Global ETF News Older than One Year
HSBC GAM adds second market maker for ETFs
December 12, 2012--HSBC Global Asset Management has signed a deal with Susquehanna International Securities to act as a second market maker for its exchange-traded funds (ETFs).
Market makers are firms which quote both buying and selling prices for assets in order to provide extra liquidity to markets.
Source: FT Adviser
IMF Working paper-Spring Forward or Fall Back? The Post-Crisis Recovery of Firms
December 12, 2012--Summary: This paper studies corporate performance in the aftermath of the global crisis by examining 6,581 manufacturing firms in 48 developed and developing countries in 2010, identifying factors of resilience as well as vulnerability.
Based on a cross-sectional analysis, the results show that pre-crisis leverage and short-term debt have had negative effects on the speed of the recovery, while asset tangibility has had positive effects. The negative effect of leverage is non-linear, being particularly strong in firms with high pre-crisis leverage. Furthermore, the effects are different for advanced and emerging market economies. The paper also shows that the macroeconomic framework critically matters for firm growth. In particular, in countries that have allowed the exchange rate to depreciate, firms have had a faster recovery in sectors highly dependent on trade.
view the IMF Working paper-Spring Forward or Fall Back? The Post-Crisis Recovery of Firms
Source: IMF
Eurex and Singapore Exchange to start market access linkage January 2013
December 12. 2012--Singapore Exchange (SGX) and Eurex will offer market access to their customers with their data center linkage available from January 2013.
SGX and Eurex announced in March 2012 a partnership to deliver enhanced market access and cost efficiencies to members of both exchanges by linking their co-location centers.
Eurex members hosted in SGX’s co-location data center can now directly connect to the Eurex access point hosted at SGX. Likewise,
Source: Deutsche Börse
NASDAQ OMX To Buy Thomson Reuters' Investor Relations, PR, Multimedia Businesses
December 12, 2012--The NASDAQ OMX Group, Inc. ( NDAQ ) announced it has entered into an agreement with Thomson Reuters to acquire the Investor Relations, Public Relations and Multimedia Solutions businesses.
The businesses will be integrated into NASDAQ OMX Corporate Solutions.
NASDAQ OMX has made a binding offer to acquire Thomson Reuters Investor Relations, Public Relations and Multimedia Solutions businesses for $390 million in cash. Upon completion of the employee information and consultation process, NASDAQ OMX expects Thomson Reuters to enter into a definitive purchase and sale agreement.
Source: NASDAQ OMX
FSB fourth progress note on the global LEI initiative
December 11, 2012--This is the fourth of a series of notes on the implementation of the legal entity identifier (LEI) initiative.
Following endorsement of the FSB LEI report and recommendations by the G-20, the FSB LEI Implementation Group (IG) has been tasked with taking forward the planning and development work to launch the global LEI system by March 2013. The IG is collaborating closely with private sector experts with a wide range of experience from different sectors and fields through a Private Sector Preparatory Group (PSPG) incorporating members from 25 jurisdictions across the globe.
Source: FSB
Changes to swap costs prompt alarm
December 11, 2012--Off the peg or custom made? For some derivatives users, the choice could soon narrow sharply.
There are growing fears that specially-tailored swaps will become prohibitively expensive under new rules coming into effect from next year. Regulators want most users to pick only from the racks of standardised products.
Source: FT.com
IMF Working paper-Global Financial Crisis, Financial Contagion, and Emerging Markets
December 11, 2012--Summary: The recent global financial crisis was the first in recent history that was triggered by problems in the financial system of the mature economies. Existing work on financial crisis in emerging market countries, however, almost exclusively focus on the role of financial frictions in the domestic economy.
In contrast, we propose a two-country DSGE model to investigate the transmission of a global financial crisis that originates from financial frictions in the rest of the world. We find that the scale of financial spillovers from the global to the domestic economy and trade openness are key determinants of the severity of the financial crisis for the domestic economy. Our results also suggest that the welfare ranking of alternative monetary policy regimes is determined by the degree of financial contagion, the degree of trade openness as well as the scale of foreign currency denominated debt in the domestic economy.
view the IMF working paper-Global Financial Crisis, Financial Contagion, and Emerging Markets
Source: IMF
Index Launch Reveals Significant Differences in Countries' Energy Systems
New Global Energy Architecture Performance Index Report ranks energy systems of 105 countries from an economic, environmental and energy security perspective
Norway, Sweden and France top the ranking; OPEC countries and the USA languish outside the top 50
Purpose of the index is to help countries position themselves for the widespread transition that is expected in the global energy system
December 11, 2012--High-income countries are leading the transition to a new energy architecture but still have work to do on environmental sustainability, according to the Global Energy Architecture Performance Index Report 2013, released today by the World Economic Forum.
The index measures the strengths and weaknesses of countries’ energy systems from an integrated economic, environmental and energy security perspective.
It is also designed to help countries manage and navigate the challenges that arise from this period of change which, according to the International Energy Agency (IEA), will require US$ 38 trillion of investment in energy supply infrastructure by 2035 to meet rising global demand.
view the Global Energy Architecture Performance Index Report
Source: WEF
HSBC attempts to boost ETF liquidity
December 11, 2012--HSBC Global Asset Management has altered the business model of its exchange traded funds operations by adding a second official market maker who will help to improve the trading liquidity of its ETF range.
Susquehanna International Securities, one of the largest ETF traders in Europe, will provide continuous bid and offer prices for HSBC’s range of 25 ETFs, effectively providing competition to the bank’s own ETF market making activities, which are delivered by HSBC Global Markets.
Source: FT.com
Fund managers seek alternatives to automated trade-study
September 10, 2012--Almost a third of fund managers believe automated trading has had its day and are considering a move to alternative trading methods, including a return to "human-led trading models", a study released on Monday showed.
But any mistrust of automated trading by fund managers contrasts sharply with the attitude of brokerages and investment banks, where 67 percent of firms are looking to increase the use of automated trading.
Source: Reuters
