| 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 |
| FTSE EPRA/NAREIT real estate indices surpass $10Bn in ETF-linked AUM | |||
| May 17, 2013--Leading global real estate indices hit landmark AuM
Continuous innovation to the index series Successful 8 year partnership between FTSE and EPRA/NAREIT May 17, 2013--FTSE Group ("FTSE"), the global index provider, is pleased to announce that the ETF assets linked to the FTSE EPRA/NAREIT Global Real Estate Index Series, reached $US10.5 billion in assets under management, as of 30 April 2013. In total, more than US$176 billion of ETF assets are currently benchmarked to FTSE indices worldwide. | |||
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| Bulls take on Japanese characteristics as Equity Fund flows hit three month high | |||
| May 17, 2013--The second week of May saw flows into Japan Equity Funds hit a record high in both dollar and percentage of assets under management terms as an market long associated with kuma (bears) saw the oushi (bulls) arrive in force. | |||
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| IMF Working paper-"Near-Coincident" Indicators of Systemic Stress | |||
| MAy 17, 2013--Summary: The G-20 Data Gaps Initiative has called for the IMF to develop standard measures of tail risk, which we identify in this paper with systemic risk. To understand the conditions under which tail risk is present, it is first necessary to develop a measure of what constitutes a systemic stress, or tail, event. | |||
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| NYSE and Credit Suisse inch closer to "trade-at" rule | |||
| May 16, 2013--NYSE Euronext and the Credit Suisse Group have agreed on a proposal to test a "trade-at" rule that would require orders be sold at the best price. | |||
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| World Gold Council Gold Demand Trends Q1 2013 | |||
| May 16, 2013--Executive summary:
Key findings for first quarter 2013 examined by sector and region. Global Gold Market: First quarter 2013 review Jewellery: Fourth quarter recovery in the jewellery sector continued into the first quarter of this year. Investment: The decline in investment demand relative to Q1 2012 was solely attributable to the net outflows from ETFs, which obscured the strong rise in investment for gold bars and coins at the retail level. | |||
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| Developing countries to dominate global saving and investment, but the poor will not necessarily share the benefits, says report | |||
| May 16, 2013--Developing world's share of global investment to triple by 2030 China, India will be developing world's largest investors Boost to education needed so poor can improve their well-being In less than a generation, global saving and investment will be dominated by the developing world, says the just-released Global Development Horizons (GDH) report. | |||
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| MSCI Equity Indices May 2013 Index Review | |||
| May 15, 2013--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced today the results of the May 2013 Semi?Annual Index Review for the MSCI Equity Indices-including the MSCI Global Standard, | |||
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| ETF Securities-Research Note: Platinum Group Metals Outlook: Palladium Still Favoured | |||
| May 15, 2013--Report Summary
After a strong start to the year, platinum and palladium have given back most of the gains accumulated since the beginning of 2013, as the recent sell-off in precious metals has weighed on performance. | |||
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| IMF Staff Discussion paper-Creating a Safer Financial System: Will the Volcker, Vickers, and Liikanen Structural Measures Help? | |||
| May 14, 2013--Summary: The U.S.,, the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. | |||
| read more | |||
| Supply shock from North American oil rippling through global markets | |||
| IEA's Medium-Term Oil Market Report sees companies overhauling global investment strategies; meanwhile, surge in non-OECD refining capacity shakes up product market May 14, 2013--The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15, the International Energy Agency (IEA) said in its annual Medium-Term Oil Market Report (MTOMR) released today. | |||
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| Number of Cross-Listed Futures Doubles as Investors Search for Better Access to Global Markets, Says TABB | |||
| Number of Cross-Listed Futures Doubles as Investors Search for Better Access to Global Markets, Says TABB
Majority of 30 Contracts are Found on Exchanges in India, Hong Kong and Russia May 13, 2013--In a new report, international capital markets research firm TABB says cross-listed futures, which have more than doubled since 2010, can succeed as investors across the financial markets continue to allocate a greater percentage of their assets to non-domestic exposures. | |||
| read more | |||
| Euronext Weighs Postdeal Plans | |||
| May 13, 2013--NYSE Euronext is considering a dual-track process to either sell or spin off a European stock-trading business that is attracting interest from potential private-equity suitors, according to a person familiar with the situation. | |||
| read more | |||
| ETF Securities-Precious Metals Weekly: Platinum and Palladium in Focus as South African Production Cuts Support Prices | |||
| May 13, 2013--Today, Johnson Matthey kicks off London Platinum Week by releasing its 2013 platinum review. Both platinum and palladium recorded a substantial deficit in 2012, as social tensions in South Africa reduced PGM production by 13% last year; hence it will be interesting to see what the company forecasts for 2013. | |||
| read more | |||
| Bulls leave their footprints on both Equity and Bond fund groups during early May | |||
| May 10, 2013--EPFR Global-tracked Bond Funds set their second consecutive weekly,inflow record in early May, outgaining Equity Funds for the third straight week despite the strong rally underway in many major equity markets. | |||
| read more | |||
| Heat-Trapping Gas Passes Milestone, Raising Fears | |||
| May 10, 2013--The level of the most important heat-trapping gas in the atmosphere, carbon dioxide, has passed a long-feared milestone, scientists reported Friday, reaching a concentration not seen on the earth for millions of years. | |||
| read more | |||
| Ahead of 2013 Russell Indexes reconstitution, a look back shows dynamic stocks helped drive a return of 26% for the Russell Developed Europe Index since 2012 reconstitution, while defensive stocks have led the Index year-to-date as of May 7 | |||
| May 9, 2013--The European equity market as reflected by the Russell Developed Europe Index returned 26% since the completion of the Russell Indexes 2012 annual reconstitution, the annual rebalancing of the Russell Global Indexes, on June 25, 2012 to May 7, 2013, with dynamic stocks as reflected by the Russell Developed Europe Dynamic Index significantly outperforming defensive stocks as reflected by the Russell Developed Europe Defensive Index for the same time period. | |||
| read more | |||
| Thomson Reuters Global Equities Monthly Market Share Data Reports-April 2013 | |||
| May 9, 2013--Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in the summarised monthly reports. | |||
| read more | |||
| According to ETFGI record net inflows of 83 billion US dollars through the end of April 2013 helped to push assets invested globally in ETFs and ETPs to a new all-time high of 2.13 trillion US dollars | |||
| May 9, 2013--Record net inflows of US$83 billion through the end of April helped to push assets invested globally in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) to a new all-time high of US$2.13 trillion, according to figures from ETFGI's Global ETF and ETP industry insights report for April 2013. | |||
| read more | |||
| Morgan Stanley Overhauls Equity Systems to Cut Microseconds | |||
| May 8, 2013--Morgan Stanley (MS) has overhauled its trading infrastructure for U.S. equities to keep pace with a marketplace in which millionths of a second count. | |||
| read more | |||
| Exchange Derivatives Trading Rose in First Quarter | |||
| May 8, 2013--The number of derivatives traded on exchanges rose in the first quarter as continuing political and economic risks drove traders into the market, according to data provided by the members of the World Federation of Exchanges. | |||
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| Mirae Asset targets global ETF buildout | |||
| May 7, 2013--The firm has set its sights on the US, Latin America and South Asia as it strives to offer a broader suite to institutions. But market leader Samsung sees greater growth in the retail market. | |||
| read more | |||
| Global shares near 5-year high as central bank rally rolls on | |||
| May 7, 2013--World shares hit their strongest in almost five years and Germany's Dax reached an all-time high on Tuesday, as signals top central banks will remain supportive of growth continued to drive markets. | |||
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| BlackRock ETP Research-Record Growth Unfazed by Gold | |||
| May 7, 2013--Global ETPs attracted $10.3bn in April, keeping YTD flows ahead of last year's record pace YTD global ETPs have seen inflows of $79.9bn, ahead of the $66.3bn of inflows accounted for during the same period in 2012. | |||
| read more | |||
| ETF Securities-Precious Metals Weekly: ECB Rate Cut Buoys Precious Metals Prices but Improving US Jobs Cap Gains | |||
| May 6. 2013--The ECB cut interest rates for the first time since July 2012 and left the door open for more action including imposing negative rates on commercial banks. | |||
| read more | |||
| IMF Working paper-Monetary Policy in Emerging Markets: Taming the Cycle | |||
| May 3, 2013--Summary: In contrast to advanced markets (AMs), procyclical monetary policy has been a problem for emerging markets (EMs), with macroeconomic policies amplifying economic upswings and deepening downturns. | |||
| read more | |||
| Bond and Sector Funds soak up fresh money ahead of Fed and ECB meetings | |||
| May 3, 2013--Bond Funds pulled in over $7 billion for the second week running and 10 of the 11 major Sector Fund groups tracked by EPFR Global posted inflows going into May as investors responded to some uninspiring macroeconomic data and positioned themselves ahead of policy meetings by the US Federal Reserve and the European Central Bank. | |||
| read more | |||
| IOSCO Publishes Principles for CIS Valuation | |||
| May 3, 2013--The Board of the International Organization of Securities Commissions published today the final report on Principles for the Valuation of Collective Investment Schemes, containing a list of Principles intended to serve as a basis for both industry practitioners and regulators to assess the quality of regulation and industry practices regarding the valuation of collective investment schemes (CIS). | |||
| read more | |||
| BATS Global Markets U.S. Equities Market Share Rose In April- Europe Depository Receipts Trading Reached Monthly Record | |||
| Overall European Market Share 22.4%-U.S. Equities 10.9%; U.S. Options 4.0% May 3, 2013--BATS Global Markets (BATS) today reported increased market share for its U.S. equities segment in April, finishing at 10.9% vs 10.6% in March. BATS Options rose to 4.0% from 3.8%. | |||
| read more | |||
| NASDAQ OMX Index Monthly Performance Report | |||
| May 2, 2013--Access one-month, three-month, six-month, one-, three-, five- and ten-year returns, as well as one-year volatility, as of April 30, 2013. | |||
| read more | |||
| Manufacturing Future Economic Growth and Job Creation | |||
| World Economic Forum report highlights the manufacturing sector as a critical driver of growth, prosperity and innovation
Input from more than 70 CEOs and senior executives from the manufacturing sector; case studies from developed and emerging economy countries May 2, 2013--The manufacturing sector has a fundamental role to play in global economic growth and job creation for emerging economies and developed markets, says a new report released today by the World Economic Forum, in collaboration with Deloitte Touche Tohmatsu Limited. | |||
| read more | |||
| Average daily volume of 9.8 million contracts at Eurex Group in April | |||
| May 2, 2013--In April 2013, the international derivatives exchanges of Eurex Group recorded an average daily volume of 9.8 million contracts (April 2012: 10.9 million). Of those, 7.1 million were Eurex Exchange contracts (April 2012: 8.3 million), and 2.7 million contracts (April 2012: 2.6 million) were traded at the U.S.-based International Securities Exchange (ISE). | |||
| read more | |||
| Program Trading Averaged 24.5 Percent of NYSE Volume during Apr. 22-26 | |||
| May 2, 2013-- The New York Stock Exchange, a subsidiary of NYSE Euronext (NYX), today released its weekly program-trading data compiled from member firms' executed volume from NYSE’s orders database. The report includes trading on the NYSE for Apr. 22-26. | |||
| read more | |||
| April ETF Flows Show Rising Caution: BlackRock | |||
| May 1, 2013--As the appetite for riskier investments dwindled last month, investors moved money into global stock exchange-traded funds at the slowest pace since October but stepped up their buying of bond ETFs, according to data from BlackRock Inc. | |||
| read more | |||
| Gold ETF posts record outflow in April, U.S. coin sales spike | |||
| SPDR Gold Trust lost 142 T in gold valued at $6.6 bln
American Eagle gold coins up 10 times yr/yr to 209,500 oz Dealers report 20 pct premium per US silver coin May 1, 2013--Gold's historic sell-off last month has intensified a disconnect between funds which sold on dissatisfaction over bullion's underperformance and individual investors who could not get enough physical gold coins and bars at bargain prices. | |||
| read more | |||
| Gold consolidates further but ETF sales continue | |||
| According to Julian Phillips, both gold and silver should continue to consolidate on US markets on Wednesday but, with a weaker bias May 1, 2013--Gold closed in New York at $1,470.40 in New York yesterday almost unmoved on the day before. In Asia, it held its ground even though China is still on holiday, until tomorrow. | |||
| read more | |||
| IMF Working paper-The Impact of Debt Sustainability and the Level of Debt on Emerging Markets Spreads | |||
| May 1, 2013--Summary: How do financial markets respond to concerns over debt sustainability and the level of public debt in emerging markets? We introduce a measure of debt sustainability-the difference between the debt stabilizing primary balance and the primary balance-in an otherwise standard spread regression model applied to a panel of 26 emerging market economies. | |||
| read more | |||
| MSCI to Decide on Proposing Israel for Europe Basket by June | |||
| April 30, 2013--MSCI Inc. (MSCI) will decide no later than June whether to propose including Israel in its European index after receiving "mixed feedback" from investors. | |||
| read more | |||
| S&P BSE 500 Shariah First Index Launched by | |||
| BSE and S&P Dow Jones Indices Strategic Partnership
April 30, 2013--BSE and S&P Dow Jones Indices announced today the launch of the S&P BSE 500 Shariah index, the first new index resulting from the strategic partnership formed between the two companies in February of this year. | |||
| read more | |||
| Pan Asia Dividend Aristocrats licenced to State Street for new ETF | |||
| April 29, 2013--S&P Dow Jones Indices has licensed its S&P Pan Asia Dividend Aristocrats index to State Street Global Advisors for the launch of an ETF. | |||
| read more | |||
| ETF Reaserch Center-Reporting Monitor-Q1 2013 Earnings Reports -Week One | |||
| April 29, 2013--HIGHLIGHTS: With about half of S&P500 firms reporting, index earnings probably grew about 3.8% YoY in 1Q13 despite a drop in revenue. Financials (XLF), Consumer Discretionary (XLY) and Staples (XLP) were the biggest contributors to profit growth... | |||
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| EPFR Global Summary-Flows rotate back to Bond Funds as Equity Funds see 21 week inflow streak snapped | |||
| April 26, 2013--EPFR Global-tracked Bond Funds outgained their Equity Fund counterparts by the widest margin since late October during the third week of April as a mixed earnings season, weak macroeconomic data and concerns about the impact of Japan's current monetary policy on emerging markets export stories curbed investor appetite for equities. | |||
| read more | |||
| State Street Global Advisers-May Market Commentary and the latest ETF Industry Guide | |||
| Weekly Market Report April 26, 2013--ECONOMIES: GDP disappoints in the US. Retail sales rebound in Canada. GDP rises modestly in the UK. Manufacturing struggles in the eurozone. The Bank of Japan restates its commitment to double the monetary base. Inflation remains moderate in Australia. | |||
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| Northern Trust Study: Alternative Indexes the New Active Decision in Beta Management | |||
| Global survey of 51 institutional investors representing US$800bn in assets
April 25, 2013--Institutional investors, increasingly considering the full range of active and passive strategies available, may view the allocation to alternative indexes as the new active decision in beta management. This is according to new research from the asset management business of Northern Trust which surveyed the views of 51 institutional investors across the globe, representing a collective US$800bn in assets under management. | |||
| read more | |||
| World stocks higher, British economy grows in 1Q | |||
| World stock markets mostly higher on hopes central banks to support growth April 25, 2013--World stocks were mostly higher Thursday as a slump in orders for U.S. durable goods and other data convinced investors that central banks would continue efforts to help the global economic recovery. | |||
| read more | |||
| IMF Working paper-The Dynamic Effect of Social and Political Instability on Output: The Role of Reforms | |||
| April 23, 2013--Summary: The aim of this paper is to analyze the dynamic effect of social and political instability on output. Using a panel of up to 183 countries from 1980 to 2010, the results of the paper suggest that social conflicts have a significant and negative impact on output in the short-term with the magnitude of the effect being a function of the intensity of political instability. | |||
| read more | |||
| Goldman ends gold 'short' call | |||
| April 23, 2013--Goldman Sachs, whose bearish call helped push down the gold price two weeks ago, has advised clients it was closing the recommendation while warning that the precious metal could face further declines. | |||
| read more | |||
| IMF Working paper-Fiscal Sustainability: A 21st Century Guide for the Perplexed | |||
| April 22, 2013--Summary: This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. | |||
| read more | |||
| Scott Ebner moves to global State Street role | |||
| April 22, 2013--The man in charge of developing exchange-traded funds at SPDR ETFs has been promoted to the new role of head of global product development and research for State Street Global Advisors. | |||
| read more | |||
| IOSCO Publishes Report on Technological Challenges to Market Surveillance | |||
| April 22, 2013--The Board of the International Organization of Securities Commissions (IOSCO) published today a final report on Technological Challenges to Effective Market Surveillance: Issues and Regulatory Tools, which makes recommendations to help market authorities address the technological challenges facing effective market surveillance. | |||
| read more |