Global ETF News Older than One Year
IMF Working paper-Spillovers from United States Monetary Policy on Emerging Markets: Different This Time?
December 24, 2014--Summary: The impact of monetary policy in large advanced countries on emerging market economies-dubbed spillovers-is hotly debated in global and national policy circles. When the U.S. resorted to unconventional monetary policy, spillovers on asset prices and capital flows were significant, though remained smaller in countries with better fundamentals. This was not because monetary policy shocks changed (in size, sign or impact on stance).
In fact, the traditional signaling channel of monetary policy continued to play the leading role in transmitting shocks, relative to other channels, affecting longer-term bond yields. Instead, we find that larger spillovers stem more from structural factors, such as the use of new instruments (asset purchases). We obtain these results by developing a new methodology to extract, separate, and interpret U.S. monetary policy shocks.
Source: IMF
Preview of the share image Deutsche shutting 12 ETFs after low demand
December 23, 2014--Deutsche Asset & Wealth Management is to shut 12 exchange traded funds due to low investor demand.
The firm's exchange traded fund arm, db X-trackers, plans to close four ETFs tracking financial companies and eight ETFs with exposure to US treasuries, high-yield debt, European sovereign bonds and UK gilts.
Source: FT.com
Deutsche Boerse announces compliance of DAX index family with IOSCO Principles for Financial Benchmarks
December 23, 2014--Deutsche Börse, the official Index Administrator of the DAX index family and other leading financial market indices, today announced that the indices comply with the International Organisation of Securities Commission's (IOSCO) Principles for Financial Benchmarks.
Deutsche Börse has published the Letter of Compliance on the company's website.
The objective of the IOSCO Principles is to create an overarching regulatory framework for benchmarks used in global financial markets.
Source: Deutsche Börse
China Offers Russia Help With Currency Swap Suggestion
December 22, 2014--Two Chinese ministers offered support for Russia as President Vladimir Putin seeks to shore up the ruble without depleting foreign-exchange reserves.
China will provide help if needed and is confident Russia can overcome its economic difficulties, Foreign Minister Wang Yi was cited as saying in Bangkok in a Dec. 20 report by Hong Kong-based Phoenix TV.
Source: Bloomberg
Basel Committee consults on capital floors
December 22, 2014--The Basel Committee on Banking Supervision has published today a consultative paper on the design of a capital floor framework based on standardized, non-internal modelled approaches.
The Committee's proposed floor would ensure that the level of capital across the banking system does not fall below a certain level. The floor is also meant to mitigate model risk and measurement error stemming from internally-modelled approaches. It would also enhance the comparability of capital outcomes across banks.
Source: BIS
Alibaba Enters Russell Global Indexes, When Will It Enter MSCI?
December 22, 2014--Russell added 102 IPOs to its global indexes for the fourth quarter of 2014 after the market close on December 19. The most notable new add is China's largest e-commerce Alibaba Group (BABA).
Alibaba is in a tricky spot. It is listed in the U.S., incorporated in the Cayman Islands and mainly operates in China. This has been a no-no for the largest global index providers. MSCI China Index only includes Chinese companies that are listed in the same time zone as their home operating base.
Source: Barron's
SSgA cutting fees for more ETFs
December 21, 2014--State Street Global Advisors has reduced fees on a further two exchange traded funds following on from the raft of price cuts it announced in October.
The US asset manager has cut the total expense ratio on its SPDR MSCI Europe ETF by 5 basis points, meaning the product now costs 25bp.
Source: FT.com
U.S. Treasury Criticizes Europe Plan for Tainted Benchmarks
December 19, 2014--A European proposal to regulate financial benchmarks that have been tainted by manipulation allegations is running into criticism from the U.S. Treasury Department.
The plan requires that other countries have equivalent oversight of indexes, which could prevent European banks and asset managers from using U.S. benchmarks, according to a counselor to Treasury Secretary Jacob J. Lew. Europe wants national governments to take responsibility for regulating financial and commodity benchmarks--something the U.S. has no plans to do.
Source: Bloomerg
$781 Billion in Global ETP AUM Based on Indices Published by S&P Dow Jones Indices
Represents Nearly 20% Increase in AUM over 2013
606 ETPs linked to S&P DJI Indices as of December 12, 2014
Augmented factor-based index family through the launch of 27 new headline factor indices
December 18, 2014--S&P Dow Jones Indices ("S&P DJI"), announced today that as of December 12, 2014, the assets under management (AUM) of exchange traded products (ETPs) based on its indices has reached $781 billion, representing a 20% increase over 2013 and a 31% market share--more than twice as much as the next index provider.
More assets are invested in ETPs (ETFs + ETNs) based upon indices calculated and published by S&P DJI than any other index provider in the world.
Source: S&P Dow Jones Indices
Review of the trading book: consultative document on remaining issues published by the Basel Committee
December 19, 2014--The Basel Committee on Banking Supervision has today issued a consultative paper on outstanding issues for its fundamental review of the trading book capital standards.
In undertaking its review, the Committee's goal is to improve trading book capital requirements and to promote consistent implementation of the rules so that they produce comparable levels of capital across jurisdictions.
Today's consultative paper sets out a limited set of revisions to the Basel Committee's proposed market risk framework, which was published in October 2013. That second consultative proposal put forward a revised market risk framework to address weaknesses in risk measurement under the current framework's internal models-based and standardised approaches.
Source: BIS
