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Political Turmoil In France and Upcoming Rate Cuts Indicate Potential Euro Volatility, Says deVere CEO

ABC Staff
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Political Turmoil In France and Upcoming Rate Cuts Indicate Potential Euro Volatility, Says deVere CEO

The euro may experience turbulence throughout 2024 due to France’s political turmoil and the European Central Bank’s anticipated rate cut, according to Nigel Green, CEO of deVere Group. Green, from one of the world’s largest independent financial advisory and asset management organizations, made this assessment following an unexpected victory by a left-wing coalition, comprising the Socialists and France Unbowed.

He comments: “The shock outcome has stoked fears over France’s financial stability, sending the euro tumbling by as much as 0.4% before making a slight recovery.

​“With no party securing an outright majority, the political gridlock is poised to stymie effective policymaking and progressive reforms.

​“Although markets might find some comfort in avoiding a far-right triumph, the fragmented vote means legislative paralysis is a real threat.

​“Adding to the euro’s woes, the European Central Bank (ECB) is widely expected to go ahead with another interest rate cut, following one in early June.

​“Rate cuts will weaken the euro by making it less attractive to investors seeking higher returns.”

​Given the euro’s uncertain outlook, investors should consider five strategies to safeguard their portfolios.

​First, reducing reliance on the euro by investing in more stable currencies such as the US dollar and Swiss franc can mitigate risks associated with euro volatility.

Second, utilizing currency-hedged funds can also protect against currency fluctuations, offering a safer investment option amid euro depreciation concerns.

​Third, assets like gold and other precious metals traditionally perform well during economic uncertainty, serving as a hedge against currency weakness and inflation.

​Fourth, working with a financial adviser will help you sidestep the risks associated with the volatility.

​And fifth, investing in emerging markets that have less correlation with the Eurozone can offer growth opportunities and diversification benefits, reducing the impact of euro depreciation.

​Nigel Green concludes: “The euro faces a challenging year ahead, beset by political instability in France and the ECB’s proactive rate-cut strategy.

​“As 2024 progresses, vigilance and adaptability will be key to protecting investments and seizing opportunities amid the euro’s tumultuous predicted medium-term trajectory.”

EIF invests €350 million in Spain-based Kembara

ABC Staff
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EIF invests €350 million in Spain-based Kembara

EIF invests €350 million in Spain-based Kembara, a Deep Tech
and climate growth fund under the European Tech Champions Initiative

  • Kembara Fund I FCR is an innovative €1 billlon Deep Tech and climate focused fund addressing the critical funding needs of growth stage start-ups in Europe.
  • Kembara has been chosen as one of the platforms to scale European Deep Tech and climate champions as part of the strategic European Tech Champion Initiative (ETCI).
  • This is the first ETCI investment in a Spain based fund and it marks a pivotal moment in Europe’s Deep Tech funding landscape.
  • ETCI has mobilised €10 billion public/private resources for investment in European tech champions and is a strong contributor to Capital Markets Union since launching in 2023.
  • ETCI-backed funds have already invested in European start-ups with high growth potential operating in cutting-edge technology, including two Spanish companies.

The European Investment Fund (EIF) has committed €350 million to Kembara Fund I FCR, a €1 billion pan-European fund focused on Deep Tech and climate, managed by Spain-based Alma Mundi Ventures SGEIC (Mundi Ventures).

As the world experiences an unprecedented wave of innovation with technologies like AI, quantum computing, and synthetic biology, Europe, with its top-tier research and talent, is well-positioned to lead in Deep Tech and climate advancements. However, substantial investment is necessary to support the growth of its most promising startups.

Kembara will invest in European Deep Tech and climate companies at the growth stage (Series B and C), primarily in Germany, Spain, France, and Sweden, along with other EU member states. EIF, as the anchor investor, is playing a crucial role in helping the fund reach its €1 billion target through additional investments. The EIF’s support is bolstered by Kembara’s experienced team and unique strategy.

Kembara represents the latest EIF investment in a technology scale-up fund under the European Tech Champions Initiative (ETCI), a fund of funds designed to foster investment in cutting-edge tech startups and drive digital transformation across Europe.

ETCI addresses the financing needs of European tech scale-ups, helping to prevent them from relocating overseas and strengthening Europe’s strategic autonomy and competitiveness. The initiative benefits sectors such as cybersecurity, artificial intelligence, quantum technology, life sciences, Deep Tech, cleantech, and digital technologies. ETCI also plays a significant role in integrating Europe’s financial markets, showcasing the EIB Group’s efforts to pioneer the Capital Markets Union.

“The ETCI initiative was conceived to provide significant backing to large European funds, enabling them to support future European champions with the scale-up financing they need,” commented Marjut Falkstedt, EIF Chief Executive. “We are delighted to support Kembara, and through it, aspiring tech entrepreneurs all over Europe. The ETCI is now really taking shape, making sure that bright ideas can not only start up, but also grow and flourish right here in Europe.”

Kembara will also represent a differentiated offering within ETCI, being its first investment in a fund in Spain and having a strong commitment to Deep Tech and Climate, thereby fostering greater diversity of financing options for European scale-ups. Kembara will back start-ups with strong intellectual property, combining scientific and engineering breakthroughs, including complex hardware and capital-intensive businesses, and focused on frontier technologies like AI, the future of computing, robotics, space tech, advanced materials, and next-generation energy systems. Those technology areas are critical for the EU’s strategic autonomy and economic growth.

Javier Santiso, CEO & founder of Mundi Ventures and co-founding partner of Kembara, emphasised the fund’s mission: “We are honoured to be chosen by the EIF as one of the platforms to scale Europe’s Deep Tech and climate champions. Incremental changes won’t cut it. We are here to back the most ambitious Deep Tech entrepreneurs who want to solve humanity’s most pressing challenges, in particular climate change.”

ETCI impact

ETCI is creating a positive dynamic in the European investor market and the tech ecosystem since launching in 2023. The Initiative has already invested in 8 different scale-up technology funds, including, among others, Kembara Fund I, Atomico Growth VI, a growth fund focusing on partnering with game-changing European technology scale-up founders, FSI II, a fund that supports the growth and expansion of Italian mid-cap companies and Keensight Nova VI, a fund that focuses on cybersecurity, automation and robotics, enterprise software, medtech, and healthcare services.

To date ETCI has mobilised €10 billion public/private resources to support investment in fast-growing high-tech companies. ETCI-backed funds have already invested in European companies operating in areas such as cybersecurity, artificial intelligence, financial technologies, biotechnology, and healthcare.

In Spain, in addition to the first investment in a Spain based fund such Kembara, ETCI backed funds have already invested circa €240 million in two growth phase Spanish companies Factorial and Inke. Combined they represent approximately 20% of the ETCI investments in scale-up companies to date.

The European Tech Champions Initiative is becoming instrumental in nurturing Europe’s tech ecosystem, fostering collaboration, and fuelling the growth of transformative ventures. Through strategic investments and partnerships, ETCI will continue empowering the next generation of European tech champions, shaping the digital future of Europe.

Highlighting Mental Health: Understanding Its Impact on NHS Employee Absences

ABC Staff
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Highlighting Mental Health: Understanding Its Impact on NHS Employee Absences
Uncovering the Causes of NHS Staff Absenteeism: Psychiatric Illnesses Affecting 25.6% of Employees

Psychiatric illnesses are the leading cause of NHS staff absences, accounting for 25.6% of the total. Following this, 15.3% of absences are due to influenza, colds, and coughs, and musculoskeletal problems cause 8.2% of sick leaves. The least common causes, affecting just 0.1% of staff, are burns, frostbite, and hypothermia.

Recent research by personal injury experts at Claims.co.uk analyzed NHS data to identify the primary reasons for staff absences from December 2023. The findings reveal that psychiatric illnesses are the top reason for employees missing work, with 5.5% of the staff being off sick during the study period.

Key Findings:

  1. Psychiatric Illnesses (25.6%)
    • Impact: The primary cause of NHS staff absenteeism.
    • Types: Includes anxiety, stress, and depression.
    • Context: One in four people in the UK experience mental health issues annually, affecting 792 million globally. The high demand and pressure of NHS work, often intense and traumatic, contribute significantly to these conditions.
  2. Influenza, Cold, and Cough (15.3%)
    • Impact: Second most common cause of absences.
    • Description: Influenza is a contagious respiratory illness that can cause mild to severe symptoms and, in extreme cases, be fatal. The high infection risk in healthcare settings necessitates time off for symptomatic staff to prevent the spread.
    • Prevention: Annual flu vaccinations are recommended.
  3. Musculoskeletal Problems (8.2%)
    • Impact: Third leading cause of absences.
    • Description: MSK conditions range from minor injuries to long-term issues affecting joints, bones, muscles, and associated tissues. Arthritis and back pain are the most common.
    • Context: Physically demanding NHS roles can exacerbate these conditions, leading to significant absenteeism.

Conclusion

The study underscores the importance of addressing mental health, flu prevention, and musculoskeletal care within the NHS to reduce staff absences and ensure a healthier, more resilient workforce.

In fourth place is Gastrointestinal Problems. 7.3% of absent NHS staff are affected by these issues. Gastrointestinal issues can range from mild to severe symptoms and the most frequent signs of such issues include abdominal pain and discomfort, diarrhoea, bloating, flatulence, and constipation. Some symptoms can be caused by an intolerance or food poisoning which can be easily treated but it is important to note it could be a potential sign of a digestive disease if the issue persists. These diseases could range from gastroenteritis, celiac disease, IBS and many others. 

Other Unknown Causes were named as the cause for 6% of those who are off work, placing this cause of staff absence in fifth. 

The sixth reason, with 4.5% of those who miss work, is caused by Injury Fracture. Depending on how severe a fracture is and in which place can have a potentially significant impact on employees who work in the medical industry. A fracture generally takes between 6 and 12 weeks to heal substantially with the help of medication and physical therapy for less severe fractures such as avulsion, hairline, and greenstick. Clean breaks such as transverse fractures can be a lot more complicated to heal and can take up to six months for a full recovery. 

Back Problems are the seventh most common cause for NHS Staff absences, listed as the cause for 3.9% of employees taking time off work. Back pain can be caused by many reasons including a pulled or strained muscle and sometimes due to medical conditions such as slipped disc, sciatica or ankylosing spondylitis which can lead to extreme discomfort. Working in the NHS, many jobs require a lot of movement, and a severe back injury can have detrimental effects on your ability to work if not fully healed. 

In eighth place is Endocrine and Glandular problems and Genitourinary and Gynaecological Disorders which are named as the cause for 3.2% of staff absences amongst the NHS. Endocrine and Glandular problems can happen due to imbalanced hormonal levels within your endocrine system. The endocrine system affects how your heart beats, bones and tissues grow and your ability to reproduce, so disorders within the system can be life changing. Problems within the endocrine system can lead to diabetes, growth disorders, thyroid disease and other hormone-related disorders which could affect your ability to work in some cases. 

Genitourinary and Gynaecological Disorders can include urinary tract infections (UTI), kidney stones and interna cystitis, less harmful disorders that can be treated easily. On the other hand, there are more extreme problems such as hernias, ovarian cysts, and polycystic ovary syndrome (PCOS), amongst others which may require surgery and a prolonged absence from the workplace. 

Infectious Disease & Unknown Causes are the ninth most common cause, listed by 2.8% of NHS staff absent from work. According to the Mayo Clinic, infectious diseases can be caused by bacteria, viruses, fungi, and parasites which are easily transmittable. Whether it may be a common disease or has been transmitted from a foreign country, direct contact with a person or animal with such infection can easily spread on a wide scale, a prime example being Covid-19. There are also indirect forms of transmission such as insect bites, food contamination or from inanimate objects like door handles or taps. 

Benign or Malignant Tumours and Cancer were named as the tenth cause for 2.6% of those who are off work. Benign Tumours which are non-cancerous are typically harmless unless they are pressing on nearby tissues or nerves, taking up space within the brain or effecting hormone production. In this case, the tumour would need to be removed and take a significant amount of recovery time. Malignant Tumours, which are cancerous, and Cancer itself can be aggressive and appear anywhere within the body. They can both be fast growing and spreading and require aggressive treatment which can include either or both radiotherapy and chemotherapy. Provided the treatment is a success, it can take a long time to recover from the intensity of it once in remission. 

Burns, Frostbite and Hypothermia is the least common cause of NHS staff absence, with 0.1% of employees who are off work listing these issues as the reason.

A spokesperson from Claims.co.uk has commented on the findings: 

“Working in the NHS can be a highly demanding job and there is widespread of workforce shortages and staff burnout due to the consistent pressure put upon them. There are not enough doctors and nurses in the UK to meet the demands of patients and it can take a toll on their health, especially mental health as the data highlights. 

“The NHS is one of the most important services across the nation and without it, the entire UK would struggle to get by. It is vital to bear in mind that key workers also end up as patients at some point in their lives and their health is just as important as anyone else’s.” 

UK Stocks Expected to Soar This Year – Labour’s Victory Not Attributed As the Reason

ABC Staff
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UK Stocks Expected to Soar This Year – Labour’s Victory Not Attributed As the Reason

UK stocks are anticipated to achieve substantial gains throughout 2024, but according to Nigel Green, CEO of one of the world’s largest independent financial advisory and asset management organizations, this surge will not be attributed to Labour’s landslide victory in the election.

Green, from deVere Group, makes this bullish prediction following the modest rise in UK equities post-Labour’s general election triumph.

He explains, “UK stocks appear to have disregarded the Labour win for three main reasons.”

“First, expectation had been widely priced-in by the markets, so the reaction was muted. Second, the short-term uncertainty of the election is over; and third, we will likely see a period of stability of government and policy making – which markets like.

“However, we expect that UK stocks are, indeed, likely to secure considerable gains for the rest of 2024 – but it is not Labour’s landslide victory that’s driving this narrative.

“It’s history and investor behaviour that are the real game-changers here. Traditionally, low valuations attract savvy domestic and foreign investors eager to snap up undervalued assets. And the UK market is ripe for such a resurgence.”

The FTSE 100 is, says Nigel Green, “trading at a massive discount compared to its historic averages.”

Over the last five years, the index has seen an average trailing PE ratio of 14.9x, with the past decade averaging 16.3x. Now, it’s significantly lower. European indices also show discounts, but nowhere near as steep. Meanwhile, US indices are basking in valuations above their 10-year averages.

“We expect that the real action will be driven by the fundamentals – low PE ratios and the historical tendency for undervalued markets to rebound.”

He continues: “With the UK market in such discounts, investors are likely to return in droves.

“This isn’t just speculation; it’s a pattern observed time and again. When markets are undervalued, they attract attention.

“Savvy investors—both local and international—are poised to dive back in, seeking to capitalize on the attractive valuations.”

But it’s not just individual investors who will be eyeing these opportunities.

“Competitors and private equity firms are expected to ramp up takeover activity, seizing the chance to acquire undervalued UK companies. Additionally, UK firms may increase share buybacks, aiming to boost shareholder returns and take advantage of their own low valuations.”

The deVere CEO conclude: “While Labour’s landslide victory provides a stable backdrop, it’s not going to be the primary driver of the gains we predict for UK stocks this year. The ultra-low valuations are the true attraction, and history suggests they won’t linger forever.”

Pendleton Court Care Home hosts ‘Dancing Through the Decades’ event for Care Home Open Week 2024

ABC Staff
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Pendleton Court Care Home hosts ‘Dancing Through the Decades’ event for Care Home Open Week 2024

Pendleton Court Care Home celebrates ‘Dancing Together Through the Decades’ event with the local community during Care Home Open Week 2024.

Pendleton Court Care Home, operated by HC-One and located in Salford, Manchester, welcomed visitors from the local community to join in this year’s Care Home Open Week celebrations held from June 24th to 30th, 2024, with HC-One’s main events scheduled during Care Home Open Weekend from June 28th to 30th.

Pendleton Court was pleased to open its doors for Care Home Open Week, inviting residents, staff, friends, family, and the broader community to participate in the festivities. This national event, organized by Championing Social Care, aims to foster connections between care homes and their neighborhoods, offering tours of facilities and showcasing the range of services and activities available to residents.

HC-One chose the theme ‘dancing together through the decades’ for this year’s Care Home Open Week. Throughout the week, residents, staff, families, and friends enjoyed various engaging activities, culminating in a celebratory event at the end of the week.

On June 26th, Pendleton Court Care Home hosted a full day of activities, entertainment, and refreshments organized by Wellbeing Coordinator, Lesley Moore.

The theme was 1920s ‘Great Gatsby, which included a live performance from singer Poppy Holiday. Residents wore costumes with lots of accessories such as feather boas and strings of pearls, the gents had hats and bow ties, so they all felt special. Lesley had two flapper dresses and gave them to resident Kath and her twin sister, Maureen to wear for the party.

After the terrific entertainment, everyone enjoyed an amazing buffet and selection of drinks prepared by Pendleton Court Chef, Elaine.

Everyone was delighted with all the visitors who attended, including representatives from BT Phone Companions who volunteered to help on the day.

Pendleton Court Care Home was decorated especially for the occasion and the celebration was a chance for everyone to come together as a community, and to learn more about life at the care home.

Visitors enjoyed learning from colleagues in the home about what a rewarding career in care looks like. They also found out about opportunities for community engagement and about the volunteering roles on offer designed to support their local care community.

Lesley Moore, Wellbeing Coordinator, commented:

“The run up to the party and all the photoshoots we did to decorate the room really added great talking points. The residents and visitors we invited had an amazing time and I loved seeing all the happy faces, and great memories being made.

Anoj Kochera, Home Manager at HC-One’s Pendleton Court Care Home, said:

“We were delighted to be able to open the doors of Pendleton Court care home again to welcome in our local community and bring everyone together to celebrate Care Home Open Week 2024. Everyone had an amazing time.

 “We are proud to support Salford, and our Open Week celebrations provided a great opportunity to reconnect with our local community and to support community engagement which is so important to our residents, colleagues, and the local area.

 “The week was also a chance for us to showcase what life at our care home is like, share career and volunteering opportunities, and remind our local community that our kind care teams, and extensive facilities are here for them if they ever need support.”

 

Equity Release Customers Have Saved Nearly £300 million in Borrowing Costs

ABC Staff
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Equity Release Customers Have Saved Nearly £300 million in Borrowing Costs

London, UK – 5 July, 2024 – New data from the Equity Release Council reveals that equity release customers have collectively saved nearly £300 million in borrowing costs through voluntary penalty-free repayments over the past two years. In 2022 and 2023, over 360,000 such repayments were made, underscoring the increasing trend among homeowners to actively manage their equity release loans.

This achievement underscores the evolving landscape of equity release products and reflects homeowners’ growing awareness of the financial benefits associated with early repayment. Modern equity release options offer greater flexibility, empowering homeowners to optimize their borrowing costs and strengthen their financial stability.

Tom Philips from Equity Release Warehouse and Equity Release Calculator commented, “This substantial savings milestone underscores the flexibility and benefits of modern equity release products. By making voluntary repayments, customers significantly reduce their long-term borrowing costs, enhancing their financial stability and preserving inheritance. This trend demonstrates a more financially savvy approach among retirees, who are now better informed about managing their finances in later life.”

The report from the Equity Release Council reveals several key findings:

  1. Increase in Total Repayments: The total value of voluntary repayments saw an 18% increase, rising from £102 million in 2022 to £120 million in 2023. This growth indicates a rising awareness and willingness among customers to take proactive steps in managing their equity release loans.
  2. Rise in Average Repayment Size: The average size of repayments also saw a notable increase, climbing 30% from £538 to £697. This suggests that more customers are making larger repayments to reduce their loan balances more quickly.
  3. Penalty-Free Repayments: Since March 2022, all Equity Release Council standard products have included the option for penalty-free voluntary repayments. This feature has been instrumental in allowing customers to manage their borrowing more effectively without incurring additional costs.

The flexibility to make these repayments, without penalties, is a testament to the industry’s commitment to customer-centric policies. The ability to repay voluntarily gives homeowners the power to control their debt levels and reduce interest accrual, ultimately saving them significant amounts in borrowing costs.

Tom Philips further noted, “The introduction of penalty-free repayments has been a game-changer for the equity release market. It provides customers with the flexibility to adjust their borrowing according to their financial situation, making equity release a more attractive and viable option for many retirees.”

As the equity release market continues to evolve, the focus remains on providing products that offer flexibility, transparency, and financial benefits to customers. The Equity Release Council and its members are dedicated to ensuring that customers are well-informed and have access to products that meet their financial needs and goals.

HYCAP Highlights the Growing Influence of Private Equity in the Shift Towards Achieving Net Zero

ABC Staff
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HYCAP Highlights the Growing Influence of Private Equity in the Shift Towards Achieving Net Zero

Luke Spencer-Wilson, Chief Operating Officer of the clean energy investment fund HYCAP, explains the growing influence of private equity in the transition to net zero.

“In recent years, the investment landscape has shifted from traditional liquid markets to private markets, particularly in the clean energy sector,” Luke explains. “Pursuing higher returns drives this trend, as well as the benefits of long-term investment horizons, diversification, and the growing appeal of impact investing.

“Private equity funds, with their ability to drive sustainable development, address climate change, and deliver robust returns, are emerging as key players in this transition.”

Historically, investors have preferred liquid markets like stocks and bonds due to their high liquidity, transparency, and accessibility. However, the pursuit of higher returns, particularly in a low-interest-rate environment, has driven many to explore private equity.

“Private equity investments typically offer higher returns compared to public markets,” he continues. “Additionally, private markets enable investors to engage in long-term projects without the pressure of short-term market fluctuations. This is particularly beneficial for sectors like clean energy, where projects may take years to become profitable. Including private equity in a portfolio also benefits diversification, reducing overall risk.”

But there is also the sustainable impact investors are pushing for – growing their capital while having a positive influence on the planet.

“We have certainly seen a growing desire among investors to contribute to positive social and environmental outcomes,” says Luke, who has worked for more than 25 years for hedge funds, private equity firms, asset managers and family offices.

“Clean energy investments align well with these values, supporting the transition to a more sustainable future. As a result, private equity funds specialising in clean energy are seeing substantial growth. This growth is driven by several factors, including policy support, technological advancements, corporate commitments to sustainability, and rising investor demand for green investments.

“Governments worldwide are implementing policies to support clean energy development, such as subsidies, tax incentives, and renewable energy mandates. Technological advancements in clean energy reduce costs and increase efficiency, making these investments more attractive. Additionally, large corporations are committing to sustainability goals, increasing demand for renewable energy solutions.

“There is also a rising demand from institutional and retail investors for green investments, driven by growing awareness of climate change and ESG considerations.”

Hydrogen Equity Partners UK Limited (HEP), part of the HYCAP Group, is an example of the role of private equity in the clean energy transition. Founded in 2021, HEP invests in private companies within the renewable energy ecosystem, including solar, wind, and energy storage projects. This strategy includes early-stage investments, operational improvements, and strategic partnerships.

A notable portfolio company is Yamna, whose large-scale green ammonia initiative involves substantial renewable energy and battery storage capacity. And HYCAP has underlined its investment commitment across the net zero value chain, also investing in Wrightbus, which manufactures EV and hydrogen fuel cell buses; Ryze, which transports and distributes renewable energy; Hygen, a hydrogen production facility; Liquid Wind, a green electrofuel development company, and Zeti, an award-winning innovator in fintech for clean transport adoption.

“As global efforts to combat climate change intensify, the demand for clean energy solutions will continue to rise. Private equity funds are well-positioned to provide the necessary capital and expertise to drive this transition. Advancements in technology and supportive policies will further enhance the attractiveness of clean energy investments. Integrating AI, big data, and blockchain in energy management and distribution will open new avenues for innovation and efficiency.

“The shift from liquid to private markets represents a transformative change in the investment landscape. Private equity funds play a crucial role in the clean energy transition, highlighting the potential for significant financial returns while contributing to a sustainable future. As the world embraces renewable energy, private equity will remain at the forefront, driving innovation, sustainability, and economic growth.

“HYCAP is proud to be part of this transition, supporting diverse investments that pave the way for a greener, more resilient economy.” Hedge Funds, Private Equity Firms, Asset Managers & Family Offices.

Complete Guide to Crypto Market Making

Josh Haines
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Complete Guide to Crypto Market Making

Liquidity is the lifeblood of the crypto market, keeping market activity and making it attractive for new traders. It is the ease with which assets can be bought or sold at stable, fair prices, a critical factor that ensures the ecosystem’s vitality and appeal to investors. Without sufficient liquidity, markets can become stagnant, deterring participation and potentially leading to volatile price swings. This is where the concept of market-making becomes indispensable, offering a solution to maintain continuous flow and accessibility in the crypto market.

What is Market Making in Crypto?

Market making in crypto refers to providing constant buy and sell orders on a crypto exchange to ensure liquidity. This process is conducted by entities known as market makers operating on a market making platform. These market participants connect crypto buyers and sellers, facilitating smoother and more efficient transactions between them.

Who can act as a market maker in crypto:

  • Specialized market-making firms – companies focused on market-making within financial markets, including cryptos.
  • Crypto exchanges. Some exchanges act as market makers for the assets listed on their platform, either directly or through affiliated entities.
  • High-frequency traders. Leveraging powerful computers and algorithms, they act as market makers by executing many orders at extremely high speeds.
  • Hedge funds. Certain hedge funds, especially those focused on crypto, may engage in market-making as part of their investment strategies.
  • Liquidity providers. In decentralized finance (DeFi) ecosystems, individuals and entities can become market makers by contributing to liquidity pools on automated market maker platforms.

What is the Role of Market Makers in Crypto?

Crypto market makers’ functions include:

  • Enhancing liquidity. By continuously placing buy and sell orders, market makers ensure that traders can execute transactions without significant delays, contributing to a more liquid market.
  • Stabilizing prices. Their constant presence helps to dampen price volatility, making the market more attractive to traders and investors.
  • Facilitating price formation. Market makers help establish fair market prices for cryptos through trading activities, reflecting the current supply and demand.
  • Reducing trading costs is a significant aspect of crypto asset management. The competition among market makers often leads to narrower bid-ask spreads, which, in turn, reduces trading costs for market participants.

When it is Important to Use a Crypto Market Maker

Employing a crypto market maker is necessary in these cases:

  • Launching a new token. Introducing a new cryptocurrency into the market can be challenging, as young projects lack liquidity and trading volume in the early stages. Market makers help kickstart liquidity, ensuring there’s enough movement in the market for trades to occur seamlessly. They play a critical role in stable price discovery, setting a foundation that makes the token attractive to initial investors.
  • Attracting institutional services. For projects aiming to gain the attention and capital of institutional investors, the presence of a market maker is often a sign of maturity and stability. Institutional investors, with their significant financial power, seek markets that demonstrate a commitment to liquidity and price stability. Market-making services signal to these investors that the project values and ensures a smooth trading experience.
  • Reviving low trading volume. Tokens that suffer from low trading volumes face the risk of becoming irrelevant or being delisted from exchanges. Market makers can “breathe life” into these tokens, creating a more dynamic trading environment. It can attract attention and interest from traders and investors, potentially reviving the token’s market presence and value.
  • Overcoming market events. The crypto market is volatile, with prices often influenced by market events, news, and global economic factors. In times of high volatility or during significant market events, the role of cryptocurrency market makers becomes crucial. They act as stabilizers, absorbing panic sales and smoothing out price fluctuations.

How Do Crypto Market Makers Make Money?

Market makers employ various strategies to generate revenue, including:

  • Spread capturing. The fundamental way market makers earn is by capitalizing on the spread, the difference between the buy and sell prices they offer.
  • Crypto market-making strategy. Utilizing advanced algorithms and trading strategies to optimize their spread capturing and managing risks effectively.
  • Trading volume. A high trading volume increases the opportunity for market makers to profit from the spread on a larger number of trades.
  • Rebates and incentives. Some exchanges offer rebates to market makers in return for adding liquidity. It provides an additional income stream to a market maker.
  • Arbitrage is the practice of taking advantage of price differences for the same asset across different exchanges, buying low and selling high in a short timeframe.

Crypto market making provides liquidity to the cryptocurrency ecosystem and represents a sophisticated and dynamic aspect of crypto asset management. Through their dedication and strategic operations, market makers ensure the smooth functioning of the crypto markets, benefiting all participants.

As the crypto market matures, the importance of market-making services will only grow, highlighting their role in the future of digital asset trading.

IT Asset Management vs IT Asset Disposition: Key Differences and Benefits

Claire James
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IT Asset Management vs IT Asset Disposition: Key Differences and Benefits

In today’s fast-paced digital landscape, managing IT assets effectively is critical for businesses of all sizes. IT Asset Management (ITAM) and IT Asset Disposition (ITAD) play pivotal roles in optimising IT operations. 

Partnering with experts like Restore Technology can streamline these processes, ensuring seamless transitions and optimal value from your IT investments.

ITAM = Information Technology Asset Management

Systematically managing and tracking all your IT assets, including hardware, software, and data, throughout their lifecycle means you can meaningfully reduce costs, increase efficiency and productivity, bolster security and ensure regulatory compliance, as well as sustainability targets. 

By generating such value, you can see why ITAM is fast becoming a key strategic partner for all sizes of organisations.

Why ITAM?

  • Reduce costs – removing unused software, closely monitoring software licences, and repurposing hardware can all significantly reduce your IT spend.
  • Increase efficiency – the accuracy of ITAM data becomes an asset as it helps teams to be more agile, and make smarter IT decisions.
  • Bolster security – a global picture of your IT assets can help you identify, and rectify, areas of risk, such as contractual, legal, operational, regulatory, or reputational. For data protection, ITAM’s information about who has what, where, and how it’s used, is an invaluable first step in a watertight security policy.
  • Compliance and sustainability – ITAM helps mitigate impacts on the environment, mostly through the smart choice of accredited partners for supply and IT asset disposition.

ITAD = Information Technology Asset Disposition (or Disposal)

As important as the detailed management of your IT estate is the creation of a plan for getting rid of equipment when you no longer need it. You can’t just throw a laptop, mobile phone, or server away in a general waste stream – there is the WEEE regulation to comply with, for starters, and potential fire hazards posed by batteries to consider, too. 

This is where ITAD steps in. Many devices can be refurbished for reuse, re-marketed, or their constituent parts are broken down for recycling. By implementing a comprehensive end-of-life plan, a good ITAD service provider will ensure that your no-longer-needed items remain assets, one way or another. Here’s how.

Why ITAD?

  • Refurbishing for re-use – wiping all personal data, updating operating systems and software so that devices can be re-used, whether by your business or, via your donation, by charities and community organisations.
  • Re-marketing – maximise your financial returns on no-longer-needed assets that can be sold through specific re-sale channels. Sums achieved frequently cover the costs of the entire ITAD process.
  • Recycling – IT devices contain components made from precious metals such as gold, silver, and titanium, and other metals such as copper and steel, all of which are valuable recyclable materials. A correct ITAD process will also process toxic chemical components found in those same assets.

So, ITAM vs ITAD? Which one is better?

In fact, they’re not in competition with one another. As you can see, ITAD services are a specialised, and extensive, subset of an overall ITAM policy and are particularly suited to businesses that are growing.

Whatever the size of your business, however, your core objectives don’t need to suffer because of your IT infrastructure commitments if you choose an accredited, expert IT lifecycle services partner. Choosing and purchasing equipment, setting it up, moving, upgrading, and keeping track of it takes valuable time and resource, not to mention compliance and data protection considerations.

From secure storage and configuration to delivery, deployment and disposal, partnering with Restore Technology makes these transitions as seamless as possible, no matter how large your IT estate.

Whether you need support throughout the entire lifecycle of your assets (ITAM) or simply at individual stages (such as ITAD), Restore Technology have designed our services to be integrated or standalone and to flex with your individual needs.

Regulatory Changes and Their Economic Impact on UK Gaming Industry

Claire James
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Regulatory Changes and Their Economic Impact on UK Gaming Industry

The gaming industry in the UK has changed drastically in the recent past as authorities introduced new measures to regulate gambling and prevent people who are at risk from gambling. Such changes have affected UK casinos in terms of finances more seriously, particularly in both online and physical gambling halls.

The stakeholders and players in the market need to know how these regulations influence the financial performance of the UK casinos. Thus, for those who want to use a combination of possibilities that will help to get the greatest number of effects from the gambling process, it is useful to get acquainted with promo codes for casino bonuses and other available offers. Now, it is time to describe how these regulations influence the financial performance of casinos in the UK.

Stricter Advertising Regulations

Now, one of the specific measures of Britain’s gambling legislation—the policy on advertisement—has been cited as one of the toughest. The UK Gambling Commission (UKGC) has set strict measures to safeguard the purpose of gambling ads, especially the youth, from misleading its clients.

Increased Compliance Costs: The implementation of the new measures has some implications for the casinos—most of them had to start investing in compliance measures that would allow their ads to meet the new standards. This involves creating new marketing goals, training workers, especially those at the frontline, and, at times, hiring compliance officers.

Reduced Marketing Reach: Advertising regulations have been made strict, restricting the coverage of promotional programs. However, they have reduced the acquisition of new customers, thus affecting the organizational revenue growth.

Restrictions on Stakes

These restrictions apply to the stakes and velocity. Measures have been put in place to set and control the maximum amounts that can be bet on some gambling activities and the time taken for the games. For instance, in 2019, the stake in FOBTs was cut down to £2 after it used to be £100. Furthermore, New regulations will be introduced in September 2024 to implement the following maximum stake limits on online slot games: £5 per spin where the player is aged 25 and over and £2 per spin where the player is aged 18 to 24.

Revenue Decline: They have intertwined with the decrease in the maximum bet, which has impacted the revenue from FOBTs, which used to help several casinos.

Adaptation Costs: These new laws have impacted casinos within a short span because they have had to change the details of the gaming to meet the set rules, and this requires vast amounts of money to achieve by altering the operating machines or creating brand-new games that meet these new laws on low staking.

Enhanced Player Protection Measures

That is why the UKGC has implemented measures such as compulsory player self-exclusion, verification of the player’s spending capacity, and limiting VIP programs.

Operational Costs: Of course, the execution of these strategies implies a great need for acquiring new technologies and training human resources. This report makes it clear that casinos must have processes that would allow them to monitor self-exclusion requirements and conduct appropriate analysis of customers’ affordability.

Potential Loss of High-Spending Customers: Measures applied to the VIP programs, which are established to concern the high-rolling patrons and guarantee significant wins, can result in diminished earnings from these generators. This is a very thin line especially considering that ensuring customers’ compliance with these restrictions is a chore that puts a lot of pressure on resources.

Taxation and Levy Changes

The British government has periodically reviewed the taxation policy on betting and related operations, which directly affects the revenue of these businesses. Moreover, there is an ongoing discourse on applying premiums to finance the treatment of gambling addiction.

Higher Tax Burden: Hiking up taxes on gambling has a direct way of shaving off the net profit margins of casinos. It is not easy for operators to manage to cover these costs while at the same time minimizing the pass through of such costs to the consumers.

Funding Responsibilities: Other possible taxes to fund treatment for gambling dependancy might stretch the accessible funds even further. Albeit these measures are friendly to society, they increase operational expenses among casinos.

The Emergence of Internet Gambling

As gambling restrictions have increased for real-world casinos, physical establishments are turning to the Internet for online casinos. There are significantly more online casinos as they do not need as much regulation as physical casinos partly because they are convenient.

Market Expansion: With the advancement in technology, more emphasis has been placed on social gambling, which has enabled casinos to extend their market not only spatially but also in terms of population. It has assisted somewhat in the revenues lost in the physical centers.

Increased Competition: As a sector, online gambling is very saturated, with many operators competing for a share of the particular market. This has resulted in enhanced expenditure on marketing promotion, which has the advantage of recruiting new players but will at the same time reduce profits.

Final Notes

In the UK, the shift in gambling regulations must surely have impacted casinos’ financial situations. It will take increased compliance costs to reduce revenues from some gambling activities. The goal of these regulations is to design a safer gambling environment at a cost to the operators.

These dynamics could help any player offer a better perspective of the industry and aid him or her in managing the sphere of online and offline gambling. Whether you are searching for ‘promo codes for casino bonuses’ or are a gambling enthusiast seeking to know more about the industry codes, information on these moves is imperative.

On the other hand, ways must be considered to promote and maintain sustainable business practices in the gambling industry while at the same time preventing gambling from becoming a danger to society and, hence, responsible gambling among the people.

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