Global ETF News Older than One Year
'Flash crash' reforms will fail to make markets safer, study claims
Finance academics call for "liquidity safety valves" to prevent stock market turmoil
October 18, 2012--
US 'flash crash' reforms will fail to avert another market meltdown unless they are coupled with new "liquidity-based circuit breakers"' researchers claim.
Academics studying the May 2010 crash, which saw stock prices plummet and recover in the space of minutes, have called for the introduction of liquidity safety valves to go alongside standard price-based circuit breakers.
The findings come from a new paper ‘Illiquidity Contagion and Liquidity Crashes’ by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
The findings come from a new paper 'Illiquidity Contagion and Liquidity Crashes' by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
view the Illiquidity Contagion and Liquidity Crashes paper
Source: Cass Business School
Advanced Automation Will Bring Greater Efficiency to the Commission-Recapture Process, Says TABB Group
October 18, 2012--In new research published today, TABB Group says that recent advancements in automating low-touch trading are helping to ease institutional investors' traditionally manual, often burdensome commission-recapture process.
According to Cheyenne Morgan, research analyst and author of “Automated Trading Decisions: Unifying the Goals of Asset Managers and Asset Owners,” as the buy-side’s trading desk becomes more efficient, their sales traders are able to focus greater time to and attention on high-touch trading, adding the most value for their customers.
The new research note focuses on how developments in automation technology will allow asset managers to streamline low-touch, labor-intensive responsibilities, such as satisfying commission-recapture programs and focus on more nuanced tasks, ultimately generating alpha. The report also covers automation solutions available today, including various software platforms that help implement low-touch and no-touch trading strategies.
Source: TABB Group
ETF Securities-Global Commodity ETP Quarterly 3Q 2012
October 17, 2012--We are pleased to present the Q3 2012 edition of the Global Commodity ETP Quarterly
Our goal is to provide you with the most comprehensive one-stop-shop reference guide for investors interested in accessing commodities market returns through exchange traded products (ETPs).
A comprehensive and fully up-to-date reference guide to global commodity ETPs and indexes - no ETP type or geographic area is excluded. The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of what has been driving trends so far in 2012 and the outlook for the rest of the year and 2013.
Roll yield analysis (contango/backwardation) broken down by individual commodity and commodity sectors.
Useful fundamental commodity data and information. An updated and revised inventory trends section, positioning data, futures curve developments, commodity index compositions and weights.
Source: ETF Securities
Natixis buys Chicago boutique and plans new fund launch
October 17, 2012--French firm Natixis Global Asset Management (NGAM) has acquired US boutique McDonnell Investment Management and will launch a new fund focused on the municipal bond sector.
The Chicago-based boutique runs $13.5 billion for both retail and institutional investors and is a bond specialist with products covering a range of sectors such as 'core' bonds and municipal bonds.
Source: CityWire
Credit Suisse to sell European ETF business-sources
October 17, 2012--Credit Suisse Group AG (MLPN.P) has put its $17.2 billion European exchange-traded fund business up for sale, according to sources familiar with the matter.
BlackRock Inc (BLK.N) and State Street Global Advisors, the asset management arm of State Street Corp (STT.N), are among the firms that have bid for the business, three of the sources said.
The first round of bids was due in early October and the investment banking arm of Credit Suisse is representing its parent company on the deal, they said.
Source: Reuters
Natixis buys Chicago boutique and plans new fund launch
October 17, 2012--French firm Natixis Global Asset Management (NGAM) has acquired US boutique McDonnell Investment Management and will launch a new fund focused on the municipal bond sector.
The Chicago-based boutique runs $13.5 billion for both retail and institutional investors and is a bond specialist with products covering a range of sectors such as 'core' bonds and municipal bonds.
The US firm also advises on three municipal bond funds and has a private investment fund which offers exposure to global bonds.
Source: CityWire
NYSE Euronext and Taiwan Futures Exchange Sign Memorandum of Understanding
Exchanges Enter Into Agreement To Connect Trading Communities
October 16, 2012--NYSE Euronext (NYX) and the Taiwan Futures Exchange (TAIFEX) today signed a Memorandum of Understanding (MOU) to explore bilateral business opportunities and connect their respective customer bases in Asia, Europe and the U.S. through NYSE Euronext's order routing system.
This alliance will support the development of the exchanges’ futures and options markets.
The agreement will serve as a framework for closer cooperation between the exchanges in order to develop innovative products, establish a two-way order routing partnership to facilitate reciprocal order flow and explore distribution channels for key products. The exchanges also intend to share information, best practices and resources.
Source: NYSE Euronext
ICE Inks Markit Deal to Base Futures on Credit-Swap Indexes
October 16, 2012--Intercontinental Exchange Inc. (ICE) obtained the right to link futures contracts to credit-default swap indexes owned by Markit Group Ltd., the largest creator of the derivative instruments in the $25 trillion market.
The gauges, to reference London-based Markit’s North American and European corporate credit swap measures, are expected to be available in the first quarter, Atlanta-based Intercontinental said in a statement today. Other details of the futures contracts, such as the exact Markit indexes to be referenced or the terms of the deal, weren’t disclosed.
Source: Bloomberg
State Street adds assets despite drop in revenues
The world's second largest custodian has hailed its "continued resilience" after assets under management grew 8%, although revenues and net profits both fell in the third quarter.
October 16, 2012--Total revenues fell 3.2% from the second quarter to $2.3bn for the three months to the end of September. They were down 2.7% compared with the same period last year. Net profit fell 4.3% to $473m, compared with the second quarter. Profit was down 0.6% from a year earlier.
The decline in revenues came from several areas, including services associated with its custody business. Revenues from foreign exchange trading fell by 10.9% to $115m compared with the second quarter, and were down 43.6% from last year's third quarter. The custodian said foreign exchange trading revenue was hit by the lower volatility, although this was partially offset by increased volumes.
Source: Financial News
ETFS Precious Metals Weekly:Quantitative easing not fully priced in, but external trigger needed for further gains
October 15, 2012-- Precious metals waiting for an external trigger
South African gold supply constraints keep prices high
Key events to watch this week: European heads of state summit
Precious metals waiting for an external trigger. If history is a guide, we should see further price upside for precious metals following last month’s announcement of a third round of quantitative easing (QE3) by the Fed. Six months after the initial announcements of previous rounds of quantitative easing, the gold price rose on. Since the announcement of QE3, physical gold has risen only 2.3% and physical silver only 2.6%. The likely next trigger for precious metals to move higher is a formal request by Spain for a bailout. This would open the way for the ECB to buy Spanish sovereign bonds in the secondary market on a potentially “unlimited” basis, making investors think twice before shorting Spanish bonds and taking immediate pressure off peripheral European sovereign markets.
It also would likely improve depositor confidence in Spanish banks and help reduce capital flight. Such developments would likely benefit the Euro (weaken the US dollar) and boost risk appetite. Precious metals, particularly the higher beta “white” metals, will likely perform well under such a scenario. In the meantime, since it is difficult to predict when Spain will ask for a bailout, markets remain on edge – particularly as net speculative futures longs are looking stretched for some of the metals and prone to short-term correction. Therefore, while the latest QE appears not to have been fully priced in, an external trigger, such as a Spain bailout request may be necessary to driven the next leg of the bull market.
South African gold supply constraints keep prices high. South African gold miners rejected the industry’s latest wage offer last Thursday, prolonging strike action and constraining gold supply from one of the world’s largest producing countries. The strike action is holding back an estimated 32,000 ounces of gold a week of production at Anglo Gold Ashanti and 2,300 ounces a day at Gold Fields.
Approximately 41% of South Africa’s gold output is idled. The Chamber of Mines which is leading discussion with unions is set to meet again today. If mining companies are forced to lay off illegally striking employees, supply will be hampered for some time to come. Although gold prices fell during the week, supply concerns are a supporting factor helping to keep gold prices above $1765/oz.
Key events to watch this week: European heads of state summit.
visit www.etfsecurities.com for more info
Source: ETF Securities
