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☕️HFT Heyday
High frequency traders are raking in record profits.
Good morning.
Despite the majority of their trading focused overseas, Australian offices hold advantages for major HFT players like Susquehanna, IMC and Citadel, with a strong pipeline of affordable talent, less competition from big tech firms and a favourable timezone for hot markets like India and China.
Documents seen by Capital Brief show Dutch outfit Optiver generated a whopping $1.2 billion revenue out of its 500-person Sydney office in 2024, up from $735 million the year prior. The bumper result saw the Australian office put 2023 losses behind it to mint a $138 million profit and pay out a tidy $90 million in dividends to shareholders.
ASX as at market close. Commodities and crypto in USD.
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Market movers
Nine shares rose Friday after backing CoStar’s $3b takeover of Domain, paving the way for a shareholder vote and flagged special dividend later this year.
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The quick sync
From dot-com highs to housing reform, Evan Thornley’s journey shows how Australian innovation can drive real-world impact at scale. (Capital Brief)
Meta is leaning toward paying the news levy instead of renewing deals. (Capital Brief)
Ed Husic’s exit from cabinet leaves Australia’s tech sector without one of its strongest champions. (Capital Brief)
CATL targets at least US$4b in Hong Kong's biggest listing in a year, with strong demand despite US-China tensions. (Reuters)
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Trading floor
M&A
Potentia taps Barrenjoey to sell its Soprano Design stake. (AFR)
SunPork tipped as the likely buyer for BE Campbell in a complementary market deal. (The Australian)
HMC exits Healthscope debt, ending takeover bid and adding to uncertainty. (AFR)
Stonepeak is eyeing the purchase of Spark’s $800m data centre portfolio amid ongoing infrastructure push. (The Australian)
Stonepeak nears I-MED deal as Jones Radiology eyes sale to Allegro Funds. (AFR)
InfraBuild’s future in question as BlueScope or SGH eye potential acquisition amid government concerns. (The Australian)
Bain Capital in talks for $10b+ buyout of PCI Pharma Services. (Bloomberg)
Capital Markets
Sigma investors offload $300m+ in shares before blackout period. (AFR)
Alceon’s EFEX faces court over disputed Logic Plus payout. (AFR)
Vinarchy, the newly formed Australian wine giant, targets growth in Americas as US wine brands decline, driven by trade tensions. (FT)
BHP's Argentinian copper project grows fivefold with new Filo del Sol estimates. (AFR)
VC
People moves
☝️ Know about a deal or people move we don’t? Hit reply.
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The watercooler
