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London Stock Exchange To Launch New Retail Bond Market For The UK
November 19, 2009--The London Stock Exchange today announces that it will introduce a new order-driven trading service for bonds. This new electronic order book will be available for a select number of gilts and UK corporate bonds and will offer private investors with an on-screen secondary market in London-listed debt securities for the first time. This new service is expected to go live in February next year.
Pietro Poletto, Head of Fixed Income for London Stock Exchange Group, said:
"London is a global centre for the listing and trading of debt, and in the current climate of low interest rates and equity market volatility, the retail appetite for bonds has increased substantially. This new initiative aims to meet that demand by offering private investors exposure to this market for the first time through transparent, efficient access to fixed income securities listed in the UK.
"London Stock Exchange Group's ‘MOT' market operated by Borsa Italiana is the most liquid and most heavily traded retail fixed income platform in Europe. We are delighted to offer the established benefits of this model to retail investors in the UK."
Over 10,000 debt securities are already admitted to the London Stock Exchange but the vast majority are currently available for trade reporting only.
The main characteristics of the new trading service are:
An electronic order-driven model, with retail-friendly order sizes, and continuous two-way trading provided by market makers. Two new segments for electronically tradable gilt-edged securities (UK Gilts) and electronically tradable UK fixed interest securities (UK Corporates) will be introduced on London Stock Exchange Group's TradElect trading system.
The trading day will be made up of an initial opening auction phase followed by continuous trading until market close. There will be no closing auction.
All order book trades in securities admitted to the new segments will settle in CREST. Routing of trade information to Euroclear UK & Ireland will be carried out by London Stock Exchange Group's post-trade router, X-TRM.
The new trading service is not expected to impact existing wholesale bond or gilt trading and trade reporting arrangements and does not aim to change established practices in the institutional fixed income markets.
Source: London Stock Exchange
ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows. For the week ending 13 November 2009
November 18, 2009--Highlights
Last week saw US$102.8 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Telecommunications with US$51.2 Mn and Food & Beverage with US$34.2 Mn while Health Care experienced net outflows of US$19.7 Mn.
Year-to-date, Basic Resources has been the most popular sector with US$481.7 Mn net new assets, followed by Telecommunications with US$311.6 Mn net inflows. Financial services sector ETFs have been the least popular with US$28.3 Mn net outflows YTD.
Visit Barclays Global for more information.
Source: ETF Research and Implementation Strategy, BGI
Successful Launch of new Eurex Release 12
Functional basis established for Eurex/ISE link and cooperation with KRX/ Real-time risk management for all Eurex participants through Enhanced Risk Solution
November 18, 2009--The international derivatives exchange Eurex successfully launched its new system Release 12 on Monday.
Among the most important changes coming with the release are two links to other international exchanges, further significant improvements in clearing, new functionalities for trading, and partly new programmed software components to further reduce latency.
Release 12 lays the technological foundation for two important partnerships, the Eurex/ISE link and the link between the Korean Exchange (KRX) and Eurex. The Eurex/ISE link will provide Eurex participants with access to ISE's product range, pending approval by the US supervisory authority, the Securities and Exchange Commission (SEC). The Eurex/KRX link will enable Eurex clients to trade the KOSPI 200 option after Korean trading hours via their existing access as of the beginning of 2010.
In Release 12, Eurex also addresses continued acceleration in trading by converting to real-time risk management. As of March 2010, the Enhanced Risk Solution interface will be available to all Eurex participants. The Enhanced Risk Solution will inform every member of its positions (number of contracts) and corresponding risk exposure (margin requirements) in real time. General Clearing Members (GCM) currently receive information on their current aggregate risk position approximately every ten minutes. Future real-time risk management supplements the risk control functions launched during the past two years, e.g. the stop button. In case of emergency, all of a participant’s orders and quotes can be deleted and entry of additional orders and quotes prevented by activating the stop button. The combination of these components offers Eurex customers optimized risk control with minimum latency and increases market stability.
In addition, Release 12 expands the trading functionalities. For the first time, OTC volatility strategies including the associated equity transactions leg can also be entered. The Multilateral Trade Registration functionality has also been further expanded; it enables participants to use Eurex Clearing’s central counterparty service for OTC transactions in which multiple parties are involved.
The technical improvements of Release 12 include significantly reduced order and quote processing times as well as enhancements of the two high-speed interfaces Enhanced Transaction Solution and Enhanced Broadcast Solution. With Eurex Release 12, the daily average round trip times of futures orders for Eurex members located in proximity services have been reduced from approximately 5 milliseconds to approximately 2 milliseconds.
Like Releases 10 and 11, Release 12 is also a key milestone on the Eurex Technology Roadmap. This roadmap, which was launched in Q1 2006, bundles a variety of components for system optimization: software and hardware upgrades, launches of new offers and services, and the distribution of new, customizable data packages.
The Technology Roadmap is Eurex’s response to current trends in electronic derivatives trading. Software-induced trading (algorithmic trading) and the increasing number of contracts result in a considerable rise in daily transaction volume. With the Technology Roadmap, Eurex anticipates these new challenges by adjusting the system on an ongoing basis. The aim is to increase trading speed and throughput, expand system performance and improve the distribution of real-time data, interfaces and risk management.
Please note: On 18 November 2009 Eurex observed a performance degradation on its system at 11:20 am CET, affecting all members in the same manner. To ensure market integrity, Eurex decided to set trading to halt for all products and informed the market accordingly. After restart of the Eurex system, the market was re-opened at 1:00 pm CET with the initiation of the pre-trading phase.
Source: Eurex
Unscheduled Adjustment in SDAX
Villeroy & Boch replaces OVB Holding effective 20 November 2009
November 18, 2009--Deutsche Börse has announced an unscheduled adjustment in SDAX®. The freefloat of OVB Holding has dropped below ten percent and does therefore no longer meet the criteria of the index.
Villeroy & Boch will replace the share of OVB Holding in SDAX.
The next regular review of the equity indices of Deutsche Börse is scheduled for
3 December 2009.
Source: Deutsche Börse
Poland sets conditions on bourse privatisation
November 18, 2009--The Polish government is seeking extra guarantees from Deutsche Börse after it submitted the only binding bid in the privatisation of a majority stake.
Poland is setting conditions on the deal to ensure that Warsaw’s new partner does not draw away trading in the exchange’s best listings but instead continues developing it as the largest bourse in the new European Union member states of central and eastern Europe.
read more
Source: FT.com
The Ongoing Market Recovery Drove Assets Under Management in the Pan-European ETF Segment to a New All-Time High -Lipper Report
November 18, 2009--Highlights of the Lipper Fund Market Inside report:
Assets under management (AUM) in the pan-European exchange-traded funds (ETF) growth 147.08 billion euros.
The variety of exchange-traded funds was still rising; 80 ETFs were launched during third quarter 2009.
The average monthly turnover in euros in the third quarter was up 5.37%
Only nine equity funds had negative performance for third quarter 2009.
Equity sector financials was the best performing equity sector for third quarter 2009.
Currency movements and expectations on inflation were, in combination with decreasing spreads, the main performance drivers in the bond segment.
Within the commodities segment silver and palladium delivered the best performance for third quarter 2009.
Source: Lipper
Standard & Poor’s has launched the S&P Eurozone Government Bond Index.
November 17, 2009--The market-value weighted index is intended to measure the performance of the developed European government bond market and provide investors with a view across the Eurozone as a whole.
The index is made up of bonds issued by all those countries within the Eurozone which are considered developed markets under Bank of International Settlements classifications.
Source: Online News
Deutsche Börse Launches Web Portal for Portfolio Risk Assessment
Objective key risk figures available online for asset managers and investors
November 16, 2009--Deutsche Börse’s SENSIS® data product has been available via its own web portal since Monday. SENSIS supplies investors and investment advisors with objective key indicators for systematic risk measurement of tradable investments.
Internet users can run through their own investment scenarios at www.sensis-data.com, and optimize investment portfolios or investment recommendations in line with their personal willingness to take risks. Deutsche Börse calculates these figures as a neutral provider, thereby providing asset managers, advisors and investors with particularly easy access to securities risks without them having to install additional software. The SENSIS data, which is updated daily, provides the risk profile of individual securities, including funds and bonds, or of entire investment portfolios. Risk concentrations are instantly identifiable in diagrams.
SENSIS key risk figures (also known as sensitivity analyses) are calculated for each security, i.e. per ISIN. The analyses include influential factors such as currencies, interest rates and commodities prices. The customer accordingly receives up to 30 indicators per single share. This enables the identification of critical risk components in the portfolio that either increase investment risk or decrease diversification. The expanded data package contains additional standardized risk parameters for simplified determination of value at risk, the standard risk measure for portfolios. Defined individual risk parameters can also be taken into account for client-specific calculations.
As last year, Deutsche Börse Market Data & Analytics in cooperation with Private Banking Prüfinstanz, has successfully used SENSIS key indicators to analyze portfolio recommendations from 55 asset managers. The results will be summarized in the FUCHSBRIEFE report “TOPS – The best asset managers 2010”.
Interested parties can test the SENSIS portal for four weeks free of charge, and download the results. Further information is available at www.sensis-data.com and on the Deutsche Börse website at www.deutsche-boerse.com/sensis.
Source: Deutsche Börse
Finnish State Treasury Picks Eurex Bonds as Eligible Trading Platform
November 16, 2009--Eurex Bonds, the international electronic bond trading platform, today announced that it has been admitted by the Finnish State Treasury to act as a secondary market venue for trading of Finnish government bonds. In Finland, 14 primary dealers are eligible to conduct wholesale government bond market operations.
Laurent Ortiz, managing director of Eurex Bonds, said “We are delighted to be one of the eligible electronic trading platforms for Finnish government bonds. The admission is a confirmation of our goal to provide a liquid market for European bonds on an electronic trading platform, thereby increasing transparency for all market participants.”
Finland is the second European country to grant Eurex Bonds the status of “eligible platform” for primary dealers. Since 2008, Eurex Bonds has also been eligible for the wholesale government bond market in the Netherlands, the admission was re-confirmed in March 2009 by the Dutch Treasury Ministry. In 2009, around €4 billion of Dutch government bonds (single counted) were traded via the Eurex Bond platform.
In the first three quarters of 2009, Eurex Bonds recorded a total traded volume (single counted) of €66 billion.
Source: Eurex
ETF Securities launches the world's largest Exchange Traded Currency Platform
November 16, 2009--ETF Securities has launched the world’s largest and Europe’s first exchange-traded currency platform with trading expected to begin next week.
Currencies are the most liquid asset class with over USD3.2trn of trading each day, yet it is one of the last asset classes to be packaged in the form of an exchange-traded product.
The first day FX could be traded on the London Stock Exchange was 12 November 2009.
Source: Online News
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