IMF Working paper-Exchange-Rate Dark Matter -continued

March 2, 2012--Summary: Dark matter accounts for 83 percent of the matter in the universe and plays a central role in cosmology modeling. This paper argues that an analogous form of dark matter plays a similarly important role in international macroeconomics.
Exchange-rate dark matter is invisible, but its existence can be inferred from observations on real exchange rates and interest rates. I first show that dark matter is the dominant driver of short- and medium-term changes in real exchange rates for the G-7 countries; accounting for more than 90 percent of the variance at the five-year horizon. I then develop a model in which risk shocks account for dark matter's role as a driver of exchange-rate dynamics and other macro variables.

view IMF working paper-Exchange-Rate Dark Matter

Source: IMF

Global ETP News
DECPG Weekly Economic Brief--July 10, 2014
July 11, 2014--The post crisis recovery in imports has been uneven. Developing countries have recorded robust growth across all import groups, whereas in high-income countries, reflecting weaker domestic demand conditions, growth especially in durable and capital goods imports has been relatively weaker.
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DECPG Weekly Economic Brief--July 10, 2014
July 11, 2014--The post crisis recovery in imports has been uneven. Developing countries have recorded robust growth across all import groups, whereas in high-income countries, reflecting weaker domestic demand conditions, growth especially in durable and capital goods imports has been relatively weaker.
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Investors Flock to Government Bonds
Concerns Rise Over Health of Portuguese Bankz
July 10, 2014--Investors piled into haven government bonds in the U.S., Germany and the U.K. on Thursday, driven by fresh signs of uneven global growth and concerns over the health of a major Portuguese bank.
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Bank Trading Revenue May Improve in Second Quarter
Fixed Income, Currencies and Commodities Trading in U.S., Europe May Do Better Than Expected
July 10, 2014--Bank revenues from fixed income, currencies and commodities trading, or FICC, might not be as bad as some expect when the sector reports second-quarter results starting Friday, senior executives and bankers said.
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Netagio launches first British Bitcoin, gold & sterling exchange
Netagio exchange enables domestic and international customers to trade all three asset classes against each other on a single platform.
July 10, 2014--Netagio, the UK-based digital currency broker, has announced the launch of the first British exchange enabling retail customers and institutional investors to trade gold,
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Qatar to sell down stake in LSE
July 9, 2014--The Qatar Investment Authority is to sell down a third of its stake in the London Stock Exchange Group ahead of the bourse's $1.6bn rights issue to help purchase Frank Russell, the US index compiler.
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Brics bank set to launch next week
July 9, 2014--Leaders of the Brics nations-Brazil, Russia, India, China and South Africa- will launch their long-awaited development bank at a summit next week and decide whether the headquarters should be in Shanghai or New Delhi, Russian Finance Minister Anton Siluanov said on Wednesday.
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Eurex Clearing publishes White Paper on the systemic role of central counterparties
Central Counterparties (CCPs) reduce systemic risk in financial markets/ Specific recovery and resolution frameworks for Financial Market Infrastructures support the benefits of the CCP model
July 8, 2014--Central clearing significantly reduces systemic risk and their amplifying factors in financial markets. This is a key finding of the White Paper "How central counterparties strengthen the safety and integrity of financial markets" which was published today by Eurex Clearing, the CCP of Deutsche Börse Group.
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State Street Global Advisors Appoints Chief Operating Officer of US Intermediary
July 8, 2014--State Street Global Advisors (SSgA), the asset management business of State Street Corporation, has announced the appointment of Nick Good to senior managing director and chief operating officer of the US intermediary business. Good joins from BlackRock, where he served as head of strategy and business development for the Asia-Pacific region.
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State Street Global Advisors Appoints Chief Operating Officer of US Intermediary
July 8, 2014--State Street Global Advisors (SSgA), the asset management business of State Street Corporation, has announced the appointment of Nick Good to senior managing director and chief operating officer of the US intermediary business. Good joins from BlackRock, where he served as head of strategy and business development for the Asia-Pacific region.
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Germany Gets 80 Billion-Yuan Investor Quota for China
July 7, 2014--China awarded Germany a quota of 80 billion yuan ($12.9 billion) that will allow domestic investors to buy securities in China under the Renminbi Qualified Foreign Institutional Investor program.
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BlackRock ETP Landscape: Strong June caps best quarter in 5 years
GLOBAL ETPS GATHER $36.3BN IN JUNE TO PROPEL YEAR-TO-DATE FLOWS AHEAD OF 2013 PACE
July 7, 2014--Year-to-date global ETP flows of $123.9bn were up 25% vs. the first half of last year following a Q2 total of $90.6bn that exceeded any quarter in the past 5 years
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ETFs And ETPs Listed Globally Reached Record 2.64 Trillion U.S. Dollars In Assets At End Q2 2014
According to ETFGI: ETFs and ETPs listed globally reached US$2.64 trillion in assets, a new record high, at the end of Q2 2014
July 7, 2014--ETFs and ETPs listed globally gathered U.S. $34.8 billion in net new assets in June and U.S. $126.6 billion YTD, which outpaces the previous high of U.S. $106.4 billion at this point set in 2012.
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BATS Global Markets June Highlights: Market Share Remains Strong Globally; Company Plans New York, Chicago Expansion
BATS Chi-X Europe Reports 20.3% Market Share
July 7, 2014--BATS Global Markets (BATS) today reported June volume, market share, and monthly highlights:
In the U.S., BATS earned 19.2% U.S. equities market share in June, up from 10.4% a year ago. BATS Options recorded 3.9% market share vs. 3.8% one year ago.
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ETF Securities-Precious Metals Weekly-Platinum Breaches US $1,500/oz on Strong Auto Sales and Supply Constraints
July 7, 2014--Platinum and palladium prices hit new 2014 highs. Strong global vehicle sales, coupled with news of a new strike in South Africa and continued tensions in the Ukraine supported 1.6% and 1.9% gains in platinum and palladium (PGMs) last week.
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Investors favour equity ETFs: report
July 4, 2014--Investors had found comfort in equity exchange-traded funds (ETF), with the products experiencing nearly US$84 billion in inflows in 2013 so far, according to a State Street Global Advisors (SSgA) report.
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Bitcoin Faces Regulatory Backlash as EU Tells Banks to Stay Away
July 4, 2014--The European Commission signaled it will try to impose rules on virtual currencies such as Bitcoin after the bloc's banking regulator ordered lenders to shun them.
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ETFs back on song in second quarter
July 4, 2014--Exchange-traded fund inflows shot up to $123.9 billion in the first half of the year, a rise of 25% compared with the same period in 2013, after a strong performance in the second quarter, according to data compiled by BlackRock.
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Morgan Stanley buys Deutsche's bulk commodities trading book
July 3, 2014--Morgan Stanley has bought Deutsche Bank's bulk commodities trading book dealing in coal, iron ore and freight forward contracts to expand in commodities derivatives, a source familiar with the matter said on Thursday.
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DB Markets Research-The Flow Whisperer TAARSS says increase equities, but still prefer fixed income in Q3
Tactical Asset Allocation Relative Strength Signal (TAARSS) Monthly Update
July 2, 2014--Market review
Global equities (ACWI) extended their May rally into the month of June by adding 1.82%. In turn, US bonds (AGG) were mostly flat during the same period (-0.06%); while,Commodities recovered from the previous month losses by recording a 2.11% gain in June.
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Average daily volume of 8.0 million contracts at Eurex Group in June
July 2, 2014--In June, the international derivatives exchanges of Eurex Group recorded an average daily volume of 8.0 million contracts (June 2013: 10.1 million). Of those, 6.0 million were Eurex Exchange contracts (June 2013: 8.1 million), and 2.0 million contracts (June 2013: 2.7 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 126.0 million contracts were traded at Eurex Exchange and 42.0 million at the ISE.
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IMF Working-Growth: Now and Forever?
July 2, 2014--Summary: Forecasters often predict continued rapid economic growth into the medium and long term for countries that have recently experienced strong growth.
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Concern over siloed approaches to collateral
July 2, 2014--While regulation increases collateral needs, particularly as the derivatives market moves toward central clearing, market participants are cobbling together fragmented systems, manual processes, and siloed approaches to ensure compliance, creating significant inefficiencies,says Sapient Global Markets in a recent whitepaper.
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Global growth to slow as wage inequality rises over coming decades, says OECD
July 2, 2014--A slowdown in global economic growth and a continuing rise in income inequality are projected for the coming decades, according to a new OECD study which looks beyond the crisis at what the world could look like by 2060.
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BlackRock ETFs near $1 trillion as it loses market share to Vanguard
June 30, 2014--Even as BlackRock Inc is set to amass $1 trillion in exchange-traded fund assets in its iShares business, US Retail investors increasingly prefer to send their money to low-cost leader Vanguard Group, highlighting a weak spot for the world's biggest money manager.
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Chinese lenders made 30% of global bank profits
June 30, 2014-China's top banks have accounted for almost one-third of a record $920bn of profits made by the world's biggest 1,000 banks in 2013,
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Time to step out of the shadow of the crisis, says BIS in 84th Annual Report
June 29, 2014--A new policy compass is needed to help the global economy step out of the shadow of the Great Financial Crisis, writes the Bank for International Settlements (BIS) in its 84th Annual Report, released today. In its main economic review for the year, the BIS calls for adjustments to the current policy mix and to policy frameworks with the aim of restoring sustainable and balanced economic growth.
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LSE to Buy Frank Russell to Expand Play in Indexes, ETF
June 26, 2014--London Stock Exchange Group Plc (LSE) agreed to buy Frank Russell Co., a unit of Northwestern Mutual Life Insurance Co., for $2.7 billion to bolster its FTSE International Ltd. business.
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IOSCO Issues Report on Risk Identification and Assessment Methodologies
June 26, 2014--The International Organization of Securities Commissions (IOSCO) today published a report on Risk Identification and Assessment Methodologies for Securities Regulators, which provides a practical overview of the methods, approaches and tools that IOSCO and securities regulators have developed to identify and assess emerging and potential systemic risks.
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SEI Study: Active Exchange Traded Funds Remain On Growth Trajectory In 2014
Market Grew by 30 Products, $2.5 Billion AUM in Past Year
June 25, 2014--Actively managed exchange traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, according to a paper released today by SEI.
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Chinese to liberalize renminbi, but will do it its way
June 25, 2014--For several years, a great dilemma has surrounded China's drawn-out campaign to open up its financial markets, liberalize capital flows and allow the renminbi (yuan) to become a much more important trade and investment currency on the world stage.
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China expands plans for World Bank rival
June 24, 2014--China is expanding plans to establish a global financial institution to rival the World Bank and the Asian Development Bank, which Beijing fears are too influenced by the US and its allies.
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Vanguard: 50% of advisers plan to increase ETF usage
June 24, 2014--Nearly all advisers surveyed by Vanguard Asset Management plan to maintain or increase their Exchange Traded Funds (ETFs) allocation over the next 12 to 24 months.
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New Study Adds Up the Benefits of Climate-Smart Development in Lives, Jobs, and GDP
June 23, 2014--STORY HIGHLIGHTS: With careful design, the same development projects that improve communities, save lives, and increase GDP can also fight climate change.
A new study examines the multiple benefits for a series of policy scenarios addressing transportation and energy efficiency in buildings and industry in five countries and the European Union.
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"Thousands of firms" could quit EU trading
June 23, 2014--Mifid II plans could force thousands of foreign firms out of Europe
Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets.
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Fears mount over asset managers' shadow banking operations
June 23, 2014--The shrinking banking sector is creating a "major opportunity" for asset managers to step into the lending breach, but concern is mounting over their "shadow bank" operations and rising systemic importance.
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Central Bank Reserve Managers More Cautious as Fed Tapers
June 23, 2014--Central bank reserve managers across the world are ready to take a more cautious approach to investment as the U.S. Federal Reserve continues to reduce its monetary stimulus, with the full effect of such tapering still to be felt so far as demand for riskier assets is concerned.
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Expansion Into the Vast World of Commodities
June 23, 2014--From lean hogs to gold, the world of commodities is as vast as the world around us. On July 1, Bloomberg will take control of UBS's leading commodity index, a diversified index that provides investors with exposure to the most widely followed commodities in the world.
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ETF Securities-Precious Metals Weekly--Silver Leads Precious Metals Price and Volatility Recovery
June 23, 2014--Gold and silver surge as the Fed keeps rates low, against a backdrop of geopolitical instability. Sparked by a dovish FOMC meeting announcement, precious metals rallied sharply last week, led by the 5.3% gain in silver, with gold posting a 3.1% increase.
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IMF Working paper-Financial Plumbing and Monetary Policy
June 20, 2014-Summary: This paper focuses on how changes in financial plumbing of the markets may impact the monetary policy options as central banks contemplate lift off from zero lower bound (ZLB).
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WGC-Gold Investor: risk management and capital preservation-Volume 6
June 19, 2014--The sixth edition of Gold Investor discusses gold's role as a liquid alternative to stocks, bonds and cash, and highlights its ability to improve portfolio risk-adjusted returns for investors-even if they hold other alternative assets.
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BlackRock's iShares Canada Chief Wiley Departs Company
June 19, 2014--Mary Anne Wiley left her position as managing director and head of iShares Canada, the exchange-traded funds unit of BlackRock Inc. (BLK), as competitors encroach on the company's leading market share.
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World Gold Council calls meeting to explore gold fix reform
June 18, 2014--A discussion by gold buyers and sellers across the market on ways to reform or replace London's global price benchmark, known as the "fix", will be held next month by the World Gold Council.
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Minerals Can Boost Well-being in Developing Countries
June 18, 2014--STORY HIGHLIGHTS
Mineral wealth need not be 'curse', study says.
Well-being improved faster where mining fueled growth.
Appropriate structures must be in place to manage the large revenue inflows in a responsible and transparent manner.
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Deutsche Asset & Wealth Management Expands its Passive Distribution Team for U.S. Western Region
June 18, 2014--Deutsche Asset & Wealth Management (DeAWM) announced today that it has hired four Regional Vice Presidents to support the growth and coverage of its U.S. exchange-traded products (ETP) platform in the Western region.
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IMF Working paper-Impact of Fed Tapering Announcements on Emerging Markets
June 17, 2014--Summary: This paper analyzes market reactions to the 2013-14 Fed announcements relating to tapering of asset purchases and their relationship to macroeconomic fundamentals and country economic and financial structures. The study uses daily data on exchange rates, government bond yields, and stock prices for 21 emerging markets.
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IOSCO Research Department Publishes Securities Markets Risk Survey
June 17, 2014--The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled A Survey of Securities Markets Risk Trends 2014: Methodology and Detailed Results, which provides a detailed analysis of responses to its annual survey on market trends and emerging risks.
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ETF strategy waits to gain in currency
June 17, 2014--While investors have been ploughing money into exchange-traded products over the past few years, niche exchange-traded funds that specialise in currency strategies have proved an exception to the rule.
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Smart beta: A deeper look at asset owner usage and perceptions-findings from Russell's global survey
June 16, 2014--Overview:
Smart beta poses an interesting opportunity and challenge for assert owners, managers and consultants as the industry discussion continues to evolve. In January 2014, Russell's index business conducted a survey of approximately 200 institutional asset owners with at least $200 million in assets under management(AUM) in North America and Europe.
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Nomura Hires Etf Securities Emea Distribution Head
June 13, 2014--The Japanese bank has also hired a new head of equity sales and a global head of execution services and equity trading in London this year.
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OECD G20 GDP growth, first quarter of 2014
G20 GDP growth steady at 0.8% in first quarter of 2014
June 12, 2014--Quarterly Gross Domestic Product (GDP) in the G20 area grew by 0.8% in the first quarter of 2014, the same rate as in the previous quarter, according to preliminary estimates.
Among G20 economies, India recorded the strongest growth at 2.1%, compared with 1.1% in the previous quarter. GDP growth slowed in China and Indonesia but remained strong at 1.4% and 1.2%, compared with 1.7% and 1.3% respectively in the previous quarter. In other BRIICS countries growth remained relatively weak.
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Emerging Markets Face Tough Climb Back to Past Growth Levels
June 12, 2014--Structural factors weigh on emerging market growth
External environment less supportive, but impact varies by country
Countries need to rethink growth engines, focus on structural reforms
As the global environment turns less supportive and productivity gains of the last decade fade, growth in emerging markets will have to come from new engines, supported by a new wave of structural reforms, a new IMF study says.
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IOSCO Intensifies work on Market-Based Finance
June 12, 2014--The Board of the International Organization of Securities Commissions (IOSCO) met in Madrid this week to drive forward IOSCO's work on market-based finance.
Chairman Greg Medcraft said 'Capital markets are emerging as a key source of the finance needed across the globe to drive economic growth. Through a work agenda focused on fostering markets as a trusted source of capital, IOSCO is playing an important role in supporting that growth.'
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