Global ETF News Older than One Year
Vanguard climbs ETF league table
March 7, 2014--Vanguard has overtaken State Street Global Advisors' SPDR exchange-traded fund unit as the second largest ETF provider in the US for the first time.
The Pennsylvania-based fund manager edged out SPDR with $345.5 billion in ETF assets at the end of February, according to consultancy ETFGI, compared with the Boston-based firm's $344.6 billion
Source: Financial News
DECPG Weekly Brief
March 7, 2014--Gross capital flows to developing countries declined sharply in February 2014 to a five-year low, reflecting the recent
bout of market volatility and a downward correction from exceptionally high volumes of international bond issuances in
January. Mirroring tighter global financing conditions and weaker domestic demand in some cases, real domestic credit
growth decelerated in most developing regions towards the end of 2013.
The reaction of global commodity markets to escalating tensions between Ukraine and Russia has been relatively muted, given the importance of these two countries in wheat, oil and gas markets.
Capital flows to developing countries tumbled in February, with all segments of the market posting sharp declines. Gross capital flows (international bond issuance, cross-border syndicated bank loans, and equity placements) amounted to only $13.9 billion in February, the lowest monthly level since April 2009. After a record $40 billion issuance in January, bond flows dropped sharply to $7.7 billion in February amid increased financial market volatility and on the back of some seasonal effects. Equity issuance remained weak at $2.1 billion as the Chinese IPO rally that started in December faded out. Syndicated bank lending stood at $8.8 billion since January 1, its lowest level since 2005, and down 69% from a year earlier. The decline in global syndicated loan activity is relatively broadly-based, but more marked in Emerging Europe and Sub-Saharan Africa.
Both regions failed to post a single syndicated loan deal this year. Combining January and February data, gross capital flows to developing countries are 30 percent lower than the same period last year-their weakest level since 2010.
Source: World Bank
Ex-US active funds drive industry flows
March 7, 2014--The top 15 active houses worldwide attracted over half of industry inflows last year, proving size matters.
Their growth was driven by income funds, equity, multi-asset and alternatives.
Source: Asian Investor
NASDAQ OMX Monthly Index Performance Report- as of 2/28/14
March 6, 2014--The NASDAQ OMX Index Monthly Performance Report (as of 02/28/14)is now available.
Source: NASDAQ OMX
According to ETFGI: Global ETF and ETP assets reached US$2.44 trillion, a new record high, at the end of February 2014.
March 6, 2014--Flows into ETFs and ETPs listed globally rebounded in February gathering net inflows of US$29.0 billion which, when combined with the positive market performance in the month, pushed assets in the global ETF/ETP industry to a new record high of US$2.44 trillion, according to preliminary findings from ETFGI's February Global ETF and ETP industry insights report.
The Global ETF/ETP industry has 5,183 ETFs/ETPs, with 10,210 listings, from 219 providers on 59 exchanges.
"Positive comments from the Fed indicating that the US economy continues to brighten, the S&P 500 ending February with a record close of 1859 and signs of a wider global recovery in equities seems to have caused investors to come out of their winter hibernation after the winter storms and put net inflows of US$29.0 billion into ETFs/ETPs in February." according to Deborah Fuhr, Managing Partner at ETFGI.
Dissecting the overall net inflows we find that fixed income ETFs/ETPs gathered US$16.8 Bn-the largest net inflows-followed by equity ETFs/ETPs with US$10.2 Bn. Commodity ETFs/ETPs saw net inflows of US$870 Mn.
Source: ETFGI
Intraday Liquidity Becomes Critical For Front-Office Trading
March 5, 2014--SmartStream Technologies, the financial Transaction Lifecycle Management specialist, today announced the importance of intraday liquidity in the trading environment, following the release of its TLM Cash and Liquidity Management 2.5 solution and discussions with user groups in London.
The key consensus was the focus of intraday liquidity and its impact on return on investment.
Source: SmartStream Technologies
State Street Global Exchange Expands Global Futures Capabilities to Help Clients Access Futures Directly and Manage Complexity
Advanced Algorithms, Analytics and Consulting Offer Actionable Insights for Buy-Side Traders
March 5, 2014--
March 5, 2014--State Street Global Exchange today announced the expansion of its futures commission merchant (FCM) solution to include futures execution. State Street's Futures Commission Merchant(FCM) solution includes support across the entire trade lifecycle through execution, clearing, collateral management,
valuation and risk and analytics for OTC derivatives and futures.
The futures execution capabilities include a global team of experienced traders, direct market access (DMA) and the use of State Street algorithms and analytics with seamless integration into existing workflows. The execution desk provides a global rolling order book, cross-product coverage from a coordinated sales team and access to more than 30 global exchanges and third-party platforms. Execution consulting and cross-asset trade flow and analysis, trade ideas and opportunities, market commentary, analytics and proprietary research are offered by the execution desk and through State Street Associates, State Street Global Exchange's leading partnership with academia.
Source: State Street Corporation
IMF Working paper-Tracking Global Demand for Emerging Market Sovereign Debt
March 5, 2014--Summary: This paper proposes an approach to track US$1 trillion of emerging market government debt held by foreign investors in local and hard currency,based on a similar approach that was used for advanced economies (Arslanalp and Tsuda,2012). The estimates are constructed on a quarterly basis from 2004 to mid-2013 and are available along with the paper in an online dataset.
We estimate that about half a trillion dollars of foreign flows went into emerging market government debt during 2010-12,mostly coming from foreign asset managers. Foreign central bank holdings have risen as well,but remain concentrated in a few countries: Brazil,China,Indonesia,Poland,Malaysia,Mexico,and South Africa. We also find that foreign investor flows to emerging markets were less differentiated during 2010-12 against the background of near-zero interest rates in advanced economies. The paper extends some of the indicators proposed in our earlier paper to show how the investor base data can be used to assess countries' sensitivity to external funding shocks and to track foreign investors' exposures to different markets within a global benchmark portfolio.
view the IMF Working paper-Tracking Global Demand for Emerging Market Sovereign Debt
Source: IMF
BATS Global Markets February Highlights-New Market Share Records In US, Spain,Trade Reporting; Merger Integration Process Moving Forward
U.S. Equities Market Share Totals 20.4%, BATS Chi-X Europe Posts Another New Record in Spain
March 4, 2014--BATS Global Markets (BATS) today reported February volume, market share, and monthly highlights:
BATS reported 20.4% U.S. equities market share in February, a new company record in the first month with BATS and Direct Edge combined under the BATS Global Markets brand.
Following the close of its merger with Direct Edge on January 31, BATS announced the combined executive team including CEO Joe Ratterman and President William O'Brien.
BATS also announced its data center strategy and integration timeline for the new combined organization. BATS selected Equinix's NY5 data center in Secaucus, N.J., as its primary data center and future home to all of the BATS U.S. Exchanges. The migration of the Direct Edge Exchanges- EDGA and EDGX- will take place in January 2015, and the BATS Exchanges-BZX and BYX -will move in the second quarter of 2015.
Source: BATS
Growing the Green Bond Market to Finance a Cleaner, Resilient World
March 4, 2014--Green bonds give investors an innovative way of supporting clean energy,mass transit,and other low-carbon projects that can help countries adapt to and mitigate climate change.
The World Bank has mobilized over $4.5 billion through 60 green bond transactions in 17 currencies,and the IFC has issued $3.4 billion in green bonds,including two $1 billion issuances in 2013.
New Green Bond Principles and a call to double the market by September are helping expand the young market and attracting a new set of investors.
The growing risks brought on by climate change are raising development costs for the world's fast-growing cities and developing countries. Government funds alone will never be enough to build resilience to extreme weather and deal with the threats to energy, water, and food supplies -the private sector and institutional investors must be involved.
Source: World Bank
