Transition risk losses alone unlikely to threaten EU financial stability, "Fit-For-55" climate stress test shows
November 19, 2024--The European Supervisory Authorities (EBA, EIOPA, and ESMA-the ESAs) together with the European Central Bank (ECB), today released the results of the one-off "Fit-For-55" climate scenario analysis.
Under the scenarios examined, transition risks alone are unlikely to threaten financial stability. However, when transition risks are combined with macroeconomic shocks, they can increase losses for financial institutions and may lead to disruptions.
This calls for a coordinated policy approach to financing the green transition and the need for financial institutions to integrate climate risks into their risk management in a comprehensive and timely manner.
Objectives
The European Commission invited the ESAs and the ECB to assess the impact on the EU banking, investment fund, occupational pension fund and insurance sectors of three transition scenarios incorporating the implementation of the Fit-for-55 package, as well as the potential for contagion and amplification effects across the financial system.
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Source: ESMA
21Shares Adds Staking to the 21Shares Ethereum Core ETP (ETHC)
November 19, 2024--21Shares AG ("21Shares"), one of the world's largest issuers of crypto exchange traded products (ETPs), today announced that the firm has added staking to the 21Sharese Ethereum Core ETP (ETHC) and will be re-naming the product as follows, effective today:
Ticker:ETHC
ISIN:CH1209763130
Current Product Name:21Shares Ethereum Core ETP
New Product Name:21Shares Ethereum Core Staking ETP
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Source: 21Shares
ESMA proposes to move to T+1 by October 2027
November 18, 2024--The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has published its Final Report providing the assessment of the shortening of the settlement cycle in the European Union (EU).
The report highlights that the increased efficiency and resilience of post-trade processes that should be prompted by a move to T+1 would facilitate achieving the objective of further promoting settlement efficiency in the EU, contributing to market integration and to the Savings and Investment Union objectives.
ESMA recommends that the migration to T+1 occurs simultaneously across all relevant instruments and that it is achieved in Q4 2027. Considering the different elements assessed by ESMA, in particular the difficulties linked to the go-live of such a big project in November and December, and the challenges linked to the first Monday of October (just after the end of a quarter), ESMA recommends 11 October 2027 as the optimal date for the transition to T+1 in the EU. ESMA also suggests following a coordinated approach with other jurisdictions in Europe
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Source: ESMA
New on Xetra: iShares ETF offers concentrated investment in the 20 largest companies in the S&P 500 index for the first time
November 15, 2024--A new exchange-traded fund from iShares has been tradable on Xetra and Börse Frankfurt since Friday.
The iShares S&P 500 Top 20 UCITS ETF tracks the performance of the S&P 500 Top 20 Select 35/20 Capped index. The fund invests directly in the 20 largest US companies in the S&P 500 index by market capitalisation.
The 35/20 cap is designed to achieve a minimum level of diversification.
Companies from the IT sector currently account for around 48 per cent, followed by consumer and communications with 16 per cent and 14 per cent respectively. The remaining 22 per cent is made up of the financial, healthcare and energy sectors..
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Source: Xetra
New on Xetra: Leonteq expands its range of ETNs to include overnight interest rates in Switzerland and the United States
November 15, 2024--Since Friday, four new exchange-traded notes (ETNs) from Leonteq have been tradable via Xetra and Börse Frankfurt.
Leonteq's four new ETNs give investors access to overnight lending rates for overnight loans in Switzerland and the United States.
The Leonteq CHF Overnight Return Index ETP represents the performance of the reference interest rate for overnight loan transactions in Switzerland, the Swiss Average Rate Overnight Interest Rate (SARON).
The Leonteq USD Overnight Return Index ETP tracks the performance of the United States Secured Overnight Financing Rate (US-SOFR).
Both ETNs are also available in a currency-hedged version against the euro.
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Source: Xetra
New on Xetra: IncomeShare's ETP range of Leverage Shares provides access to US equities combined with covered call option strategies
November 15, 2024--Since Friday, 13 new exchange-traded notes issued by leverage shares have been tradable on Xetra and Börse Frankfurt.
With the new IncomeShares ETP product range, Leverage Shares offers access to option-based ETPs for the first time, which track the performance of individual US companies, US blue-chip indices and the price of gold.
As part of this investment strategy, the underlying securities are bought directly and call options are sold "out of the money" at the same time. The premiums from the sale of the options are distributed to investors on a monthly basis.
The strategies aim to maximise the income from the premiums received, while at the same time participating in part of the observed price increases of the securities. The first eleven option-based ETPs track the performance of U.S. companies Alphabet, Amazon, Apple, Coinbase, Meta, Microsoft, Nvidia and Tesla, the U.S. blue-chip indices Nasdaq-100 and S&P 500, and the price of gold.
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Source: Xetra
ESMA is collecting data on costs linked to investments in AIFs and UCITS
November 14, 2024--ESMA with the NCAs has designed a two-stage data collection involving both manufacturers and distributors of investment funds.
Information requested from manufacturers will provide an indication on the different costs charged for the management of the investment funds.
Information requested from distributors (i.e., investment firms, independent financial advisors, neo-brokers) will inform on the fees paid directly by investors to distributors.
This initiative contributes to shedding light on pricing practices in a key part of the EU financial markets, information that has until now not been accessible to retail investors and supervisory authorities.
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Source: ESMA
HANetf tests the new Overseas Funds Regime with active bond ETF listing
November 14, 2024--PT Asset Management and HANetf have listed the Performance Trust Total Return Bond UCITS ETF (ticker: PTAM) on London Stock Exchange (LSE).
The ETF was listed on Xetra and Borsa Italiana in October. Using the new Overseas Funds Regime (OFR), the ETF is now listed on LSE, marking HANetf's first use of the OFR.
The ETF aims to provide exposure to U.S. bonds, while employing PT Asset Management's unique Shape Management methodology to target long-term performance and consistent growth across both rising and falling rate environments.
The ETF is actively managed by the expert team at PT Asset Management.
This is the fifth active ETF launched on the HANetf platform.
HANetf, Europe's first and only independent white-label UCITS ETF and ETC platform , and leading provider of digital asset ETPs, is delighted to announce the listing of Performance Trust Total Return Bond UCITS ETF (ticker: PTAM), an active ETF managed by PT Asset Management, on London Stock Exchange (LSE). The ETF previously listed on Xetra in Germany and Milan's Borsa Italiana in October 2024. HANetf listed the PTAM ETF on LSE using the new Overseas Funds Regime (OFR).
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Source: HANetf
ESMA is collecting data on costs linked to investments in AIFs and UCITS
November 14, 2024--The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, is launching a data collection exercise together with the national competent authorities (NCAs), on costs linked to investments in AIFs and UCITS.
ESMA with the NCAs has designed a two-stage data collection involving both manufacturers and distributors of investment funds.
Information requested from manufacturers will provide an indication on the different costs charged for the management of the investment funds.
Information requested from distributors (i.e., investment firms, independent financial advisors, neo-brokers) will inform on the fees paid directly by investors to distributors.
This initiative contributes to shedding light on pricing practices in a key part of the EU financial markets, information that has until now not been accessible to retail investors and supervisory authorities.
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Source: ESMA
New on Xetra: Janus Henderson's Active ETF with a focus on a concentrated portfolio of European companies
November 14, 2024--Since Thursday, a new Active Exchange Traded Fund from Janus Henderson has been tradable via Xetra and Börse Frankfurt.
With the Janus Henderson Tabula Pan European High Conviction Equity UCITS ETF, investors gain access to an actively managed portfolio of equities of European companies.
The fund can invest in companies of any size and industry, with a target size of at least twenty and no more than thirty positions.
The Investment management team selects companies that are likely to benefit from structural themes and trends in the European market. These may be changes in individual companies, e.g. changes in management or product innovations, or at a macro level that have an impact on one or more sectors.
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Source: Xetra