Global ETF News Older than One Year
CEO cites S&P Dow Jones Indices' openness to deals
February 3, 2013--CEO Alex Matturri says S&P Dow Jones Indices' structure offers the "flexibility to take on new partners" and that regulations will
lead to more index-market consolidation.
Source: SmartBrief
IMF Working paper-Competition among Exchanges and Enforcement Policy
February 1, 2013--Summary: In this paper, we explore how competition among stock exchanges, operated as self-regulatory organizations (SROs), affects the design of their members' surveillance.
We develop a model where two for-profit SROs compete for trading volume, while brokers execute transactions on behalf of the investors and may misreport the true cash flow. The SROs can deter a fraud by announcing an investigation and imposing a monetary penalty.The success of the investigation depends upon both the amount of resources devoted to monitoring and the efficiency of monitoring technologies. We show that when contracts are incomplete and investors do not have perfect information about the monitoring efficiency, competition among exchanges induces a race to the bottom in enforcement policy and a reduction in total welfare, compared to the case of a monopolist SRO.
view the IMF Working paper-Competition among Exchanges and Enforcement Policy
Source: IMF
EPFR Global News Release-'Great rotation' takes another turn towards Equity Funds in late January
February 1, 2013--EPFR Global-tracked Equity Funds attracted another $18.7 billion during the final week of January, closing the books on a month when they outgained Bond Funds by a nearly 3-to-1 margin and fueled talk of a "great rotation" from fixed income assets to equity.
Equity to bonds is not the only rotation underway.Retail flows into Equity Funds were positive for the fourth week running, keeping them on course for the strongest start to a year since 1Q06.
Visit http://www.epfr.com for more info
Source: EPFR
Credit Suisse deal may be first of many
February 1, 2013--Just when you thought BlackRock, the world's largest asset manager, could not get any bigger, it did.
The announcement last month that it is to acquire the exchange traded funds (ETF) arm of Credit Suisse, Switzerland’s second-largest bank, will see the US fund giant add a further $18bn of fund assets to an already impressive $3.67tn.
Source: FT.com
Report on the regulatory consistency of risk-weighted assets for market risk issued by the Basel Committee
January 31, 2013--The Basel Committee on Banking Supervision has today published its report on the regulatory consistency of risk-weighted assets for market risk.
This analysis of risk-weighted assets in the trading book is part of the wider Regulatory Consistency Assessment Programme (RCAP) initiated by the Committee in 2012; a similar analysis is currently under way for the banking book. The programme aims to ensure consistent implementation of the Basel framework, which will help strengthen the resilience of the global banking system, maintain market confidence in regulatory ratios and provide a level playing field for banks operating internationally.
The report brings together two pieces of analysis. The first is based on an examination of publicly available bank data for a selection of large banks. It also contains the results of a hypothetical test portfolio exercise, in which 15 internationally active banks participated.
Source: BIS
FTSE launches new FTSE ORB Index Series: the first independent performance benchmarks for UK retail bonds developed in conjunction with Investec
January 31, 2013--FTSE Group ("FTSE"), the award winning global index provider, today announces the launch of the FTSE ORB Index Series which has been developed in conjunction with Investec Bank plc ('Investec').
The indices are the first performance benchmarks for bonds trading on ORB – London Stock Exchange’s Order book for Retail Bonds. The indices offer investors and product issuers transparency, measurability and new access opportunities in UK retail bonds. The launch of the indices reflects surging investor interest in the UK retail bond market, which has raised £3 billion through new issues since its launch in 2010.
Source: FTSE
NASDAQ OMX Reports Fourth Quarter and Full Year 2012 Results
Fourth quarter 2012 non-GAAP diluted EPS of $0.64, tied for the second highest quarterly performance in the firm's history; fourth quarter 2012 GAAP diluted EPS of $0.50
Fourth quarter net exchange revenues1 reach $419 million, the highest non-GAAP net exchange revenue level of the year. On an organic basis (constant currency and excluding acquisitions) fourth quarter revenue declined by 3 percent year-over-year
Non-transaction based revenues were 71 percent of fourth quarter net exchange revenue, tied for the highest level in NASDAQ OMX's history
2012 non-GAAP operating expenses of $918 million came in below previous guidance range of $922 to $935 million
Repurchased 11.5 million shares at an average price of $23.82 for a total cost of $275 million in 2012
January 31, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the fourth quarter and full year 2012. Fourth quarter net exchange revenues were $419 million, driven by particularly strong growth in our Corporate Solutions business.
Operating expenses were $244 million in the fourth quarter of 2012, compared to $259 million in the prior year quarter. On a non-GAAP basis, fourth quarter 2012 operating expenses were $233 million, flat compared to the prior year quarter.
Source: NASDAQ OMX
NASDAQ OMX Announces Quarterly Dividend of $0.13 Per Share
January 31, 2013--The Finance Committee of the Board of Directors of The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) has declared a regular quarterly dividend of $0.13 per share on the company's outstanding common stock.
The dividend is payable on March 28, 2013, to shareowners of record at the close of business on March 14, 2013. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
Source: NASDAQ OMX
IMF working paper-Financial Crises Explanations, Types, and Implications
January 30, 2013--Summary: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises.
Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.
view the IMF working paper-Financial Crises Explanations, Types, and Implications
Source: IMF
Mirae-Strong Inflows into EM Equities
January 30, 2013--EM equities outperformed DM peers in December on optimism about the Chinese economic growth. Globally, inflows to EM funds have remained strong, mostly in the ETF space.
China's economy bottoming out.
In Dec 2012, the World Bank raised China’s economic growth forecast to 8.4% in 2013, up from 8.1%, citing stimulus measures and the approval of infrastructure projects as positive catalysts for growth potential.
On the policy front, China is expected to maintain a pro-growth fiscal and monetary stance, which may be supplemented by tax cuts to boost consumption. The critical challenge will be for the new leadership to pursue much-needed reforms to encourage private enterprise and rebalance investment bias of the economy.
India-India's high deficit calls for the government's action.
The key risk in India remains the country’s high fiscal and current account deficits, which if not adequately tackled in coming quarters could derail an otherwise solid structural story.
To help reduce the deficit, the Indian government has indicated that it could take steps like increasing duties to curb discretionary imports. The country has set a target to reduce its fiscal deficit to 5.3% of GDP in the current fiscal year (ending March 31, 2013) and to 3% of GDP by fiscal year 2016-2017.
Asean-The positive momentum likely maintains this year.
Across the region, positive economic momentum continues to impact the market. On a country basis, outperforming markets for Dec 2012 included Thailand (5.7%) and Malaysia (4.5%). In fact, the Malaysian market rose to an all-time high during the month.
The current revival in the ASEAN markets may continue for the next couple of quarters. Meanwhile, it may occasionally be dampened by ongoing structural deleveraging in large economies.
Latin America-Equities remain highly reactive to the US debt issue.
Markets will remain focused on possible resolutions to the U.S. deficit. Equity markets will remain highly reactive to developments related to the U.S. debt discussions.
At the local level, recent optimism regarding the Chinese economy helped improve risk appetite in Brazil, with investors starting to show greater conviction in an improved outlook for cyclical laggards.
Most EMEA countries outperformed.
Russia outperformed the broader emerging markets in December due to positive company-specific news, despite data that point to an economic slowdown. In particular, the announcement by a primary energy provider that it plans to reduce capital expenditures led to a rally in its shares and benefited the market overall.
Source: Mirae Asset Financial Group
