Global ETF News Older than One Year
Regulators on hook for China stock slide
July 9, 2015--What began at the weekend as a behind-the-scenes effort by China's undergunned markets regulator to reassure skittish investors has become an all-out push
by the Communist party to safeguard its 25-year experiment with capital markets reform.
Source: FT.com
Platinum shares hit multi-year lows
July 9, 2015--Platinum shares have hit multi-year and even decade's lows as the metal's spot price pursued a
relentless decline to new six-year lows, approaching the $1 000 (approx R12 500) level.
Source: FIN24
IMF: Bursting Chinese bubble 'no reason to lose confidence'
July 9, 2015-The International Monetary Fund says that there is no reason to lose faith in China's economy because of the bursting stock market bubble.
IMF chief economist Olivier Blanchard said that the 30% meltdown in the Shanghai and Shenzhen markets since mid-June is "very much a sideshow" to the greater economy and would not undermine growth overall.
Source: FIN24
BATS REPORTS U.S. OPTIONS MARKET SHARE OF 9.6%, THIRD-BEST MONTH ON RECORD
EDGX Options Scheduled to Launch November 2nd, Pending SEC Approval
July 8, 2015--BATS Global Markets today reported volume, market share, and monthly highlights,for its U.S. options business, including its third-best month on record in June with 9.6% market share, up from 3.9% one year ago.
The monthly market share record is 9.9%, set in April 2015.
Additional monthly highlights include:
The BATS BZX Options exchange set a new record in equity options market share, reporting 10.8% market share in June.
The BZX Options market remained the largest maker-taker pricing options exchange in June.
Source: BATS Global Markets, Inc.
Pimco Seeks Lending Role From Banks Hampered by New Regulations
July 8, 2015--Pacific Investment Management Co. head Douglas Hodge sees an opportunity to take business from banks by providing credit to the global economy, even as the company strives to avoid lenders' too-big-to-fail designation.
Global rules enacted to prevent another financial crisis have forced lenders to shrink their balance sheets, creating a need for credit in most of the world where about 80 percent of debt financing comes from banks, said Hodge, Pimco’s chief executive officer.
Source: Bloomberg
Global AUM in Short & Leveraged ETPs at record $63bn as investors reposition bullishly in equities and bearishly in bonds
July 8, 2015--The AUM of Short & Leveraged (S&L) ETPs reached a record $63 billion at the end of June 2015, a 2% rise YTD.
The growth was driven by S&L investors globally repositioning themselves bullishly in equities and bearishly in debt
S&L Equity ETPs saw $0.8 billion of net inflows as investors increased long positions in European and Japanese equities, while positions (long and short) in US equities were cut...
Source: Boost
OECD-Composite leading indicators continue to point to growth convergence in most major economies
July 8, 2015--Composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, continue to point to growth convergence across most major economies and within the OECD.
The CLIs continue to point to firming growth in the Euro area1, including France and Italy, and to stable growth momentum in Germany, Japan and India. On the other hand, the CLIs point to easing growth in the United States, Canada, China as well as the United Kingdom, albeit from relatively high levels.
Source: OECD
China's Markets Plunge Deeper Into The Abyss As Investors Locked Out Of 71% Of Market
July 8, 2015--Markets in China have plunged deeper into the abyss as a market rout which has sent its shares into a bear market last monday are continuing to freefall as its stock market faces its biggest rout since 1992 and as firms suspend trading and freeze up markets as losses wipe out over $3.5 trillion in less than a month.
For a record 12th day in a row, Chinese margin debt balances have fallen, as investors continue to panic and rush to offload bets as the Chinese government continues to try to manage leverage down while encouraging speculation.
Source: emergingequity.org
IMF Working paper-What Slice of the Pie? The Corporate Bond Market Boom in Emerging Economies
July 7, 2015--Summary: This paper studies the determinants of shifts in debt composition among EM non-financial corporates
We show that institutions and macro fundamentals create an enabling environment for bond market development. During the recent boom episode, however, global cyclical factors accounted for most of the variation of bond shares in total corporate debt. The sensitivity to global factors appears to vary with relative bond market size-which we interpret to be associated with liquidity and easy entry and exit-rather than local fundamentals. Foreign bank linkages help explain why bond markets increasingly substituted for banks in channeling liquidity to EMs. Our results highlight the risk of capital flow reversal in EMs that benefited from the upturn in the global financial cycle mostly due to their liquid markets rather than strong fundamentals.
Source: IMF
IMF Working paper-Network Effects of International Shocks and Spillovers
July 7, 2015--Summary: This paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in one country on all other countries. The paper concludes that the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock.
Individual countries may amplify, absorb, or block spillovers. Most developed countries pass-through shocks, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively.
view the IMF Working paper-Network Effects of International Shocks and Spillovers
Source: IMF
