Global ETF News Older than One Year
BIS Study highlights continued central clearing interdependencies
August 9, 2018--The Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI), theInternational Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) today published the second report that maps interdependencies between central counterparties (CCPs) and their clearing members and other financial service providers.
The international standard-setters published thefirst report on central clearing interdependencies in July 2017.
CCPs are an increasingly important part of the financial system, particularly following the post-crisis reforms that mandated central clearing of standardised over-the-counter (OTC) derivatives. CCPs should be subject to strong regulatory, supervisory and oversight requirements to fully realise the financial stability benefits they offer. Analysing the network of relationships is a useful starting point for understanding potential sources of systemic risk in central clearing.
Source: BIS
New Crypto Funds Launching at Record Pace
August 10, 2018--August 8, 2018--Crypto funds continue to launch at record rate amidst bear market in cryptocurrencies
Falling prices for cryptocurrencies, and an uncertain regulatory environment, in 2018 haven't deterred new crypto investment funds from opening, according to a new analysis from Crypto Fund Research. In fact, 2018 is on pace to surpass the previous year for the most new crypto fund launches.
Through July 31, there were 96 new crypto hedge funds and venture capital funds, an annual pace of 165. This would surpass the record 156 crypto funds launched in 2017. More than half of all crypto funds currently in existence have launched in just the last 18 months.
There are now 466 crypto funds across the globe.
Source: cryptofundresearch.com
Regulatory bodies consult on creation of Global Financial Innovation Network
August 7, 2018--The UK's Financial Conduct Authority has collaborated with 11 regulatory bodies from Europe, the Far East and the US on the creation of a Global Financial Innovation Network (GFIN), building on proposales earlier this year to create a cross-jurisidctional fintech sandbox.
Having launched the world's first domestic regulatory sandbox in 2016,,the FCA in Feburary floated the possibility of a global version, enabling fintech firms to carry out tests in different countries at the same time and helping watchdogs to identify and solve common cross-border problems.
Source: BIS
Gold-backed ETFs outflows decelerated in July
August 7, 2018--Holdings in global gold-backed ETFs and similar products fell by 39t to 2,394t in July, pushing assets under management (AUM) in US dollars down by 4% to US$94bn from US$98bn in June. Gold price performance was a large contributor to outflows as it fell over 2% in US dollar terms.
All regions experienced outflows in July. ETF outflows were dominated by North American funds, losing US$984mn. Asia experienced the largest outflows on a percentage basis (6.2%), while Europe reversed the recent trend of inflows, losing 8.0t (US$302mn).
COMEX net long futures are the lowest in three years highlighting bearish sentiment in the market. A very low net long level, however, has historically preceded rallies in the price of gold.
Source: World Gold Council (WGC)
STOXX Research Monthly Index News July: Economic Data Helps Risk Appetite
August 7, 2018--Global equity indices rose by the most in six months in July, as buoyant economic and corporate data helped turn investors' focus away from fears of a trade war.
As risk appetite improved, it was a case of a rising tide lifting all boats, with most regions, styles and strategies posting positive returns over the month. This was particularly true for benchmark indices.
The STOXX(R) Global 1800 Index rose 3.1% in dollar terms, its best monthly showing since January, as European and US markets advanced. The STOXX(R) Asia/Pacific 600 Index underperformed as the value of Japanese holdings fell in line with the yen.
Source: STOXX
The World Federation of Exchanges publishes H1 2018 Market Highlights report
August 7, 2018--The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has today published its H1 2018 Market Highlights report.
The first half of 2018 was eventful for stock markets worldwide. While the year started on a high note with domestic market capitalisation and benchmark indices scaling record levels in markets across the globe, February 2018 was marked by a global stock market correction and a return of volatility after a remarkably calm period over 2017. Overall market valuation declined in the months that followed, with market capitalisation at the end of H1 2018 down 1.6% on the end of H2 2017 (though still up on the same period in the previous year). Trading activity (value and volumes of trades in equity shares) was up on H1 2017; however, primary market activity was mixed, with IPO listings down and investment flows slightly up on H1 2017.
Source: World Federation of Exchanges ("WFE")
IMF Working Papers-Predicting Fiscal Crises
Previous literature on early warning sistems (EWS) for fiscal crises is scarce and based on small samples of advanced and emerging markets, raising doubts about the robustness of the results. Using a larger sample, our analysis shows that both nonfiscal (external and internal imbalances) and fiscal variables help predict crises among advanced and emerging economies. Our models performed well in out-of-sample forecasting and in predicting the most recent crises, a weakness of EWS in general. We also build EWS for low income countries, which had been overlooked in the literature. view the IMF Working Papers-Predicting Fiscal Crises
Source: IMF
WGC-Gold Demand Trends-Second Quarter 2018
Smaller inflows into gold-backed ETFs drove the decline.
Bar and coin investment was virtually static at 247.6t. Q2 jewellery demand down 2%; H1 stable.
Weakness in India and Middle East offset by growth in China and the US.
The technology sector saw further growth, up 2% to 83.3t.
Source: World Gold Council (WGC)
IMF Working Papers-A Behavioral Approach to Financial Supervision, Regulation, and Central Banking
It stresses that financial supervisors, regulators, and central banks have not yet realized the full potential that these behavioral elements hold. To do so, they need to devise a behavioral approach that includes aspects relating to individual and group behavior. The paper provides case examples of experiments with such an approach, including behavioral supervision. Finally, it highlights areas for further research.
Source: IMF
August 3, 2018--Summary:
This paper identifies leading indicators of fiscal crises based on a large sample of countries at different stages of development over 1970-2015. Our results are robust to different methodologies and sample periods.
August 2, 2018--The gold market stayed soft in Q2; global demand was fell 4% y-o-y to 964.3t.
Total H1 demand of 1,959.9t is the lowest since H1 2009.
Q2 inflows were 46% lower y-o-y; US-listed funds saw net outflows.
Gains in China and Iran were offset by falls in Turkey, India and Europe.
Thriving smartphone market has helped boost gold used in electronics.
August 2, 2018--Summary:
This paper describes how behavioral elements are relevant to financial supervision, regulation, and central banking. It focuses on (1) behavioral effects of norms (social, legal, and market); (2) behavior of others (internalization, identification, and compliance); and (3) psychological biases.
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