Global ETF News Older than One Year
Credit Suisse agrees to sell ETF business to BlackRock
In a strategic move, Credit Suisse announces the sale of its ETF business
January 10, 2013--Credit Suisse today announced that it has signed an agreement to sell its exchange traded funds (ETF) business to BlackRock, Inc. (BlackRock).
This is an important strategic step in an industry that requires significant scale, and allows Credit Suisse to realize value in a business successfully built over many years.
The sale is part of Credit Suisse’s strategic divestment plans that were announced on July 18, 2012. It comprises Credit Suisse’s ETF business with assets under management of CHF 16.0 billion as of November 30, 2012. The transaction is subject to customary closing conditions, including regulatory approvals and is expected to complete by the end of the second quarter of 2013. The terms of the deal are not being disclosed.
Source: Credit Suisse AG
IMF Working paper-A Modern History of Fiscal Prudence and Profligacy
January 9, 2013--Summary: We draw on a newly collected historical dataset of fiscal variables for a large panel of countries-to our knowledge, the most comprehensive database currently available-to gauge the degree of fiscal prudence or profligacy for each country over the past several decades.
Specifically, our dataset consists of fiscal revenues, primary expenditures, the interest bill (and thus both the primary and the overall fiscal deficit), the government debt, and gross domestic product, for 55 countries for up to two hundred years. For the first time, a large cross country historical data set covers both fiscal stocks and flows. Using Bohn’s (1998) approach and other tests for fiscal sustainability, we document how the degree of prudence or profligacy varies significantly over time within individual countries. We find that such variation is driven in part by unexpected changes in potential economic growth and sovereign borrowing costs.
view the IMF Working paper-A Modern History of Fiscal Prudence and Profligacy
Source: IMF
The Eurozone Debt Crisis: 2013 Could Be A Watershed Year
January 9, 2013--After more than three years of economic, financial, and budgetary stress in the European Economic and Monetary Union (eurozone), especially on its so-called "periphery"' some signs of stabilization emerged in the latter half of 2012.
Is this a sign that the financial and economic troubles leading to the rating downgrades of 12 of the 17 eurozone member states since the onset of the crisis may have run their course? We believe that 2013 could be a watershed year for the eurozone debt crisis. It could mark the start of the region sustainably overcoming the market volatility and fragmentation that has affected it over the past few years. It could also see the return of some so-called "program countries"--member states that have borrowed from the European Stability Mechanism (ESM) or the European Financial Stability Facility multilateral loan programs--such as Ireland and Portugal, to more substantial primary issuance in the capital markets.
Source: Standard & Poor's
Global ETF and ETP assets hit almost $2 trillion last year
January 9, 2013--ETF and ETP assets have increased by 27.6% from US$1.53 trillion to $1.95 trillion during 2012, according to figures from ETFGI's monthly Global ETF and ETP Industry Insights.
The ten year compounded annual growth rate (CAGR) of global ETF and ETP assets at the end of 2012 was 29.6%. There are currently 4,731 ETFs and ETPs with 9,710 listings, assets of $1.95 trillion, from 208 providers on 56 exchanges.
iShares is the largest ETF/ETP provider in terms of assets with $760 billion, reflecting 39% market share; SPDR ETFs is second with $337 billion and 17.3% market share, followed by Vanguard with $246 billion and 12.6% market share. These top three ETF/ETP providers, out of 208, account for $1.34 billion or 68.9% of global ETF/ETP assets, while the remaining 205 providers each have less than 4% market share.
Source: Asia Asset Management
BNY Mellon-Consultant 360-Volume I, 2013
January 9, 2013--The BNY Mellon Consultant 360: Global Edition-Volume I, 2013 is now available.
Source: BNY Mellon
Risk-on investors turn to emerging markets ETFs
January 9, 2013--Investors poured $54.3bn into emerging market equity exchange-traded funds in 2012, an exponential increase from the net new money invested in the products last year, as risk appetite increased and new products emerged.
Those net inflows to emerging market equity ETFs compare to just $3.7bn in net inflows to the products in 2011, according to data published on Monday by consultancy ETFGI.
Source: Financial News
Deutsche Boerse has lost appetite for Euronext takeover-sources
Euronext, operator of Paris, Brussels exchange on the block
Boerse gives up plans for pan-European stock exchange
Margin pressure on stocks diminish prospects of a deal
January 9, 2013--Germany's Deutsche Boerse has lost its appetite for buying Euronext, the operator of the Paris stock exchang, which is back on the block, three people familiar with the Frankfurt-based company's thinking told Reuters.
Deutsche Boerse is giving up on its decades-long dream of consolidating European stock exchanges because regulatory and technological changes have made it harder to earn big profits from stock trading, the sources said.
Source: Reuters
Basel Committee issues "Principles for effective risk data aggregation and risk reporting-final document"
January 9, 2013--The Basel Committee on Banking Supervision today issued Principles for effective risk data aggregation and risk reporting.
The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole.
The principles published today are intended to strengthen banks' risk data aggregation capabilities and internal risk reporting practices. They complement other international initiatives underway and will allow banks to comply effectively with them. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress and crisis situations. In this regard, Stefan Ingves, Chairman of the Basel Committee on Banking Supervision and Governor of the Sveriges Riksbank, said "these principles are a significant step towards improving banks' risk management capabilities and they will also contribute to G-SIBs' resolvability, hence reducing the potential recourse to tax-payers".
view the BIS Principles for effective risk data aggregation and risk reporting
Source: BIS
NYSE Euronext Monthly ETF Activity Report -December 2012
January 9, 2013--Listings
December 2012 saw a total of three new ETF listings from Lyxor:
ETF Symbol:BOT
Listing date: 19/12/2012
ETF Trading name:LYXOR ETF BOT IT
Underlying index:MTS Italy-Treasury BOT 6M
ETF Symbol:GLDM
Listing date:19/12/2012
ETF Trading name: Lyxor ETF GOLD EUR
Underlying index: MSCI ACWI GOLD-EM DR-18%Capped
ETF Symbol:GLDU
Listing date: 19/12/2012
ETF Trading name: Lyxor ETF GOLD USD
Underlying index: MSCI ACWI GOLD-EM DR-18%Capped
At end of December, NYSE Euronext European markets had 680 listings of 578 ETFs from 16 issuers.
Trading activity
Average daily value traded on-book in December of €193.1 million, a decrease of 28.13% vs December 2011, and down 8.22% MoM.
Total value traded on-book amounted to €4.06 billion, a decrease of 28.13% vs December and down 12.40% MoM.
Average of 5,250 on-book trades (single-counted) executed daily last month, a decrease of 32.10% vs December 2011, and down 19.35% MoM.
Total of €1.2 billion exchanged in block trades in December, up 82.95% from the €663.01 mllion in November.
Overall, block trade volume represented 29.91% of total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of December 2012, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €136.3 billion, down 4.71% YTD (decrease due to limited number of delistings).
Market Quality
2 LPs took on liquidity responsibilities for 10 additional LP contracts on 10 different ETFs:
SUSQUEHANNA expanded their current activity by adding 7 HSBC ETFs to their list.
SG SECURITIES took the lead on the 3 new Lyxor ETFs listed in December.
Median spread for all listed ETFs of 31.6 bps.
21 Liquidity Providers currently active on ETFs.
view the EU ETP Monthly Activity Report
view US ETP Monthly Flash report
Source: NYSE Euronext
World More at Risk from Markets and Mother Nature-Global Risks 2013 report
January 8, 2013--Persistent economic malaise coupled with frequent extreme weather events an increasingly dangerous mix
National resilience is crucial to tackle unpredictable global threats; new country rating system launched
Health and hubris, digital wildfires and environmental/economic stress are the three risk cases for 2013
The report analyses 50 global risks, with breakdowns for China, Middle East/North Africa and Latin America
January 8, 2013--The world is more at risk as persistent economic weakness saps our ability to tackle environmental challenges, according to the World Economic Forum's Global Risks 2013 report.
The report highlights wealth gaps (severe income disparity) followed by unsustainable government debt (chronic fiscal imbalances) as the top two most prevalent risks, in a survey of over 1,000 experts and industry leaders, which reflects a slightly more pessimistic outlook overall for the coming 10 years.
Following a year scarred by extreme weather, from Hurricane Sandy to flooding in China, respondents rated rising greenhouse gas emissions as the third most likely global risk overall, while the failure of climate change adaptation is seen as the environmental risk with the most knock-on effects for the next decade.
view the WEF report-Global Risks 2013 Eighth Edition
Source: World Economic Forum
