Global ETF News Older than One Year
Average daily volume of 10 million contracts at Eurex and ISE in March
April 1, 2010--In March 2010, the international derivatives exchanges of Eurex Group recorded an average daily volume of 10 million contracts (March 2009: 12.2 million) – a decline of 17 percent. Of those, 7.1 million were Eurex contracts and 2.96 million contracts were traded at the U.S.-based International Securities Exchange (ISE). In total, 163.7 million contracts were traded at Eurex (March 2009: 172.3) and 68.1 million at the ISE (March 2009: 96.7).
The equity index derivatives product segment recorded 69.5 million contracts (38.5 million index futures and 31 million index options), down from 92.5 million contracts the year before. Futures on the EURO STOXX 50 Index stood at 31.9 million contracts while options on the index stood at 23.1 million.
The equity derivatives (equity options and single-stock futures) segment at Eurex recorded 36.4 million contracts (March 2009: 33.7 million) and thus marked an increase of 8 percent. Thereof, equity options totaled 29 million contracts and single-stock futures another 7.4 million contracts. Dividend-based derivatives continued to grow significantly: The number of traded contracts was up by 134 percent and stood at 355.000 contracts.
Source: Eurex
Preqin:Q1 2010 Private Equity Fundraising Update
April 1, 2010--Private equity fundraising shows slight improvement in Q1 2010: $50.4bn raised in Q1 2010 represents a 5% improvement from Q4 2009.
Source: Preqin
The Options Clearing Corporation Announces Total Contract Volume in March Grew 2%
April 1, 2010--The Options Clearing Corporation (OCC) announced today that total OCC cleared volume in March reached 353,294,816 contracts. This represents a 2 percent increase over the March 2009 volume of 346,360,655 contracts. OCC year to date total contract volume is up 8 percent from 2009 with 931,269,641 contracts.
Options: Exchange-listed options trading in the U.S for the month of March was up 1.44 percent from the previous year. Index options volume rose 15 percent higher than last year with 27,363,133 contracts in March. The year to date average daily contract for equity options is up 6.48 percent from 2009.
Futures: Futures cleared by OCC in March rose to 2,289,938 with an average daily contract of 102,770. Equity futures volume reached 385,125 contracts, a 64.87 percent increase over the same month last year where 233,598 were traded. Index and other futures volume came in at 1,904,039 this month and show a year to date average of 85,579 daily contracts.
Source: OCC
ETF Landscape: Industry Review February 2010
March 31, 2010--Highlights
• At the end of February 2010 the global ETF industry had 2,091
ETFs with 3,998 listings, assets of US$1,001.9 Bn, from 115
providers on 40 exchanges around the world.
• YTD assets decreased by 3.3% which is more than the 3.0% fall in
the MSCI World Index in US dollar terms.
• The top 100 ETFs, out of 2,091, account for 64.7% of global
ETF AUM, while 404 ETFs have less than US$10.0 Mn in assets.
• YTD the number of ETFs increased by 7.3% with 143 new
ETFs launched.
• The number of ETFs listed in Europe has surpassed the US with
901 ETFs listed in Europe, compared to 807 in the US.
• There are currently plans to launch 838 new ETFs.
• YTD the number of exchanges with official listings remains at 40.
• YTD the average daily trading volume in US dollars increased by
47.8% to US$74.3 Bn.
• MSCI ranks first in terms of ETF AUM tied to their benchmarks
with assets of US$234.5 Bn and 293 ETFs, while Standard &
Poor’s (S&P) ranks second with US$232.4 Bn and 259 ETFs,
followed by Barclays Capital in third with US$93.4 Bn and
75 ETFs.
• The top three ETF providers, out of 115, have 71.1% market share.
• Globally, iShares is the largest ETF provider in terms of both
number of products, 437 ETFs, and assets of US$471.9 Bn,
reflecting 47.1% market share; State Street Global Advisors is
second with 107 products and US$144.5 Bn, 14.4% market share;
followed by Vanguard with 47 products and assets of US$95.4 Bn
and 9.5% market share at the end of February 2010.
• Globally, net sales of mutual funds (excluding ETFs) were positive
US$6.0 Bn, while net sales of ETFs were minus US$13.8 Bn during
the first month of 2010 according to Strategic Insight.
• Over the last five years the S&P 500 has outperformed 60.8% of
actively managed large-cap US equity funds; the S&P MidCap 400
has outperformed 77.2% of mid-cap funds and the S&P SmallCap
600 has outperformed 66.6% of small-cap funds. The five-year data
results are similar for actively managed fixed income funds. Across
all categories, with the exception of emerging market debt, more
than 70% of active managers have failed to beat benchmarks1.
• Additionally, there were 630 other Exchange Traded Products
(ETPs) with 921 listings and assets of US$150.3 Bn from 40
providers on 18 exchanges.
• Combined, there were 2,721 products with 4,919 listings, assets
of US$1,152.2 Bn from 139 providers on 43 exchanges around
the world at the end of February 2010.
Europe
• 11 April 2010 will mark the tenth anniversary of ETFs in Europe.
• At the end of February 2010 the European ETF industry had 901
ETFs with 2,490 listings, assets of US$220.1 Bn, from 35 providers
on 18 exchanges.
• YTD assets have decreased by 3.0%, which is less than the 8.2%
fall in the MSCI Europe Index in US dollar terms.
• The top 100 ETFs, out of 901, account for 73.5% of European
ETF AUM, while 171 ETFs have less than US$10.0 Mn in assets.
• YTD the number of ETFs increased by 8.7% with 72 new
ETFs launched.
• YTD the number of exchanges with official listings remains at 18.
• YTD the average daily trading volume in US dollars increased by
34.2% to US$3.1 Bn. Most ETF trades are not required to be
reported in Europe as ETFs are not covered by the European
Union Directive on Markets in Financial Instruments (MiFID).
• The top three ETF providers, out of 35, have 73.5% market share.
• The average Total Expense Ratio (TER) for equity ETFs in Europe
is 40 bps versus 91 bps per annum for the average equity index
tracking fund and 180 bps for the average active equity fund2.
• In Europe net sales of mutual funds (excluding ETFs) were
US$44.3 Bn while net sales of ETFs domiciled in Europe were
US$2.6 Bn during January 2010 according to Lipper FMI.
• Additionally, there were 185 other Exchange Traded Products
(ETPs) with 452 listings and assets of US$15.6 Bn from four
providers on five exchanges.
• Combined, there were 1,086 products with 2,942 listings and
assets of US$235.7 Bn from 36 providers on 18 exchanges
in Europe.
United States
• At the end of February 2010 the US ETF industry had 807 ETFs,
assets of US$678.6 Bn, from 28 providers on two exchanges.
• YTD assets decreased by 3.8%, which is more than the 0.9% fall
in the MSCI US Index in US dollar terms.
• The top 100 ETFs, out of 807, account for 83.5% of US ETF AUM,
while 114 ETFs have less than US$10.0 Mn in assets.
• YTD the number of ETFs increased by 4.5% with 35 new
ETFs launched.
• YTD the average daily trading volume in US dollars has increased
by 51.1% to US$69.2 Bn.
• The top three ETF providers, out of 28, have 85.4% market share.
• The average Total Expense Ratio (TER) for equity ETFs in the US
is 34 bps versus 93 bps per annum for the average equity index
tracking fund and 146 bps for the average active equity fund.2
• In the US net sales of mutual funds (excluding ETFs) were minus
US$108.2 Bn, while net sales of ETFs domiciled in the US were
positive US$5.5 Bn during the first two months of 2010 according
to Strategic Insight.
• Additionally, there were 145 other Exchange Traded Products
(ETPs) with assets of US$84.5 Bn from 17 providers on
one exchange.
• Combined, there were 952 products with assets of US$763.1 Bn
from 41 providers on two exchanges in the US.
• 29 January 2010 marked the 17th anniversary of ETFs in the US.
Source: Global ETF Research & Implementation Strategy Team, BlackRock.
International Derivatives Clearing Group Announces Interest Rate Swap Link With MarkitSERV
March 31, 2010--The International Derivatives Clearing Group (IDCG) announced today that it will be able to accept interest rate derivative products into its clearinghouse via MarkitSERV, the leading electronic platform for processing over-the-counter (OTC) derivatives.
MarkitSERV provides a single gateway for over-the-counter derivative transaction processing globally, covering credit, interest rate, equity and commodity derivatives.
"MarkitSERV's support of the IDCG platform is very important," said Garry O'Connor, Chief Executive Officer of IDCG. "Allowing market participants to deliver trades to our clearinghouse through their existing infrastructure is a major step forward for IDCG and the interest rate derivative market."
"We are pleased to implement electronic connectivity between MarkitSERV's interest rate swap trade processing platform and IDCG's clearinghouse. This represents another milestone in the industry's efforts to reduce operational risk and counterparty risk in the OTC derivative markets," said Jeff Gooch, CEO of MarkitSERV.
IDCG is a majority owned, independently operated NASDAQ OMX subsidiary that operates a CFTC licensed designated clearing organization for clearing and settling interest rate derivative products. IDCG has cleared in excess of $3 trillion in notional value in its Shadow Clearing environment, a process to prepare market participants for central clearing of derivatives. Newedge, the world's largest futures commission merchant, announced the week of March 8, 2010 that it would become a clearing member of IDCG's clearinghouse, joining MF Global who joined previously.
Source: NASDAQ OMX
2009 International Public Finance Rating Transition Study Released
March 30, 2010--The global recession left a lasting impact on sovereign nations as well as local and regional authorities, faced with shrinking revenues and bulging deficits. Despite these recent economic difficulties, the rate of downgrades among Fitch-rated international public finance issuers remained relatively modest in 2009, edging lower to 4.2% from 5.2% in 2008. Upgrades however contracted to 2.6% from 8.7% a year earlier.
As a result, the international public finance downgrade to upgrade ratio turned negative in 2009, with downgrades outpacing upgrades by 1.6 to 1, up from positive results of 0.6 to 1 recorded a year earlier.
There were no Fitch-rated international public finance issuer defaults in 2009, echoing 2008's results.
Fitch's new study provides data and analysis on the performance of Fitch's international public finance ratings in 2009 and over the long term, covering the period 1995-2009. The report provides summary statistics on the year's key rating trends.
The study is titled 'Fitch Ratings International Public Finance 2009 Transition and Default Study' and is available on Fitch's web site under Credit Market Research.
Source: Fitch
Component Changes Made To Dow Jones Select Dividend Indexes
March 30, 2010--Dow Jones Indexes, a leading global index provider, today announced that Acea S.p.A. (Italy, Utilities, ACE.MI) will be removed from the Dow Jones Italy Select Dividend 20 and Dow Jones EPAC Select Dividend indexes.
Acea S.p.A. is being removed due to the cancellation of its dividend payment.
In the Dow Jones Italy Select Dividend 20 Index, Acea S.p.A. will be replaced by Banca Popolare di Sondrio S.C.A.R.L. (Italy, Banks, BPSO.MI).
In the Dow Jones EPAC Select Dividend Index, Acea S.p.A. will be replaced by Snam Rete Gas S.p.A (Italy, Utilities, SRG.MI).
All changes in the Dow Jones Italy Select Dividend 20 Index and Dow Jones EPAC Select Dividend Index will be effective as of the open of trading on Monday, April 5, 2010.
Further information on the Dow Jones Select Dividend indexes can be found at http://www.djindexes.com.
Company additions to and deletions from the Dow Jones Italy Select Dividend 20 and Dow Jones EPAC Select indexes do not in any way reflect an opinion on the investment merits of the company.
Source: Dow Jones Indexes
March 2010 Monthly Preliminary Performance Report Dow Jones-UBS Commodity Indexes
March 29, 2010--The Dow Jones-UBS Commodity Index was down -3.09% for the month of March. The Dow Jones-UBS Single Commodity Indexes for Nickel, Platinum and Copper had the strongest gains with month-to-date returns of 11.48%, 3.66%, and 3.62%, respectively. The three most significant downside performing single commodity indexes were Sugar, Natural Gas and Wheat, which were down -27.97%, -19.45%, and -10.50% respectively, in March.
Year to date, the Dow Jones-UBS Commodity Index is down -6.81% with the Dow Jones-UBS Nickel Sub-Index posting the highest gain of 27.05% so far in 2010. Dow Jones-UBS Sugar Sub-Index has the most significant downside YTD performance, down -35.06%.
Source: Mondovisione
Global Recession Weighed on Sovereign Ratings in 2009
March 25, 2010--Highlights
Credit quality eroded for sovereign issuers in 2009, as the global recession's impact on advanced and emerging economies continued to deepen. The share of sovereign issuers downgraded remained steady year-over-year at roughly 14%, while upgrades tumbled to just 2% in 2009 from nearly 10% a year earlier.
Emerging markets registered the most negative, as well as positive, movements on the year, recording 11 downgrades, while simultaneously accounting for the two sovereign upgrades in 2009. Developed market sovereigns observed a total of three downgrades with no upgrades on the year.
'Despite the unprecedented global recession, there were no Fitch-rated sovereign issuer defaults in 2009,' said Charlotte Needham, Senior Director in Fitch Ratings' Credit Market Research Group.
'Fitch Ratings believes diverging sovereign credit trends between advanced and emerging markets will remain a predominant theme in 2010 as public debt/GDP ratios climb steeply toward 100% in the former, even as comparable debt ratios settle at less than half this level in emerging markets,' said Paul Rawkins, Senior Director in Fitch Ratings' Sovereign Group London.
Fitch Ratings' current assessment is that 2010 will be characterized by a gradual rebalancing between positive and negative rating actions and notes that already this year the gap between Stable and Negative Outlooks has already begun to narrow.
The new study provides data and analysis on the performance of Fitch's sovereign ratings in 2009 and over the long term, capturing the period 1995-2009. The report provides summary statistics on the year's key sovereign rating trends.
Source: Fitch Research
FTSE 100 Dividend Index futures reach 1 million contract milestone
March 25, 2010--NYSE Liffe, the European derivatives business of NYSE Euronext, said that its FTSE 100 Dividend Index futures contract has traded its millionth contract. The contract, which was only launched in May last year, is available both through LIFFE CONNECT® and Bclear, the exchange’s trade administration and clearing service.
Following the success of the FTSE 100 dividend index future, NYSE Liffe launched a similar contract based on the CAC 40 dividend index late last year. Both indices represent the cumulative value of ordinary cash dividends declared by the individual constituents each index over a one-year period, calculated in terms of index points.
Source: NYSE Euronext
