Global ETF News Older than One Year
ISDA Publishes Best Practices for OTC Commodity Derivatives Trade Processing
April 25, 2012--The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a whitepaper, "OTC Commodity Derivatives Trade Processing Lifecycle Events."
The paper analyzes existing and potential opportunities for further standardization in the OTC commodity derivatives markets in order to drive improvements in operational efficiency, reduce operational risk, and increase netting and clearing for appropriate products. It also provides a summary of OTC commodity derivatives markets’ trade processing lifecycle events and an overview of the current industry state of processing.
“OTC commodity derivatives have been in existence for centuries, far longer than some of the other OTC derivative asset classes,” said Julian Day, Head of Market Infrastructure, ISDA. “The vast majority of OTC commodity derivatives products have become standardized over time and additional standardization has occurred with a specific focus on electronic confirmation, lifecycle event processing and clearing. The whitepaper further clarifies and increases transparency of the operational best practices for OTC commodity derivatives.”
view the OTC Commodity Derivatives Trade Processing Lifecycle Events-paper
Source: ISDA
Component Changes Made To Dow Jones Islamic Market Malaysia Titans 25 Index
April 25, 2012-Bumi Armada Bhd will be added to the Dow Jones Islamic Market Malaysia Titans 25 Index, following the removal of Kencana Petroleum Bhd due to its acquisition by SapuraCrest Petroleum Bhd, Dow Jones Indexes announced today.
Based in Malaysia, Bumi Armada is an international offshore oilfield services provider engaged in the provision of marine transportation, floating production storage and offloading system operations, and vessel construction. It also provides engineering and maintenance services to offshore oil and gas companies.
The Dow Jones Islamic Market Malaysia Titans 25 Index measures the performance of the 25 largest Malaysia-domiciled companies that pass rules-based screens for compliance with Islamic investment guidelines. The composition of the index is reviewed annually in June.
The addition of Bumi Armada to the Dow Jones Islamic Market Malaysia Titans 25 Index will be effective before the open of trading on Wednesday, May 2, 2012.
Source: Dow Jones Indexes
NASDAQ OMX Reports First Quarter 2012 Results
Q112 non-GAAP diluted EPS of $0.61, on par with prior year; Q112 GAAP diluted EPS of $0.48
Q112 net exchange revenues of $411 million
Declares initial quarterly cash dividend of $0.13 per share
Implementing cost reduction plan with a goal of $50 million in annualized cost savings by end of 2012, with $25 million savings realized in 2012
Announces discussions with LCH.Clearnet Group regarding the acquisition of IDCG
April 25, 2012--The NASDAQ OMX Group, Inc. ("NASDAQ OMX") (Nasdaq:NDAQ) today reported results for the first quarter of 2012. First quarter net exchange revenues1 were $411 million compared to $413 million in the first quarter of 2011. On a constant currency basis, first quarter 2012 net exchange revenues increased by $3 million, or up 1% compared to the prior year quarter.
Operating expenses were $240 million, compared to $230 million in the first quarter of 2011. On a non-GAAP basis, excluding $9 million of restructuring and other charges, and $2 million of merger and strategic initiative expenses, operating expenses were $229 million in the first quarter of 2012. Non-GAAP operating expenses were up $8 million, or up $10 million on a constant currency basis, compared to the prior year quarter primarily due to higher professional and contract services expense, higher occupancy expense as well as slightly higher marketing and advertising expense.
First quarter non-GAAP diluted earnings per share was $0.61, on par with the prior year results. Non-GAAP earnings per share exclude $9 million of restructuring and other charges, $2 million of merger and strategic initiatives expense, and a $12 million impairment charge on the write down of our equity investment in EMCF. Net income attributable to NASDAQ OMX for the first quarter of 2012 was $85 million, or $0.48 per diluted share, compared with $104 million, or $0.57 per diluted share, in the prior year quarter.
To learn more, visit www.nasdaqomx.com.
Source: NASDAQ OMX
Tax: the average tax burden on earnings in OECD countries continues to rise
April 24, 2012--The average tax and social security burden on employment incomes increased in 26 out of 34 OECD countries in 2011 according to the new OECD Taxing Wages publication.
Tax payers in Ireland, Luxembourg, Portugal and the Slovak Republic were among those hit with the largest increases. Those in New Zealand and the United States saw their tax burden fall. In Hungary, the average single worker without children was faced with the largest increase in the tax wedge, but for families with children, it fell.
In most countries the higher overall tax burden was due to personal income tax, rather than increased Social Security Contributions. Only 5 countries raised their statutory tax rates on average earnings. In most cases the rise in the tax burden was due to a higher proportion of earnings being subject to tax because the value of tax free allowances and tax credits fell relative to earnings. In a few countries including the Czech Republic, Hungary and Ireland they were actually reduced in nominal terms.
Taxing Wages provides nationally comparative details about the taxation of employment incomes and the associated costs to employers for different household types and at different earnings levels. These are the key factors in determining the incentives both for individuals to seek work and for businesses to hire workers.
Source: OECD
IMF paper-From Bail-out to Bail-in: Mandatory Debt Restructuring of Systemic Financial Institutions
April 24, 2012--EXECUTIVE SUMMARY
Large-scale government support of the financial institutions deemed too big or too important to fail during the recent crisis has been costly and has potentially increased moral hazard.
To protect taxpayers from exposure to bank losses and to reduce the risks posed by too-big-tofail (TBTF), various reform initiatives have been undertaken at both national and international levels, including expanding resolution powers and tools.
Source: IMF
ETFS Precious Metals Weekly: Rising European political risk boosts US dollar, weighs on gold price
April 23, 2012--Gold price and ETP demand are hit as European political concerns weaken the Euro and sideline investors. The gold price fell again last week, bringing total losses over the past 2 months to around 10%, as a strengthening US dollar and continued
general investor nervousness kept many investors on the sidelines.
It was reported on the weekend that Socialist candidate Francois Hollande, French president Sarkozy’s main opponent, won the first round of French elections. The first round win adds to European sovereign concerns given Hollande’s pledge to renegotiate the recent Eurozone fiscal compact. On Saturday, the Netherland’s budget talks collapsed, highlighting that it is not just ‘peripheral’ European countries that are facing pressures due to the conflicting goals of fiscal retrenchment and and social stability. When combined with still generally positive US economic data, these growing problems in Europe have the potential to keep downward pressure on the Euro (upward pressure on USD) in the coming few weeks. Therefore, while gold continues to have longer term price support due to a continued need for highly expansionary monetary policy in the US, Europe, UK and Japan, with accompanying currency debasement fears and central bank buying, potential further US dollar strength may act as a weight on further gold price gains in the near-term.
India gold imports weaken as weak Rupee boosts gold price in local currency terms. The Chairman of the All India Gem and Jewellery Trade Federation said that physical ‘demand is lacklustre’ and that ‘no imports of gold have taken place’ in the week following the suspension of the jewellers trade strike. The weak demand is likely to have been driven by the strong rise in the Rupee cost of gold, with the Indian Rupee falling to a four month low following a surprise central bank interest rate cut. Based on historic trends, however, the any weakness in demand due to Rupee strength is likely to be short-lived as gold consumers adjust to a higher price.
visit www.etfsecurities.com for more info
Source: ETF Securities
Towards Sustainable Investment -Taking Responsibility-Calpers Report
April 23, 2012--CalPERS is proud to announce the release of our first report on our Environmental, Social and Governance (ESG) work.
The report explains the fiduciary framework we have adopted to integrate sustainability across the total fund, illustrates achievements from the last few years, and outlines our vision for the future.
view the report-Towards Sustainable Investment-TAKING RESPONSIBILITY
Source: Calpers
Dow Jones Industrial Average Component Companies Increase Expected Annual Dividend Distribution By 8.40% From A Year Ago
Survey By Dow Jones Indexes Also Indicates Expected Annual Dividend Distribution From DJIA'S 30 Stocks
To Rise 2.18% From Previous Quarter
DJIA Components' Dividends Represent 37%
Of Total U.S. Stock Market Payouts
Dividend Data Provides Insight Into Outlook of Bellwether U.S. Corporations, Dow Jones Indexes Says
April 23, 2012--The Dow Jones Industrial Average's 30 component companies are expected to increase their annual dividend payout by 8.40% year-over-year and 2.18% from the previous quarter, according to a first-quarter 2012 survey by Dow Jones Indexes.
DJIA component companies’ $107 billion expected dividend distribution for the 12 months beginning April 1, 2012, represents 37% of all indicated annual dividends (IAD) by U.S.companies as measured by the Dow Jones U.S. Index, a gauge that accounts for roughly 95% of theU.S. equity market. (IAD is a forward-looking measure defined as a company’s most recently paid quarterly dividend multiplied by four.)
Source: Dow Jones Indexes
41 ETFs Based on S&P Indices Launched in Q1 as 2012 Gets Off to Strong Start
419 S&P Linked ETFs Now Available to Investors Worldwide
April 23, 2012--S&P Indices saw a sharp rise in its ETF licensing activity during the first quarter of 2012, as 41 ETFs based on its indices were launched globally during the first three months of the year.
The 41 ETFs launched during the first quarter represents more than half of the total number of S&P index-based ETFs launched for all of 2011. S&P Indices attributes the growth in ETF issuance to a maturing European and Asia-Pacific ETF market.
"Investor interest in ETFs, especially outside of the States, is rapidly increasing as these products are providing greater access to niche market segments and varying asset classes at fractions of the cost typically associated with actively managed products such as mutual funds – once the primary option available to invest in broad baskets of securities," says Alexander Matturri, Executive Managing Director at S&P Indices. "Our ETF business is becoming more international and we are well placed to offer product providers with an ever more varied set of indices to meet the growing and evolving needs of their clients."
The growth in S&P based ETF issuance was lead by S&P Indices' international business, as 23 ETFs were launched in Europe during the first quarter. In addition, 9 ETFs were issued by product providers in Asia-Pacific and 1 in Canada during the first three months of 2012.
Source:S&P Indices
Consequences of Asset Shortages in Emerging Markets
April 23, 2012--Summary: We assess econometrically the impact of asset shortages on economic growth, asset bubbles, the probability of a crisis, and the current account for a group of 41 Emerging markets for 1995-2008.
The econometric estimations confirm that asset shortages pose a serious danger to EMs in terms of reducing economic growth, raising the probability of a crisis, and leading to asset price bubbles. Moreover, asset shortages can also explain the current account positions of EMs. The findings suggest that the consequences of asset shortages for macroeconomic stability are significant, and must be tackled urgently. We conclude with policy implications.
Source: IMF
