Global ETF News Older than One Year
ETF Industry Milestone a Win for Investors
March 13, 2014--Increased market volatility, sparked by emerging market turmoil and disappointing U.S. economic news, dominated headlines in recent weeks. But a record-breaking event within the investment industry stayed just under the radar.
The total number of global ETFs exceeded 5,000 for the first time this year, a significant milestone that signals greater value available to investors.
ETF Growth Accelerates
Since their introduction in the early 1990s, the pace of new ETF launches was gradual. It took more than 15 years for global ETF listings to hit the 2,000 product mark. But as more investors sought ETF solutions, growth quickly accelerated, more than doubling in the past 6 years to surpass 5,000 funds. Today, the United States accounts for the largest share of ETF assets, making up 71%, or $1.6 trillion, of the overall market across 1,556 funds.
Source: blackrockblog.com/
State Street Global Advisors Revolutionizes Advisor Education with an ETF Education Solution that Fills Knowledge Gap for Investors
March 12, 2014--State Street Global Advisors (SSgA), the asset management arm of State Street Corporation (NYSE:STT) announced today the launch of ETF Ed, an interactive exchange traded fund (ETF) education learning center. ETF Ed is a new curriculum at SPDR University, SSgA's existing educational site for advisors, and helps investment professionals and their clients advance their understanding of ETFs, their benefits and their many roles in portfolios.
"With the ETF universe expanding rapidly, investors have questions about trends and how new products can be applied and implemented in a portfolio," said Jim Ross, executive vice president and global head of SPDR ETFs at SSgA. "What is revolutionary about ETF Ed is that it evaluates where the knowledge gaps are for the investment professional and creates a very customized syllabus that helps fill those gaps. It is self-paced and designed to guide the user through various lessons to develop and strengthen their ETF expertise. It's a resource that's unlike any other in the industry."
Source: Wall Street Journal
EBA, ESMA and EIOPA consult on supervisory practices for financial conglomerates
March 12, 2014--The Joint Committee of the three European Supervisory Authorities (ESAs- EBA, ESMA and EIOPA) launched today a public consultation on its draft Guidelines on the convergence of practices aimed at ensuring consistency of supervisory coordination arrangements for financial conglomerates. This public consultation will run until 12 June 2014.
These Guidelines will enhance the level playing field in the financial market and reduce administrative burdens for firms and supervisory authorities. Their objective is to clarify and enhance cooperation between national competent authorities on cross-border groups that have been identified as financial conglomerates.
The document focuses on how authorities should cooperate in order to achieve a supplementary level of supervision of financial conglomerates. This will serve the purpose of addressing loopholes in present legislation, as prescribed by the FICOD (Financial Conglomerates Directive).
Source: ESMA
Recovery continuing in G7 countries, but emerging economies are mixed, OECD says
March 11, 2014--Recovery is under way in the world's advanced economies, underpinned by supportive financial conditions and reduced drag from budgetary tightening, but activity in the major emerging markets is mixed, according to the OECD's latest Interim Economic Assessment.
The recovery is advancing well in the United States and the United Kingdom, but proceeding more unevenly in Japan and still lagging behind in the euro area. A series of one-off factors- severe winter weather in North America and anticipation of an April 1st rise in Japanese consumption tax- have led to an uneven pace of growth.
Source: OECD
Platinum ETF holdings hit record high
March 11, 2014--Platinum holdings in physically backed exchange-traded funds have hit a record high after fresh inflows into funds listed in London and Johannesburg, and are set to rise further as a strike in major producer South Africa grinds on.
The world's largest platinum-backed ETF, NewPlat ETF reported an inflow of around 4,000 ounces on Monday, taking its holdings to a near seven-week high at 908,811 ounces.
Source: Reuters
CME gets UK approval for London exchange
March 11, 2014--Exchange operator CME Group said on Tuesday it has received regulatory approval for the derivatives exchange it plans open in London.
With the approval of Britain's Financial Conduct Authority, the Recognised Investment Exchange will launch on April 27 and will list commodity products, the company said in a statement. The launch of the exchangevdesigned to provide a one-stop market offering services from trading to clearing has been postponed twice.
Source: Chicago Tribune
Small shine returns to gold ETFs in India
An expected price correction would see a spurt in ETF demand in the first half of 2014, say analysts.
March 11, 2014--Inflows into gold exchange traded funds (ETF) in the global market were positive for the first time since 2012, in January, although in a modest way, and the glitter appears to have returned to gold funds in India which have gained 7.9% on an average in 2014.
In February, the category's assets grew 3.7%, to $153 million (Rs 9.3 billion)' helped by a consistent rise in gold price. Over the first two months of 2014' gold prices have advanced 5.5%.
Source: MineWeb
IOSCO Report Compares, Analyses Prudential Standards in the Securities Sector
March 10, 2014--The International Organization of Securities Commissions (IOSCO) published today the consultation report A Comparison and Analysis of Prudential Standards in the Securities Sector, which undertakes a high level comparative analysis of the key prudential/capital frameworks for securities firms.
The report seeks to highlight similarities, differences and gaps among the different frameworks. IOSCO's objective is to update its 1989 Report on Capital Adequacy Standards for Securities Firms (Capital Standards Report), based on the issues identified in the consultation report published today.
view the IOSCO A Comparison and Analysis of Prudential Standards in the Securities Sector
Source: IOSCO
Pimco: 'urgent' need to build equity arm
March 9, 2014--Pimco's newly appointed chief executive has admitted there is an "urgency" for the world's largest bond house to diversify its business into equities after a year of painful outflows from its fixed income funds.
The bond specialist, which is being battered in the media over what has now become a very public spat between Bill Gross, Pimco's founder, and its departing chief executive, Mohamed El-Erian, haemorrhaged €35.6bn of net cash in the fourth quarter of last year.
Source: FT.com
BIS March 2014 Quarterly Review: Emerging economies respond to market pressure
March 9, 2014--The recent performance of emerging market currencies has reflected the success of central banks in defending exchange rates as well as the political uncertainty in a number of countries. External imbalances, inflation and domestic credit growth have played a much smaller role than during the depreciations in May and June last year.
Cross-border interbank lending fell at an even faster rate in the third quarter of 2013. Banks headquartered in the euro area account for most of the decline after the financial crisis of 2007-09, and Swiss banks for much of the remainder.
The stock of debt securities reached an estimated $100 trillion in mid-2013 on heavy post-crisis issuance by governments and non-financial corporations. Foreign investors hold a smaller share of debt securities than previously, suggesting that the globalisation of portfolios may have gone partially into reverse post-crisis. But the retreat could be temporary.
view the BIS Quarterly Review March 2014-International banking and financial market developments
Source: BIS
