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SGX seeks public feedback on proposal
April 20, 2010--The Singapore Exchange (SGX) has invited public feedback on a proposal that will allow banks to trade stocks directly without the need to set up a separate brokerage unit.
In its consultation paper issued yesterday, SGX said any entity with a banking licence under Singapore's Banking Act can apply to become a "Trading Member" in the securities market. But they will need to maintain a minimum capital base of $1 million, while a minimum base of $5 million is required if they are also clearing trades as a "Clearing Member".
Banks currently trade securities through their incorporated brokerage firms. DBS, for instance, has DBS Vickers, while UOB and OCBC have UOB Kay Hian and OCBC Securities, respectively.
The structure for banks as Trading Members in securities will be similar to that of derivatives, where banks have participated directly as trading members for the past one or two years.
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Source: Today Online
USE Receives the Final Approval From Regulator
April 20, 2010--The United Stock Exchange of India Limited (USE) has received final approval from the Securities and Exchange Board of India (SEBI) to commence operations in currency futures in all the four pairs of currencies, i.e. US Dollar – INR; EUR – INR ; Pound Sterling - INR; Japanese Yen - INR. In light of this approval, Bombay Stock Exchange Limited (BSE), the largest shareholder in USE, has officially suspended its operations in the Currency Derivatives Segment.
Following SEBI approval, USE has vigorously launched its membership drive and over 150 members have already submitted their applications. Most of the members of BSE are expected to join USE. In addition, new members from the banking fraternity and broking field have evinced keen interest in the new exchange.
According to T. S. Narayanasami, Managing Director & CEO of USE: "USE's membership drive is in full swing, and we are very pleased to see spontaneous response from the banks which are natural partners of USE apart from the broking community. Trading Membership is initially free with nil transaction charges to begin with. It is envisaged that since almost the entire banking system are stakeholders, USE will gain significantly by the volumes traded by them on the exchange. Details on the membership process are placed on the website of USE, www.useindia.com. USE has tentatively planned to commence operations in June 2010."
Madhu Kannan, MD and CEO of the BSE, added: "The currency derivatives market in India has enormous potential for continued growth in the next few years. We expect USE to compete well in this growing market on the basis of product innovation, the training and development of new participants, and strong leadership."
Source: United Stock Exchange of India:
Index Insider: Spring 2010 - NDX Hits International Milestone
April 16, 2010--International Milestone — NASDAQ-100 Expands to China
The Global Index Group is pleased to report the launch of the very first foreign index-linked financial product ever established in China, the Guotai NASDAQ-100 Index Fund. This also marks the first time the NASDAQ-100 (NDX) benchmark has been available to Chinese investors.
The Guotai NASDAQ-100 Index Fund was created by Guotai Asset Management to offer Chinese investors exposure to 100 of the world’s largest non-financial companies including Baidu, Apple, Microsoft and Google. Currently, Guotai is conducting its offering period. More than 1,500 NDX-linked products can be found in more than 37 countries around the world.
“We view the NASDAQ-100 Index as a cornerstone to our international business strategy of bringing innovative investment opportunities to local investors,” said Ms. Xu Jin, General Manager, Guotai AMC."
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Source: NASDAQ OMX
DB Index Research -- Weekly ETF Market Review - Asia-Pacific
April 15, 2010--Highlights
Market Overview
There are 225 equity based ETFs in the Asia Pacific region with 300 listings across 12 countries and 15 exchanges. Japan has the largest market share by AUM accounting for 41.75% of the whole market, whilst China has the largest market share by turnover with 32.67%.
The first quarter of 2010 marked a record in product offerings reaching 37 new listings. Increase listing activity has remained strong after the end of Q1, with the last three weeks unfolding a new and diverse range of 22 ETFs arriving to the Asia-Pacific market. Deutsche Bank AG listed a whole suite of 11 UCITS III ETFs tracking China’s CSI country and sector benchmarks on Hong Kong SE, and 2 money market funds on the Singapore SE. MAPS IM Co listed 2 pioneer funds following short and leveraged strategies on Korea’s flagship benchmark Kospi 200, respectively, on the Korea SE. New entrant, Australian Index Investment Pty Ltd, added 4 more Australian sector ETFs to its offering on ASX. Finally Samsung Inv. Trust Mg and Hanwha Inv. Trust Mg listed 1 ETF each on the Korea SE.
Turnover
Monthly average daily turnover rose 6.5% in the last week. Turnover for the previous week was USD 752m. The largest ETF by turnover was the China 50 ETF issued by China Asset Management with USD 164m accounting for 21.8% of total turnover.
Assets Under Management
AUM rose 5.3% in the previous week. AUM as of April 12th were USD 63.5bn. The largest ETF by AUM is the TOPIX ETF managed by Nomura Asset Management with AUM of USD 6.5bn.
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Source: Aram Flores and Shan Lan -DB Index Research
China ups gas prices as economy grows
April 14, 2010--China raised gasoline and diesel prices Wednesday for the first time in five months in a move reflecting Beijing’s confidence it can control inflation and keep growth strong.
The price hikes of 4 percent to 4.5 percent were in line with expectations following recent gains in global crude prices. Oil rose above $84 a barrel Wednesday in Asia, breaking a five-day slide, as rising global stock markets raised optimism over the global economic outlook.
April 13, 2010--China’s four biggest publicly traded banks could face a combined capital shortfall of at least Rmb480bn ($70bn) over the next five years, according to the president of Industrial and Commercial Bank of China, the world’s biggest bank by market value.
All of China’s largest banks have announced plans in the past month to raise fresh capital to shore up their balance sheets after an unprecedented credit binge last year. But the total amounts they plan to raise fall far short of the five-year estimate of Yang Kaisheng, ICBC president .Global ETP News
