Global ETF News Older than One Year
IOSCO Consults on the Technological Challenges to Market Surveillance
August 22, 2012--The International Organization of Securities Commissions has published today a Consultation Report on the Technological Challenges to Effective Market Surveillance: Issues and Regulatory Tools, which seeks public comments on a series of proposed high-level recommendations aimed at helping Market Authorities improve market surveillance.
This Consultation Report responds to a G20 mandate arising from the action plan it launched in 2010 to achieve strong, sustainable and balanced economic growth. The G20’s commitment called for significant policy actions in several areas, including a far-reaching reform of the financial sector. With the objective of enhancing the stability of financial markets, the G20 called on IOSCO to develop recommendations to promote market integrity and efficiency, and mitigate the risks posed to the financial system by the latest technological developments. In response IOSCO published in October 2011 the report on Regulatory Issues Raised by the Impact of Technological Changes on Market Integrity and Efficiency.
Source: IOSCO
BlackRock's Share of ETF Market Slips
August 20, 2012--The statisticians agree: BlackRock remains the behemoth in ETF/ETP assets under management, with a global market share of more than 38% and a U.S. market share of more than 40%.
But its share is slipping -- by BlackRock's own count.
Statistics were provided by BlackRock itself, as well as by London-based ETFGI and the ETF Industry Association, which provides figures for U.S. listed ETFs.
Source: Securitites Technology Monitor
EPFR Global Fund Data-Diversified Emerging Markets funds benefit from recent thaw in risk aversion
August 20, 2012--Hopes of more accommodative measures by the US Federal Reserve and the European Central Bank continued to drive equity prices higher and volatility measures lower during the second week of August.
There was an appreciable jump in risk appetite among investors, with EPFR Global-tracked Emerging Markets Equity Funds extending their longest inflow streak since the first quarter, High Yield Bond Funds and Emerging Markets Bond Funds taking in fresh money for the 10th week running and commitments to Technology Sector Funds hitting their highest level since late March.
US Equity Funds, meanwhile, posted back-to-back weeks of outflows for the first time since mid-May and inflows into US Bond Funds slipped to a six week low. Overall, net flows into all Bond Funds for the week ending August 15 totaled $4.02 billion while $5.67 billion flowed out of all Equity Funds. Money Market Funds took in $5.49 billion.
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Source: EPFR
ETFS Precious Metals Weekly: Eurozone Problems and Stimulus Hopes Boost Gold ETP Holdings to Record Levels
August 20, 2012--Gold price performance impressive despite drop in demand. The
World Gold Council indicated that while demand dropped 7% in Q2 2012
compared to a year earlier, the price was resilient, rallying by 7% over the
period. The increased economic uncertainty and expectations of policymaker stimulus that has pervaded financial markets in recent years and led investors to defensive assets has partially offset soft physical demand from emerging markets.
Chinese and Indian demand were the main reasons behind the weaker physical demand in Q2. While jewellery demand contracted 15% over the 12 months to Q2 2012, the contraction is only 4% if China and India are excluded from the calculation. In contrast, emerging market central banks have been the driving force behind the net long position in gold by the official sector, as they seek to diversify foreign exchange holdings, partially offsetting weak private sector demand.
Global ETP gold holdings reach record level of 78 million ounces. While emerging market physical demand may have dried up, particularly in India as a result of the weak rupee and government policy, ETP investment demand has remained buoyant, increasing by over 3% over 2012 to reach record highs. Interestingly, the latest WGC report into gold trends showed that if China and India were excluded from the investment demand calculation (overall investment was lower by 23%), investment jumped 15% for Q2 2012 from a year prior.
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Source: ETF Securities
CME Group Applies To Create An Exchange In The United Kingdom
August 20, 2012--CME Group, the world's leading and most diverse derivatives marketplace, announced today it is in the process of applying to the United Kingdom's Financial Services Authority (FSA) to create a London-based derivatives exchange.
Pending regulatory approval as a Recognized Investment Exchange, CME Europe Ltd will initially begin trading foreign exchange futures products and is expected to launch mid-2013.
"We continue to see an increase in business coming from our diverse set of customers in Europe, with more than 20 percent of our volume now originating from the region," said CME Group Executive Chairman and President Terry Duffy.
Source: Bloomberg BusinessWeek
CME Is Said to Plan Derivative Exchange in Europe
August 19, 2012--The CME Group is planning to start a European derivatives exchange, in a significant expansion of the American market operator's global footprint, a person briefed on the matter said on Sunday.
The move is the latest effort by an American exchange to plumb for new ventures. As their core business has come under pressure and margins shrink, industry leaders have been expanding into lucrative areas like overseas markets and derivatives trading. CME, whose $18 billion market capitalization makes it one of the most valuable market operators in the world, now makes most of its profit from derivatives.
Source: NY Times
Gold Bulls Expand as Billionaire Paulson Buys Metal: Commodities
August 17, 2012--Gold traders are the most bullish in six weeks as investors boosted their bullion holdings to a record on concern that economic growth is slowing and after billionaires John Paulson and George Soros bought more metal.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week and six were bearish. A further six were neutral, making the proportion of bulls the highest since July 6. Paulson raised his stake in the SPDR Gold Trust, the biggest gold-backed exchange-traded product, by 26 percent in the second quarter and Soros more than doubled his holding, U.S. Securities and Exchange Commission filings showed Aug. 14. Global holdings reached a record on Aug. 10, data compiled by Bloomberg show.
Source: Bloomberg
Basel Committee issues consultative document on managing risks associated with the settlement of foreign exchange transactions
August 17, 2012--The Basel Committee on Banking Supervision today issued for consultation Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions.
The proposals published today update the Committee's Supervisory guidance for managing settlement risk in foreign exchange transactions. Since publication of that guidance in 2000, the foreign exchange market has made significant strides in reducing the risks associated with the settlement of FX transactions. However, substantial FX settlement-related risks remain, not least because of the rapid growth in FX trading.
Source: BIS
GERMANY +VE: Merkal says it will support ECB and Fast, assets rise
August 17, 2012--HIGHLIGHTS
COMMODITIES
Oil futures decline after rising for three weeks
Copper rises on better than expected U.S. Housing Permits
Gold Rises on Stimulus Expectations after US Jobs data
GOLD
China US Stimulus
Gold up on Friday, its biggest rise in two weeks on German support for ECB , Spot gold up 0.1 % to $1,616.41, on course for a 0.2-% weekly loss, despite posting its biggest one-day gain in two weeks, at 0.7 %, in the previous session. December futures flat at $1,618.60 . U.S. jobless claims climbed by 2,000 to 366,000 in the week ended Aug. 11. Unemployment has been above 8 % since February 2009, the longest stretch in the post-World War II era. Chinese Premier Wen Jiabao said that there's" a growing room for monetary policy operation. Federal Reserve Chairman Ben S. Bernanke may talk about monetary options at a conference in Jackson Hole, Wyoming, at the end of the month.
Source: DGCX Academy
Harnessing the rise of "alpha' ETFs
August 15, 2012--This year there has been a flurry of high profile launches of actively managed exchange traded funds (ETFs).
At the end of April, State Street launched three actively managed ETFs in the US that aim to beat market indices by owning a portfolio of underlying ETFs. In March, famous bond investor Bill Gross launched his Pimco Total Return ETF, again listed in the US.
Source: CityWire
