Global ETF News Older than One Year
Platinum faces huge deficit
November 12, 2013--Strong investment and industrial demand will push the platinum market in 2013 into its biggest deficit since 1999, refiner Johnson Matthey said on Tuesday.
The platinum market is expected to show a shortfall of 605 000 ounces this year from 340 000 ounces last year, it said in its Platinum 2013 Interim Review.
Source: FIN24
Corporate Governance makes future difference for private equity industry in China study says
November 12, 2013--A joint study from Deutsche Börse and CMS Hasch Sigle shows that the quality of investments becomes more important. As a result of the slowing Chinese Economy, of closed IPO exit channels and of the increasing competition in many sectors of the economy the level of Corporate Governance of the companies can make the difference between good and mediocre returns.
"The times where companies could be sold with high multiples due to the China growth phantasy are definitely over", says Alexander von Preysing, Deputy Head of Issuer & Primary Market Relations at Deutsche Börse. Fund Managers which want to differentiate themselves see the adherence to stringent Corporate Governance as a key topic to add value during their investment cycle. Many fund managers would welcome a more rigorous approach to implement international Corporate Governance standards. "It is still a long way to go but Chinese entrepreneurs will sooner or later understand that the rules of the capital markets have unavoidably to be complied with", emphasizes Volker Potthoff from CMS Hasche Sigle.
Source: Deutsche Börse
NYSE Euronext Monthly ETF Activity Report
November 12, 2013--Listings
There were 3 new ETF listings in October: 2 Lyxor ETFs, and 1 EasyETF.
ETF Trading name:
LYXOR ETF CSI300 A Symbol: CSIA
ETF Trading name: VOLATILITY ARB US Symbol:EVAUS
ETF Trading name: LYXOR ETF LTM PEA Symbol: LTMP
At the end of October, NYSE Euronext's European markets had 645 listings of 557 ETFs from 17 issuers.
Trading activity
Average daily value traded on-book in October of €192.4 million, a decrease of 8.0% vs September 2013, and down 13.5% vs October 2012.
Total value traded on-book amounted to €4.4 billion, an increase of 9.0% vs September 2013, and down 11.5% vs October 2012.
Average of 6,222 on-book trades (single-counted) executed daily last month, a decrease of 1.8% vs September 2013, and up 7.1% vs October 2012.
Total of €464.1 million exchanged in block trades in October, up 26.0% from the €200.1 million in September and down 37.3% vs October 2012.
Overall, block trade volume represented 10.5% of the total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of October 2013, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €155.6 billion.
Market Quality
In October, 4 LPs took on liquidity responsibilities for 49 new LP contracts on 49 different ETFs:
Commerbank made a significant addition to their already expanded activity by a total of 43 Amundi ETFs to their list.
Flow traders expanded their activity with 1 Amundi and 2 iShares ETFs.
SG Securities took the lead on the new Lyxor ETFs.
BNP Paribas Arbitrage took the lead on the new EasyETF.
Median spread for all listed ETFs of 25.3 bps, an enhancement of 10% vs September 2013 and down 29% vs October 2012.
23 Liquidity Providers currently active on ETFs.
ETP Service Update
ETF Liquidity Provider programme fee schedule modification: The review of the fee scheme has been carried out to further incentivise liquidity provision on ETFs and enhance market quality through tighter spreads and deeper liquidity. With this change, we aim to facilitate asset gathering on existing products and also further support the launch of new products, by encouraging more Liquidity Providers (LPs) on initial ETF product launches. We also hope to attract more flows to our transparent and regulated central orderbook, creating a virtuous circle of enhanced price discovery.
Launch of multicurrencies for Exchange Traded Products: The new facility will enable a single product to be listed and traded in different currencies on separate NYSE Euronext European venues through dedicated Euronext codes and trading symbols, but with a single ISIN code. The multi-currency listing and trading will facilitate investor access by removing currency barriers, and will offer broader investment opportunities
For more info visit http://etp.nyx.com.
Source: NYSE Euronext
A new EDHEC study shows that LTGA calibration continues to favour short-duration bonds and could undermine the financial stability and financing of both sovereigns and corporates
November 12, 2013--Discussions on the Omnibus II Directive have been in deadlock since July 2012. The main points of contention relate to the integration of ALM mechanisms into the standard formula.
Their omission from the QIS5 impact study led to increased artificial volatility of prudential balance sheets and consequently to regulatory capital requirements that are sometimes overestimated. The aim of the Long-Term Guarantees Assessment (LTGA), conducted in the first semester of 2013, was to test a variety of measures which aim to integrate ALM mechanisms into long-term insurance activities, (life insurance, pensions, liability insurance, etc.). These measures relate to the valuation of insurance liabilities (extrapolation of long-term rates, implementation of a counter-cyclical premium and a matching adjustment) as well as to new risk calibrations, particularly that of spread risk.
view the LTGA Impact Assessment and Bond Management: Has Solvency II reached a Deadlock?
Source: EDHEC
iSTOXX (R) Efficient Capital(R) Managed Futures 20 Index October 2013-Monthly Report & Commentary
November 12, 2013--The iSTOXX(R) Efficient Capital(R) Managed Futures 20 Index, developed by STOXX Limited in collaboration with Efficient Capital(R) Management, a leading provider in the Managed Futures space, represents the performance of 20 of the largest Managed Futures Traders. Strict rules about minimum assets under management, existing track record and fee structure are applied to the initial universe of CTAs to ensure market representativeness.
The iSTOXX(R) Efficient Capital (R) Managed Futures 20 Index gained 0.94% in October ending a five-month losing streak. Long term managers posted the strongest returns, generating profits of 2.13% on the month. Global macro and short term styles contributed positively by posting gains of 0.55% and 0.12%, respectively. FX managers, on the other hand, continued to struggle losing -0.94%. Concerns surrounding a potential taper of the U.S. Federal Reserve's monthly $85 billion bond-buying program quickly faded in October as attention shifted to the partial government shutdown and the debt ceiling showdown in Washington. The deal that was reached on October 17th albeit short term, provided the markets with some measure of relief over the potential of a U.S. government default. U.S. equities rallied to fresh all-time highs in the weeks following the deal in Washington.
Source: STOXX
Marriott International to Join the NASDAQ-100 Index Beginning November 18, 2013
November 11, 2013--Marriott International (Nasdaq:MAR) will become a component of the NASDAQ-100 Index(R)(Nasdaq:NDX) and the NASDAQ-100 Equal Weighted Index (Nasdaq:NDXE) prior to market open on Monday, November 18, 2013.
Marriott International will replace Rangold Resources Limited (Nasdaq:GOLD).
Source: NASDAQ OMX
FTSE plots China fixed-income push
November 11, 2013--The FTSE brand may be synonymous with the UK stock market, but the index provider is steadily diversifying into the international fixed-income market.
The London Stock Exchange Group-owned company made its first foray into the Chinese bond market in October with the launch of an offshore renminbi bond index series-and is now looking to build a similar product for onshore RMB.
Source: Financial News
Citi's Rachel Lord replaces Joe Linhares at iShares
November 11, 2013--BlackRock's ETF business has appointed Rachel Lord as its new head in Europe, Middle East and Africa (EMEA). She replaces Joe Linhares, who, after three years leading iShares in Europe, will return to the US to take on a new role which deals with the firm's activities with its largest retail distribution partners.
Rachel joins the firm from Citigroup, where she was global head of corporate equity derivatives. Prior to joining Citi in 2009, Rachel spent 13 years at Morgan Stanley in a variety of senior roles, most recently as head of corporate equity derivatives, EMEA & APAC.
Source: FTSE Global Markets
Global systemically important banks: information regarding the end-2012 exercise published by the Basel Committee
November 11, 2013--In conjunction with the publication by the Financial Stability Board (FSB) of the updated list of global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision has today published additional information regarding the G-SIB methodology.
In accordance with the timeline set out in its updated methodology for assessing and identifying G-SIBs, the Basel Committee has published: (1) the denominators that were used to calculate the scores of banks in the end-2012 exercise; and (2) the cut-off score and bucket thresholds that were used to identify the updated list of G-SIBs and to allocate them to buckets.
Source: BIS
ETFS Precious Metals Weekly-Gold Price Hit as Strong US Data Drives US Dollar Higher
November 11, 2013--Gold hit as investors accelerate tapering expectations and US dollar rallies on strong US growth data. US payrolls surprised to the upside and China growth data also came in above expectations, creating a strong base for continued gains for cyclical assets.
At the same time, the ECB cut its benchmark refinancing rate by 25ps to 0.25% sending the Euro sharply lower. The cut followed the release of October CPI showing that Eurozone inflation fell to 0.7% in October, the lowest level in nearly four years. Silver and platinum ended the week with only slight losses and palladium increased 2.7% as strength in the US (and global) economy benefitted the more industrial orientated precious metals. In the near-term, the strength of the US dollar may keep downward pressure on the gold price. However with the gold price now well below US$1,300/oz again, physical demand from China and other emerging markets should start to play a supporting role.
Source: ETF Securities
