Latest news with #capitalmarkets
Forbes
8 hours ago
- Business
- Forbes
The Case Against Gamified Prop Trading
The trading industry stands at a crossroads. One road leads to more gamification, more extraction, more disillusionment. The other leads to professionalism, purpose, and shared upside. In a recent op-ed for the Financial Times, BlackRock Chair and CEO Larry Fink called for the second draft of globalisation. 'The first step,' he said, is in 'helping more people become investors.' Fink outlined how 'the Trump administration's tariffs are the symptom of a backlash to the era of what might be called 'globalism without guardrails.' Global GDP grew more since the fall of the Berlin Wall in 1989 than in all recorded history before it. But the benefits weren't evenly shared. S&P 500 investors saw a return of more than 3,800 per cent. Rustbelt workers did not.' He goes on to argue that 'at the heart of this new model are the capital markets: exchanges where people invest in stocks, bonds, infrastructure, everything. Why? Because markets are uniquely suited to transforming global growth into local wealth.' I couldn't agree more. While Fink was primarily referring to people's ability to invest in markets long-term, it's equally important to make the case for the power of markets in the context of trading. It has never been easier to provide people with a real understanding of stock markets and opportunities to harness their power. But it needs to be done properly. In the post-pandemic world, trading is popular and perilous. From Reddit-fueled meme stocks to Instagram ads promising six-figure incomes in weeks, trading has become a cultural phenomenon. But beneath the glossy surface of fast payouts, slick dashboards, and instant accounts lies a more uncomfortable truth: in the new age of gamified proprietary trading, the trader is no longer the protagonist; they're the product. This is the reality ushered in by platforms like Hola Prime and the explosion of 'funded trader programs.' What began as a promising movement to democratize market access has mutated into a profit-extraction engine dressed up in UX and buzzwords. If the GameStop saga exposed the dangers of payment for order flow, the current state of prop trading is a sequel where the script is even more cynical. The premise of these new platforms is seductive: we'll give you capital to trade without risking your own money. Just pass a simple evaluation, click through a few disclaimers, and you're off to the races. Some now even offer instant accounts: skip the test, trade now, get paid in under an hour. But here's the rub: the business model isn't about helping you succeed. It's about getting you through the door, extracting fees, and quietly setting conditions that ensure most participants fail. The real revenue engine isn't trading profits, it's the fees traders pay for the privilege of chasing them. Most funded trader platforms charge upfront fees for evaluations, with limited transparency and minimal incentive alignment. If you fail (as most do), the firm keeps your money. If you succeed, you're handed capital under highly artificial constraints: inflated spreads, punitive commissions, and execution speeds that are just slow enough to give the house the edge. It's a system rigged for churn. The faster you burn out, the sooner the next aspiring trader can be onboarded and monetized. This isn't proprietary trading; it's proprietary entertainment, where every trader is both contestant and consumer. Gamified dashboards, explosive payout headlines, are engineered to hook you like a Vegas slot machine. All wrapped in a language of empowerment that masks a deeply extractive core. Take Hola Prime's headline-grabbing '1-Hour Payouts.' On paper, it's a breakthrough. In practice, it's table stakes masquerading as a revolution. Speedy payouts are nice, but they're a distraction from the real question: what are you actually building for traders? Are you training them in institutional-grade discipline? Are you teaching risk management? Are you offering a career ladder or a casino floor? Real proprietary trading firms do all of the above. They invest in their traders, not just their branding. They build loyalty through long-term alignment, not short-term gimmicks. At firms like Real Trading, when traders win, the firm wins. There's no fee treadmill, no asymmetry. The incentives are clear, and the traders are treated like the talent they are, not just throughput on a spreadsheet. 'Instant Accounts' skip the evaluation process entirely. That's not innovation, it's abdication. For serious traders, the evaluation is the beginning of the journey. It's where you demonstrate discipline, consistency, and judgment under pressure. It's where a firm learns who you are and whether it can entrust you with capital. By removing it, you lower the barrier, but you also flatten the profession. What's left isn't trading; it's speculation, dressed up in startup lingo. There is real talent in this new generation of retail traders, particularly in emerging markets. These are individuals hungry to learn, to grow, to become professionals. But instead of nurturing them, the current wave of gamified prop firms exploits them. Imagine what could happen if this energy were redirected toward institutional discipline rather than dopamine-fueled churn. If platforms invested in career-building, not just customer acquisition. Real proprietary trading should be a path, not a pit stop. The markets have become faster, more automated, and more unequal. The edge now often lies with those who can deploy algorithms and AI at scale. But amid this high-frequency arms race, something fundamental is being lost: the human trader. Human judgment. Emotional intelligence. Pattern recognition that no bot can replicate. These are the qualities that, when nurtured, complement, if not beat, the work of the machines; especially in moments of market chaos where instinct and experience trump code. Real prop firms recognize this. They treat traders as long-term partners. They offer structured training, risk coaching, and capital scaling that mirrors performance. They don't hand you a lottery ticket; they hand you a roadmap. The trading industry stands at a crossroads. One road leads to more gamification, more extraction, more disillusionment. The other leads to professionalism, purpose, and shared upside. The question isn't whether fast payouts or sleek apps are bad. It's whether they come instead of meaningful development, or in support of it. The next generation of traders deserves more than gimmicks. They deserve mentorship, meritocracy, and the tools to build a future, not just flip a trade. Let's stop turning traders into products and start turning them into professionals.
Khaleej Times
9 hours ago
- Business
- Khaleej Times
UAE capital markets poised for growth as global investors pivot to Gulf
The UAE, particularly Dubai and Abu Dhabi, is emerging as a global magnet for capital, bolstered by rising foreign investor appetite, strong fundamentals, and a robust pipeline of initial public offerings (IPOs) across diverse sectors. As global markets navigate an era of elevated tariffs and macroeconomic uncertainty, the UAE's financial markets are standing out for their stability, depth, and reform-driven momentum. This sentiment was evident at HSBC's fourth annual GCC Exchanges Conference in London, which brought together over 300 institutional investors and more than 100 corporates from the Gulf region. All seven GCC stock exchanges, including the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), participated in the event, highlighting the region's increasing importance in global capital allocation. With the UAE accounting for $1 trillion in market capitalisation at the end of 2024, international interest in its financial ecosystem continues to surge. According to HSBC, the share of Global Emerging Markets (GEM) funds with UAE exposure has nearly doubled since mid-2021, rising from 35 per cent to 65 per cent. This rise is underpinned by investor confidence in the UAE's regulatory reforms, economic resilience, and a widening array of sectors — from renewables to logistics and retail — now opening to public investment. 'Global investors are recalibrating for resilience, and the GCC's balance sheet strength and sophisticated financial ecosystem make it a capital magnet. The UAE offers one of the most compelling growth stories in emerging markets today,' Nabeel Albloushi, head of Markets & Securities Services for MENAT at HSBC, said. Albloushi emphasised that the UAE's deepening capital markets and sectoral diversification provide a fertile ground for sustainable capital deployment. The rising foreign institutional participation reflects a shift in strategy by global asset managers seeking exposure to high-yielding, stable, and reform-oriented markets. The UAE's IPO momentum, particularly in Dubai, remains strong. Dubai Financial Market's total market capitalisation stood at Dh951 billion as of June 2025, underscoring its growing appeal to institutional investors. 'Dubai's capital markets are gaining increasing global prominence, reflecting investor confidence in the emirate's long-term economic trajectory,' said Hamed Ali, CEO of DFM and Nasdaq Dubai. 'The scale of value we offer continues to attract international capital looking for growth-oriented and well-governed opportunities.' In 2024, the UAE featured prominently in the GCC's record-breaking IPO landscape. Despite a global slowdown in capital raising, the GCC recorded IPO proceeds that were 33 per cent higher in the first quarter of 2025 compared to the same period last year. Much of this growth was driven by the UAE and Saudi Arabia, where government-led privatisation efforts and regulatory liberalisation are reshaping local equity markets. Abu Dhabi has played an equally strong role in advancing the UAE's capital markets agenda. Abdulla Salem Alnuaimi, CEO of ADX, highlighted the exchange's expanding global footprint. 'In the first five months of 2025 alone, net foreign investment in ADX reached around Dh11 billion, a 78 per cent increase compared to the same period last year,' Alnuaimi said. 'Foreign trading values have soared by more than 347 per cent over the past five years.' ADX is also benefitting from increased sectoral breadth, with foreign investors showing growing interest in companies from energy, financial services, technology, and logistics. Alnuaimi stressed that the exchange's focus on transparency, governance, and sustainable practices supports long-term investor engagement. The UAE's growing allure is not limited to equities. Fixed-income and private credit platforms are expanding, giving investors broader tools to tap into the region's growth story. Sovereign and corporate bond markets are deepening, backed by strong fiscal buffers and stable credit ratings. The UAE's non-oil GDP growth, projected at 5.3 per cent in 2025 by the Central Bank of the UAE, adds to the investment case. With Dubai and Abu Dhabi pushing forward with economic diversification, the structural shift toward a knowledge-based economy is well underway. Sectors such as technology, hospitality, green energy, and infrastructure are witnessing rising capital inflows. For emerging market strategists, the UAE stands out among peers. According to HSBC, the country's GDP growth is expected to outperform the broader EM average over the next three years, providing a relative haven for global capital amid weaker projections for traditional emerging economies. Capital market analysts argue that as tariff tensions and geopolitical headwinds steer investors toward stable, reform-oriented destinations, the UAE appears firmly on the radar — offering both safety and upside. 'With continued reforms, strategic privatisations, and a diversified investment universe, the Emirates are well-positioned to remain a key pillar in the global capital raising landscape.' The London conference also featured top UAE corporate leaders including Hesham Heikal of Emaar Properties, Faisal Falaknaz of Aldar Properties, and Areeb Pasha of Dubizzle. Their engagement with international investors underscored the UAE's ambition to align corporate strategy with sustainability, innovation, and global capital flows. The outlook for the UAE's capital markets remains bright as government policies continue to encourage listings, enhance transparency, and integrate ESG considerations. The growing institutionalisation of capital markets in Dubai and Abu Dhabi signals a long-term structural shift rather than a cyclical upswing.
Reuters
11 hours ago
- Business
- Reuters
ECB's Nagel says savings union more urgent than banking union
MILAN, June 19 (Reuters) - Creating a European Union savings union has become a matter of urgency, European Central Bank policymaker and Bundesbank President Joachim Nagel said on Thursday, adding a closer banking union could follow after that. European policymakers are seeking to foster deeper and more integrated capital markets across the often fragmented 27-member bloc. As part of that, they are pursuing a "savings and investments union" to try to encourage retail investors to fund the investments in energy, defence and technology European needs to bridge the productivity gap with the United States and China. Europe has fallen behind the other major global economic powers, posing a threat to its citizens' living standards. Given growing competition among economic blocs and tense relations with the United States, where a large portion of European savings has typically been invested, Nagel said there was no time to lose. "I think the first step, I believe this is of utmost importance, is to establish the savings and investment union, to do much more here. I think this is now of utmost importance," Nagel told a student conference in Milan. "And then in the next step, we can do the banking union," he said. Speaking at the same conference, UniCredit ( opens new tab CEO Andrea Orcel said the EU needed to become more competitive, which he has perviously said would happen if European banks were allowed to grow in size to better compete with U.S. rivals. Orcel, whose ambitions to take over Commerzbank ( opens new tab have stalled due to strong German opposition, complained about the barriers raised by European governments against the bank's consolidation efforts. Nagel said he shared Orcel's view about the need for Europe to become more competitive, and reiterated his support for a banking union. But he said he thought the banking union was first of all about more uniform rules across different markets, with countries adopting a neighbour's best practice standards wherever necessary, and then consolidation could follow.
Yahoo
14 hours ago
- Business
- Yahoo
NextEra Energy price target lowered to $94 from $95 at Morgan Stanley
Morgan Stanley lowered the firm's price target on NextEra Energy (NEE) to $94 from $95 and keeps an Overweight rating on the shares. The firm is updating its price targets for stocks in the Regulated & Diversified Utilities / IPPs North America sector, noting utilities underperformed the S&P in May, the analyst tells investors. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on NEE: Disclaimer & DisclosureReport an Issue Sunrun to trade toward 'bear case' if SenFin language holds, says Morgan Stanley NextEra Energy Sells Debentures to Strengthen Capital CVX, BP, SHEL: Global Energy Investments to Hit Record $3.3 Trillion in 2025 Trump Trade: U.S. President says China getting 10% tariffs in 'done' deal Trump set to scrap Biden-era power-plant pollution curbs, Bloomberg says
Zawya
15 hours ago
- Business
- Zawya
Badwa Capital announces new Head of Capital Solutions in continued expansion of investment banking activities
Badwa obtains CMA license and opens new Riyadh office DUBAI, UAE – Badwa Capital, a leading investment bank and investment firm focused on the Middle East, today announced the appointment of Ahmad Ismail as Head of Capital Solutions, a key practice within the firm's expanding investment banking division. Mr. Ismail joins Badwa after more than 11 years at Moelis & Company, bringing with him a proven track record of transaction execution. With Mr. Ismail's appointment, Badwa will complement its strong M&A practice with additional capital markets capabilities, including independent financial advisory for IPOs and capital structure optimization transactions in Saudi Arabia and the UAE, leveraging the firm's established regulated presence in both markets. Badwa recently opened its Riyadh office and received a license from Saudi Arabia's Capital Market Authority. "We are thrilled to welcome Ahmad to Badwa as we expand our capital solutions capabilities and continue delivering extraordinary global talent and unsurpassed regional expertise to our clients,' said Fawzi Jumean, Chairman and Partner at Badwa. "Ahmad's deep experience and leadership will help us capitalize on strong markets in Saudi Arabia and the UAE. This move reinforces our commitment to providing holistic financial solutions across the entire capital structure." In addition to its investment banking business, Badwa continues to expand its growth equity investments business, partnering with entrepreneurs in building innovative and sustainable enterprises. About Badwa Capital Founded 15 years ago, Badwa is a leading investment bank and investment firm focused on the Middle East. As an advisor, Badwa Capital helps clients achieve their business and financial objectives through strategic and transformative transactions. The firm's professionals combine world-class execution capabilities with unmatched regional insight to deliver thoughtful and independent advice through all phases of strategic and complex transactions. As an investor, Badwa partners with entrepreneurs in the GCC, supporting them as they build innovative, profitable and sustainable businesses. With offices in Dubai and Riyadh, Badwa is licensed by the Dubai Financial Services Authority and Saudi Arabia's Capital Market Authority. Additional information on Badwa Capital may be found at
