Global ETF News Older than One Year
Barclays Is Expected to Announce Exit From Commodities
April 18, 2014--Investment banks, which rushed into the new territory of physical commodities starting at the turn of the century, are now beating a retreat.
The latest bank expected to make an exit is Barclays, which plans to announce on Tuesday that it will get out of large parts of its commodities business, according to a person briefed on the British bank's plans.
Source: New York Times
Market Uncertainty, Geopolitical Risks To Drive Investors Back Into Gold--SPDR Exec
April 18, 2014--Increased volatility in equity markets and geopolitical uncertainty are expected to drive investors back into the gold market this year, said one analyst.
In an interview with Kitco News, David Mazza, head of research at SPDR ETFs and SSGA Funds, said that he is already starting to see investors take more interest in gold and SPDR Gold Shares physically-backed exchange-traded fund (NYSE: GLD). He added that investors are using the yellow metal to create "defensive" positions in their investment portfolios.
Source: Forbes
WisdomTree Completes Investment to Create WisdomTree Europe
WisdomTree Takes Majority Stake in U.K. ETP Group Boost; WisdomTree and Boost Product Ranges to Serve European Investors
April 17, 2014--WisdomTree Investments, Inc. (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, announced today that it has completed the acquisition of Boost ETP, a UK-based exchange-traded product ("ETP") provider, in a move that expands WisdomTree's footprint to Europe.
WisdomTree will commence the previously announced build-out of a local European platform to offer a select range of UCITS ETFs under the WisdomTree brand and continue to manage and grow the Boost lineup of short and leveraged fully collateralized ETPs under the Boost brand. "We are excited to deepen and expand our offerings as the world's eighth largest ETF sponsor and look forward to serving the European market," said WisdomTree CEO and President Jonathan Steinberg.
Source: WisdomTree
STOXX announces results of annual Emerging and Developed Markets Classification Review
April 16, 2014--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced the results of the regular annual review of the STOXX Emerging and Developed Markets Country Classification. All changes will become effective with the open of markets on Sept. 22, 2014.
The classification of emerging and developed markets in the STOXX index universe remains unchanged. Currently, out of the 65 countries in the STOXX index universe, 25 are classified as developed markets, and 20 are classified as emerging markets. A full list of countries including their classification can be found under the dedicated country classification section of the STOXX website: http://www.stoxx.com/indices/country_classification.html.
Source: STOXX
Influence of banks, hedge funds on commodities lowest since 2008
April 16, 2014--United Nations economists who previously called for government intervention to tame volatile swings in commodity prices say banks and hedge funds have since reduced their influence to the lowest level since 2008.
In a 2012 report for the UN Conference on Trade and Development (UNCTAD), David Bicchetti and Nicolas Maystre said the rise of financial players in commodities markets over the previous decade had moved prices of oil and grains away from the fundamentals of supply and demand.
Source: Reuters
Deutsche Borse and The Stock Exchange of Thailand (SET) to cooperate
Memorandum of Understanding signed last week
April 16, 2014--The Stock Exchange of Thailand (SET) and Deutsche Börse AG signed a Memorandum of Understanding (MoU) on 11 April 2014. Both partners aim to enter into a cooperative relationship for the purpose of facilitating the development of the securities and derivatives markets between Thailand and Germany.
Under the terms of the MoU, the organizations aim to assess potential cooperation projects in cash and derivative products, market data as well as in clearing and risk management. They also are to start a comprehensive sharing of knowledge and information on business areas and regulatory developments.
Source: Deutsche Börse
Final standard for measuring and controlling large exposures published by the Basel Committee
April 15, 2014--The Basel Committee on Banking Supervision has today published a final standard that sets out a supervisory framework for measuring and controlling large exposures,w hich will take effect from 1 January 2019.
A large exposure framework protects banks from significant losses caused by the sudden default of an individual counterparty or a group of connected counterparties. The framework was designed so that the maximum possible loss a bank could incur if such a default were to occur would not endanger the bank's survival as a going concern.
Source: BIS
IOSCO Research publishes paper on Corporate Bond Markets
April 15, 2014--The Research Department of the International Organization of Securities Commissions today published a Staff Working Paper entitled Corporate Bond Markets: A Global Perspective.
The report presents findings from an in-depth study on the development and functioning of corporate bond markets globally, and focuses on both emerging and developed markets. Its findings underscore the importance of corporate bond markets to economic growth, financial stability and economic recovery.
view the IOSCO report-Corporate Bond Markets: A Global Perspective Volume 1
Source: IOSCO
Gold: In search of a new standard
The London fix has been in place for almost a century but critics say the system needs reform
April 14, 2014--April 14, 2014--On the morning of September 12 1919, just 10 months after the end of the first world war, bankers at NM Rothschild & Sons in London sat down to calculate a fair price for gold.
They had been asked to do this by the Bank of England, which wanted to restore the city,s status as an international finance centre.
Sir Brien Cokayne, the BoE's governor, envisaged "an open market for gold in ...
Source: FT.com
Asset managers fight 'financial threat' label
April 13, 2014--Big asset managers are fighting hard against being labelled potential threats to the stability of the financial markets. They have urged regulators to focus on heavily indebted institutions instead.
Regulators are considering imposing tighter rules as part of an assessment to determine whether large funds should be considered as "systemically important".
Funds with assets of more than $100bn will be subject to greater scrutiny, but regulators will also employ other measures such as leverage ratios to determine how wide to spread the net.
Vanguard, which manages $2.7tn, is potentially most under threat. It runs five tracker funds and a money-market fund with assets of more than $100bn.
Source: FT.com
