ETF rise helps damp down market distortions, research finds-continued

November 24, 2018--Study shows reduction of 'index effect'. where prices rise before shares are included.
Large swings in the share prices of companies that are expected to be dropped or added to indices have become less common with the rise of passive investment, research has found.

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Global ETP News
Aberdeen Standard Investments Precious Metals Outlook June 2019-Growth and Trade War Concerns Raise Bullish Case for Precious Metals
June 14, 2019--Global trade disputes led by further US-China tariffs has thrown a wrench into the global growth outlook. While official growth figures indicated signs of a slowdown, equity markets appeared to simply shrug off these underlying economic conditions. Yet, the return to headline driving tariffs between the US and China has sparked concerns among both investors and economists alike with the S&P 500 Index falling over 6% in May.
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ETFGI reports assets invested in the Global ETF and ETP industry decreased to 5.32 trillion US dollars at the end of May 2019
June 13, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed Globally saw net outflows of US$4.05 billion in May, bringing year-to-date net inflows to US$141.04 billion.
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Santorum-Backed Catholic Blockchain Looks To Entice Younger Users To Crypt. Wait. Crypto.
It's even worse than you think, and that's saying something.
June 11, 2019--Every time you think the craziest moments in crypto are behind you, another ghost of 2017 returns to haunt the cryptocurrency markets.
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Steampunk Settlement-Futuristic DLT Technology Could Deliver Anachronistic Result
June 11, 2019--Distributed ledger technology (DLT) will have a profound effect on clearing and settlement, but taken too far, it might actually turn the clock backward and reintroduce problems financial markets have been working to alleviate for more than 500 years.
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FTSE Russell The 2019 Smart Beta Survey of Asset Owners result are in
June 10, 2019--Now in its sixth year, the FTSE Russell global institutional surveys provide unique insight into major trends in awareness, popularity and the use of smart beta among global asset owners. This year we have produced an additional report that examines the integration of ESG into smart beta strategies by asset owners.
Key findings:
78% of survey respondents have implemented, are currently evaluating, or plan to evaluate smart beta strategies
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Keeping the Wheels of Commerce Turning
June 10, 2019--The tariff disputes roiling markets are a reminder that the global system of free trade, which has delivered so much prosperity, is a fragile one.
We all know what happened in the 1930s, when trade wars only served to deepen the misery inflicted by the Great Depression.
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ECB Working Paper-Competition among high-frequency traders, and market quality
June 10, 2019--1 Introduction
High-frequency traders (HFTs) are market participants that are characterized by the high speed with which they react to incoming news, the low inventory on their books, and the large number of trades they execute (SEC (2010)). The high-frequency trading industry grew rapidly since its inception in the mid-2000s and today high-frequency trading represents about 50% of trading in US equity markets (down from a 2009 peak, when it topped 60%; see report of the TABB Group, 2017).
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Humans beat machines in rocky month for equities
June 9, 2019--Humans beat machines in rocky month for equities. Traditional stockpicking fund managers have enjoyed an unusually good stretch in recent weeks even as machine-driven "quant" funds have fizzled, nurturing hopes that rockier markets may help human investors launch a comeback.
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57 Carbon Pricing Initiatives Now in Place Globally, Latest World Bank Report Finds
June 7, 2019--Carbon pricing policies continue to make headway, but coverage and the price levels are still insufficient.
57 carbon pricing initiatives are now implemented or scheduled for implementation globally, up from 51 in April 2018 according to the annual State and Trends of Carbon Pricing report launched today at the Innovate4Climate conference in Singapore.
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FTSE Russell-Uncovering fixed income factors. The concept of 'carry'
June 7, 2019-The concept of "carry" is not new and has been leveraged in the currency markets for decades. More recently, however, academic publications have further explored this concept cross-markets and showcased evidence of the carry premium across other asset classes.
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FSB report considers implications of decentralised financial technologies
June 6, 2019--The Financial Stability Board (FSB) today published a report on Decentralised financial technologies. This report considers the financial stability, regulatory and governance implications of the use of decentralised financial technologies such as those involving distributed ledgers and online peer-to-peer, or user-matching, platforms.
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Emerging Market regulators issue recommendations related to sustainable finance
June 5, 2019--Securities regulators from growth and emerging markets today published a report that sets forth recommendations related to the development of sustainable finance in emerging markets and the role of securities regulators in this area.
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Global Growth to Weaken to 2.6% in 2019, Substantial Risks Seen
June 4, 2019--Emerging, developing economies' growth to pick up to 4.6% in 2020 from 4% in 2019; expansion vulnerable to trade, financial disruptions
Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020.
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The Global Economy: Heightened Tensions, Subdued Growth
June 4, 2019--The global economy has slowed to its lowest pace in three years. It is on track to stabilize, but its momentum is fragile and subject to substantial risks.
International trade and investment have been weaker than expected at the start of the year, and economic activity in major advanced economies, particularly the Euro Area, and some large emerging market and developing economies has been softer than previously anticipated.
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Global Economic Prospects: Europe and Central Asia
April 4, 2019--Recent Developments
Growth in Europe and Central Asia is estimated to have slowed to 1.6% in 2019, a four-year low, partly reflecting a sharp weakening of activity in Turkey. Trade continues to weaken across the region, as goods trade volumes have slowed in parallel with sluggish activity in the Euro Area, the region's largest export destination.
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IOSCO examines regulatory-driven market fragmentation and considers how to enhance cross-border cooperation
June 4, 2019--The Board of the International Organization of Securities Commissions today published a report that examines instances of regulatory-driven fragmentation in wholesale securities and derivatives markets and considers what actions regulators can take to minimize its adverse effects.
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World's biggest companies face $1 trillion in climate change risks
June 4, 2019--15 biggest global companies report almost US$1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
Companies report potential US$250 billion in losses due to the write-offs of assets
Climate business opportunities calculated at US$2.1 trillion, nearly all of which are highly likely or virtually certain
Potential value of sustainable business opportunities almost 7x the cost of realizing them (US$311bn in costs, US$2.1 trillion in opportunities)
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FSB Report on Market Fragmentation
June 4, 2019--This report, which was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Fukuoka on 8-9 June, sets out the conclusions from the FSB's work on market fragmentation and identifies several areas for further work to address it.
The report looks at some examples of financial activities where supervisory practices and regulatory policies may give rise to market fragmentation.
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Regulating the Growth of ESG Investing A look at the landscape of ESG regulation around the world, across three main areas
June 3, 2019--The growth of environmental, social, and governance investing has been astronomical over the past few years. Our latest report, "The Evolving Approaches to Regulating ESG Investing," shows that investments in European and U.S. ESG-oriented funds increased 44% between the end of 2014 and the end of 2018, reaching a total of EUR 761 billion (further detailed in the Morningstar Sustainability Atlas and U.S. Landscape Report).
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UBS-Led Group to Launch Blockchain-Based Trade-Settlement Platform
June 3, 2019--Companies have invested $63.2 million in Fnality International
A group of financial firms led by UBS Group AG plans to start using a bitcoin-like token to settle cross-border trades, one of the biggest developments yet in the effort to make use of nascent blockchain technology.
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FSB reports on work underway to address crypto-asset risks
May 31, 2019--The Financial Stability Board (FSB) today published a report on crypto-assets, which considers work underway, regulatory approaches and potential gaps. The report is being delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June.
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Rethinking the Bid/Ask Spread for ETF Investors
May 31, 2019--Jason Xavier, head of EMEA ETF Capital Markets at Franklin Templeton, is on a quest to demystify exchange-traded fund (ETF) investing. In this article, he explores why some investors misunderstand the significance of bid/ask spreads in assessing the attractiveness of ETFs.
This post is also available in: Italian German
Over a series of articles, we have been trying to resolve the misconceptions some investors have about ETFs.
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Global Trade Watch 2018: Trade Amid Tensions
May 29, 2019--Global Trade Watch is an annual publication that tracks emerging trends in global trade. The 2018 edition seeks to answer key questions like:
What are the recent developments in global trade, up to Q1 2019?
What has been the trade impact of the tit for tat tariffs on U.S., China and third countries?
Why certain targeted products show little effects, while others experience large swings?
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Dark pool and OTC crypto trading growing as market begins to resemble traditional asset classes
May 29, 2019--Aite Group report finds OTC market accounted for 60% of all cryptocurrency trades in 2018, expected share to grow to 65% in 2019.
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Global Trade Watch 201: Trade Amid Tensions
May 29, 2019--Global trade growth showed signs of stabilizing in the first quarter of 2019, after slowing in 2018 amid weakening economic growth in China and the Euro area and rising trade protectionism. However, an escalation in U.S.-China trade tensions might change the outlook.
Tit-for-tat tariffs have diverted trade to many developing countries. They had major effects on imports of easily substitutable products as soybeans and hard-disk drives.
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Investor Confidence Rose in May by 6.6 Points to 79.5
May 29, 2019-State Street Global Exchange today released the results of the State Street Investor Confidence Index(R)(ICI) for May 2019.
The Global Investor Confidence Index increased to 79.5, up 6.6 points from April's revised reading of 72.9
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Stability in the Financial System (2019:1)
May 28, 2019--Both the global and the Swedish economies appear to be slowing down. Low interest rates-which have resulted in high risk-taking and rising asset prices-are expected to remain low for a prolonged period of time. Resilience in the Swedish financial system is satisfactory in general.
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Bitcoin climbs to highest in a year amid cryptocurrency comeback
May 27, 2019--Bitcoin has soared to the highest level in a year, extending a run that's seen prices more than double since March.
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Solactive makes strategic investment in European governance, sustainability, and proxy voting firm Minerva Analytics
May 27, 2019--Solactive announces the completion of a strategic investment in Minerva to accelerate the growth of the electronic voting, stewardship, and ESG research services firm.
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Goldman Sachs to speed up push into US wealth management
May 26, 2019--Acquisition of United Capital part of effort to take on Schwab and Morgan Stanley in $28tn market.
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Hedge Funds Making Progress, but Slow to Adopt ESG
May 23, 2019--ESG may be the global rage among institutional investors, but hedge fund firms have been the slowest among alternative asset managers to integrate the principles into long/short investment strategies.
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GDP Growth-First quarter of 2019, OECD-OECD GDP growth jumps to 0.6% in first quarter of 2019
May 22, 2019--Growth of real gross domestic product (GDP) in the OECD area picked up strongly to 0.6% in the first quarter of 2019, double the 0.3% rate of the previous quarter, according to provisional estimates.
Among the Major Seven economies, GDP growth accelerated markedly in Germany (to 0.4% after 0.0% in the previous quarter), Italy (0.2%, from minus 0.1%), the United Kingdom (0.5%, from 0.2%) and the United States (0.8%, from 0.5%).
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ETF Worldwide Snapshot-May 2019
May 22, 2019--In our latest monthly report:
On May 20, 2019 the US SEC formally approved the application from Precidian to launch non-transparent active ETFs in the US. The SEC had earlier issued a notice that it intended to approve it.
The Japan Exchange Group (JPX) and Shanghai Stock Exchange (SSE) agreed to establish Japan-China ETF connectivity, with a goal of increasing cross-border investments.
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Shadow Banking Is a New Culprit in Systemic Risk: Fitch
May 21, 2019--Bank exposure channels, insurance companies and pension funds may be at risk, Fitch said.
Specifically, Fitch pointed to the continued rise of shadow banking as a potential culprit in new systemic risk.
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Investec closes robo-advice
May 20, 2019--Investec's international robo-advice offering, Click & Invest, has been shuttered just two years after it was launched.
Citing low appetite for the service, Investec said "the market itself is growing at a much slower rate than expected."
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Aberdeen Standard Investments Precious Metals Outlook: May 2019 Investors Shy Away From Precious Metals Despite Growing Market Risks
May 20, 2019--Despite continued low real interest rates and unresolved geopolitical tensions investor interest in precious metals remains lackluster in recent months.
Given that the investor complacency appears to be settling in again and that global growth continues to slow, the upside risks to both gold and silver currently appear larger than the downside risks.
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IMF Working Paper-Pledged Collateral Market's Role in Transmission to Short-Term Market Rates
May 17, 2019--Summary:
In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where banks and other financial institutions exchange collateral (such as bonds and equities) for money.
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IMF Working Paper-FinTech in Financial Inclusion: Machine Learning Applications in Assessing Credit Risk
May 17, 2019--May 17, 2019--Summary:
Recent advances in digital technology and big data have allowed FinTech (financial technology) lending to emerge as a potentially promising solution to reduce the cost of credit and increase financial inclusion. However, machine learning (ML) methods that lie at the heart of FinTech credit have remained largely a black box for the nontechnical audience.
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IMF Working Paper-Rethinking Fiscal Policy in Oil-Exporting Countries
May 17, 2019--Summary:
We examine the existing fiscal policy paradigm in commodity-exporting countries. First, we argue that its centerpiece—the permanent income hypothesis (PIH)-is not consistent with either intergenerational equity or long-term sustainability in the presence of uncertainty. Policies to achieve these goals need to be more prudent and better anchored than the PIH.
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ETFGI reports assets invested in the Global ETF and ETP industry reached a record $5.57 trillion at the end of April 2019
May 17, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed Globally gathered net inflows of US$45.94 billion in March, bringing year-to-date net inflows to US$145.74 billion.
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Firms see risks on the horizon as LIBOR disappears
May 16, 2019--LIBOR and other interbank rates will disappear in 2021
Banks and other financial firms are bracing for a host of risks that may accompany the move away from interbank offered rates (IBORs), such as the London IBOR, to alternative financial benchmarks, Moody’s Investors Service reports.
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