Deborah Fuhr: understanding the counterparty risks-continued

March 29, 2012--We have seen over the past two years a significant increase in regulatory concerns due to the rapid growth in exchange traded funds (ETFs) and other types of exchange traded products (ETPs).
Broadly, those concerns may be categorised under four headings. First, ETFs that use derivatives to replicate their index and especially so where the product provider and the derivative counterpart are part of the same corporate group. Second, the risks associated with securities lending, which is more typically confined to physically replicating funds, and third, the increased complexity of products and exposures, especially leveraged and inverse offerings.

Fourth, and to a significantly lesser emphasis, the risks associated with unregulated exchange traded products.

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Source: CityWire

Global ETP News
IMF-Global Financial Stability Report April 2018: A Bumpy Road Ahead
Apri1 18, 2018--The April 2018 Global Financial Stability Report (GFSR) finds that shor-term risks to financial stability have increased somewhat since the previous GFSR. Medium-term risks are still elevated as financial vulnerabilities, which have built up during the years of accommodative policies, could mean a bumpy road ahead and put growth at risk.
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IMF-World Economic Outlook, April 2018 Cyclical Upswing, Structural Change
April 17, 2018--The global economic upswing that began around mid-2016 has become broader and stronger. This new World Economic Outlook report projects that advanced economies as a group will continue to expand above their potential growth rates this year and next before decelerating, while growth in emerging market and developing economies will rise before leveling off.
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BlackRock growth dented by market volatility
April 12, 2018--BlackRock suffered a sharp slowdown in inflows in the first quarter of this year after an increase in stock market volatility, but the recent US tax cut and a strong showing by its technology platform buttressed the results of the world,s largest asset manager.
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Patchwork financial regulation is a $780 billion drag on the economy
April 11, 2018-Fragmentation in global financial regulation costs more than USD $780 billion annually, according to a survey released today by IFAC (International Federation of Accountants) and Business at OECD (BIAC).
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Harmonisation of critical OTC derivatives data elements (other than UTI and UPI)-technical guidance issued by CPMI-IOSCO
April 9, 2018--A new report provides technical guidance to authorities on harmonised definitions, formats and usage of a set of critical data elements for over-the-counter (OTC) derivative transactions reported to trade repositories, excluding the Unique Transaction Identifier (UTI) and the Unique Product Identifier (UPI).
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Global Debt Jumped to Record $237 Trillion Last Year
April 9, 2018--Norway, Canada, Sweden, China exceed pre-crisis debt levels
Debt as a percentage of GDP fell thanks to strong growth
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Cracks Form in Global Growth Story, Rattling Investors
April 8, 2018--Investor confidence has flagged amid fears that a long-expected global synchronized surge may be turning into a synchronized stall
Stock-market investors, already grappling with the tech rout and the threat of a trade war, are starting to reassess a fundamental premise of the powerful rally-that world-wide economic growth is on the verge of blasting out of a long period of weakness.
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Russell Investments Insights-2018 Global Market Outlook-Q2 update
April 6, 2018--Volatility is back, the U.S. Federal Reserve (the Fed) is picking up the pace of hiking and trade-war threats are increasing. But global growth is still strong and the U.S. economy is getting a jolt of fiscal stimulus.
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IMF Working paper-Globalization and the New Normal
April 6, 2018--Summary:
This study expands the empirical specification of Cerra and Saxena (2008), and allows short-term output growth regimes to be determined by globalization. Relying on a non-linear dynamic panel representation, it reconciles the earlier results in the literature regarding the two opposite narratives of the effects of globalization on output growth.
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IMF Working paper-A Primer on Managing Sovereign Debt-Portfolio Risks
April 6, 2018--This paper provides an overview of sovereign debt portfolio risks and discusses various liability management operations (LMOs) and instruments used by public debt managers to mitigate these risks. Debt management strategies analyzed in the context of helping reach debt portfolio targets and attain desired portfolio structures.
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IMF Working paper-Understanding the Macro-Financial Effects of Household Debt: A Global Perspective
April 6, 2018--We confirm the negative relationship between household debt and future GDP growth documented in Mian, Sufi, and Verner (2017) for a wider set of countries over the period 1950-2016. Three mutually reinforcing mechanisms help explain this relationship.
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Will geopolitical factors have an effect on oil prices?
April 5, 2018--The trade war was expected to bring prices up these past few weeks, especially for oil.
But according to UAE's Energy Minister, Suhail Al Mazrouei, this might, in fact, be very unlikely.
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IOSCO issues recommendations to improve regulatory reporting and transparency in corporate bond markets
April 5, 2018--The Board of the International Organization of Securities Commissions (IOSCO) published today its recommendations for improving the information on secondary corporate bond markets available to both regulators and the public.
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World Gold Council-Gold-backed ETFs added 22.5t in March
April 5, 2018--Gold-backed ETFs collectively held 2,415t (US$102.8bn) at the end of March after adding 22.5t (US$1.0bn) during the month.
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IMF Policy Papers-Measuring the Digital Economy
April 5, 2018--Summary:
Digitalization encompasses a wide range of new applications of information technology in business models and products that are transforming the economy and social interactions. Digitalization is both an enabler and a disruptor of businesses.
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BetaShares-Global Market Outlook: Testing times
April 4, 2018--Month in Review-Trade tremors
The pull back in global equities continued in March, with the MSCI All-Country Net-Return Index dropping 2.2% after a 3.5% drop in February. On a month-end basis, this Index is now down 5.7% from its January peak, which is still less than the last "correction" of 11.6% between mid-2015 to early-2016.
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Gold heading to $1 400 as Sprott sees 'winnerless' trade war
April 3, 2018--Gold will surge to the highest level in five years if a global trade war breaks out, according to Rick Rule, chief executive officer of Sprott US Holdings, who's been involved in the market for four decades.
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Investors nurse $10m losses on LongFin index mistake
April 3, 2018--On February 14, FTSE Russell decided it would include LongFin in its Russell 2000 and 3000 indices, groupings of small and medium-sized companies used as benchmarks for passive investment products, including exchange traded funds.
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Barclays creates post-crisis milestone with 'ringfenced' bank
April 2, 2018-- When Barclays staff left work for the Easter weekend last Thursday evening they were employees at a 328-year-old institution.
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DECPG Global Weekly
March 30, 2018--TAKING STOCK
U.S. 2017 fourth-quarter GDP growth was revised up; PCE inflation rose in February; consumer confidence fell in March
Euro Area economic sentiment declined in March
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Request Network launches financial applications technology on Ethereum blockchain
March 30, 2018--Request Network, a Y-Combinator backed project, has officially launched a financial applications technology allowing anyone to easily request and send cryptocurrency payments for goods, services, or simply conduct money transfers between friends, family and businesses.
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Solactive publishes a paper quantifying the hidden costs paid by investors while passively tracking a benchmark index
March 28, 2018--The hidden costs paid by investors while passively tracking a benchmark index
Today, Solactive AG published a new research paper analyzing the additional cost paid by investors in order to passively track a benchmark.
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ETFs see outflows for first time since 2016
March 28, 2018--Exchange-traded funds saw net outflows in February, the first monthly exodus since 2016, according to Cerulli Associates.
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DECPG Global Monthly-March 2018
March 28, 2018--Monthly Highlights
Recent data point to continued strong global growth in 2018. In advanced economies, a rise in inflation remains incipient despite ongoing tightening in labor markets.
After recovering from a period of turbulence in early February, equity prices suffered renewed losses and heightened volatility in late March, amid fears of rising trade protectionism.
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Passive investing won't cut it with China A shares
March 26, 2018--Passive investment strategy risks owning highly valued and leveraged companies
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The Global Financial Centres Index 23
March 26, 2018--THE RESULTS

There is an overall increase in confidence for the leading centres. Signs of a bias towards stronger and more established centres are evident with the top 25 centres all rising in the ratings. Ratings fell for all of the lowest 50 centres.
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DECPG Global Weekly
March 23, 2018--TAKING STOCK
U.S. Federal Reserve raised interest rates; durable goods orders rose
Euro Area consumer confidence stabilized; composite PMI decelerated
Japan export growth slowed in February; economic sentiment improved
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Managing Debt Vulnerabilities in Low-Income and Developing Countries
March 22, 2018--Government debt in some of the world's poorest countries is rising to risky levels, a new IMF report shows. The report looks at economic developments and prospects among the world's low-income countries, which account for a fifth of the world's population but only four percent of global output.
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Euronext Announces Appointments in Euronext London and in Its US Activities
March 22, 2018--Today, Euronext (Paris:ENX) (Amsterdam:ENX) (Brussels:ENX), the leading pan-European exchange in the Eurozone with more than 1,300 listed issuers, announces that the Supervisory Board has approved unanimously the following appointments:
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EDHEC-Risk Institute Newsletter-March 2018 Issue
March 21, 2018--The Factor Investing across Asset Classes-Risk factors, defined as systematic underlying sources of risk that impact a large set of securities, have long been used in investment practice for analysing risk and performance of actively or passively managed portfolios.
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Commodity Monthly Monitor-Potential trade wars sour otherwise strong fundamentals Mar/Apr 2018
March 21, 2018--Summary
Commodities gave back the gains from the prior month. Industrial metals led the losses, falling by 5.3%. With the Trump Administration imposing tariffs on steel and aluminium imports, the threat of a tit-for-tat trade war has sent jitters into the base metals markets.
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