Credit Suisse betting on rise in Asian ETF trading
Taking its cue from greater on-exchange activity in A-share ETFs, the bank has invested in a new market-making system for providing on-screen quotes to the retail segment
November 23, 2012--In anticipation that Asian ETF trading is poised to rise, Credit Suisse is rolling out a new market-making system for providing on-screen quotes to investors seeking to trade in smaller sizes.
Asia is different to the US, where ETFs predominately trade on-exchange. Some brokers estimate that daily ETF trading volume on-exchange in this region amounts to between $1 billion and $1.5 billion,
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Source: Asian Investor
SEBI allows Liquid Index ETFs trading in short selling market
SEBI said that an Index ETF would be considered 'liquid', if it has traded on at least 80% of the days over the past six months
November 23, 2012-- Market regulator Securities and Exchange Board of India (SEBI) has allowed exchange traded funds (ETFs) that track indices to trade in the short selling market, as part of changes in the securities lending and borrowing framework, reports PTI.
SEBI said that "Liquid Index ETFs shall be eligible for trading in the Securities Lending and Borrowing (SLB) segment".
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Source: Money Life
Malaysia ETF Could be Next to be Impacted by Politics
November 23, 2012--Investors in the U.S. are not even three weeks removed from Election Day, but it is worth noting other investable countries will be holding elections in the coming months.
Malaysia, which is expected to hold general elections in six months, is a prime of country that is easily accessible to U.S. investors.
The Asian nation is also a prime example of one that can easily be affected by domestic politics. To that end, the iShares MSCI Malaysia Index Fund (NYSE: EWM [FREE Stock Trend Analysis]) is one country-specific emerging markets ETF investors will want to keep an eye on in the coming months.
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Source: Benzinga
Nikkei, Tokyo Commodity Exchange To Launch 2 New Indexes
November 22, 2012--Nikkei Inc. and the Tokyo Commodity Exchange Inc. will launch new indexes based on the Nikkei-TOCOM Commodity Index and the Nikkei-TOCOM Sub Commodity Index.
The Nikkei-TOCOM Leverage Index represents the performance of the underlying commodity indexes, while the Nikkei-TOCOM Inverse Index represents the inverse performance of the underlying indexes and moves in the opposite direction of the Nikkei-TOCOM Leverage Index. The two indexes will be published on the TOCOM website every day, starting from Dec. 3.
Nikkei and the Tokyo Commodity Exchange will create the leverage index and the inverse index for the commodity index and 11 sub-commodity indexes for individual commodity futures, including gold and crude oil.
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Source: Nikkei.com
Australia: IOSCO Objectives and Principles of Securities Regulation-Detailed Assessment of Implementation
November 21, 2012--Summary: The Australian legal and regulatory framework for securities markets exhibits a high level of compliance with the International Organization of Securities Commissions (IOSCO) Principles.
A few remaining concerns need to be resolved, including some identified in the 2006 assessment. Australian Securities and Investments Commission’s (ASIC) operational independence and sufficiency of resources are overarching concerns which impair its ability to discharge its supervisory functions adequately and effectively across the entire regulated population
Australia: Financial Safety Net and Crisis Management Framework-Technical Note
November 21, 2012--Summary: Australia has a history of few bank failures, even fewer financial crises, and its banking sector emerged from the global financial crisis relatively well.1
With an eye toward international developments, the Australian authorities have taken commendable steps to strengthen the financial safety net and crisis management framework over the last several years. The Government’s well-coordinated response to the global financial crisis included adopting significant legislative changes in October 2008 to put in place guarantee arrangements for retail deposits, among other enhancements to the financial safety net and crisis management framework. Further improvements were made in June 2010 and the Government is currently pursuing additional legislative changes.
view the IMF paper-Australia: Financial Safety Net and Crisis Management Framework-Technical Note
Source: IMF
Bond boom looms for India's ETFs: Goldman
November 21, 2012--Drivers behind India's exchange traded fund sales point to significant growth, especially in bond products, according to Goldman Sachs' India fund unit.
"We are... looking at exponential growth in the next three to four years,” said Shanjiv Shah, Mumbai-based managing director and co-chief executive at Goldman Sachs Asset Management (India).
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Source: FT.com
DB-Synthetic Equity & Index Strategy-Asia-Pac ETF+ Monthly Directory-October 2012 ETPs
November 20, 2012--This document includes all Asia-Pacific listed exchange-traded funds (ETFs) and exchange-traded commodities (ETCs). The directory is organized by country and asset-class-related sub sections.
Within each sub section it has been sorted by ETP issuer by alphabetical order and by AUM in descending order. A number of key information points per product have been included in order to enable the reader to get an overview in their own area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US). If you have any questions about any of the products listed, or any suggestions on how to improve the directory going forward, please do not hesitate to get in touch.
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Source: Deutsche Bank -Synthetic Equity & Index Strategy-Asia
Australia introduces "kill switch" for computer share trading
November 20, 2012--The Australian government introduced new market trading rules, including a "kill switch", on Tuesday to protect investors from volatility caused by controversial super-fast computer-driven trading.
The government also launched further inquiries into high frequency trading and so-called dark pool trading, which allows shareholders to trade amongst themselves away from the main "lit" market without revealing their identity or display prices.
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Source: Rueters
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-ETP AUM reduced marginally amid bearish equity markets
November 20, 2012--Market Review
Last week, all the major markets in the Asia-Pacific region remained in negative territory except Japan. Compared to the week before, from north to south:
Japan (Nikkei 225) +3.04%
Korea (KOSPI2) -2.11%
China (CSI 300) -2.84%
Hong Kong (HSI) -1.05%
Singapore (FSSTI) -2.12%
Australia (S&P/ASX 200) -2.81%
New Product Launch Review
Last week, one new product was launched in the Asia-Pacific ETP market. UBS Hana Asset Management Co Ltd made its debut with the listing of one equity ETF on Korea Stock Exchange tracking Kospi50 Index.
Turnover Review
Asia-Pacific ETP turnover totaled $6.8bn last week, 6.1% down from the previous week’s total. South Korea continued to top the turnover ranking with $2.6bn, followed by Hong Kong ($1.8bn), China ($1.4bn), Japan ($0.7bn), and Taiwan ($0.2bn). Among Equity ETFs, the Emerging Country, Leveraged Strategy, Asia-Pacific Developed Country, and Short Strategy ETFs had total turnovers of $3.3bn, $1.3bn, $1.3bn, and $0.5bn respectively. Among the Commodity asset class, turnover in Gold ETPs totaled $91mn.
Assets under Management Review
On a year-to-date basis, Asia-Pacific ETP market is up by $29.9bn or 32.7% above last year’s closing.
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Source: Deutsche Bank -Synthetic Equity & Index Strategy-Asia
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