Global ETF News Older than One Year
IMF Working paper-Commodity Price Shocks and Fiscal Outcomes
May 7, 2012--Summary: The experience of developing countries over 1990-2010 indicates that commodity prices have a significant impact on fiscal outcomes.
Both revenue and expenditure rise in response to commodity (import or export) price increases; the response of the fiscal deficit is ambiguous. A floating exchange rate regime only partially offsets the impact; foreign-exchange reserves do not dampen the effects. Hence, there is a strong case for fiscal hedging against commodity price shocks. Hedging instruments based on a limited set of benchmark world prices for a narrow set of commodities may suffice to realize most of the potential benefits.
view IMF Working paper-Commodity Price Shocks and Fiscal Outcomes
Source: IMF
U.S. Fact Sheet - Economic Track of the Fourth Meeting of the U.S.-China Strategic and Economic Dialogue (S&ED)
May 4, 2012--Through the Economic Track of the Strategic and Economic Dialogue (S&ED), we are expanding opportunities for Americans to export and sell to China by increasing market access and leveling the competitive playing field.
We are encouraging economic reforms, including financial sector opening, that would create a more rapidly growing Chinese market for U.S. goods and services by moving China toward more home-grown, consumption-led growth. We are strengthening cooperation on a range of international economic and financial issues, so that we are better able to work together on common global challenges.
The S&ED allows U.S. and Chinese officials at the highest levels to work together to address these and other important challenges through candid and constructive engagement. This week, Secretary Geithner led a U.S. delegation of senior economic officials, including Federal Reserve Chairman Ben Bernanke, Secretary of Commerce John Bryson, U.S. Trade Representative Ron Kirk and others, to Beijing for the fourth round of the S&ED, which included discussions with President Hu Jintao, Premier Wen Jiabao, and Vice Premier Wang Qishan, as well as Vice President Xi Jinping and Executive Vice Premier Li Keqiang, and other senior Chinese economic officials.
Source: US Department of the Treasury
NASDAQ OMX and the Egyptian Exchange Extend Technology Agreement
May 3, 2012--The NASDAQ OMX Group, Inc (Nasdaq:NDAQ) and the Egyptian Exchange (EGX) have entered an agreement that extends their relationship for a further five years.
Under the terms of the agreement, NASDAQ OMX will continue to support the EGX trading platform, powered by NASDAQ OMX technology, which started operating in November of 2008.
Dr. Mohammed Omran, The Chairman of EGX and Professor of Finance at the Arab Academy for Science and Technology, said: "Our partnership with NASDAQ OMX goes back many years and as the Egyptian market continues to stabilize we look forward to leveraging the strong functionality and latency benefits of their technology. In times of unprecedented national economic turmoil, NASDAQ OMX consistently provided excellent support to ensure that our trading platform efficiently handled the extreme volatility, thus contributing to the recovery of our financial market."
Lars Ottersgard, Senior Vice President, NASDAQ OMX Market Technology, commented: "EGX's commitment to our trading technology is proof of their dedication to leverage best-of-breed technology in order to drive and grow its business. A well functioning stock market is a catalyst for efficient financial markets and with a world class trading system in place EGX can continue its plans to expand their offering and prominence in the region."
EGX's trading platform is based on NASDAQ OMX's proven X-stream technology which is deployed in 22 markets worldwide. X-stream is a multi-asset system that complies with international standards and is capable of handling equities, commodities, debt, ETFs, futures, options, swaps and derivatives on a single platform.
Source: NASDAQ OMX
Basel Seeks Tougher Boundary Between Banking, Trading Books
May 3, 2012--Banks face tougher rules on how they differentiate between assets they keep in their banking and trading books, making it harder to dodge capital rules, under proposals published by the Basel Committee on Banking Supervision today.
Lenders would have to give regulators evidence of buying and selling of securities in their trading books and face limits on their ability to shift assets between books under the plan. The risk of credit crunches would also need to be taken into account in calculations of how much cash they should keep in reserve against trading losses.
Source: Bloomberg
OECD annual inflation rate eases to 2.7% in March 2012
May 3, 2012--Consumer prices in the OECD area rose by 2.7% in the year to March 2012, compared with 2.8% in the year to February 2012.
This easing in the annual rate of inflation mainly reflected developments in energy and food where inflation slowed to 6.5% and 3.5% in the year to March, respectively, compared with 7.9% and 3.8% in the year to February. Excluding food and energy, the annual inflation rate was stable at 1.9% in March.
Source: OECD
Inaugural ETP ICONS of the Industry Awards 2012-Fundraiser held at the 8th Annual ETF Global Awards(r) Dinner
May 3, 2012--On April 26, 2012 the Inaugural ETP ICONS ETP Icons of the Industry Awards 2012 were presented following the 8th Annual ETF Global Awards® Dinner.
The ETP Icons of the Industry Awards is an award to recognize those individuals who have left an impression on the industry and have helped promote the development of the ETP marketplace. Over 560 ETP industry votes were cast and eleven winners selected. Winners were selected from a list of nominees whose names were selected by a survey held by Exchangetradedfunds.com
The purpose of the awards is not only to recognize individual contribution to the Global ETP Marketplace, but also to act as a fundraiser for charities. This year, the charity selected to receive the proceeds generated by this event is Habitat for Humanity International. Proceeds were generated by donations or by the purchasing of various award memorabilia.
Source: Exchangetradedfunds.com
Dow Jones Islamic Market Titans 100 Index Closed Down 0.83% In April
Index Measures Performance Of 100 Of World's Leading Shari'ah-Compliant Stocks-Dow Jones Islamic Market Asia/Pacific Titans 25 Index Gain 0.87%- Dow Jones Islamic Market Europe Titans 25 Index Fall 1.14% - Dow Jones Islamic Market U.S. Titans 50 Index Lose 1.01%
May 3, 2012--The Dow Jones Islamic Market Titans 100 Index finished down 0.83% in April according to data compiled by Dow Jones Indexes. The index measures the performance of 100 of the world's leading Shari'ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted an April loss of 1.57%.
Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, gains 0.87% in April; the Dow Jones Asian Titans 50 Index dropped 0.25%.
Source: Mondovisione
US urges China to allow yuan rise
May 3, 2012--US Treasury Secretary Timothy Geithner on Thursday urged China to allow its currency to strengthen further and push forward economic reforms, which he said were crucial to the global recovery.
But his comments at the start of two-day talks between the world's two biggest economies were overshadowed by a human rights row that has threatened already strained relations.
US officials have long accused Beijing of keeping the value of the yuan artificially low to boost exports, leading to a massive Chinese trade surplus with the United States.
Source: FIN24
Global ETF assets to exceed $3.8tn by 2016
May 2, 2012--Assets held in exchange traded funds globally will exceed $3.8tn by 2016, according to a new report by Cerulli Associates.
The report predicts growth will be fuelled by a greater appetite for passive investing, increased adoption of ETFs by financial advisers and advances in ETF education.
Source: FT.com
Dow Jones-UBS Commodity Indexes April 2012 Performance Report
May 2, 2012--The Dow Jones-UBS Commodity Index, was down 0.43% for the month of April. The Dow Jones-UBS Single Commodity Indexes for soybean meal, soybean and lead had the strongest gains with month-end returns of 11.46%, 7.09% and 5.63%, respectively.
The three most significant downside performing single commodity indexes were orange juice, sugar and lean hogs, which ended the month down 13.99%, 11.95%, and 4.95% respectively.
Year to date, the Dow Jones-UBS Commodity Index is up 0.43% with the Dow Jones-UBS Soybean Meal Sub-Index posting the highest gain of 37.37% so far in 2012. Dow Jones-UBS Natural Gas Sub-Index has the most significant downside YTD performance, down 36.73%.
Source: Mondovisione
