Global ETF News Older than One Year
Weathering the Global Storm: The Benefits of Monetary Policy Reform in the LA5 Countries-IMF Working paper
December 17, 2010--This paper highlights that central banks from Brazil, Chile, Colombia, Mexico, and Peru (the LA5 countries) reaped the benefits of what they sowed in successfully weathering the global crisis. The adoption of far-reaching institutional, policy, and operational reforms during the last two decades enabled central banks to build credibility about their commitment with the objective of price stability.
Thus, when the 2007 - 08 supply shock and the financial crisis hit the world, the LA5 central banks reacted swiftly and effectively based on a flexible policy framework and with the support of strong macroeconomic and financial foundations. Building on the experience of the LA5 central banks and complementing with recommendations from the IMF’s technical advice, the paper provides several suggestions for countries seeking to strengthen the effectiveness of monetary policy.
Source: IMF
NASDAQ OMX Prices $370 Million Senior Notes Offering
December 17, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it priced an underwritten public offering of $370 million aggregate principal amount of 5.250% Senior Notes due 2018. The offering is expected to close on December 21, 2010, subject to customary closing conditions.
NASDAQ OMX expects to use the net proceeds from the notes offering to repay senior unsecured indebtedness that it expects to incur to finance the purchase of approximately 22.8 million shares of NASDAQ OMX's common stock, $0.01 par value per share, from Borse Dubai Limited.
J.P. Morgan Securities LLC is the sole bookrunner of the notes offering.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. A prospectus supplement and accompanying prospectus describing the terms of this offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying base prospectus may be obtained at no cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, J.P. Morgan Securities LLC can arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at the following collect number: 1-212-834-4533.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Source : NASDAQ OMX
Hedge Funds Raise Bets on Commodity Rally to Highest Level in Four Years
December 16, 2010--Hedge funds and large speculators increased their bets on a commodity rally to the highest level since at least 2006 as copper and gold gained to records.
An index tracking speculative positions in 20 commodity futures in the U.S. advanced 8.4 percent from the week before to 1.54 million contracts as of Dec. 7, the highest level since at least February 2006, Commodity Futures Trading Commission data show. The gauge, compiled by Bloomberg, is derived by taking short positions, or bets on lower prices, from long positions.
Source: Bloomberg
Asset Recovery Handbook 2010
Creative International Cooperation Can Help Developing Countries Recover Stolen Assets
November 16, 2010--Developing countries lose between $20 billion and $40 billion each year to bribery, embezzlement, and other corrupt practices. Over the past 15 years only $5 billion has been recovered and returned. A new handbook seeks to help close this gap.
The Asset Recovery Handbook, released today by the Stolen Asset Recovery (StAR) Initiative of the World Bank Group and the United Nations Office on Drugs and Crime, provides practitioners with a how-to guide for recovering stolen assets. The process is complex, requiring coordination between many public agencies in multiple jurisdictions. Practitioners must exchange sensitive information with partners in other countries to trace stolen funds and gather evidence. They must be familiar with a wide range of legal tools and procedures for freezing, seizing, and repatriating stolen funds. And they must be able to navigate the legal systems of their own country and of partner countries.
“The process can be overwhelming for even the most experienced practitioners. It is exceptionally difficult for those working in the context of failed states, widespread corruption, or limited resources,” said Jean Pierre Brun, World Bank Senior Financial Sector Specialist and lead author of the handbook. “A practical guide can help these states navigate the process, anticipate challenges, and determine and implement effective strategies.”
The handbook, prepared by an international team of experts, draws on the experience of a wide range of countries and legal traditions. Designed as a quick reference, it describes approaches to recovering proceeds of corruption located in foreign jurisdictions, identifies the difficulties that practitioners are likely to encounter, suggests strategic and tactical options to address the challenges, and introduces good practices. It also provides reference tools, case studies, and practical resources such as sample intelligence reports, applications for court orders, and mutual legal assistance requests.
“In these tough economic times, and with corruption such a drain on development, it is vital for countries to have the resources they need to battle this scourge. The handbook could also be helpful to those making policy decisions about legislation and management of resources devoted to fighting corruption,” said Ngozi Okonjo-Iweala, Managing Director of the World Bank. “The World Bank Group and UNODC will use it to provide technical assistance and promote capacity building in countries interested in the StAR Initiative,” she added.
view the Asset Recovery Handbook 2010
Source: World Bank
NASDAQ OMX Announces Proposed Senior Notes Offerin
December 16, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it plans to commence a public offering of $370 million of senior notes pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. NASDAQ OMX intends to use the net proceeds from the notes offering to purchase approximately 22.8 million shares of NASDAQ OMX's common stock, $0.01 par value per share, from Borse Dubai Limited.
The exact terms and timing of the senior notes offering will depend upon market conditions and other factors.
J.P. Morgan Securities LLC will act as sole bookrunner of the notes offering.
The offering is being made solely by means of a prospectus supplement and accompanying prospectus, which have been or will be filed with the SEC. Before investing, the prospectus supplement and accompanying prospectus should be read, as well as other documents the company has filed or will file with the SEC for more complete information about NASDAQ OMX and this offering. These documents are available for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, J.P. Morgan Securities LLC can arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at the following collect number: 1-212-834-4533.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Source: NASDAQ OMX
NASDAQ OMX to Repurchase 22.78 Million Shares
December 16, 2010--The NASDAQ OMX Group, Inc. ("NASDAQ OMX®") (Nasdaq:NDAQ) has agreed to repurchase from Borse Dubai approximately 22.78 million shares of common stock for $21.82 per share for an aggregate purchase price of approximately $497 million, representing approximately 11.5% of its total outstanding shares. The transaction completes, expands and accelerates the purchase by NASDAQ OMX of its shares pursuant to its previously announced share repurchase plan.
Borse Dubai also has agreed to sell in a private transaction 8 million shares of common stock of NASDAQ OMX to Nomura International PLC as the buyer under the NASDAQ OMX Sale agreement.
Nomura agreed, under a forward sale agreement, to sell 8 million shares of NASDAQ OMX common stock to Investor AB, subject to regulatory approval. To the extent the agreement is physically settled, Investor AB's ownership of NASDAQ OMX shares of common stock will increase to 17,400,142 shares.
The sale by Borse Dubai of slightly more than half of its investment in NASDAQ OMX (30.78 million shares) will raise substantial proceeds to meet Borse Dubai's debt obligations maturing in February 2011.
NASDAQ OMX intends to raise $370 million in the bond market to finance the transaction. NASDAQ OMX management is committed to maintaining its investment grade status with both S&P and Moody's.
Bob Greifeld, Chief Executive Officer of NASDAQ OMX, said: "Our repurchase of shares from Borse Dubai is an excellent transaction for both parties. It allows us to be opportunistic and accelerate our share repurchase plans while delivering significant accretion to our shareholders. The financing gives us sufficient capacity to fund the buyback, while maintaining strategic and operational flexibility. After the transaction, Borse Dubai will continue to hold a significant investment in NASDAQ OMX, demonstrating its desire to remain a committed long-term shareholder. We are pleased by the confidence Investor AB has shown in NASDAQ OMX by increasing its holding to become a leading and engaged shareholder."
Source: NASDAQ OMX
Banks meet new minimum capital standards
December 16, 2010--Most of the world’s biggest banks would be safely above new minimum capital requirements but many would face restrictions on their ability to pay bonuses and dividends if new rules were applied immediately, according to the industry’s global regulator.
The Basel Committee on Banking Supervision said the top 94 banks would have a combined core tier one capital ratio, a key measure of bank strength, of 5.7 per cent, under the new banking rules.
Source: FT.com
Newly Released Data Reveal Drop in Capital Flows to Developing Countries in 2009
December 16, 2010--Net global capital flows to developing countries fell 20 percent in 2009 to $598 billion (3.7 percent of gross national income [GNI]), from $744 billion in 2008 (4.5 percent of GNI) and were a little over half the 2007 peak of $1.11 trillion.* This according to a new comprehensive dataset launched by the World Bank today on international capital flows titled “Global Development Finance 2011: External Debt of Developing Countries,” which reveals the impact of the financial crisis on 128 developing countries.
Global private flows (debt and equity) declined by 27 percent in 2009 despite a rebound in bond issuance, portfolio equity flows, and (mostly trade-related) short-term debt flows. Foreign direct investment (FDI) inflows across the globe fell 40 percent, to $354 billion - their sharpest drop in 20 years. All the largest recipients of FDI saw net inflow declines in 2009. Net debt flows from private creditors dropped by 70 percent from $182 billion in 2008 to $59 billion the following year, driven by the collapse in medium-term commercial bank lending to public and private borrowers.**
Reflecting increased support to developing countries during the crisis, net capital inflows (loans and grants) from official creditors increased by 50 percent to $171 billion in 2009.*** This was driven by a sharp rise in gross disbursements on new loans extended by the international financial institutions. These rose to $98 billion (from $61 billion in 2008) in calendar year 2009, of which $31 billion came from IBRD and IDA, the highest in the history of these institutions.
In comparison to other regions, Europe and Central Asia has been most severely affected by the global economic crisis. Combined debt and equity flows plummeted 66 percent in 2009 from $411 billion in 2007 (15.8 percent of GNI) to $90 billion (3.6 percent of GNI).
The East Asia and Pacific region recorded a moderate 4 percent rise in net capital flows from 2008 to $191 billion in 2009, although they remained constant in terms of share of GNI (3.1 percent).
The Latin America and the Caribbean region saw net capital flows continue their downward trajectory in 2009. They fell by 6 percent in 2009 to $167 billion but remained at the same level as 2008 in relation to GNI, 4.3 percent.
The Middle East and North Africa region recorded the sharpest rise among all regions for net capital inflows in 2009. Capital inflows rose 33 percent to $28 billion, driven by new official and private borrowing.
South Asia also saw net capital flows increase sharply in 2009. Capital flows were up from the previous year by 26 percent to $78 billion, primarily because of a remarkable $37 billion turnaround in portfolio equity flows.
The Sub-Saharan Africa region received the highest net capital inflows of any region in 2009 in relation to GNI, 5.2 percent. Net capital flows rose 16 percent to $45 billion, driven by a resurgence of portfolio equity inflows and a doubling of net debt inflows from official creditors.
view the Global Development Finance 2011: External Debt of Developing Countries
Source: World Bank
Results of the FTSE SET Index Series Semi-Annual Review
FTSE SET Large Cap constituents will remain unchanged-13 additions to the FTSE SET Shariah Index-4 additions to the FTSE SET Mid-Cap Index
December 15, 2010--FTSE Group (“FTSE”), the award-winning global index provider, and the Stock Exchange of Thailand (“SET”) have announced that there is no change to the FTSE SET Large Cap Index following the semi-annual review concluded by the FTSE SET Advisory Committee today.
Several other indices were also reviewed with 13 additions to the FTSE SET Shariah Index and 4 additions to the FTSE SET Mid-Cap Index.
Source: FTSE
Protiviti Financial Services Regulatory Reform Survey
Survey highlights concerns of U.K. and U.S. executives over costs and benefits of regulatory reform initiatives
December 14, 2010--In the third quarter of 2010, Protiviti conducted a survey on regulatory reform and its impact on financial services companies in the United Kingdom and United States. Respondents, who
included chief executive officers, chief financial officers, chief operating officers, heads of
compliance and other financial industry executives, were asked in a series of questions to assess the effects of regulatory reform initiatives in their home countries and globally, specifically looking at the effectiveness of reforms in preventing another crisis, compliance costs
and international coordination. This is the first in a planned series of surveys from Protiviti focusing on financial reform issues.
Following is a summary of the results along with additional commentary from Protiviti.
Regulatory Reforms Will Not Prevent Future Crises, but May Moderate Some of Their Effects
All survey participants were asked which country – the United Kingdom or United States – has taken more effective measures to address regulatory reform. Interestingly, 42 percent reported that neither has taken effective measures, while only 13 percent said that both countries have. Of note, there appears to be a higher level of reform “buy-in” in the United Kingdom, as 45 percent of U.K. respondents believe their country has implemented more effective measures. By contrast, just 21 percent of U.S. respondents said regulatory reform measures in the United States are more effective.
Source: Protiviti
