Global ETF News Older than One Year
Banks face €350bn Basel III shortfall
December 14, 2011--European banks will have to raise nearly €200bn ($260bn) in new capital or cut their balance sheets by nearly 20 per cent, to
achieve the tougher new Basel III banking reform rules that start taking effect in 2013..
Source: FT.com
ETF Securities bidding 'gone quiet'
December 14, 2011--Industry experts say ETF Securities will struggle to find a buyer, with private-equity firms and asset managers unlikely to fall over themselves to snap up the provider.
The firm’s founder, Graham Tuckwell, who is also chairman and majority shareholder of ETF Securities, has reportedly mandated Goldman Sachs to find a buyer for the London-based provider, asking for unconditional offers to be submitted before Christmas.
Source: FT.com
EDHEC-Target-volatility strategies -a response to current investment dilemma
December 14, 2011--Insurance companies and pension funds have traditionally played an important role as providers of long-term risk capital and, in a world of deleveraging credit institutions, are crucially needed to finance economic development.
However, recent and forthcoming changes in accounting and prudential standards encourage long-term institutional investors to invest in low risk assets that are highly correlated with liabilities. Meanwhile, in the current low interest rate environment, institutional investors cannot meet their future obligations out of the yields on these instruments. At the same time, risk-based capital charges and financial reporting standards penalise assets that offer high risk premia and make it expensive for long-term investors to directly hold volatile assets.
Visit www.edhec-risk.com for more info
view the Structured Equity Investment Strategies for Long-Term Asian Investors study
Source: EDHEC
Gold reels near three-month lows as euro crisis rages
December 14, 2011--Gold tumbled to its lowest level since early October on Wednesday, set for its weakest monthly performance since September, as a weak euro and a shortage of dollar funding over the year-end prompted investors to sell aggressively.
Gold has lost about 8.0 percent in value so far this month, on course for its weakest December performance since 2008 and its third-largest monthly sell-off in three years, the point at which the global credit crunch was at its worst.
Source: Reuters
Deutsche Börse AG and NYSE Euronext statement on revised remedy submission
December 13, 2011--NYSE Euronext (NYSE:NYX) and Deutsche Börse AG (XETRA: DB1) today confirm that they have submitted revised remedies to the European Commission’s Directorate-General for Competition (DG Competition).
The revisions are designed to reflect the European Commission’s feedback on the initial proposal, and thereby fully address the Commission’s remaining concerns while preserving the industrial and economic logic of the merger.
In summary, the parties have strengthened their original proposal with respect to European single equity derivatives by increasing the assets to be included in the divesture, and to provide the purchaser of that business with an option to access Eurex Clearing for single equity derivatives products. The parties have also improved the coverage of their clearing access remedy for innovative equity index and interest rate derivatives. In addition, the parties committed to license the Eurex trading system to a third party interested in launching interest rate derivatives.
Source: Deutsche Börse
WEF -The Financial Development Report 2011
December 13, 2011--Hong Kong SAR overtakes the United States and the United Kingdom to top the World Economic Forum’s fourth annual Financial Development Report. As the first Asian financial centre to achieve this rank, Hong Kong’s position was bolstered by strong scores in non-banking financial services such as IPO activity and insurance.
Although it fell one spot to 2nd place, the United States’ overall score remains almost unchanged compared to last year. While financial stability continues to be a concern, the US was able to offset this weakness with strong financial intermediation results. Particular strengths in this area include highly developed foreign exchange and derivatives markets, as well as comparatively robust M&A and securitization activity. The United Kingdom declined in both score and rank, placing 3rd overall. The greatest contributing factors to the United Kingdom’s decline are lower scores on securitization and IPO activity.
The Financial Development Report 2011
Source: World Economic Forum (WEF)
November 2011 FIF Market Share and Market Dynamics Reports – Executive Summary
December 12, 2011--U.S. Equities Market Share
Share volumes traded across Tape A, B, and C decreased 15% monthly and 0.5% annually to 154 billion shares.
In November 2011, off-exchange trading
accounted for 30% of the shares traded in NMS Equity Securities.
Share volumes in NYSE-listed securities decreased 16% monthly and 3% annually to 85 billion shares.
NASDAQ-listed securities traded over exchange decreased 12% monthly and 2% annually to 39 billion shares. U.S. Equity Options Market Share
The top 3 market centers (PHLX, CBOE, ISE) make up 60% of the total cleared contracts.
BATS saw an annual increase of 95% to 6.1 million contracts (29% decrease monthly). At an annual rate, the total number of cleared contracts decreased 18% to 179 million contracts.
Total premiums in November 2011 decreased 9% annually to $51.5 billion.
view the November 2011 FIF Market Share and Market Dynamics Reports – Executive Summary
Source: Financial Information Forum (FIF)
FTSE Announces New Ownership Structure - London Stock Exchange Group to acquire 100% Ownership of FTSE International Ltd
December 12, 2011--FTSE International Limited (‘FTSE”) today announces a change to its current joint-venture ownership structure, with the London Stock Exchange Group (“London Stock Exchange Group”) announcing it has signed a definitive agreement to acquire the 50 per cent stake in FTSE International Limited, from Pearson, that the London Stock Exchange Group does not already own.
Following the transaction which is expected to close in Q1 2012 subject to customary closing conditions, FTSE International Limited will be wholly owned by the London Stock Exchange Group.
FTSE currently calculates and manages over 200,000 indices worldwide which are linked to over $3 trillion in global Assets under Management. These include the widely used global benchmark, the FTSE All-World Index, as well as a range of flagship indices around the world, such as the FTSE 100 Index and the FTSE MIB Index. FTSE also has successful partnership indices with several stock exchanges; FTSE/JSE Top 40 Index, FTSE KLCI and the Straits Times Index, which form the basis of a range of high profile ETFs globally
Source: FTSE
London Stock Exchange Group plc to acquire outstanding 50 per cent of FTSE International Limited
50 per cent stake of FTSE to be acquired for £450 million, giving LSEG 100 per cent ownership and strategic control
FTSE is a leading, high growth global index business with a powerful international brand and reach
Transaction facilitates accelerated global expansion and growth
LSEG’s business further diversified into indices, data and analytics, as well as into new geographies, in line with stated strategy
Governance and independence of FTSE index products to be maintained
Cost synergies of £10 million p.a. and gross revenue synergies of £18 million p.a. by the end of year 3; immediately earnings enhancing
Funded from existing resources; commitments received for new £350 million bank facilities to maintain financial flexibility (subject to final documentation)
Closing is subject to customary conditions and is expected by Q1 2012
December 12, 2011--London Stock Exchange Group plc (“LSEG”) today announces that it has signed a definitive agreement to acquire the 50 per cent stake in FTSE International Limited (“FTSE”), from Pearson plc, that LSEG does not already own, for total cash consideration of £450 million.
FTSE significantly diversifies LSEG’s business into indices, data and analytics and, in particular, creates new growth opportunities for LSEG’s listed derivatives trading business, a key strategic priority for the Group. It will increase access to buy-side firms and services and will offer an enhanced global footprint, including key emerging and growth markets. The transaction delivers on LSEG’s strategic objectives to build on its existing assets and seek opportunities.
Source: London Stock Exchange Group
German state seeks changes to D.Boerse, NYSE deal
December 12, 2011-A regional regulator said it had raised some objections to exchange operator Deutsche Boerse's (DB1Gne.DE) takeover of NYSE Euronext (NYX.N) and was awaiting a reply.
"There are legal reservations about the deal," the Hessian Ministry of Economics said in an e-mailed statement on Monday.
The ministry, based in Wiesbaden, Germany, has the power to revoke Deutsche Boerse's operating license, a key prerequisite to a successful deal.
Source: Reuters
