Assignment on Investment Plan
Added on -2020-07-22
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INVESTMENT PLAN 2018
Table of ContentsINTRODUCTION...........................................................................................................................1GLOBAL ECONOMY....................................................................................................................1INDUSTRY ANALYSIS................................................................................................................2COMPANY ANALYSIS.................................................................................................................3Key financial results for FY 2016................................................................................................3Profitability performance.............................................................................................................4Liquidity performance..................................................................................................................5Impact of Brexit on Bluefine Europe LLP...................................................................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONIn globalized economy, investors make rationalized investment with the target to gainmaximum return. Bluefin Europe LLP is a London based market making company withspecialization in Exchange Traded Funds (ETFs) and offer liquidity and block trading facilitiesfor Bonds, emerging markets and commodity ETFs. It operates in financial sector and registeredoffice situated in London. The investment proposal aims at critically examining the company inthe context of global economy and the industry contribution to the UK economy. It will analyzeeconomic trends, governmental rules and regulations that company needs to follow. Besides this,company analysis section covers key attention on its profitability, turnover and its prospectiveoutlook. GLOBAL ECONOMYGlobal financial sector- It is a global framework of legal agreements, institutions, andpossess both economic factors that is formal and informal. For the purpose of investment andtrade financing them together, facilitate international flows of financial capital. In the last 5 yearsthe global financial sectors has underperformed the global equity market. The slow economicgrowth, low or negative interests rates etc. are been faced by this sector. In the international tradeand investment world migration and communication technology facilitate unprecedented growth.Towards the greater stability, the global financial system is edging, with different regional ornational needs the government need to deal.Considering the worldwide importance of the financial sector, it becomes clear thatfinancial service providers plays an inevitable role in the economy and contributes a significantpercentage to the economic growth. Referring UK, Bluefin Europe LLP is one of the leadingestablishments at the domestic marketplace who is engaged in B2B services through providingpriorietary trading facilities at exchange futures and exchange traded funds. Proprietary tradingfunctions including trading key securities such as bonds, currencies, commodities and otherfinancial instruments with the firm’s money. It is regulated by the FCA (Financial conductAuthority) & FSA (Financial Service Authority). 1 | Page
INDUSTRY ANALYSIS UK financial sector is a significant and vital contributor to the UK economic growth. Itcontributes 12% to the UK GDP. Currently, the British banks carried out most of the functions inEurope either directly or indirectly. In the past year, the financial sector had contributedfavorably to the economy with total tax revenues of GBP 72.1 bn. Despite such wonderfulgrowth and upheaval, Bexit may bring various opportunities and regulatory changes for theeconomy. As per the current market conditions and economic outlook, it is seen that post-brexitbring pressure on the government to take necessary steps to secure favorable trading conditionsfor the Britain’s financial sector. As the sector is a major contributor to the economic growth,therefore, it is necessary for the regulatory authorities to secure the sector. It is because, theindustry employed a significant proportion of population, and post-brexit brings risk to increaseunemployment rate as many of the worker may lose their jobs (Thibierge and Beresford, 2015).If it occurs, then it will have ultimate impact on the taxation revenues of the sector. However, onthe other side, it offers opportunity for expansion and benefits the sector via providing skilledand talented workforce, which enables economy to gain leading position across the world. It mayalso bring requirement for the existing companies to restructure their existing operations.Institutional brokers play a major role in financial sector who buys and sells differentkind of securities for the institutional investors i.e. banks, mutual funds and others. In return forsuch services, they charge commission fees that are typically less than retail broker. BluefinEurope LLP is a medium sized company in UK that is incorporated on 14th August 2008. Themarket leader in UK domestic securities is engaged in proprietary trading functions at exchangefunds. In the economy, country need to follow several rules and regales and Financial ConductAuthority is one of the main regulatory authority who is accountable for business conduct,maintain efficiency of the financial market, protect consumer rights and promote effectivecompetition (Dörry, 2017). Besides this, FSMA (Financial Service and Markets Act 2000) and Prudential RegulationAuthority (PRA) legislations needs to be complied with by the company. PRA is the prudential2 | Page
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