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Clearstream and Banque centrale du Luxembourg Collaborate on Collateral Management
October 22, 2009-Clearstream, the International Central Securities depository within Deutsche Boerse Group, and the Banque centrale du Luxembourg (BCL) are launching a new service allowing all Luxembourg based banks to optimise further their use of collateral to cover any operation with the Eurosystem via BCL.
Clearstream will act as a triparty agent for the banks looking to cover any operation with BCL. Through their securities account with Clearstream, the banks will manage one central, multi purpose collateral pool allowing them to not only cover their monterary policy operations but also to perform other operations necessitating collateral among which intraday credit operations in TARGET2, the real time gross settlement system for the euro.
Luxembourg based banks will benefit from the flexibility of Clearstream’s fully automated CmaX (collateral management eXchange) system. This includes automatic allocation of collateral, eligibility checks, substitutions of collateral, mark to market valuation, margin calls, re-use of collateral and reporting facilities.
Operationally, Banque Centrale de Luxembourg will communicate electronically to Clearstream the amount to be collateralized and Clearstream will ensure that eligible assets are pledged as collateral. Assets eligible at the European Central Bank and for which Clearstream already has “assessed links” (1) represent some 40,000 securities, 90% of the total number of eligible assets.
The financial crisis and the subsequent freeze on money markets have shed light on the importance of accessing central banks liquidity as well as on the crucial role of securities financing mechanisms and infrastructures which provide much of the liquidity to the world’s capital market. Since the beginning of the financial crisis, collateral managed by the Eurosystem has gone up from € 800 billion to € 1500 billion.
Clearstream pioneered the development of collateral management services, including triparty repo, in Europe by launching the world’s first such multi-currency service back in 1993. It now offers a wide range of collateral management services together with a suite of securities lending products under the name of Global Securities Financing (GSF) services. In the past weeks, GSF services have broken the €500 billion mark for monthly average outstandings (from € 400 billion a year ago), illustrating the growing importance of secured financing and the continued flight of collateral towards central liquidity pools at a time of market uncertainty.
(1) Background on assessed links. assessed links are contractual and technical arrangements for the transfer of securities involving between securities settlement systems which may be used in the collateralisation of the credit operations of the Eurosystem after an assessment has been carried out against the Eurosystem’s standards to ensure that the conditions set by the Governing Council have been met.
Source: Clearstream:
CESR consults on details for proposed registration and supervision of CRAs, feedback statement on CRAs repository published
October 21, 2009--CESR published today a feedback statement on its consultation for a central repository for credit rating agencies (CRAs) and issued a consultation paper detailing the proposed registration and supervision process for CRA in Europe.
The feedback statement provides a summary of the main suggestions received by CESR regarding the setting of common standards for presentation of historical and performance information and the potential output design of the repository along with an explanation of CESR’s decision on some of the most significant issues raised.
The purpose of the consultation document is to seek comments on the conclusions CESR has drawn for setting guidelines for the registration process, the functioning of colleges, the mediation protocol, the common standards on presentation of information for registration and endorsement (Annex II) and the information for the application of certification and for the assessment for CRAs systemic importance.
The consultation is open for comments until Friday, 30 November 2009.
View the consultation paper- Guidance on Registration Process, Functioning of Colleges, Mediation Protocol, Information set out in Annex II, Information set for the application for Certification and for the assessment of CRAs systemic importance
View the feedback statement-CESR’s consultation on CRAs Central Repository
Source: COMMITTEE OF EUROPEAN SECURITIES REGULATORS (CESR)
SIX Group Sets New Standards With CONNEXOR® Reference Data Management System
October 21, 2009--Under the name CONNEXOR, SIX Group plans to expand its Web-based reference data infrastructure. Thanks to this new online platform, issuers can compile their reference data centrally in standardized form and then have it disseminated electronically to all stakeholder groups. As a result, CONNEXOR offers market participants greater efficiency, first-rate reference data quality and simplified comparability of financial products.
With CONNEXOR, SIX Group is introducing a massive expansion of its already well-established services in the area of Web-based reference and core data, thereby lending support to issuers, financial institutions, data vendors, clearing and settlement service providers, government authorities and investors in the efficient processing and utilization of securities-related reference data. For all users, this enhancement enables greater efficiency, the elimination of error sources, as well as the realization of considerable cost savings.
Automation and standardization
At the heart of this new Web-based CONNEXOR infrastructure lies the ability for issuers to compile and administer locally, in standardized digital form, all data pertaining to the lifecycle of a given financial instrument. The subsequent organization and dissemination of the reference data is accomplished fully automatically via standard interfaces for the attention of all stakeholder groups in the value chain associated with the security.
CONNEXOR therefore generates benefits for all parties involved:
CONNEXOR services for issuers facilitate cost-effective reference data management throughout the entire lifespan of a financial product.
Data vendors can use CONNEXOR to optimize sustainably the costs involved in procuring and maintaining reference data, while benefitting from the outstanding quality and significantly greater depth of that data.
The new platform offers investors and users realtime access to a vast store of reference data, right from the source, thereby simplifying the comparability of various financial products.
CONNEXOR is a service of SIX Swiss Exchange Ltd, SIX Exfeed Ltd, SIX SIS Ltd and SIX Telekurs Ltd, all of which are subsidiaries of SIX Group. Prior to the securities offering, CONNEXOR Numbering CONNEXOR® Numbering from SIX Telekurs enables issuers of financial instruments to obtain security numbers and ISINs in advance, fully automatically and regardless of time and place. As a result, the issuance process is accelerated. The security numbers and ISINs can be procured individually or for inventory purposes (pooling).
This service will become available as of 26 October 2009.
CONNEXOR at the Structured Products Fair 2009 (21-22 October) SIX Group is presenting the entire CONNEXOR system to the public at the Structured Products Fair 2009, Stand E1.
For further information on CONNEXOR, please visit: www.connexor.ch.
Source: SIX Swiss Exchange
European Union: Competition is sharper but liquidity fragmented
October 21, 2009--It is hard to believe that a dry-sounding European Commission directive that came into force almost exactly two years ago could have had the effect on Europe’s equities markets that it has.
But the Markets in Financial Instruments Directive (Mifid) has resulted in some astonishing changes to the trading landscape – probably far beyond what its architects envisaged.
read full story
Hedge Fund Montly-2009 Key Trends in European Hedge Funds Figure 1: Industry Growth over the Years 2009 YTD AuMs read more Deutsche Börse and Eurex support EU Commission plans to increase safety and soundness of OTC derivatives market
The communication finalises the consultation process towards a future regulation of OTC derivatives markets in the European Union and states the proposals of the EU Commission for 2010.
Deutsche Börse published its proposals for a market structure with improved safety and integrity at the beginning of September 2009 in its White Paper entitled “The Global Derivatives Market – A Blueprint for Market Safety and Integrity“. view white paper ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows, week ending 16-Oct-09 Visit Barclays Global for more information. Warsaw Stock Exchange-Derivatives Market in Q1-Q3 2009 read more SIX Swiss Exchange delists Lehman Brothers bonds Because investor claims will, under circumstances, no longer be valid once this filing deadline has passed, any continuation of trading in the bonds would be problematic in that it cannot be merely assumed that the securities are fungible. The last trading day for these bonds will be 30 October 2009. Trading in the euro-denominated bonds of Lehman Brothers will also cease after the close on 30 October 2009. Should you have any questions, please feel free to contact Werner Vogt, Head Media Relations. Due to huge and increasing popularity of ETCs and ETFs, ETF Securities strengthens its Research, Product Development and Legal Teams
Martin Arnold joins the Research & Investment Strategy team
Martin Arnold joins ETF Securities’ research team as a senior analyst. Martin has a wealth of experience in strategy and economics with his most recent role focused specifically on the foreign exchange markets. Martin has a strong macro background – gained both at the Reserve Bank of Australia and in the private sector - and experience covering a range of asset classes so should be able to quickly add strong research value-added to support our sales and marketing teams and clients invested across our ETC and ETF platforms. Martin holds a Bachelor of Economics from the University of New South Wales (Australia), a Master of Commerce from the University of Wollongong (Australia) and the Graduate Diploma of Applied Finance and Investment from the Securities Institute of Australia.
Jenny Hsieh and Michael Langerup join the Product Development team
Jenny Hsieh joins from Goldman Sachs Private Wealth Management where she helped develop and launch products for clients, with a focus on tax efficiency. Jenny has extensive experience within the investment banking and asset management industry and brings a solid skill set in product development, having started her career working on hybrid capital products. Jenny holds undergraduate degrees in Psychology and Sociology from UCLA (Univ. of Calif, Los Angeles) and an MBA from Insead.
Michael Langerup joins from Saxo Bank where he worked as a research analyst in the hedge fund group focusing on global macro research. Prior to this, he spent 1.5 years at Forsyth Partners’ FoHF group, where he was responsible for fixed income related hedge fund strategies. Michael started his career at Carnegie Asset Management, where he worked in portfolio administration as an analyst for three years. Michael holds a BSc in Business Administration and MSc in Finance and Accounting from Copenhagen Business School (Denmark) and an MBA from Weatherhead School of Management at Case Western Reserve University (USA).
Amila Kulasinghe joins the Legal team
Amila Kulasinghe joins from Goldman Sachs International where he worked in the legal department, advising the Execution & Clearing, Listed Derivatives, Prime Brokerage and Principal Strategic Investments business units. At Goldman his areas of practice included derivatives and trading documentation, securities custody arrangements, cross-border secured financing, and insolvency-related issues. Amila was called to the English Bar in 2005 and originally qualified as a commercial chancery barrister at Serle Court, a leading set of chambers specialising in off-shore trusts, banking and financial services litigation. Amila holds a BA in Law from Merton College, Oxford and an LL.M (with Distinction) in Corporate and Commercial Law from University College London.
*As at 19th October 2009
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Source: FT.Com
October 21, 2009--After a very challenging 2008 and 1Q2009, the European hedge fund industry has witnessed a remarkable growth during the March to August 2009 period, bringing the size of the industry back to end-2008 level. European managers returned strong results of 3.34% in September, bringing the YTD performance to 19% in 2009. This is the strongest YTD September performance since 2000 (when the sector had returned 21% by the ninth month).
The sector had grown at a swift pace since 2000, reaching its highest point in June 2008, with assets of US$472 billion, before shrinking rapidly in the face of heightened volatility across all asset classes and massive redemptions in the latter half of 2008 and in 1Q2009.
Source: Eurekahedge.com
October 21, 2009-Deutsche Börse and Eurex welcome the communication issued by the EU Commission entitled “Ensuring Efficient, Safe and Sound Derivatives Markets: Future Policy Actions“. Both companies support the EU Commission’s objective to reduce systemic risks in the OTC derivatives market in order to increase the stability of the market with the proposed measures. Effective risk management and improved transparency are essential elements to strengthen the safety and soundness of the current market organization.
With their expertise as an operator of exchanges and of Europe’s largest clearinghouse Deutsche Börse and Eurex want to actively support the EU Commission in implementing its proposals.
Source: Deutsche Börse
October 21, 2009--Highlights
Last week saw US$238.6 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Banks with US$91.6 Mn and Oil & Gas with US$53.3 Mn while Utilities experienced net outflows of US$39.2 Mn.
Year-to-date, Banks has been the most popular sector with US$303.2 Mn net new assets, followed by Basic Resources with US$272.2 Mn net inflows. Retail sector ETFs have been the least popular with US$52.6 Mn net outflows YTD.
Source:ETF Research and Implementation Strategy, BGI
October 20, 2009--In Q1-Q3 2009, the WSE maintains a high fourth place in Europe regarding index futures contracts volumes. WIG20 futures contract is on 6th place (one place higher than in H1 ‘09) among European index contracts.
WIG20 options are on 11th place in terms of turnover volume among European index options.
Source: Warsaw Stock Exchange
October 20, 2009-Effective 2 November 2009, SIX Swiss Exchange will delist the following non-performing bonds of Lehman Brothers:
2.50 % Lehman Brothers Holdings Inc. 13.10.2010 (sec. no. 2,698,508)
2.875 % Lehman Brothers Treasury Co. B.V. 14.3.2013 (sec. no. 2,919,715)
Via the www.lehman-docket.com homepage, investors have now been informed that they must file their claims relating to the aforementioned bonds by 2 November 2009 at the latest.
Phone: +41(0)58 854 26 75
Fax: +41(0)58 854 27 10
E-mail: pressoffice@six-swiss-exchange.com
Source: SIX Swiss Exchange
October 20, 2009--ETF Securities Ltd (ETFS), the global pioneers of Exchange Traded Commodities (ETCs), and 3rd generation Exchange Traded Funds (ETFs), continues to grow its business with four new hires across Research, Product Development and Legal teams.
These appointments are in direct response to ETF Securities tremendous growth and ambitious development plans going forward and come at a time when ETF Securities sees spectacular growth within ETCs and ETFs, as AUM break $15.6bn*, following the recent expansion into the US and Japanese markets.
Helen Burden
Tel: +44 (0) 20 7448 4330
Email: helen.burden@etfsecurities.com
Source: ETF Securities
