Global ETF News Older than One Year
Rumoured physical ETF foray a 'natural' step for Deutsche
November 1, 2012--A push into physical exchange traded funds is a "natural evolution" for Deutsche Bank, according to ETF experts.
Deutsche, whose db x-trackers division is currently one of Europe’s largest providers of synthetic ETFs, is reportedly lining up a suite of physical funds to be launched this month.
Source: FT.com
BATS Global Markets Reports October Volume; Sets Monthly U.S. Equities Market Share Record With 13%
U.S. Options Market Share Hits 3.6%; BATS Chi-X Europe Reports 24.8% Market Share
November 1, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported October U.S. equities market share of 13.0%, a new record for the company. In Europe, BATS Chi-X Europe reported market share of 24.8%, maintaining its position as the largest equity market in Europe during 2012.
Joe Ratterman, president and chief executive, commented: “I am excited about the strong performance across all of our markets, particularly in U.S. equities where in October we surpassed 13% market share for the first time in our seven-year history. We attribute our continued market share growth to our strong market quality, price improvement metrics, and diverse membership base, which we believe are vital to a growing and healthy marketplace.
“In Europe, BATS Chi-X Europe is bringing new products and services to market participants, most recently with a new market data license covering our European trade data for use in real-time index calculations. The introduction of this new license highlights an information gap in the European markets where exchange-owned benchmarks do not yet include our price informing data. Incorporating our trade data in Europe’s major benchmarks will produce a more complete picture of today’s market in which significant amount of intraday trading occurs on BATS Chi-X Europe.
Source: BATS Global Markets, Inc.
NASDAQ OMX Agrees to Acquire Index Business of Mergent, Inc, Including Indxis
October 31, 2012-- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), parent of the world's first electronic stock market and a leading index provider, today announced it has agreed to acquire the index business of Mergent, Inc., including Indxis.
Mergent is an established index provider and a renowned supplier of business and financial data on global publically listed companies.
Mergent is the creator of the Dividend AchieversTM Indexes, the leading index family that tracks companies with strong long-term dividend growth. Mergent has been tracking companies with outstanding dividend records since 1979. Products based on the Dividend Achievers Indexes are offered by major investment management firms worldwide. Indxis is also an expert provider of index calculation services to a wide spectrum of clients in the financial services industry.
With this acquisition, NASDAQ OMX Global Indexes will become one of the largest providers of dividend-themed indexes based on benchmarked assets and will further enhance its custom index offering capabilities and services. Assets under management of exchange traded funds licensed by NASDAQ OMX Global Indexes are expected to increase 30% as a result of the acquisition.
Source: NASDAQ OMX
MSCI acquires real estate data, index firm
October 31, 2012--MSCI Ltd. is buying IPD Group, a real estate data provider and index sponsor, for about $125 million.
“The addition of IPD to the MSCI family will enable us to expand our multiasset-class offering by integrating private real estate assets into our performance and risk models, and by adding real estate market performance benchmarks to our family of market leading indices,” Henry Fernandez, chairman and CEO of MSCI Inc., parent of MSCI Ltd., wrote in letter to clients.
Source: Pensions & Investments
Global ETF Flows Show Investors Embracing A 'Risk On' Stance At The End Of Q3 2012
October 31, 2012--Global ETFs and ETPs gathered $188 billion of net new assets year-to-date through the end of Q3 2012, setting a new record high and surpassing the prior record of $140 billion gathered through Q3 in 2008, according to findings in the upcoming 'ETFGI Global Industry Insight, Q3 2012' report by ETFGI, an independent research and consulting firm covering the global ETF and ETP industry.
This growth represents a percentage increase of 21.7% from $1.53 trillion to $1.86 trillion in the 4,690 ETFs and ETPs, with 9,626 listings, from 204 providers on 56 exchanges.
Source: Seeking Alpha
Stagnating Financial Systems Hamper the Road to Recovery
World Economic Forum Financial Development Report 2012 shows that financial systems across the world are stalling
Hong Kong tops the Financial Development Index; top six economies remain the same as last year's rankings. Japan and Switzerland each moved up one spot to 7th and 8th position respectively.
The Report analyses 62 financial systems and capital markets around the world
October 31, 2012--
Financial systems across the world are stagnating, leading to challenges for a global economic recovery, according to the fifth edition of the World Economic Forum’s Financial Development Report 2012 released today.
view the The Financial Development Report 2012
Source: WEF (World Economic Forum)
Macro Matters-Poor Global Economic Data Weakens Markets
October 31, 2012--China-Concerns over poor 3Q12 earnings weigh down market.
Hong Kong and Chinese stock markets showed different movement last week. Hong Kong market rose buoyed by expectations of further capital inflows, while China market dropped on concerns over poor corporate earnings.
The China HSBC Flash Manufacturing Purchasing Managers Index rose to a three-month high of 49.1 in October, also registering the most robust orders since April, signaling a strengthening recovery. Nevertheless, though the increased PMI helped to allay investors concerns over a sharp slowdown in the Chinese economy, concerns over lackluster 3Q12 earnings dampened hopes.
India-Better-than-expected earnings offset by concerns over global economy.
Despite better-than-expected earnings reports, Indian markets marginally trended lower as it trailed weak global cues.
Blue chip stocks reported positive September-quarter earnings results. Mahindra, India’s largest tractor producer reported 22% increase in profit. Sterlite, the biggest copper maker, also reported a 74 percent jump in profit while ICICI Bank recorded a net profit growth of 20%.
Brazil-Economic recovery trend expected to be intact.
US employment data and the ISM Manufacturing report will be closely watched, though focus is now firmly on the imminent Presidential elections and the likelihood of avoiding the ‘fiscal cliff’ in 1Q13.
In emerging markets, there are some issues that we need to prepare for the unexpected and worse situation. In Russia, external financing of private companies is increasing.
Russia-External financing of private companies increases.
Strong US housing data boosted global markets, with September housing starts climbing 15% month-on-month on an upwardly revised August number, to reach the highest level since July 2008.
In emerging markets, there are some issues that we need to prepare for the unexpected and worse situation. In Russia, external financing of private companies is increasing.
Source: Mirae Asset Financial Group
Financial Stability Board publishes fourth progress report on implementation of OTC derivatives market reforms
October 31, 2012--The Financial Stability Board (FSB) published today its fourth six-monthly progress report on the implementation of over-the-counter (OTC) derivatives market reforms. The report takes stock of the readiness of market infrastructure across the FSB's member countries to provide clearing services, collect and disseminate trade data and provide organised trading platforms for OTC derivatives.
The report also reviews the progress made by standard-setting bodies and national and regional authorities towards meeting the commitments made by G20 Leaders at the Pittsburgh 2009 Summit that, by end-2012, all standardised OTC derivative contracts be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties (CCPs); OTC derivative contracts be reported to trade repositories; and non-centrally cleared contracts be subject to higher capital requirements.
The key messages of the report are as follows:
Market infrastructure is in place and can be scaled up. The development of market infrastructure does not appear to be an impediment to further progress in meeting the G20 commitments for OTC derivatives trading, central clearing, and reporting (although regulators should take into account the start-up time for infrastructure to expand their activities and receive regulatory approvals).
view the FSB report-OTC Derivatives Market Reforms Fourth Progress Report on Implementation
Source: FSB (Financial Stability Board)
Hedge Funds Returning to Palladium as ETPs Retreat: Commodities
October 30, 2012--Hedge funds are siding with analysts predicting decade-high palladium prices even as investors cut holdings in exchange-traded products backed by this year's worst-performing precious metal.
The funds’ wagers on a rally more than doubled since August as ETP holdings slumped to a seven-month low this month, data compiled by Bloomberg show. Prices for the metal used mostly in catalytic converters will average $800 an ounce in the third quarter, 34 percent more than now and the highest since 2001, based on the median of 13 analyst estimates.
Source: Bloomberg
Vanguard tipped as Credit Suisse suitor
October 30, 2012--Vanguard has been added to a list of potential bidders that could be poised to acquire Credit Suisse's exchange traded fund business.
BlackRock and State Street – the two largest ETF firms globally – are currently the favourites to snap up the $17bn outfit, which Credit Suisse has put up for sale.
Source: FT.com
