Global ETF News Older than One Year
Investors take issue with ETF loan fees
May 9, 2012--Operators of exchange traded funds are making increasing sums of money by lending securities to short-sellers in return for cash or collateral as the funds surge in popularity.
Concern is growing among investors at the differences in how much of that revenue is returned to investors and how much is retained by operators, such as BlackRock and Vanguard.
Source: FT.com
Investors Watching Last week's Elections in Eurozone
May 9, 2012--The official PMI rose to the highest since March 2011.
Hong Kong and China markets rose on favorable policy and economic data.
The Shanghai and Shenzhen stock exchanges will lower the trading fees of A-share equities by 25%, effective from June 1, given that the exchanges are now sizable enough in terms of number of listed companies and trading volumes, to make up for lower trading fees in order to lessen investors’ costs and help further develop the market.
India
4Q and FY12 earnings reporting season will drive the stock market.
The Indian equity market trended lower last week, as weaker currency spurred concerns around the government’s difficulty in controlling inflation and curbing the fiscal deficit. A weak rupee lifted the cost of imported oil and other raw materials, potentially causing inflation to go higher and reducing the central bank’s scope to cut rates. India imports about 80 percent of its oil needs.
Brazil
Government took a major step to lower interest rate further.
Brazilian equities rose in local currency, falling in USD in the week ending May 3rd, as a result of significant currency depreciation. The Brazilian Real fell a further ~1% against the dollar as a result of a material fall in future interest rate expectations, and continued government intervention in currency markets.
Russia
Uncertainty over new government’s policies shakes the market.
The Russian market was closed on Monday for Bridge Day and Tuesday for Labour Day.
From a global perspective, near term focus is on last week’s elections within the Eurozone, with voters in both France and Greece going to the ballot box. Investors are concerned about the financial stability as the socialist candidate François Hollande came to power in France.
Source: Mirae Asset Management
World Bank Urges Governments to Think Green for Inclusive Growth
South Korea Pledges $40 million to Promote Green Growth for All
May 9, 2012--The World Bank today released a report urging governments to think green when pursing growth policies, which can be inclusive, efficient, affordable and above all necessary to sustain economic expansion in years ahead.
Launched at the Global Green Growth Summit in Seoul, Inclusive Green Growth: The Pathway to Sustainable Development, lays out an analytical framework that factors atmospheric, land and marine system limitations into plans for economic growth needed to further reduce poverty. The report debunks the myth that a green growth approach is a luxury most countries cannot afford – pointing instead to political barriers, entrenched behaviors and a lack of appropriate financing instruments as the chief obstacles.
view World Bank report- Inclusive Green Growth: The Pathway to Sustainable Development
Source: World Bank
MSCI May Index Review Announcement Scheduled for May 15, 2012
May 8, 2012--MSCI Inc., a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, will announce the results of the May 2012 Semi-Annual Index Review for the MSCI Equity Indices-including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indices, as well as the MSCI Global Value and Growth
Indices, the MSCI Frontier Markets and MSCI Frontier Markets Small Cap Indices, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indices, the MSCI Pan-Euro and MSCI Euro Indices, the MSCI US Equity Indices, the MSCI US REIT Index, as well as the MSCI China A Indices. All changes will be implemented as of the close of May 31, 2012.
Source: MSCI
Thomson Reuters Global Equities Monthly Market Share Data Reports-April 2012 Activity
May 8, 2012--Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in the summarised monthly reports.
Source: Thomson Reuters
FTSE Licences UBS AG With New Currency Solution-FTSE WPU
May 8, 2012--May 8, 2012--FTSE Group ("FTSE"), the award winning global index provider grants UBS AG the first licence for the recently launched currency solution, FTSE WPU (World Parity Unit).
The swift adoption of FTSE WPU will allow UBS to offer a range of investment and hedging products linked to FTSE WPU, to its global client base. The licensing highlights investor appetite for new currency-risk management tools, as currency fluctuations continue to play a significant risk in international investment.
Launched earlier this year, FTSE WPU is an innovative addition to the growing range of FTSE’s non-equity indices, which includes a variety of currency and commodity indices. FTSE WPU represents a single ‘currency unit’ comprised of a liquid basket of the seven most traded developed market currencies, the four BRIC currencies and storable commodities; gold and oil.
Source: FTSE
NYSE Euronext Announces Trading Volumes for April 2012
Global Derivatives ADV in April Down 7% Year-over-Year; Up 9% from 1Q12 Levels
#1 in U.S. Equity Options in April; Record Monthly Market Share for NYSE Amex Options
April European Cash ADV Up 23% and U.S. Cash ADV Down 13% Year-over-Year
May 8, 2012--NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for April 20121.
Trading volumes were mixed both year-over-year and month-over-month across most venues, but reflected some strengthening relative to weak first quarter 2012 levels. Global derivatives average daily volume (“ADV”) of 8.2 million contracts in April 2012 decreased 6.9% versus the prior year, but increased 1.4% from March 2012 and increased 9.0% from first quarter 2012 levels. European cash trading ADV in April increased 22.8% versus the prior year, increased 14.8% from March 2012 levels and increased 17.8% from first quarter 2012 levels.
Source: NYSE Euronext
MIK White Paper On Portfolio Management And Data - Using Every Bit To Byte: Leveraging Data To Generate Alpha
May 7, 2012--Today MIK issued a white paper on portfolio management and data.
Introduction
Regardless of economic, competitive, regulatory, or market conditions, traditional asset and hedge fund managers are now, and always have been, faced with one primary mission: generating alpha.
Even when firms pursue similar investment strategies, satisfying the multiple demands of investors and giving sustained ROI is the goal.
Historically, successful investment strategies have relied on information asymmetry and information advantage. And frequently portfolio managers have garnered as much information as possible in designing both long-term strategy in the investment thesis and short-term implementation in trading.
Source: Mondovisione
ETFS Precious Metals Weekly: 2012 Outlook Favours Palladium over Platinum as Autocatalyst Demand Hits 11-year High
May 7, 2012--Palladium fabrication demand at 11-year high, but overshadowed by recycling and Russian supply. Precious metals consultants Thomson Reuters GFMS (GFMS) released their annual outlook for platinum group metals last week.
GFMS noted that fabrication demand was boosted by strong autocatalyst demand (both recording 11- year highs in 2011), additional supply more than offset the 2% lift in demand. Palladium is less exposed to the sluggish European market and is more linked to buoyant emerging market and US auto markets. However, autocatalyst recycling hit a record high in 2011, while Russia again defied expectations of an exhaustion in its state stockpiles to swing the market from deficit to surplus in 2011. GFMS expects a deficit in 2012. The risk factor, apart from another surprise from Russian state reserves, is a further decline in investor appetite akin to 2011.
Platinum surplus declines 12% in 2011, as fabrication demand hits 3-year high, according to Thomson Reuters GFMS. A strong lift in Chinese jewellery production and rising autocatalyst demand growth were behind the multi-year high in platinum demand in 2011. Exposure to the European diesel market and further substitution of platinum for palladium will likely be a restraint on further growth in this area in 2012. The seventh consecutive annual surplus, although smaller than 2010, was largely a product of supply growth in the order of 5% following increased mine supply in 2011. GFMS expects another surplus in 2012. Platinum supply disruptions remain a key risk and likely source of shortterm price support in 2012. Mine supply has been under pressure in 2012, with major platinum miners reporting declines in March quarter production, mainly due to the African labour disputes.
visit www.etfsecurities.com for more info
Source: ETF Securities
Fixed income traders face risk model change
May 7, 2012--Credit Suisse, Deutsche Bank, UBS and other European banks with big fixed income desks are likely to be hit hardest by the global proposal to change the way banks measure risk in their trading books, bankers and analysts said.
Under the “fundamental review” proposed by the Basel Committee on Banking Supervision, banks around the world would have to rewrite their risk models for assets they plan to buy and sell to take into account rare but damaging events and market freezes. Banks would also face stricter rules on when items could be moved from the trading book to the banking book, where loans are held to maturity.
Source: FT.com
