Latest news with #Series7
Mint
2 days ago
- Business
- Mint
Brokers push back as Sebi wages war on speculation
Brokers and market intermediaries are pushing back at tighter supervision looming over the derivatives market, as mounting losses among retail investors drive the regulator to consider fresh measures. A week after Mint reported that the Securities and Exchange Board of India (Sebi) may overhaul the weekly contract expiry schedule if its recent curbs failed to cool the options fever, a brokers' association met Sebi chairman Tuhin Kanta Pandey as part of a routine meeting. A broker who attended the Association of National Exchanges Members of India's (ANMI) 15 July meeting said industry representatives implored the regulator not to discontinue weekly expiries. Sebi may move from the current weekly expiry regime to a single expiry every fortnight, severely curtailing trading opportunities, Mint had reported on 9 July. 'Irreparable damage' 'Removal of weekly expiry will cause irreparable damage to market liquidity and risk management," the broker said. ANMI also called for removing the 2% extreme loss margin on expiry day and reinstating calendar spread benefits, arguing these steps would reduce trading costs and align Indian markets with global standards. Also Read: Sebi flags expiry-day derivatives surge as retail losses top ₹1 trillion Brokers instead suggested Sebi could consider limiting access to weekly options trading to investors who pass a certification—akin to the US Series 7 licence—demonstrating knowledge and risk awareness. Additionally, Sebi could also impose minimum net worth or trading capital requirements and permit only those contracts with adequate open interest and notional-to-premium ratios. The regulator has been focusing on the frenzy in derivatives for a while. 'Adverse consequences' On Thursday, Sebi whole-time member Ananth Narayan G. said at an event, 'On expiry days, comparable turnover in index options is often 350 times or more the turnover in the underlying cash market—an imbalance that is obviously unhealthy, with several potential adverse consequences." He cited Sebi's latest research, which found 91% of individual traders ended FY25 with net losses in futures and options, with aggregate losses exceeding ₹1 trillion. Narayan emphasized, 'There is no question that derivatives and indeed, speculation are vital for price discovery, hedging, and ensuring market depth. But certain trends in our equity derivatives ecosystem have warranted a closer look for a while now." He also acknowledged the potential concerns of market infrastructure institutions, brokers, and other intermediaries, whose revenues may depend heavily on these short-term derivative volumes. "But we must ask ourselves collectively – is all this at all sustainable?", he wondered. Sebi's case rests on growing evidence that short-term contracts, particularly weekly options, have caused 'an unhealthy imbalance in market structures." Will it backfire? However, brokers warn that shutting the door on weekly expiries could backfire. Kamlesh Shah, managing director at Share India Securities and former ANMI president, argued, 'To ban a product is not the solution. The product is in line with international practices where short-term contracts are favoured the most. Banning weekly products may create unwarranted volatility... We have technology available to protect the market from undesirable practices. In addition to that, to protect interest of retail investors, we may introduce product suitability... We therefore feel that the current guideline for weekly contract may continue." Shah of ANMI also made the case for reinstating Bank Nifty as a weekly/fortnightly contract: 'Bank Nifty has been by far the best product India market had ever held. By allowing one benchmark contract for weekly options, Bank Nifty contracts were removed from weekly cycle... We believe that this contract is necessary for shorter duration, keeping in view volatility of the market and international events." Also Read: Lost money to securities fraud? Don't count on a payout from investor protection fund The recent regulatory thrust also follows Sebi's interim order against US-based Jane Street, a major liquidity provider, for alleged manipulation on expiry days. The regulator ordered the seizure of ₹4,800 crore in alleged unlawful gains. While praised for acting against manipulation, the move triggered concerns about new compliance burdens and market uncertainty. "Given the context of the large trading in index options, the regulator wants to see if its recent measures result in a meaningful dip in volumes over the next few weeks. If there isn't much of an impact, fresh proposals could be considered after a due consultative process," the broker cited earlier said. 'Weekly options necessary' K. Suresh, current ANMI president, added, 'Weekly option is required for the purpose of hedging—the only thing is that it should be least disruptive to the market... In the absence of speculators, there will be lull in the market. Sebi should bring in some surveillance—to avoid mischiefs like Jane Street... exchanges have good surveillance, they can stop those trades which will prevent losses to investors." Sebi's policy revamp began in October 2024, with limits on weekly expiries, increased contract lot sizes, higher margins, the withdrawal of calendar spread benefits, and rigorous intraday checks. Further steps in May 2025 targeted position limits, disclosures, and risk metrics. A Sebi study on trading activity in the equity derivatives segment (EDS) released on July 7 found that while the premium turnover of index options was down 9% during December 2024 to May 2025, it was still up 14% from the same period two years ago. Moreover, while the turnover of individuals in premium terms was down 11% year on year, it was up by 36% from the same period two years ago. Also, while the number of unique individuals trading in EDS was down 20% from a year ago during December-May, it was up 24% from two years ago. Heavy trading "India continues to see a relatively very high level of trading in EDS, compared to other markets, particularly in index options," the study found, adding that 91% of individual traders incurred a net loss in FY25, a trend similar to that in the preceding fiscal year. Also Read: Sebi proposes to standardize valuation methods of gold, silver ETFs Brokers have complained of a liquidity crunch, as F&O turnover plunged and bid-ask spreads widened. 'Trading costs are up, and it's the retail segment that is getting squeezed," a broker said on condition of anonymity. While Sebi's intent is retail protection, some worry that traders are being pushed into riskier monthly contracts or even to unofficial markets and crypto substitutes, where regulatory oversight is absent. Sebi officials have maintained that moderating speculative excess is a work in progress, not a one-off. Narayan said at the event, 'We must look to improve the quality of our derivatives market by extending the tenure and maturity of the products and solutions on offer. This specialized area requires ongoing constructive debate and work."
Yahoo
5 days ago
- Business
- Yahoo
First Solar Gains 29.3% in Past 3 Months: Should You Buy the Stock?
Shares of First Solar Inc. FSLR have gained 29.4% in the past three months, outperforming the Zacks solar industry's growth of 28.5%, as well as, the Zacks Oil-Energy sector's increase of 13.5% and the S&P 500's rise of 18.9%. Image Source: Zacks Investment Research A similar stellar performance has been delivered by other solar stocks, such as Canadian Solar (CSIQ) and SolarEdge Technologies (SEDG), which have outperformed the industry in the past three months. Shares of CSIQ have gained 86.2%, while shares of SEDG have gained 113.9%. With FSLR's robust performance on the bourses, some investors may consider buying the stock right away. However, before taking any decision, it is important to understand the reasons behind this robust performance. Does the company have what it takes to continue this momentum, or are there risks that may affect its future growth? The idea is to help investors make a more insightful decision. FSLR's robust performance on the bourses seems to have been influenced by its aggressive expansion plans. As the largest solar PV manufacturer in the Western Hemisphere, First Solar has been steadily increasing its production capacity to support future sales growth to meet the rapidly expanding global solar demand. In the second quarter of 2025, it started commercial operations at its fourth U.S. manufacturing facility. This apart, First Solar's ambitious plan to add around four gigawatts (GW) of new capacity, including a fifth U.S. facility, is expected to start operations in the second half of 2025 and thereby achieve an annual manufacturing capacity of more than 25 GW by the end of 2026, should bode well for its long-term performance. Also, a recent upgrade in this stock's target price may have added impetus to investors' confidence and thereby bolstered FSLR's share price. In the first week of this month, Royal Bank of Canada raised their price target for FSLR from $188.00 to $200.00, with an outperform rating on the stock currently per a report by MarketBeat). Looking ahead, FSLR's growth prospects are backed by its ongoing capacity expansion and strong demand outlook for solar energy, both of which are expected to drive its performance in the coming years. The company aims to sell 15.5-19.3 GW of solar modules (by 2025-end), which should bolster its revenue stream. As of March 31, 2025, First Solar entered into contracts with customers for the future sale of 66.1 GW of solar modules for an aggregate transaction price of $19.8 billion, which it expects to recognize as revenues through 2030. Solid revenue growth should duly aid the company's bottom line as well. In line with this, the Zacks Consensus Estimate for FSLR's long-term (three to five years) earnings growth rate is pegged at 34.5%, better than the industry's growth rate of 23.1%. However, First Solar experienced manufacturing issues related to certain Series 7 modules produced in 2023 and 2024. As a result, the company incurred notable warranty charges in recent quarters. Going forward, warranty-related expenses linked to these Series 7 modules are expected to total between $56 million and $100 million, which could negatively impact its operational performance. Additionally, in April 2025, the U.S. President announced a 10% 'baseline' tariff on most trading partners, including Vietnam, India and Malaysia, along with increased tariffs on select countries. Although the higher tariffs have been paused for 90 days, the 10% tariff remains applicable to most nations. Since First Solar manufactures modules in these regions, the tariffs could increase production costs, affect international operations and weigh on overall results. The company has already revised its 2025 guidance downward to reflect the anticipated impact of these tariff changes. Now let's take a quick sneak peek at its near-term estimates to see what trend they reflect. The Zacks Consensus Estimate for FSLR's 2025 and 2026 revenues indicates a solid improvement of 18.2% and 18.3%, respectively, from the prior-year levels. The estimate for its earnings also indicates a year-over-year improvement. Image Source: Zacks Investment Research However, the downward revision in its near-term quarterly and annual (except 2026) estimates over the past 60 days indicates investors' declining confidence in the stock's earnings generation capabilities. Image Source: Zacks Investment Research FSLR shares are expensive on a relative basis, with its forward 12-month Price/Sales (P/S F12M) being 3.16X compared with its industry average of 1.27X. Image Source: Zacks Investment Research Its industry peers, CSIQ and SEDG, are trading at a discount in comparison with FSLR. CSIQ is trading at a P/S F12M of 0.13X, while SEDG is trading at a P/S F12M of 1.30X. Investors interested in FSLR should wait for a better entry point, considering its premium valuation, downward revision in near-term earnings estimates and risks associated with tariff imposition. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, taking into account its upbeat sales estimates, solid stock price performance and long-term growth prospects. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Solar, Inc. (FSLR) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Republic Financial Appoints Mike Pruyn to Board of Directors
Veteran capital markets executive brings deep expertise in structured finance and strategic growth to Republic Financial's board. LEXINGTON, Ky., July 02, 2025--(BUSINESS WIRE)--Republic Financial, a privately-held company headquartered in Lexington, Kentucky, today announced the appointment of Michael "Mike" Pruyn to its Board of Directors. Pruyn brings more than 15 years of capital markets experience spanning structured finance and derivatives trading. His appointment underscores Republic Financial's continued focus on strategic growth through product innovation, operational scale, and targeted merger and acquisition activity across the fragmented risky management landscape. Pruyn currently serves in the Asset-Backed Securities (ABS) Banking group at BMO Capital Markets, where he has played a key role since joining in 2016. His expertise in developing complex financial structures across multiple asset classes—combined with earlier roles in derivatives trading at DRW Trading, Integral Derivatives, and Zoo Trading—positions him as a valuable strategic voice as Republic Financial accelerates its national expansion. "I am honored to join the Board of Directors of Republic Financial," said Mike Pruyn, Board Member of Republic Financial. "I look forward to working with the Republic team during a time of critical growth and helping advance the company's mission to protect America's families." Pruyn holds a B.A. in Economics from Northwestern University and an M.B.A. from the McCombs School of Business at the University of Texas at Austin. He also holds FINRA Series 7, 63, and 79 licenses. His insight will help the company strengthen and navigate future capital raises and strategic transactions. "Republic Financial is rapidly expanding," said Richard Shawn, President of Republic Financial. "Mike's background in capital markets and product development, paired with his deep knowledge of structured products, makes him a powerful addition to our Board as we aggressively scale operations, introduce new products, and pursue acquisition opportunities." Republic continues its aggressive growth throughout the United States focusing on delivering innovative solutions in life insurance, mortgage protection, annuities, and identity theft protection. About Republic Financial Republic Financial is a privately held company headquartered in Lexington, Kentucky. Founded by entrepreneur Nate Morris, the company offers innovative insurance and financial products that protect America's families. With a focus on integrity, service, and strategic growth, Republic is a premier provider of risk management solutions in America. View source version on Contacts Republic FinancialCatherine Brady859-399-3683Press@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
02-07-2025
- Business
- Business Wire
Republic Financial Appoints Mike Pruyn to Board of Directors
LEXINGTON, Ky.--(BUSINESS WIRE)--Republic Financial, a privately-held company headquartered in Lexington, Kentucky, today announced the appointment of Michael 'Mike' Pruyn to its Board of Directors. Pruyn brings more than 15 years of capital markets experience spanning structured finance and derivatives trading. His appointment underscores Republic Financial's continued focus on strategic growth through product innovation, operational scale, and targeted merger and acquisition activity across the fragmented risky management landscape. Pruyn currently serves in the Asset-Backed Securities (ABS) Banking group at BMO Capital Markets, where he has played a key role since joining in 2016. His expertise in developing complex financial structures across multiple asset classes—combined with earlier roles in derivatives trading at DRW Trading, Integral Derivatives, and Zoo Trading—positions him as a valuable strategic voice as Republic Financial accelerates its national expansion. 'I am honored to join the Board of Directors of Republic Financial,' said Mike Pruyn, Board Member of Republic Financial. 'I look forward to working with the Republic team during a time of critical growth and helping advance the company's mission to protect America's families.' Pruyn holds a B.A. in Economics from Northwestern University and an M.B.A. from the McCombs School of Business at the University of Texas at Austin. He also holds FINRA Series 7, 63, and 79 licenses. His insight will help the company strengthen and navigate future capital raises and strategic transactions. 'Republic Financial is rapidly expanding,' said Richard Shawn, President of Republic Financial. 'Mike's background in capital markets and product development, paired with his deep knowledge of structured products, makes him a powerful addition to our Board as we aggressively scale operations, introduce new products, and pursue acquisition opportunities.' Republic continues its aggressive growth throughout the United States focusing on delivering innovative solutions in life insurance, mortgage protection, annuities, and identity theft protection. About Republic Financial Republic Financial is a privately held company headquartered in Lexington, Kentucky. Founded by entrepreneur Nate Morris, the company offers innovative insurance and financial products that protect America's families. With a focus on integrity, service, and strategic growth, Republic is a premier provider of risk management solutions in America.
Cision Canada
24-06-2025
- Business
- Cision Canada
TD Bank Announces Redemption of Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 7 (NVCC) Français
TORONTO, June 23, 2025 /CNW/ - The Toronto-Dominion Bank ("TD Bank Group" or "TD") announced today that it will exercise its right to redeem all of its 14 ,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 7 (Non-Viability Contingent Capital) (the "Series 7 Shares") on July 31, 2025 at the price of $25.00 per Series 7 Share for an aggregate total of approximately $350 million. The redemption has been approved by the Office of the Superintendent of Financial Institutions. On May 22, 2025, TD announced that dividends of $0.2000625 per Series 7 Share had been declared as payable on and after July 31, 2025 to shareholders of record at the close of business on July 10, 2025. These will be the final dividends on the Series 7 Shares, and will be paid in the usual manner on July 31, 2025 as previously announced. After July 31, 2025, the Series 7 Shares will cease to be entitled to dividends and the only remaining rights of holders of such shares will be to receive payment of the redemption amount. Beneficial holders who are not directly the registered holder of Series 7 Shares should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds. Inquiries should be directed to our Registrar and Transfer Agent, TSX Trust Company, at 1-800-387-0825 (or in Toronto 416-682-3860). About TD Bank Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank ®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers. TD had $2.1 trillion in assets on April 30, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
