Global ETF News Older than One Year
The time has come to make the hard choices needed to combat climate change and enhance global energy security, says the latest IEA World Energy Outlook
November 11, 2009--"World leaders gathering in Copenhagen next month for the UN Climate summit have a historic opportunity to avert the worst effects of climate change. The World Energy Outlook 2009 seeks to add momentum to their negotiations at this crucial stage by detailing the practical steps needed for a sustainable energy future as part of a global climate deal,” said Nobuo Tanaka, Executive Director of the International Energy Agency today in London at the launch of the new WEO – the annual flagship publication of the IEA.
“WEO-2009 provides both a caution and grounds for optimism. Caution, because a continuation of current trends in energy use puts the world on track for a rise in temperature of up to 6°C and poses serious threats to global energy security. Optimism, because there are cost-effective solutions to avoid severe climate change while also enhancing energy security – and these are within reach as the new Outlook shows,” added Mr. Tanaka.
Although, as one of the consequences of the financial crisis, global energy use is set to fall this year, WEO-2009 projects that it will soon resume its upward trend if government policies don’t change. In this Reference Scenario, demand increases by 40% between now and 2030, reaching 16.8 billion tonnes of oil equivalent. Projected global demand is lower than in last year’s report, reflecting the impact of the economic crisis and of new government policies introduced over the past year. Fossil fuels continue to dominate the energy mix, accounting for more than three-quarters of incremental demand. Non-OECD countries account for over 90% of this increase, and China and India alone for over half. In addition to increasing susceptibility to energy price spikes, the Reference Scenario projects a persistently high level of spending on oil and gas imports which would represent a substantial financial burden on import-dependent consumers. China overtakes the US around 2025 to become the world’s biggest spender on oil and gas imports. The energy poverty challenge also remains unresolved with 1.3 billion people still without electricity in 2030 from 1.5 billion today; though universal access could be achieved with investment of only $35 billion per year in 2008-2030.
WEO-2009 demonstrates that containing climate change is possible but will require a profound transformation of the energy sector. A 450 Scenario sets out an aggressive timetable of actions needed to limit the long-term concentration of greenhouse gases in the atmosphere to 450 parts per million of carbon-dioxide equivalent and keep the global temperature rise to around 2°C above pre-industrial levels. To achieve this scenario, fossil-fuel demand would need to peak by 2020 and energy-related carbon dioxide emissions to fall to 26.4 gigatonnes in 2030 from 28.8 Gt in 2007.
view executive summary of the World Energy Outlook report
Source: International Energy Agency (IEA)
Fed and Wall St in talks over CoCos
Novembr 11, 2009--The US Federal Reserve is in talks with Wall Street executives and others over whether US financial groups should raise capital through a new type of bond that converts into equity when a bank is in trouble.
The talks over the hybrid security, which was pioneered by Lloyds Banking Group of the UK last week, are in their early stages but underline regulators’ desire to find novel ways to bolster banks’ balance sheets in times of crisis. The new securities – known as contingent convertibles, or CoCos – operate as bonds in normal times, paying coupons to investors.
Source: FT.com
Investment banks gain by going with the flow
November 11, 2009--Another bank earnings season, another round of outrage about bonuses as institutions such as Goldman Sachs, JPMorgan Chase and Credit Suisse report bumper profits.
In spite of the usual seasonal slowdown as bankers decamp to summer hotspots such as the Hamptons and Sardinia, the top 13 global investment banks raked in $73bn in net revenues in the third quarter, according to research from analysts at Morgan Stanley.
Source: FT.com
ETF Landscape: Industry Review, end of Q3 2009
November 11, 2009--At the end of Q3 2009, global ETF assets hit an all time high of US$933Bn, 4.8% above the previous all time high of US$891Bn set in August 2009.
There were 1,819 ETFs with 3,247 listings from 96 providers on 40 exchanges around the world.
To request a copy of the report click here
Source:ETF Research and Implementation Strategy, BGI
Barclays Global Investors ETF Landscape Industry Preview - End Of October 2009
November 11, 2009--Highlights
Global ETF and ETP Industry 2009:
• Global Exchange Traded Products "ETP" AUM breaks through US$1 trillion - all time high.
• Global ETF assets have hit an all time high of US$942 bn at the end of October 2009 – 0.9% above the previous all time high of US$933 bn set in Q3 2009.
• At the end of October 2009 the Global ETF industry had 1,859 ETFs with 3,327 listings, assets of $941.85 billion, from 97 providers on 40 exchanges around the world.
• YTD assets have risen by 32.5% which is more than the 20.2% rise in the MSCI World index in USD terms.
• YTD the number of ETFs increased by 16.8% with 336 new ETFs launched, while 73 ETFs were closed.
• In Q2 the number of ETFs listed in Europe surpassed the US with 801 ETFs listed in Europe, compared to 732 in the US .
• There are currently plans to launch 805 new ETFs.
• YTD the number of exchanges with official listings decreased by three to 40.
• YTD the average daily trading volume in USD decreased by 7.7% to US$74.4 Billion.
• MSCI ranks 1st in terms of ETF AUM tied to their benchmarks with assets of US$222.66 Bn and 267 ETFs, while Standard & Poors (S&P) ranks 2nd with US$218.83 Bn and 229 ETFs, followed by Barclays Capital in 3rd with US$81.33 Bn and 62 ETFs.
• Globally, iShares is the largest ETF provider in terms of both number of products, 405 ETFs, and assets of US$455.72 Bn, reflecting 48.4% market share; State Street Global Advisors is second with 106 products and US$137.08 Bn, 14.6% market share; followed by Vanguard with 40 products and assets of US$80.76 Bn and 8.6% market share at the end of October 2009.
• Globally, net sales of mutual funds (excluding ETFs) were US$155.2 Bn, while net sales of ETFs were US$76.8 Bn during the first eight months of 2009 according to Strategic Insight.
• Additionally, there were 569 other ETPs (Exchange Traded Products)1 with assets of US$139.70 Bn from 40 providers on 19 exchanges.
• Combined, there were 2,428 products with 4,166 listings, assets of US$1,081.54 Bn from 124 providers on 43 exchanges around the world.
• FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the US , issued a regulatory notice in June 2009 to provide guidance on leveraged and inverse ETFs. The notice states that "...inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets...".
• The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued an Investor Alert on Tuesday 18 August 2009 entitled 'Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors'. The following is taken from the Alert: The SEC staff and FINRA are issuing this Alert because we believe individual investors may be confused about the performance objectives of leveraged and inverse exchange-traded funds (ETFs). Leveraged and inverse ETFs typically are designed to achieve their stated performance objectives on a daily basis. Some investors might invest in these ETFs with the expectation that the ETFs may meet their stated daily performance objectives over the long term as well. Investors should be aware that performance of these ETFs over a period longer than one day can differ significantly from their stated daily performance objectives.
• U.S. Commodity Futures Trading Commission (CFTC) held hearings on Energy Position Limits and Hedge Exemptions on July 28, July 29 and August 5, on whether federal position limits should be set on the energy markets. The hearings provided critical input from a wide range of industry participants and academics to the Commission's efforts to examine different approaches to regulate energy markets. The Commodity Exchange Act states that the Commission shall impose limits on trading and positions as necessary to eliminate, diminish or prevent the undue burdens on interstate commerce that may result from excessive speculation. The CFTC's hearings examined the role of position limits in energy markets in fulfilling the CFTC's mission to ensure the fair, open and efficient functioning of futures markets. Goldman Sachs, JPMorgan Chase and other leading banks are exempt from most commodity-trading limits in order to manage risks as they serve as market makers. The Commodity Futures Trading Commission is looking into whether those exemptions should stand, as it considers blanket limits on a variety of commodity markets. A number of ETPs/ ETFs providing exposure to commodities have recently issued notices that they have suspended their creation process.
US ETF and ETP Industry 2009:
• US ETF assets have hit an all time high of US$640 Bn at the end of October 2009 which tops the previous all time high of US$631 Bn set in Q3 2009.
• At the end of October 2009 the US ETF industry had 732 ETFs, assets of $639.58 billion, from 25 providers on 3 exchanges.
• 29 January 2009 marked the 16th anniversary of ETFs in the US .
• YTD assets have risen by 28.7%, which is more than the 15.3% rise in the MSCI US index in USD terms.
• YTD the number of ETFs increased by 4.9% with 75 new ETFs launched, while 42 ETFs were delisted.
• YTD the average daily trading volume in US dollar has decreased by 10.3% to US$69.1 Bn.
• iShares is the largest ETF provider in terms of both number of products, 183 ETFs, and assets of US$341.21 Bn, reflecting 53.3% market share; State Street Global Advisors is second with 87 products and US$126.12 Bn, a 19.7% market share; followed by Vanguard with 39 products, assets of US$80.72 Bn and 12.6% market share at the end of October 2009.
• In the US , net sales of mutual funds (excluding ETFs) were minus US$47.1 Bn, while net sales of ETFs domiciled in the US were positive US$55.1Bn in the first eight months of 2009 according to Strategic Insight.
• Additionally, there were 137 other ETPs (Exchange Traded Products) with assets of US$78.86 Bn from 18 providers on 1 exchange.
• Combined, there were 869 products with assets of US$718.44 Bn from 39 providers on 3 exchanges in the US.
European ETF and ETP Industry 2009:
• European ETF assets have hit an all time high of US$206 bn at the end of October 2009 which is 0.6% above the previous all time high of US$204 bn set in Q3 2009 and 28.6% above the high of US$160 bn recorded in July 2008.
• At the end of October 2009 the European ETF industry had 801 ETFs with 2,001 listings, assets of $205.54 Bn, from 32 providers on 18 exchanges.
• 11 April 2009 marked the ninth anniversary of ETFs in Europe.
• YTD assets have risen by 44.2%, which is greater than the 25.5% rise in the MSCI Europe index in USD terms.
• YTD the number of ETFs increased by 26.7% with 193 new ETFs launched.
• YTD the number of exchanges with official listings decreased by three to 18.
• YTD the average daily trading volume in US dollar has increased by 34.0% to US$3.0 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).
• iShares is the largest ETF provider in terms of both number of products, 168 ETFs, and assets of US$80.20 Bn, reflecting 39.0% market share; Lyxor Asset Management is second with 118 products and US$41.94 Bn, 20.4% market share; followed by db x-trackers with 113 ETFs and assets of US$34.53 Bn and 16.8% market share at the end of October 2009.
• In Europe net sales of mutual funds (excluding ETFs) were US$174.7 Bn while net sales of ETFs domiciled in Europe were US$23.6 Bn during the first eight months of 2009 according to Lipper FMI.
• Additionally, there were 150 other ETPs (Exchange Traded Products) with assets of US$17.96 Bn from 5 providers on 6 exchanges.
• Combined, there were 951 products with assets of US$223.51 Bn from 33 providers on 18 exchanges in Europe.
To request a copy of the report click here
Source:ETF Research and Implementation Strategy, BGI
BlackRock’s Fink Says ‘Record’ Cash Going Into Funds
November 10, 2009--BlackRock Inc. Chief Executive Officer Laurence Fink said his firm was hired to manage assets for Swiss Reinsurance Co. and other institutions as investors are moving “record” amounts of funds out of cash.
BlackRock gathered $3 billion from an unnamed institutional investor in Denmark and may get $11 billion from an undisclosed client, Fink said today at an event in New York organized by the Wall Street Journal. He didn’t say how much his firm manages for Swiss Re, the world’s second-largest reinsurer.
Source: Bloomberg
NASDAQ Announces End-of-month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date October 30, 2009
November 10, 2009--At the end of the settlement date of October 30, 2009, short interest in 2,430 NASDAQ Global Market(SM) securities totaled 6,187,719,999 shares compared with 6,196,860,577 shares in 2,432 Global Market issues reported for the prior settlement date of October 15, 2009. The end-of-October short interest represents 2.95 days average daily NASDAQ Global Market share volume for the reporting period, compared with 2.70 days for the prior reporting period.
Short interest in 465 securities on The NASDAQ Capital Market(SM) totaled 173,705,058 shares at the end of the settlement date of October 30, 2009 compared with 172,054,929 shares in 454 securities for the previous reporting period. This represents 1.70 days average daily volume, compared with the previous reporting period's figure of 1.65.
In summary, short interest in all 2,895 NASDAQ(R) securities totaled 6,361,425,057 shares at the October 30, 2009 settlement date, compared with 2,886 issues and 6,368,915,506 shares at the end of the previous reporting period. This is 2.89 days average daily volume, compared with an average of 2.65 days for the previous reporting period.
The open short interest positions reported for each NASDAQ security reflect the total number of shares sold short by all broker/dealers regardless of their exchange affiliations. A short sale is generally understood to mean the sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by or for the account of the seller.
For more information on NASDAQ Short interest positions, including publication dates, visit
http://quotes.nasdaq.com/asp/MasterDataEntry.asp?page=ShortInterest or http://www.nasdaqtrader.com/asp/short_interest.asp.
Source: NASDAQ OMX
Financial Stability Board Releases Reports Submitted to the G20
November 7, 2009-The Financial Stability Board (FSB) is publishing today four reports submitted to G20 Finance Ministers and Central Bank Governors.
(i) Progress since the Pittsburgh Summit in Implementing the G20 Recommendations for Strengthening Financial Stability
This updates the progress reportmade to the Pittsburgh Summit in September, and includes a description of the actions to date to implement the policy measures for improving financial regulation set out by the FSB in Pittsburgh. The areas on which it provides updates include:
- Building high quality capital and mitigating pro-cyclicality;
- Strengthening accounting standards;
- Reforming compensation practices to support financial stability;
- Improving over-the-counter derivatives markets;
- Addressing cross-border resolutions and systemically important financial institutions;
- Strengthening adherence to international supervisory and regulatory standards.
(ii) Exit from extraordinary financial sector support measures
This note reviews policies to withdraw from exceptional financial support measures. Exit policies in this area should be pre-announced, flexible, transparent and credible. Although decisions on the timing of withdrawal of measures will depend on judgements on the strength of national financial systems, there are gains from advanced information exchange between countries and from stronger forms of co-ordination where cross-border spillover effects are potentially significant.
The note includes a report by the staffs of the International Association of Deposit Insurers and the International Monetary Fund (IMF) on strategies to unwind temporary deposit insurance arrangements.
This report by the IMF, Bank for International Settlements and FSB responds to a request made by the G20 Leaders in April 2009 to develop guidance on this subject for use by national authorities. It outlines conceptual and analytical approaches to the assessment of systemic importance and discusses a possible form for general guidelines that would be sufficiently flexible to apply to a broad range of countries and circumstances.
(iv) The Financial Crisis and Information Gaps
This report by the staff of the IMF and the secretariat of the FSB identifies information gaps and sets forth proposals for strengthening data collection to better capture the build-up of risk in the financial sector, improve data on international financial network connections, monitor the vulnerability of domestic economies to shocks, and improve the communication of official statistics.
Source: Financial Stability Board
Mobile Edition Of NASDAQ.com Is Launched At http://mobile.nasdaq.com
November 9, 2009--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) has launched a mobile web version of NASDAQ.com, the world's most popular stock exchange web site, which draws about 2.4 million unique visitors per month. NASDAQ is the world's first major stock exchange to offer free access to information on all web-enabled mobile devices and smartphones. At http://mobile.nasdaq.com, users have access to real-time stock quotes, breaking news, charts, commentary and features such as Guru Analysis -- which empowers users with simulated investment philosophies of several world-renowned investors.
"Investors now have instant access to a wealth of market information on NASDAQ.com from any location," said John Jacobs, Executive Vice President, NASDAQ OMX. "This is another step in our continuing efforts to meet greater demand for timely information and to promote market transparency."
The mobile edition of NASDAQ.com is powered by mDog.com, the world's most comprehensive destination for mobile search, mobile web browsing, and mobile blogging.
"We're thrilled to be working with NASDAQ," said Keith Gerard, Founder of mDog.com. "Powering the mobile initiatives of NASDAQ is a testament to our technology's ability to comprehensively render data in real-time for one of the world's premier stock exchanges."
The launch of the mobile web version follows another recent enhancement to www.nasdaq.com. NASDAQ OMX announced the introduction last week of NASDAQ Community, an engaging and interactive financial networking community, on http://community.nasdaq.com.
NASDAQ OMX has long been a technology leader and innovator in market information. In 1996, NASDAQ became the first stock market to create its own website. In 2008, NASDAQ became the first U.S. stock exchange to help provide millions of investors with immediate and free web access to real-time market data.
Source: NASDAQ OMX
Study finds overseas listing of futures contracts benefits home
October 9, 2009--A study by the Capital Markets Cooperative Research Centre has found
that trading in overseas-listed futures contracts benefits both the index futures as well as its
component stocks in the home exchanges.
This is the first study to examine how the trading activities of the home markets are affected by the additional listing of a similar index future in a foreign market. Singapore Exchange Limited (SGX) was chosen as “it provides an ideal experimental setting for examining the relationship between cross-border exchanges, as it is a satellite hub that facilitates the trading of numerous dual-listed financial derivatives,” said Professors Alex Frino and Frederick H. deB. Harris and Mr Wong Jin Boon in their paper, entitled “The relationship between satellite market and home market volumes: evidence from cross-listed Singapore futures contracts.”
Source: Capital Markets
