Global ETF News Older than One Year
DTCC Publishes Perspectives on CCP Risk Management
Issues new paper highlighting critical differences among CCPs and the markets they serve and promoting transparency and certainty concerning CCP risk management practices
June 1, 2015--The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today issued a white paper outlining views on CCP governance, stress testing, default management and continuity of CCP services in times of market distress.
DTCC's paper, CCP Resiliency and Resources, contributes to an ongoing dialogue among CCPs, regulators and clearing participants concerning CCP risk management.
view the DTCC paper-CCP Resiliency and Resources
Source: DTCC
State Street Global Advisors-Weekly Market Report
May 29, 2015-This Week's Highlights
Economies
GDP falls in the US..but may be revised. The Bank of Canada
leaves policy unchanged. GDP rises modestly in the UK. Money
growth accelerates in the eurozone.
Inflation slows sharply in Japan. Investment falls again in Australia. GDP expands solidly in India but contracts in Brazil.
Markets
Markets seem listless. Equities are mixed. G7 government bond yields fall. USD rises. Oil falls.
Next Week Previewed-Spotlight
The Reserve Bank of Australia, the European Central Bank and the Bank of England should leave monetary policy unchanged.
Employment should rise solidly in the US. Inflation is expected to turn (barely) positive in the eurozone. GDP likely posts another sluggish gain in Australia
The Week in Review-US
As widely anticipated following the release of the international
trade data, first-quarter real GDP growth was revised down
quite substantially.
Source: spdru.com
OFR Working Paper--Systemwide Commonalities in Market Liquidity
May 28, 2015--This paper identifies hidden liquidity regimes (high, medium and low) across a broad range of financial markets that can be used for characterizing periods of market stress and identifying underlying predictors of liquidity shocks.
This regime could have provided meaningful predictions up to 15 trading days in advance of the 2008 financial crisis. These methods offer a potential framework for monitoring and predicting a systemwide collapse in market liquidity, which could signal a collapse of liquidity in the funding markets and a broader financial crisis.
Source: OFR (Office of Financial Research)
DECPG Global Weekly
May 29, 2015--Taking Stock
U.S. GDP contracted in Q1 2015. According to a second official estimate, U.S. GDP contracted 0.7 percent (q/q saar) in Q1 2015, a downward revision from the earlier estimate showing a 0.2 percent uptick.
This contraction followed a 2.2 percent expansion in Q4. Weaker U.S. exports due to the stronger dollar, and a slower stockpiling of inventories by companies than initially estimated, were largely responsible for the revision.
Bailout negotiations for Greece continued. Negotiations between Greece and its creditors over the aid-for-reform bailout deal continued on Friday. Greek officials suggested on Wednesday that the country was nearing a "staff level agreement". However, European Central Bank (ECB) officials downplayed the prospects of any imminent agreement for the release of funds. Meanwhile, the Greek economy contracted 0.2 percent (q/q sa) in Q1 2015, following a 0.4 percent deciline in Q4 2014.
Shanghai stocks plunged.
China's Shanghai Composite Index dropped 6.5 percent on Thursday, one of its steepest
single-drops in 15 years, after several major brokerages tightened margin financing requirements for
clients and the central bank reduced money market liquidity through bonds sales. The index lost another 0.2 percent at Friday's closing.
Source: World Bank
Metal Funds Rule Commodities in May as Traders Bet on Gains
May 29, 2015--Investors are buying into industrial-metal funds at a faster pace than any other commodity, underscoring optimism about the health of the global economy.
U.S. exchange-traded products backed by the metals attracted $71.1 million in May, putting flows on track for the biggest monthly increase since 2012, according to data compiled by Bloomberg as of Wednesday.
Source: Bloomberg
Cash holdings rise as investors fear reverse for expensive stocks, bonds: poll
May 29, 2015--Fearful of a looming tumble in stocks and bonds from multi-year highs, global investors have increased the share of safe-haven cash in their portfolios to the highest levels in seven months, while also raising allocation to property.
World stocks hit record highs earlier this month .MIWD00000PUS while Japanese shares trading off the weak yen, are at 15-year peaks. European bourses from Spain to Germany are up 10-20 percent year-to-date, thanks primarily to money-printing operations in Japan and the euro zone.
Source: Reuters
US Lew: Greece Negotiation Delays Raise Risk Of Accident
May 29, 2015--US Treasury Secretary Jack Lew issued a strong appeal to his European counterparts Friday to find a quick solution to the ongoing Greek crisis, warning that failure to do so risked a default or a Greek exit from the Eurozone and possible damage to the global economy.
Speaking at the press conference of the US delegation after the conclusion of the G-7 summit in Dresden, Lew called on both sides of the negotiation table to make concessions.
Source: MNI
Structure Matters: The GDP factor in the emerging markets
May 29, 2015--Interview series: Investment Factors that drive ETF performance
In this interview I am pleased to be speaking to Brendan Ahern, the Chief Investment Officer of Kraneshares.
Index methodologies in emerging markets equities are highly differentiated with meaningful results that are driven by factors that result in varying allocations to countries, market cap size, industries and fiscal policies. We hope that readers appreciate, if only for educational purposes, that exploring alternative allocation methodologies should be constructive for any investor as it leads to a deeper understanding of what drives returns.
Source: Access ETF Solutions
MSCI launches new ESG Ratings Service
May 28, 2015--Index provider MSCI has announced the launch of the MSCI ESG Ratings tool,
aimed at supporting institutional investors' rowing ESG integration, manager reporting, engagement and portfolio monitoring needs.
Source: Investment Europe
BSE derivatives volumes exceed 1 billion contracts on its Deutsche Boerse T7 powered trading platform
May 28, 2015--BSE (formerly Bombay Stock Exchange) and Deutsche Börse today announced that the cumulative volume on BSE's derivatives markets since the launch of its new trading platform BOLT Plus-which is based on Deutsche BBörse's T7 trading technology-has surpassed the 1 billion traded contracts mark.
This milestone underlines BSE's competitive edge in terms of speed, transparency and reliability.
Source: Deutsche Börse
