in Coverage and DCM. Pavel graduated from INSEAD Business school (Global Executive MBA, 2013), Economic Faculty of MSU (2001), Interpreters Faculty of MSLU (1999).
New York, February 12, 2018 – BCS Americas, a division of BCS Global Markets, announced today that it has become a registered member firm of the New York Stock Exchange (NYSE) as a Trading Floor broker. By joining the NYSE, the leading US equity exchange both in terms of market share and capitalization, BCS is greatly strengthening its positions in the region and enhancing its value offering to clients in the US and around the world.
BCS Americas forms a core part of BCS Global Markets business strategy to expand and develop a significant international trading presence and today’s announcement completes a worldwide equity membership circle, which includes the Moscow Stock Exchange (MOEX), the London Stock Exchange (LSE) and Eurex.
Since its establishment in 2016, BCS Americas has successfully expanded its brokerage and investment services to US-based institutional investors and Broker-Dealers seeking access to the Russian securities and capital markets. Serviced by a growing team of seasoned professionals with Equity, Distressed Equities Market making, Research, Structured Finance and Fixed Income experience, BCS America’s is also establishing non-Russian focused relationships with a number of major international clients.
The NYSE membership is an important milestone for BCS Global Markets. Our mission is to offer Institutional brokerage services to US based investors providing access to markets in Russia and throughout the globe. We have experienced a major increase in demand for US equities trading not only from our US based clients but throughout the BCS Global Markets regions and this move along with our other strategic initiatives is a commitment to offering unparalleled services. In our opinion, the NYSE continues to extend its global leadership in IPO’s, execution transparency and liquidity, all of which is consistent with our equity capital markets positioning and trading execution requirements.— said Gary Esayian, CEO at BCS Americas
We are very excited about this next step for BCS Americas. The NYSE membership, together with memberships in Moscow Stock Exchange, London Stock Exchange, and Eurex demonstrates our commitment to providing a high quality, truly global trading platform to our client base around the world. We are already known for our Russia-bound, independent Institutional Brokerage and Investment Banking, but joining the NYSE signals the expansion of our ambitions in the region.Bradley Duke, Head of International Region, BCS Global Markets
The pilot program was dedicated to the Leader Invest development company. The company presented its business and placement of a new bond issue, with BCS Global Markets being the organizer. This is the second placement of the company. The debut bonds placement of Leader Invest took place in December 2016, also together with BCS GM.
Alexey Kupriyanov, head of Debt Capital Markets, spoke about advantages of investment in this type of assets.
BCS Global Markets hires Stuart Samuels as director of equity sales trading in London, Luis Saenz, co-head of global equities at BCS Global Markets in London, tells Bloomberg. Prior to BCS, Samuels was EM sales trader at Oppenheimer Europe since 2013
We are getting additional business purely on an execution-only basis on back of the regulation, and the only way to properly service the additional demand is by expanding our team— Saenz says BCS is strengthening team amid MiFID II transition
Since MIFID II has split trading from research, a trader at a fund can now vet the markets they trade in and add brokers directly, without having to get the portfolio manager’s input.
“All traders focus on is the best execution. And for us having the largest market-share in Russia is a natural advantage versus global houses as their local Russia footprint is much smaller”
NOTE: BCS was the most active broker for Russian equities by trading volume on the Moscow Exchange, as of December.
At BCS, Samuels will report to Mark Cleary, who heads sales trading team in London.
CEO, BCS Global Markets Roman Lokhov for RBC TV
Managing Director, Chief Business Officer Capital Markets and Investment Banking, Mikhail Butrin for Interfax
The annual presentation of the traditional market awards took place on 8 December in St. Petersburg during the gala dinner marking the closing of the 15th Russian Bond Congress. This year, awards were given in 27 nominations, and BCS Global Markets was nominated in 4 of them. The awards were handed over by Sergey Lyalin– the founder and CEO of Cbonds.
BCS Global Markets became the absolute leader in the following nominations:
— The best high-yield deal – Obuvrus BO-01 issue (issuer – Obuv Rossii). BCS Global Markets – the lead manager. Alexei Kupriyanov, Head of the Debt Capital Markets Department, accepted the award.
— The Breakthrough of the Year – BCS Global Markets. Rustem Kafiatullin, Alexei Kupriyanov and Natalia Vinogradova accepted the award.
It was also among the Top 3 companies in the following nominations:
— The Best Investment Bank – Arranger for Second and Third Tier Issuers – Alexey Vinogradov accepted the award.
— The best investment bank in working with the non-financial sector – Evgeny Alexandrov, Head of the Debt Markets Sales Department, BCS Global Markets, accepted the award.
Shares Trading to Start in the Growth Sector of the Moscow Exchange
3 November 2017. Trading of ordinary shares of Globaltruck Management PJSC will start on the Moscow Exchange. Trading code: GTRK. BCS Global Markets acted as joint global coordinator and joint bookrunner of the placement.
Within the public offering on the Moscow Exchange, shares for the total amount of RUB 3.5 billion excluding the over-allotment option (the “base offering”) and RUB 3.85 billion assuming full exercise of the over-allotment option at the price of RUB 132 per Share, which corresponds to the market capitalization of the company of RUB 7.7 bln. The Russian Direct Investment Fund (RDIF) acted as anchor investor.
The shares of Globaltruck Management PJSC will be traded in the Growth Sector established by the Moscow Exchange to attract investments by small-cap and mid-cap companies.
The transaction comes as BCS Group released its H1 results 2017, revealing that the company had increased return on equity to 30%, driven by Net revenues rising 28% while expenses increases by 18%. This led to Net profit growth up 48% (1H 2017 vs 1H 2016).
Roman Lokhov, Chief Executive Director, BCS Global Markets:
The transaction with Globaltruck is important for us as part of a wider strategic focus on the new segment of the Moscow Exchange, the Growth Sector, intended for mid-cap companies.
The success of Globaltruck will pave the way for a whole layer of smaller companies which will be able to enter the full-fledged public market and to raise capital, and our investors will be able to receive attractive and growth assets in their portfolios.
I am delighted with the success of our Offering which clearly demonstrates that investors, both in Russia and internationally, have recognised the quality of Globaltruck’s business and the potential of our sector. We welcome all our new shareholders and now look forward to progressing our strategy to firmly establish Globaltruck as Russia’s National Champion in the road freight industry.- said Alexander Eliseev, the Group’s co-founder and CEO, commenting on today’s announcement
This is a good example for potential participants in our new segment – the Growth Sector. The fact that one of the Growth Sector partners has acted as anchor investor demonstrates that strategy investors are interested not only in this particular company, but also in the whole Growth Sector. We are committed to providing additional tools to support companies in the Growth Sector, including access to soft loans from development finance institutions, and – in the future – facilitating easier participation from pension funds (subject to additional requirements for information disclosure by the exchange and transparency of issuers).- said Mikhail Mamuta, Chairman of the Working Group for Moscow Exchange Growth Sector Development, Head of Service for Consumer Protection and Financial Inclusion of the Bank of Russia
Tim Bevan, CEO of BCS Global Markets London and director of Primebrokerage, opened the conference. The conference was held in two sessions. In the first part, new opportunities for implementation of algorithmic and HFT strategies at Eurex Exchange was presented by Tobias Ehinger, Vice President of Eurex. Andrey Medvedev, head of Risks & Liquidity Control Department, and Sergey Kryuchkov, Chief Compliance Officer & Corporate Governance of the Moscow branch of BCS Prime Brokerage Limited, spoke on behalf of BCS Global Markets about the impact of MiFiD II and the evolution of pre-trade risk and impact on capital efficiency. Georgy Zarya, a special guest of the conference, spoke on search of new markets and trading opportunities.
The second part of the BCS Algo-2017 conference was dedicated to the cryptocurrencies market review.
Please follow the link to access the detailed program: http://capital.derex.ru/program/
BCS Algo-2017 was an ideal forum for experts and leading players in algo/HFT in Russia to discuss the latest opportunities and issues impacting the industry . Electronic trading has been and remains one of the priority areas for our company, and we are glad that we were able to bring together professionals from across the industry.- comments Tim Bevan, Head of Prime Brokerage Division and со-CEO Prime Brokerage
London, 20 October 2017 – BCS Global Markets (“BCS”), the leading Russian independent financial house, today announced that it has conducted the initial public offering (IPO) of Obuv Rossii on the Moscow Exchange.
BCS Global Markets acted as the Joint Global Coordinator and Joint Bookrunner on the IPO of OR PJSC (the “Company” and, together with its subsidiaries, “Obuv Rossii” or the “Group”), a leader in Russia’s footwear market with over 500 stores in more than 140 Russian cities and two production facilities.
The total size of the Offering is 6.2 bn roubles with over-allotment option included. The company’s capitalization reached 15.8 bn roubles after the IPO and the free float will be 39.4% of the increased share capital, including the sale of the Over-Allotment Shares.
The deal follows the appointment last year of five senior hires in BCS’s Investment Banking team, aimed at expanding BCS’ business and capabilities. BCS’s success in completing the deal is evidence of the success of this strategy, and will form the basis for further expansion within the Russian Investment Banking market.
- said Azer Mamedov, Managing Director, BCS Global Markets
We are fully satisfied by the results of the Obuv Rossii placement. This transaction became in many ways illustrative, like similar transactions of the recent period. It demonstrates a high level of investors’ interest in mid-size high quality companies. As a result, we managed to put together a diversified order book, inter alia, thanks to the retail tranche. We hope that this IPO will open the way for other Russian mid cap issuers to the Russian equity market.
The forum, entitled MOEX — New York Session, saw leading industry figures and senior Russian policymakers convene to discuss the latest developments impacting Russian financial markets.
Among the esteemed attendees, Roman Lokhov, CEO of BCS Global Markets participated in a panel discussion Trading Russia. The discussion covered Stocks, bonds, FX, derivatives and considered the current opportunities and challenges facing the world’s most diversified public marketplace – the panel was moderated by Alexander Afanasiev, CEO, Moscow Exchange.
Joining Roman on the panel were a number of well known industry figures, including:
Matt Seto, Partner, GMO,
Rohit Сhopra, Senior Portfolio Manager, Lazard
Alexey Bolshakov, CEO, Citigroup Global Markets Russia,
Ryan Tollit, Senior FX Trader, Bank of America Merrill Lynch
Olga Yangol, Portfolio Manager, HSBC Asset Managemen
The forum, in partnership with Citi, deliberated wider industry opportunities and challenges, bringing together leading equity and fixed income fund managers.
On the eve of the Forum, BCS Global Markets and Wood & Co together with comunications agency EM sponsored a cocktail reception for over 50 clients. The guests enjoyed an evening of networking and kicked off this annual event in high spirits.
BrokerCreditService (Cyprus) and BCS Structured Products have been upgraded by S&P Global Ratings as a result of improved funding and stable outlook
Moscow, September 18th 2017 – BCS Global Markets, the largest securities broker on the Moscow Exchange, today announced that core group entities BrokerCreditService (Cyprus) Ltd and BrokerCreditService Structured Products PLC have been upgraded from B to B+.
S&P Global Ratings raised its long-term counterparty credit and also affirmed the ’B’ short-term counterparty credit ratings thanks an improved funding profile for the BCS Group. S&P explained that its improved view was based on the higher reliance on equity, deposits, and notes issued under structured products in the funding mix rather than on short-term wholesale funding at the BCS entities. This is reflected in the stable funding ratio, which has improved to around 100% in 2016-2017 from 70% in 2013-2014.
The assessment is further supported by BCS’s access to collateralised facilities from the Central Bank of Russia via its subsidiary bank if needed, which somewhat differentiates it from most domestic peers.
We are delighted that S&P has upgraded BrokerCreditService (Cyprus) Ltd. and BrokerCreditService Structured Products PLC, which acknowledges BCS’s commitment to continued stability. At BCS, we have invested heavily in both people and platform and we are now beginning to reap the benefits with not just solid growth in profits but also with a level of stability that is now being recognised internationally. This upgrade strengths our hand for the future expansion of our businesses and to continue to deliver excellence to our clients.- said Roman Lokhov, CEO of BCS Global Markets
BCS Global Markets advances 3 spots in the 2017 II Russian research survey ranking #7 in Russia rising from the 10th position in last year’s results.
Most importantly, BCS research team is now the #1 non-state research house among Russian brokers, according to II.
The progress in rankings is a great achievement and a reflection of the efforts by all analysts and production team to build the product. We have committed to developing the franchise further and the planned new product pipeline should improve our rankings further in the II Survey with next year’s target being to rank as the Top 5 house, ultimately becoming a #1 source of research in Russia.- said Kirill Chuyko, Head of Research team, BCS Global Markets
BCS Global Markets has recently advised Obuv Rossii, Ltd. on the placement of its Rb 1.5bn 3-year exchange bond – the pilot bond issue on the Moscow Exchange’s new trading segment for midcaps, the Growth Sector.
Requirements for inclusion on the Growth Sector are set out in the latest version of the listing rules that come into force on 24th July 2017 which provide that a security can be included on the Growth Sector if the issuer has operated for more than one year and that the previous year’s revenue did not exceed Rb10bn.
The new initiative has received support from various bodies, including the Industry Development Fund, the Russian Direct Investment Fund, SME Corporation and the Russian Export Centre. Those bodies who have joined in support have done so in order to ensure that the project centres on collaboration and education.
We are delighted to have been involved in this pioneering placement on the Moscow Exchange’s Growth Sector. At BCS Global Markets, we believe that this new initiative has transformative potential, encouraging development of the midcap sector and attracting new names and investment into capital markets.- said Roman Lokhov, CEO of BCS Global Markets
BCS co-sponsored the ISLA’s 26th Annual Securities Finance and Collateral Management Conference in Berlin.
This is an annual event focused primarily at groups and individuals involved in the daily operational and post trade flows associated with the Securities Finance business. Conference consisted of sessions, discussions as well as keynote presentations, all designed to allow delegates to explore a number of key issues in more detail and provide an interactive platform for debate. The event attracted more than 200 delegates from across the industry in Europe.
BCS Global Markets was a Sponsor alongside BNP Paribas, State Street, ING, J.P.Morgan, Nomura, Credit Suisse, Societe General and others.
BCS Repo&SLB has significantly expanded for the last few years becoming a global player in international assets dealing with global international banks and clients. This year we were among the main sponsors co-hosting one of few events at the conference- comments Ashot Minasian, Head of International REPO, BCS Global Markets
BCS was a Sponsor alongside BNP Paribas, State Street, ING, J.P.Morgan, Nomura, Credit Suisse, Societe General and others.
Prior to joining BCS Global Markets Andrey worked as Senior Vice-president at JSCB Rossisky Capital.
Andrey has started his career in 1992 and brings almost 25 years experience in finance and investment banking. Before joining BCS Global Markets, Andrey has held management positions at OJSC CB Bank Austria, CJSC UniCredit Bank, Deutsche Bank, JSC VTB Bank and OJSC Bank of Moscow.
Andrey graduated from the Finance Academy under the Government of the Russian Federation with honours. He also received Ph.D. in Economics.
We are convinced that Andrey’s experience and professionalism will be highly useful for the company and will help us maintain a high standard of services and expand the range of our services.- Mikhail Butrin, Chief Business Officer Capital Markets and Investment Banking, Russia and CIS, BCS Global Markets said of the hire:
BCS Global Markets is delighted to have entered Thomson Extel’s 2017 Top 5 brokerage firm ranking in Russia, rising from 12th position in last year’s results.
The BCS ranking included Kirill Chuyko, Head of Research, at 2nd spot for metals and mining research, while Oleg Petropavlovskiy, Senior Analyst, was ranked 3rd.
Vyacheslav Smolyaninov and Penka Shopova were top 3 in strategy and Equity sales sectors. Olga Naydenova was ranked 5th for Banks and other financials.
This success demonstrates the deep talent we have here at BCS. We have a versatile team working closely together across our execution, research and sales units in order to provide world class service to our clients and counterparties. As we enter a MIFID II environment, I am confident that BCS will build on its recent success in order to provide the brokerage service that is expected from one of Russia’s leading Investment Banks- commenting on the rankings Yossi Dayan, Head of Markets, BCS Global Markets said
BCS co-sponsored the IHFA’s (The Israel Hedge Funds Association) Conference at the Tel Aviv Stock Exchange, Israel. The event is the 5th annual gathering of Israel’s alternative asset management industry and the 2nd year BCS is attending the event.
The conference brought together local and international hedge fund managers, Israeli and international institutional investors, and local and global service providers Yossi Dayan, Head of Markets business division, participated in the main session along with Eric Maidenberg (Managing Director hedge fund solutions, UBS), Leor Shapiro (Head of Cap intro, Jefferies) and Oliver Druce (Head of cap intro Societe Generale).
The Gala took place during the International Petersburg Economic Forum, inviting 400 guests to experience the renowned "Salvador Dali" Surrealist and Classic exhibition with musical entertainment by the highly esteemed tenor Alessandro Safina – presented by the popular Gosha Kutsenko.
Guests included prominent figures from the financial world, such as a billionaire James Rogers, the president of the BCS Financial Group, Oleg Mikhasenko, the chairman of East Capital Peter Hakansson Elam and the co-owner of the Adamant holding Michael Bazhenov.
Outside of finance, public figures from the arts were also in attendance, including the president of the "Usadba Jazz" festival, Maria Semushkina, the TV host, Nicka Strizhak, the writer Eugene Vodolakzin and artist Sergei "Africa" Bugaev attended the evening.
This is the second time BCS and Faberge Museum have come together to combine the arts and business for a festive evening for clients and friends and they hope to continue this tradition in the coming years.
The conference was focused on the current market environment in the region, including investment flows, growth forecast and access to capital markets. Key industry experts led a series of experts on accessing capital and trading.
Two of our key speakers took part in the panel discussions.
Roman Lokhov, CEO BCS Global Markets gave significant input into round table discussion Current Trading Environment and Flows in Russia, CIS and CEE while Matthieu Ressencourt MD, Head of Equity Derivatives, contributed to discussions on panel Russian Derivatives Landscape: Challenges and Opportunities in 2017, moderated by CEO of Turquois, Robert Barnes.
BCS Global Markets recently adopted a matrix management structure to promote greater oversight and synergies across geographies and business lines. Headcount at BCS UK has grown to over 170 since the beginning of 2017 - with the establishment of a branch in Moscow of the FCA regulated UK entity, that now encompasses the entire operations and business support functions of BCS Global Markets. The new structure addresses this change in order to ensure robust controls remain in place as the company expands.
Tim Bevan was recently promoted to Global Head of Prime Brokerage, extending his remit to cover prime business in Russia and establishing the wealth management division within the investment bank, while Bradley Duke joined BCS last year as regional Head of UK, Europe and the US.
The co-CEO structure ensures an equitable spread of administrative responsibility recognising the growth in demands from the business lines as they expand throughout the regions where BCS operates.
Roman Lokhov, CEO, BCS Global Markets, said:
"I believe that appointing Tim and Bradley as co-CEO of BCS UK is the optimal solution for addressing both business and administrative demands. I have known Bradley and Tim for a long time and have worked with them in several organisations over the last 15 years. We share a unified vision and, at such an important stage of our company’s growth, two CEO’s in the UK means the burden of major areas of responsibility can be shared allowing each greater flexibility to reflect, innovate and execute."
The Forum was opened by Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs and addressed key topics such as the efficiency of institutes for development, change of paradigm of institutes for development in the mid-term perspective, experience of undergoing appropriate expertise, scientific monitoring and expert analytics for projects and their support and promotion.
Organised by the Committee of the Russian Union of Industrialists and Entrepreneurs for the Investment Policy, the Forum also hosted the practical session PROMIR– Industry. Institutes for Development".
The session looked into topics including funding options for small and medium businesses in the securities market, financial support of projects, project financing with participation of banks, non-finance resource and advisory and expert support of projects.
Roman Lokhov, Chief Executive Director, BCS Global Markets participated the session with the report entitled: "Potential of attracting financing for SMEs through financial instruments". Other participants of the roundtable included Margolit Gennady, the Executive Director for the Innovations and Investments Market, Moscow Exchange, Avtukhov Mikhail, Deputy Chairman of the Management Board, Sovcombank, Zhelezko Oleg, Managing Partner, Da Vinchi Capital, and other representatives of the financial market.
On 14 March, BCS Global Markets held the first conference Russia Rising Stars High Yield Bonds, an event organized for issuers of high-yield bonds and private investors.
The conference took place at Swissotel Krasnye Holmy with over 50 guests gathered. The event was kicked off by Aleksey Kupriyanov, Head of Debt Capital Markets Department, followed by Leonid Ignatiev, Senior Analyst of Prime Brokerage Department, with an overview of high-yield bond market.
Investors had an opportunity to meet with representatives of such companies as Polyplast, Element Leasing, Leader-Invest, HC Finance (Home Credit Group), RSG-Finans (KORTROS) and 4Finance S.A. (FINSTAR).
This is the first conference on the bond market of such kind. We were very pleased to see that investors expressed a lot of interest in the conference and plan to arrange such events on a regular basis going forward.- comments Aleksey Kupriyanov, Head of Debt Capital Markets Department
Wendy Langridge, Head of Compliance & Corporate Governance, BCS Global Markets has joined the Steering Committee of the Securities Houses Compliance Officers Group (SHCOG), London’s leading Compliance Officers Industry Group. In joining the committee, Wendy sits alongside representatives from EU and US Tier 1 banks and financial institutions such as Deutsche Bank, Nomura International, Macquarie, UBS, HSBC Merrill Lynch and Barclays and is the first ever committee member to be invited from a Russian Institution.
SHCOG was set up in 1986 as an educational body, run “for Compliance by Compliance” with members of more than 100 international financial institutions. The group’s primary objective is to provide a forum for further education and training of compliance officers and foster networking between compliance officers from different firms and countries.
As well as holding monthly events, it runs TECC (The European Compliance Conference), a leading international forum featuring senior speakers from the EU Commission, Regulators, Law Firms and Compliance Practitioners and attended by firms from over 20 countries.
This is an excellent opportunity to further enhance BCS’s regulatory profile and collaborate with senior regulatory practitioners to develop programmes for the global compliance community.- said Wendy Langridge
In an interview with RBC TV, Roman Lokhov, CEO of BCS Global Markets, shared his views on the current trends across the investment banking industry.
Roman discussed the potential risks on the horizon, and the development of Russian financial markets. He also explained BCS Global Markets position in the market, and plans for the future.
BCS Global Markets had a visible representation at the European Equity Derivatives conference in Barcelona earlier this week. The event is the biggest equity derivative focused event in Europe and attracted over 400 participants.
BCS was a global Sponsor alongside BoA Merrill Lynch, CBOE, Deutsche Bank, Susquehanna, UBS and LSE.
The event started with a BCS-Eurex buyside only workshop focused on Russia where Head of Equity Derivatives Trading Matthieu Ressencourt and Head of Markets business division, Yossi Dayan presented BCS capabilities and their views on the market.