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11-31AD ASIC invites feedback on proposals to improve disclosure for hedge funds
February 24, 2011--ASIC has released a consultation paper that outlines proposals to improve disclosure requirements for retail investors who invest in hedge funds. Consultation Paper 147 Hedge funds: Improving Disclosure for retail investors (CP 147) seeks feedback on enhancements aimed at ensuring retail investors and their advisers have the information they need to make an informed investment decision about the risks posed by hedge funds.
ASIC Commissioner, Greg Medcraft said, ‘Hedge funds, because of their diverse investment strategies, complex structures and use of leverage, short selling and derivatives can pose more diverse and complex risks for investors than traditional funds. Investors need the knowledge to assess factors such as how their money is to be invested, who makes key decisions for the fund, how the assets will be valued, and how investors can withdraw their money as well as details relating to leveraging, derivatives and short selling.’
CONSULTATION PAPER 147
Hedge funds: Improving disclosure for retail investors
Source: ASIC
FSA publishes English translations of laws related to “Introduction of Consolidated Regulation and Supervision of Securities Companies
February 24, 2011--Financial Services Agency (FSA) introduced the consolidated regulation and supervision of securities companies, which will come into effect on April 1st, 2011, based on the 2010 amendment of the Financial Instruments and Exchange Act, etc. Today, the FSA publishes English translations of the Financial Instruments and Exchange Act, Order for Enforcement of the Financial Instruments and Exchange Act, and Cabinet Office Ordinance on Financial Instruments Business, etc. related to “Introduction of Consolidated Regulation and Supervision of Securities Companies.”
Please note that these are unofficial translations. Only the original Japanese texts of laws and regulations have legal effect. The translations are to be used solely as reference material to aid in understanding of Japanese laws and regulations. The Government of Japan shall not be held responsible for the accuracy, reliability or currency of the legislative material posted on this website, or for any consequences resulting from use of the information on this website. For all purposes of interpreting and applying laws and regulations to any legal issue or dispute, users should consult with the original Japanese texts published in the official gazette.
view the Financial Instruments and Exchange Act related to “Introduction of Consolidated Regulation and Supervision of Securities Companies
Source: FSA.go.jp
SSE, BM&FBOVESPA Ink Cooperation Agreement
February 23, 2011--The Shanghai Stock Exchange (SSE) officially signed the Memorandum of Understanding on closer cooperation with BM&FBOVESPA SA in Sao Paulo, Brazil on February 21 (Beijing Time).
SSE President Zhang Yujun and CEO Edemir Pinto of BM&FBOVESPA signed the MoU on behalf of their respective bourses.
Zhang said at the signing ceremony that the signing of the MoU on closer cooperation with BM&FBOVESPA by the SSE, which has always cherished communication and cooperation with exchanges all over the world and international exchange organizations, marked the establishment of long-standing and stable partnership between the two sides. It is learnt that the MoU covers cooperation in developing bonds products and trading facilities, information exchange, mechanism of high-level visits, regular exchange of personnel, regular joint research and special seminars on topics of mutual interest, etc.
Source: Shanghai Securities News
HKEx Welcomes Government Plans to Strengthen Hong Kong's Financial Services Industry
February 23, 2011--Hong Kong Exchanges and Clearing Limited (HKEx) issued the following statement in response to media enquiries about today's budget speech by Hong Kong's Financial Secretary.
HKEx welcomes the measures in the Government’s budget for the 2011-2012 fiscal year aimed at further strengthening the competitiveness of Hong Kong's financial services industry.
HKEx noted the Government’s preliminary plan to issue iBonds designed for Hong Kong residents and hopes to talk with the Hong Kong Monetary Authority about the possible listing of the bonds on HKEx’s securities market.
“The measures related to financial services will help Hong Kong maintain its position as a leading international financial centre,” said HKEx Chief Executive Charles Li.
“We appreciate the Government’s latest plans, as well as its support of HKEx and our industry over the years,” Mr Li added. “Fostering further development of the offshore renminbi business in Hong Kong, continuing to improve Hong Kong’s listing facilities to attract more enterprises from key emerging and developed markets overseas, further efforts in facilitating the secondary listing of overseas companies in Hong Kong and other initiatives announced today will be supportive as we continue to implement our current three-year strategic plan.”
Source: Hong Kong Exchanges and Clearing Limited (HKEx)
DB Index & ETF Research: Asia-Pac ETF Market Weekly Review :ETP Assets Add $2.2bn as Markets Rally
February 23, 2011--Market Review
In general, last week was a positive week for the markets across the Asia-Pacific region. Early in the week, global markets processed Egypt’s move towards democracy as encouraging, while at a local level the better-than-expected export and inflation data released in China lured investors back to the equity markets fueling a rally across the region. The Hong Kong market (HSI) rose by 3.4%, the Chinese market (CSI 300) gained 2.9%, the Japanese market (Nikkei 225) increased by 2.2%, the Korean market climbed 2.1%, and the Australian market added 1.1%.
There was one new listing in the Asia-Pac ETP markets. Midas AM launched an Equity ETF following an option strategy known as “Covered Call” on the KOSPI 200 index, which can now be accessed at a TER of 0.45%. Total ETPs available in the region stand at 295, with 85% represented by equity products, and the remaining 15% distributed, mainly between Commodity and Fixed Income products.
Turnover Review: Activity surges as markets rally
In the last week, total turnover reached $ 6.2 bn, which is $1.8 bn or 40% above previous week's total of $ 4.4 bn, and 29% above from last year’s weekly average. The on exchange activity surge was mainly due to increased activity in Hong Kong and China. Last week, Chinese exchanges were open for all the days as compared to the previous week when there were two holidays. Equity ETPs activity rose by 42%, totaling $6.0 bn.
The Hong Kong market took the first place with a weekly turnover total of $2.0 bn, with the Chinese markets piggybacking just $6 million behind.
Asset Under Management Review
Good markets globally and positive local economic data underpinned a $2.2 bn or 2.6% WOW growth in the Asia-Pacific ETP AUM. This week’s assets reached $86.4 bn vs. $84.2 bn in the previous week. Year to date, assets are up by 2.7%, $2.2 bn above last year’s close.
To request a copy of the report
Source: Deutsche Bank Global Equity Index & ETF Research
iShares’ Australian business reaches AU$1 billion assets
February 23, 2011--BlackRock announced its exchange traded fund (ETF) business, iShares, is celebrating a
significant milestone today with its Australian business reaching AU$1 billion assets under management (AUM)1.
iShares, the world’s leading provider of ETFs, launched its first suite of international ETFs in Australia in October 2007 and now has 23 ETFs listed on the ASX, across domestic and international indices.
According to Deborah Fuhr, BlackRock‘s Global Head of ETF Research and Implementation Strategy, the ETF
category in Australia is predicted to grow by 20 - 30% per annum over the next couple of years. Several factors driving this growth include:
Increasing awareness and familiarity of ETFs and the benefits they provide across key investor segments;
Growth in the number of financial intermediaries and direct investors increasing their usage of ETFs to gain costeffective, transparent exposure to international and Australian sharemarkets;
Australian institutions increasingly using ETFs for specific investment strategies such as cash equitisation and portfolio rebalancing;
A move to fee-based advisory models by financial advisers due to proposed regulatory fee reforms, which will make ETFs an increasingly attractive option;
Fund platforms embracing ETFs driven by rising client demands to include them;
Greater choice of ETF products with future expansion across asset classes such as fixed income;
The expectation that new providers of ETFs will emerge;
Research houses in Australia increasing their analysis and rating services to encompass ETFs;
A strong Australian dollar will continue to prompt unhedged exposure to global markets. Mark Oliver, Head of iShares, Australia comments: “Surpassing $1 billion is an important event for iShares in Australia. A number of factors have led to this milestone achievement including the launch of our Australian Equity ETF products last year, the growing appeal of our international ETFs and the commitment of the iShares team here in Australia.
read more
Source: iShares
Hong Kong set to issue inflation-linked bonds
February 23, 2011--The Hong Kong government is set to issue the city’s first inflation-linked bonds, designed for local retail investors, at a time of heightened worries about a property bubble and rising costs of living.
Strong economic growth of 6.8 per cent in 2010, announced in the financial secretary’s annual budget speech on Wednesday, has come with rising inflation, which last year stood at 2.4 per cent but is forecast to reach 4.5 per cent in 2011.
read more
Source: FT.com
Singapore Exchange Enhances Securities Clearing Fund Structure
February 23, 2011-- Singapore Exchange (SGX) today announced enhancements to the structure of The Central Depository (CDP) Clearing Fund to cater to market growth and to strengthen further the robustness of the securities market.
The revised Clearing Fund structure is scalable, linking clearing members' contributions more closely to the level of risk they bring to the clearing system. Their clearing fund contributions will change in line with their securities traded values. Previously, the contributions remainfixed in aggregate.
Under the revised structure, CDP only requires a portion of clearing members' increased contributions to be deposited upfront. Clearing members will be called upon to deposit the remaining contributions under conditions of increased risk or to meet losses arising from clearing member default.
In addition to regular clearing requirements, SGX is also introducing collateral on short-term large exposures. The large exposure collateral will better protect the clearing system against the default of individual clearing members with particularly large risks.
An extensive public consultation exercise was conducted in 2009. SGX has incorporated feedback from the market participants and received broad support from its securities clearing members in bolstering the financial resources to safeguard the clearing system against default of securities clearing members.
The enhancements and accompanying changes to the CDP Clearing Rules will take effect from 3 May 2011.Details are available on SGX website at:
http://www.sgx.com/wps/portal/corporate/cp-en/regulation/rulebooks_manuals/cdp_clearing_rules/amendments
Source: Singapore Exchange (SGX)
BetaShares U.S. Dollar ETF debuts as top 10 most traded ETF on ASX
AUM more than doubled in second week of trading
Median trade was A$15,000, indicating pent up demand from retail investors for access to U.S dollar exposure in a simple, transparent and low cost way
Strong interest from small businesses looking to use the ETF to hedge upcoming U.S. dollar purchases
February 21, 2011--BetaShares Capital Limited (BetaShares) today announced its newly listed US dollar exchange traded fund (ASX: USD) was one of the top 10 most traded ETFs on the Australian Securities Exchange in its first two weeks of trading with assets under management doubling in the second week of trading.
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Listed on 1 February 2011, BetaShares US Dollar ETF tracks the performance of the US dollar (US$) relative to the Australian dollar (A$) using a simple, transparent and highly cost-effective
structure backed by US dollars held in a bank account with JP Morgan Chase Bank.
Drew Corbett, Head of Investment Strategy & Distribution at BetaShares said the average trade size of $15,000 indicates strong retail appetite for foreign exchange investment opportunities that were previously unavailable to them.
“Exorbitant fees and poor exchange rates in foreign currency bank accounts mean retail investors have been effectively shut out of the foreign exchange markets up until now. Heavy trading by retail investors in the USD ETF suggests a high level of pent up demand for cost effective and simple foreign exchange investment opportunities,” Mr Corbett said.
“In addition, we are finding that there are a significant number of investors who are investing in this product as a simple way to get exposure to the potential recovery of the U.S. economy”, he continued.
The launch of the USD ETF comes at a time of historic strength for the Aussie dollar, which is currently trading at about 40% above its long run average value. The ETF enables investors to capitalise on any potential weakening in the A$ relative to the US$. For example, if the US$ appreciates 10% against the A$ (i.e. if the A$ falls in value), the price of the ETF should go up 10% too.
This exposure comes at a fraction of the cost of current mechanisms available to most investors. Investing A$10,000 in a US dollar bank account can cost an individual up to $700 over a six month period due to fees, costs and poor exchange rates. The superior rates provided by BetaShares mean the same investment in its ETF would cost around A$70.
BetaShares has also reported strong interest from small to medium business owners which have large US dollar capital expenditures planned in the future and are looking to hedge against a fall in the Australian dollar.
The US Dollar ETF is the third ETF listed by BetaShares after the Resources Sector ETF (ASX: QRE) and Financial Sector ETF (ASX: QFN) listed on the ASX in mid December.
The product launch is further evidence of BetaShares’ commitment to provide Australian investors with
ETFs tailored to the Australian market.
Source: BetaShares
Tokyo Stock Exchange Will Reduce The Minimum Tick Size For Single Stock Options
February 22, 2011--TSE will reduce the minimum tick size for single stock options in the 4th quarter of 2011 to respond to detailed trading needs. Specifically the minimum tick size will be reduced from 0.5 yen to 0.1 yen
TSE will be accepting public comments regarding this matter from the current date until March 24, 2011.
Reducing the Minimum Tick Size for Single Stock Options
Source: Tokyo Stock Exchange
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