Global ETF News Older than One Year
2011 Review of the Standards and Codes Initiative
April 8, 2011--Summary: The Standards and Codes Initiative ("Initiative") has been identified as one of several building blocks for the overhaul of the global financial architecture after the Asian crisis in the late 1990s. Twelve policy areas were selected as key for sound financial systems and a framework for Reports on the Observance of Standard and Codes (ROSCs) was established and has been implemented by the Bank and the Fund for about a decade.
Since the Initiative’s inception, a majority of member countries have had one or more ROSCs, although—in part due to the voluntary nature of ROSCs—the coverage is not fully complete.
After peaking in 2003, the annual number of ROSCs completed has declined considerably. In particular, the number of fiscal transparency and data ROSCs has dropped, reflecting the downsizing of the Fund, and changes in departmental priorities. The reduction in financial sector ROSCs—generally done as a part of the Financial Sector Assessment Program (FSAP)—has been less, although fewer ROSCs have been done per FSAP.
Revisions to the standards to incorporate the lessons from the crisis, the initiatives of the Financial Stability Board (FSB), and changes to financial surveillance are likely to have important implications for the future of the Initiative. In particular, the commitment by FSB members to undergo FSAPs every 5 years and the FSB’s framework to enhance adherence to international financial standards are likely to boost demand for financial sector ROSCs. These resource pressures impose a greater burden on the prioritization process, and strategic decisions will have to be made to augment resources for the Initiative or on where the resource cuts could come from in order to maintain adequate coverage of non-G20 countries.
view the 2011 Review of the Standards and Codes Initiative
Source: IMF
OECD Economic Policy Reforms: Going for Growth 2011
April 7, 2011--Executive Summary
The global recovery from the deepest recession since the Great Depression has been underway for some time now, but it remains overly dependent on macroeconomic policy stimulus and has so far been insufficient to address high and persistent unemployment in
many countries. With fiscal stimulus bound to be gradually withdrawn to address unsustainable public debt dynamics and little if any further support to be expected from
monetary policy, the main challenge facing OECD governments today is turning a policydriven recovery into self-sustained growth.
Speeding up the structural reform process, which outside the financial regulation area has slowed during the global recession, could make a decisive contribution in this regard. In a context of crisis recovery, priority may be given to reforms that are most conducive to short-term growth and help the unemployed and those outside the labour force to remain in contact with the labour market.
This new edition of Going for Growth identifies for each OECD country and, for the first time, for key emerging economies (Brazil, China, India, Indonesia, Russia and South Africa, the so-called BRIICS), five reform priorities that would be most effective in delivering sustained growth over the next decade.
view report-Going for Growth 2011
Source: OECD
Silver set to reach $50 before plunging in value, study says
April 7, 2011--The silver market is likely to continue its spectacular ascent and to touch a record high at more than $50 a troy ounce this year – but could then crash back to earth, according to new forecasts by GFMS, a leading precious metals consultancy.
The grey precious metal has soared 121 per cent during the past 12 months to touch a 31-year peak of $39.73 this week as investors, disillusioned at the actions of central banks and governments, bought it as an alternative to paper currencies.
“In the short term, things have moved spectacularly fast because of the amount of money from investors,” said Philip Klapwijk, executive chairman of GFMS. “I think $50 will probably be taken out this year.”
Source: FT.com
Oil prices hold on to multi-year highs
April 7, 2011--World oil prices Friday stayed above multi-year highs Friday, supported by the continued tensions in the Arab world and the postponement of elections in Nigeria, Africa's biggest crude producer.
New York's benchmark West Texas Intermediate light sweet crude for May delivery rose 55 cents to $110.85 per barrel after touching its highest level in two-and-a-half years in US trade Thursday.
Brent North Sea crude for May delivery gained 38 cents to $123.05.
Source: FIN24
Assessing Reserve Adequacy
April 7, 2011--Summary:
The dramatic increase in reserves holdings over the past decade has resumed since the global financial crisis, even at an accelerated pace. While the crisis has heightened perceptions of the importance of holding adequate reserves, there is little consensus on what constitutes an adequate level from a precautionary perspective: traditional metrics are narrowly-based and often provide conflicting signals;
; while newer approaches tend to be hostage to stylized modeling assumptions and calibrations. As a result, assessments tend to rely on comparisons with peers, probably amplifying the upward trend as perceived needs rise in line with actual holdings.
view the Assessing Reserve Adequacy paper
Source: IMF
Strengthening the International Monetary System - Taking Stock and Looking Ahead
April 7, 2011--Summary:
The current IMS has survived for over forty years, underpinning strong growth in GDP and in the international exchange of goods and capital, one of its core objectives. As a result, interdependence among the world’s economies has grown dramatically, making the existence of a sound system ever more important.
At the same time, the system has exhibited many symptoms of instability—frequent crises, persistent current account imbalances and exchange rate misalignments, volatile capital flows and currencies, and unprecedentedly large reserve accumulation.
These symptoms have come to a head since the 2008 crisis and brought renewed international momentum to the idea of attempting to reform the IMS. Yet the debate so far suggests little consensus on the underlying problems, let alone on the solutions.
This paper identifies four root causes to these problems: inadequate global adjustment mechanisms to prevent inconsistent or imprudent policies among systemic countries; lack a comprehensive oversight framework for growing cross-border capital flows, covering both source and recipient countries; inadequate systemic liquidity provision mechanisms; and structural challenges in the supply of safe assets.
view the Strengthening the International Monetary System: Taking Stock and Looking Ahead ppaper
Source: IMF
IMF Sees Oil Prices Staying High
Production constraints limiting increase in supply of oil
Growth in emerging markets, particularly China, boosting demand
Policies should aim at easing economies’ adjustment to increased oil scarcity
April 7, 2011--Oil prices are likely to remain high for the foreseeable future and IMF economists say that governments should be looking to back sustainable alternative sources of energy.
According to an analysis by the IMF, released as part of its World Economic Outlook (WEO), global oil markets are in a period of increased scarcity, as oil demand in emerging economies is rapidly catching up with demand in advanced economies and production constraints are beginning to bind in some major oil-exporting economies, where oil fields have reached maturity.
Improvements in oil supply have been slow, reflecting investment bottlenecks and other constraints, and the IMF expects net capacity will build only gradually.
The chapter on oil scarcity assesses the risk for the global economy in the medium term of the supply constraints. A persistent adverse oil supply shock would imply lower global output, higher revenues for oil exporters, a surge in global capital flows, and a widening of current account imbalances.
Source: IMF
Ucits Fund Assets Tripled to $90.5 Billion in 2010, Survey Finds
April 7, 2011--Ucits funds tripled assets to $90.5 billion last year as managers attracted clients seeking to put money into the more regulated and easier-to-trade alternatives to hedge funds.
Firms started 129 funds last year that comply with the European directive known by the acronym for Undertakings for Collective Investment in Transferable Securities, Hedge Fund Intelligence said in a statement today. The funds raised more than $9.5 billion, according to the London-based data provider. Ucits allow clients to withdraw money in as little as a day, place restrictions on leverage and offer investors transparency of holdings that is similar to that of mutual funds. John Paulson’s Paulson & Co., based in New York, and David Harding’s Winton Capital Management Ltd. in London are among hedge funds that started Ucits last year.
Source: Bloomberg
Contributions to GDP growth – Fourth quarter of 2010
Strong improvement in net exports sustains OECD GDP growth
in the fourth quarter of 2010
April 7, 2011--Real GDP in the OECD area grew by 0.5% in the fourth quarter of 2010. Net exports and private consumption were the main contributors partly offset by an unwinding of inventories.
This reverses the pattern seen in earlier quarters where inventory-rebuilding had contributed positively to GDP growth and net exports had contributed negatively.
Over the whole of 2010, private consumption was the main driver of real GDP annual growth, contributing 1.2 percentage point to the overall 2.9% recorded growth.
Source: OECD
NYSE Euronext Announces Trading Volumes For March 2011 And Other Metrics
NYSE Liffe U.S. Executes 480,000 Eurodollar and U.S. Treasury Futures Contracts Since March 21
Global Derivatives Averaged 9.2 Million Contracts per Day in March, Up 12% vs. Prior Year-U.S Equity Options Volumes Up 23%; European Derivatives Up 3%-European Cash Trading Volumes Up 44%, U.S. Cash Down 2%
April 6, 2011--NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for March 2011[1]. Global derivatives average daily volume ("ADV") of 9.2 million contracts traded per day in March 2011 increased 11.9% versus the prior year.
The increase in global derivatives ADV versus prior year levels was driven by a 22.8% increase in U.S. equity options ADV and a 3.2% increase in European Derivatives ADV. Cash equities ADV in March 2011 was mixed, with European cash ADV increasing 44.0% and U.S. cash trading volumes decreasing 2.1% from March 2010 levels.
Highlights
NYSE Euronext global derivatives ADV in March 2011 of 9.2 million contracts increased 11.9% compared to March 2010 and increased 2.5% from February 2011 levels.
NYSE Euronext European derivatives products ADV in March 2011 of 4.8 million contracts increased 3.2% compared to March 2010 and increased 8.0% from February 2011 levels. Excluding Bclear, NYSE Liffe's trade administration and clearing service for OTC products, European derivatives products ADV increased 3.9% compared to March 2010, but decreased 0.9% from February 2011. Total European fixed income products ADV in March 2011 of 2.7 million contracts increased 1.6% compared to March 2010, but decreased 5.0% from February 2011. Total equity products ADV of 2.0 million contracts in March 2011 increased 2.9% compared to March 2010 and increased 31.6% from February 2011. Total commodities products ADV of 101,000 contracts in March 2011 increased 95.5% compared to March 2010 and increased 16.6% from February 2011.
Source: NYSE Euronext
