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Eurex further expands its Italian government bonds derivatives offering
Medium-term interest rate contract to launch on 19 September 2011/New contract complements the already listed Euro BTP Future and Short-Term Euro BTP Future
July 7, 2011--The international derivatives exchange Eurex announced today that it will launch a new interest rate contract on 19 September 2011. The Mid-Term Euro BTP Future is based on notional medium-term bonds issued by the Republic of Italy (Buoni del Tesoro Poliennali – BTP).
The new contract will complement Eurex's interest rate derivatives offering for all A and AA-rated European government bonds as well as for other interest rate instruments and will serve as an ideal hedging instrument for this market segment.
“The success of our two listed BTP futures increased the demand among our customers for the yield curve to be completed. Our new BTP future covers medium-range maturities, creating new, additional trading opportunities,” said Peter Reitz, member of the Eurex Executive Board.
The Mid-Term Euro BTP Future will be based on deliverable bonds with a residual maturity of 4.5 to 6 years and an original maturity of not more than 16 years; the notional coupon will be 6 percent and the contract value will be 100,000 euros, as for the existing futures contracts. The minimum tick size will be fixed at 0.01 percent (10 euros per tick) in line with the tick sizes of the other BTP, Bund and Bobl futures. Trading hours will be from 8 a.m. to 7 p.m. CET.
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Source: Eurex
Custodians burdened by regulatory changes in Germany, says kommalpha
July 7, 2011--New domestic and Europe-wide regulations for the financial sector are putting pressure on custodians operating in Germany, consultancy kommalpha has found.
In its annual survey – conducted on behalf of the Financial Times' German pension magazine dpn among custodians and custodian banks operating in Germany – kommalpha said the so-called 'Depotbankrundschreiben' by German supervisor Bafin had caused the most strain.
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Source: IP&E
BlackRock ETF Landscape: STOXX Europe 600 Sector ETF Net Flows -Week Ending 01-Jul-2011
July 6, 2011--For the week ending 01 July 2011, there were
US$38.0 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in oil and gas with US$44.1 Mn followed by food and beverage with US$38.9 Mn net inflows while healthcare experienced net outflows of US$43.5 Mn
Year to date, STOXX Europe 600 sector ETFs have seen US$174.2 Mn net outflows. Basic resources has seen the largest net outflows with US$214.2 Mn, followed by insurance with US$184.3 Mn net outflows, while banks experienced the largest net inflows with US$303.5 Mn.
As of 01 July 2011, there is US$10.2 Bn AUM invested in the STOXX sector ETFs which is greater than the US$6.0 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 16 out of 19 sectors.
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Source: Global ETF Research & Implementation Strategy Team, BlackRock
EPEX Spot / EEX Power Derivatives: Power Trading Results In June
July 6, 2011-- In June 2011, a total volume of 114.6 TWh was traded on the Power Spot and Derivatives Market operated by EPEX Spot SE and EEX Power Derivatives respectively (June 2010: 136.4 TWh)
In June 2011, power trading on the day-ahead auctions on EPEX Spot accounted for a total of 22,711,709 MWh (June 2010: 21,355,184 MWh) and can be broken down as
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Source: EPEXSPOT
Deutsche Börse operates Xetra cash market in new data centre
July 6, 2011--Deutsche Börse AG has been operating its Xetra cash market in a new data centre since the beginning of the week, after Deutsche Börse IT successfully migrated the entire Xetra host infrastructure over the past weekend.
The Xetra infrastructure is now housed in the International Business Exchange™ (IBX®) data centre of the international IT company Equinix Inc., a global provider of data centre services. Deutsche Börse and Equinix have already been offering Proximity Services since 2006.
As part of the migration, Deutsche Börse IT replaced all of the host computer hardware and gateways with the latest higher-performance hardware. This means all Xetra clients will benefit from a further reduction of Xetra system latency of up to 40 percent.
The migration of the Xetra cash market enables Deutsche Börse Group to now offer its clients co-location services from a single location for the first time. Clients also benefit from the fact that as one of the largest global providers of data centre services, Equinix bundles a large number of exchange-related service providers, including data vendors, under one roof. Moreover, through the linkage of many telecommunication providers, Xetra participants can choose the access to the Equinix data centre that is the most cost-effective for them.
Source: Deutsche Börse
Europe lashes out at credit rating agencies
July 6, 2011-- Europe launched a barrage of fire at credit ratings agencies Wednesday after efforts to resolve the eurozone's debt crisis were plunged into new turmoil by a severe downgrade of Portugal's debt.
European Union officials and ministers reacted furiously after Moody's Investors Service downgraded Portuguese debt to junk status and warned that Lisbon may need a second bailout.
Europeans were particularly angry over the timing of the ratings cut, just as Portugal begins to implement tough austerity measures in return for a 78-billion-euro EU-IMF bailout agreed in April and as the eurozone struggles to craft a new rescue package for Greece.
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Source: EUbusiness
HSBC launches ‘physical’ Russian equity ETF
July 6, 2011--HSBC has launched the first European exchange traded fund to physically track the Russian stock market, the HSBC MSCI Russia capped ETF.
The launch follows a stream of critical comments from regulators about “synthetic” ETFs which use derivatives but HSBC has made an effort to distinguish itself from its rivals by offering a “physical” product which will buy the constituents of the benchmark which it is tracking, the MSCI Russia capped total return net index.
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Source: FT.com
ETFs Face U.K. Serious Fraud Office Review
July 5, 2011--U.K. fraud prosecutors are reviewing how exchange-traded funds are marketed and whether they have the proper tools to prosecute any wrongdoing in the industry, a person directly involved with the probe said.
The Serious Fraud Office, which prosecutes white collar crime, hired a consultant to interview bankers and lawyers to determine whether there is a risk that sales of the products may involve criminal conduct in the future. The Financial Services Authority and the Bank of England’s Financial Policy Committee have warned of a lack of transparency in the ETF market.
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Source: Bloomberg
Unscheduled free float adjustment in MDAX
Adjustment for Demag Cranes AG as of 8 July 2011
July 5, 2011--Deutsche Börse has announced an unscheduled adjustment to the free float of Demag Cranes AG in MDAX. Due to the takeover by Terex Industrial Holding AG, the free float of Demag Cranes AG altered by more than 10 percentage points.
According to the guideline to the equity indices the company’s free float will be reduced from the current 100 percent to 27.19 percent.
The adjustment will become effective next Friday, 8 July 2011.
The next regular review of the Deutsche Börse blue-chip indices will be on 5 September 2011.
Source: Deutsche Börse
STOXX Launches Index Basket to Cover Major World Markets
July 5, 2011--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today introduced the iSTOXX World Select Index, an index basket which combines the well-known EURO STOXX 50, STOXX USA 50 and STOXX Japan 50 indices to access three major world markets through one index. The new index is designed to underlie exchange-traded funds and other investable products, as well as to be used to assess the performance of global equity portfolios.
“Derivatives and structured products that offer global equity exposure often combine different indices for the Euro zone, U.S. and Japanese markets,” said Hartmut Graf, chief executive officer, STOXX Limited. “With the launch of the iSTOXX World Select Index we offer market participants an innovative index basket to access three blue-chip indices for major, global markets. The added advantage of this basket is that the underlying indices follow the same consistent and transparent methodology, and are therefore highly compatible.”
The iSTOXX World Select Index consists of three components: the EURO STOXX 50, STOXX USA 50 and STOXX Japan 50 indices, thus providing a representation of three major world market’s highly liquid blue-chips. Within the basket, the exposure is equally distributed among the three underlying indices. As a result, the over-influence of U.S. companies that typically occurs in global indices that are weighted by market capitalization, is reduced. Within each underlying index, the respective components are weighted according to their free float market capitalization. The composition of the underlying indices is reviewed annually in September, and rebalancing takes place quarterly in March, June, September and December.
The iSTOXX World Select Index is rebalanced quarterly and weights of the three components are brought back to equal allocations. This takes place at the same time of the underlying index rebalancing. The composition of the index is not reviewed, as the basket is always comprised of the same three indices. In the case that other indices might need to be included, additional index version would be made available.
The new index is available in price, gross and net return versions in Euro, and price and net return versions in U.S. Dollar Daily history is available back to December 28, 2001.
Please visit www.stoxx.com for further information.
Source: STOXX
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