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BNY Mellon Agrees to Acquire BHF Asset Servicing GmbH; Will become second largest asset servicing provider in Germany.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 473 billion in assets under custody & administration, EUR120 billion depot banking volume
March 11, 2010--BNY Mellon, the global leader in asset management and securities servicing, has agreed to acquire BHF Asset Servicing GmbH from BHF-BANK Aktiengesellschaft and Sal. Oppenheim jr. & Cie. S.C.A. for EUR253 million (US$343 million), subject to regulatory approvals. This transaction will include the purchase of BHF Asset Servicing's wholly-owned fund administration affiliate, Frankfurter Service Kapitalanlage-Gesellschaft mbH (FSKAG).
The transaction is expected to be immediately accretive to GAAP EPS, providing an IRR of between 17% and 19%. It is scheduled to close in the third quarter of 2010 and will be funded internally.
BHF Asset Servicing and FSKAG will become part of BNY Mellon's Asset Servicing business. The new combined German business will have EUR473 billion* (US$642 billion) in assets under custody and administration and a depotbanking volume of EUR120 billion (US$163 billion). BNY Mellon becomes the #2 provider by assets held in this key European market, the world's fourth largest economy. In addition, the acquisition expands BNY Mellon's existing capabilities to encompass the provision of German domestic custody and KAG fund administration.
Tim Keaney, Chairman of Europe at BNY Mellon and co-CEO of BNY Mellon Asset Servicing, said: "This transaction expands our capabilities and market share in one of the world's largest fund markets, positioning BNY Mellon at the forefront among securities servicing providers in Germany and creating a strong platform for growth across our businesses."
The new BNY Mellon Asset Servicing business in Germany will offer a full range of tailored solutions for investment companies, financial institutions and institutional investors. It will be headquartered in Frankfurt am Main and have 340 staff. It will be headed by Michelle Grundmann from BNY Mellon, and Juergen P. Frank and Christopher V. Friedrich from BHF Asset Servicing. They will report to Nadine Chakar, Head of Europe, Middle East & Africa (EMEA) at BNY Mellon Asset Servicing.
Juergen P. Frank, Spokesman of the Managing Board, BHF Asset Servicing, said: "Becoming a part of the world's leading asset servicing provider, whose scale, geographic reach and commitment to this business is second to none, is an extremely exciting proposition. It will provide many new opportunities for BHF Asset Servicing clients and staff."
Michelle Grundmann, Managing Director and Branch Head Frankfurt am Main, BNY Mellon, continued: "We've had a successful relationship with BHF-BANK for more than seven years and this transaction was the next logical step for our growing business, one that further underlines our long-term commitment to the German market. Continuity of personnel and service levels will remain our number one priority. As the success of our own post-merger integration demonstrates, BNY Mellon possesses the expertise and resources necessary to ensure that we continue to offer clients the innovation and excellent service they have come to expect."
BNY Mellon has been serving clients in Germany since 1931. The company opened its first office in Frankfurt in 1972 and following this transaction will have 560 people in Germany. In addition to asset servicing, depotbanking and asset management, BNY Mellon is active in Germany in the areas of corporate trust, treasury services, depository receipts and client management. It has over 100 institutional relationships in Germany and offers regional coverage for 14 countries in the German speaking and Central Eastern and South Eastern European region.
A leading provider of local custody, depotbank and fund administration services to some of Germany's largest financial institutions and institutional investors, BHF Asset Servicing has EUR315 billion (US$427.5 billion) assets under custody and administration and a depotbanking volume of EUR94.4 billion (US$128 billion). FSKAG administers assets valued at EUR33.1 billion (US$44.9 billion).
*Includes EUR33.1 billion held by FSKAG
UBS admits 69 ETCs to London Stock Exchange
March 10, 2010--The London Stock Exchange today announces that UBS has become a new issuer of Exchange Traded Commodities (ETCs) on its markets. The bank has admitted 69 products in its first major issuance of ETCs in Europe outside Switzerland.
Pietro Poletto, Head of ETFs and ETCs at London Stock Exchange Group, said:
“We are delighted to welcome UBS’s new products today. London is fast becoming the venue of choice for issuers looking to break into the European marketplace for exchange traded products. Our market continues to evolve at an encouraging pace as both the breadth of products, and the level of trading activity, maintain trends of strong growth.”
In the last four weeks two European Exchange Traded Fund (ETF) providers, Osmosis Capital and Marshall Wace Indices, have chosen the London Stock Exchange on which to list their first products.
The average daily value traded in ETFs and ETCs across the London Stock Exchange’s markets in February was £169 million, a 19 per cent increase year-on-year. The average daily number of trades was 3,002, an increase of 11 per cent year-on-year.
13 new Xmtch ETFs launched on Xetra
March 10, 2010--Since Wednesday, 13 new Xmtch equity index funds from Credit Suisse’s ETF
offering have been tradable on Xetra®. Of the 13 new products, seven are
tradable in euros, four in US dollars, and two ETFs in pounds sterling.
Two of the new Xmtch ETFs on the EURO STOXX 50 and MSCI EMU indices enable investors to participate in the performance of euro area companies.
The EURO STOXX 50 index is comprised of the 50 largest companies from 12 euro area countries. The MSCI EMU index currently includes 299 companies from 11 countries in the European Economic and Monetary Union. Furthermore, the Xmtch on MSCI Europe allows investors to track the performance of European companies in 16 industrialized nations.
Three additional Xmtch ETFs measure the performance of US companies. Via the Xmtch on the Dow Jones Industrial Average, investors participate in equity performance of the 30 largest US companies. The Xmtch on MSCI USA provides an opportunity to track equity performance of at present more than 600 large to mid-cap US companies selected on the basis of their free-float market capitalization. With the Xmatch on Nasdaq 100, participants can invest in the performance of the 100 largest US and international companies by market capitalization in the computer hardware and software, telecommunication, retail/wholesale and biotechnology sectors.
The two ETFs Xmtch on Nikkei 225 and Xmtch on MSCI Japan are a means for investors to measure Japanese companies’ performance. Xtmch on MSCI Pacific ex Japan enables continued investment opportunity in the performance of companies located in the Pacific region excluding Japan.
The two ETFs Xmtch on FTSE 100 and Xmtch on MSCI UK give investors the option of tracking share performance of companies located in the UK.
The last two Xmtch ETFs enable investment in the performance of the MSCI Canada Index and the FTSE/MIB Index. Xmtch on MSCI Canada is a widely diversified index of companies located in Canada. Xmtch on FTSE / MIB comprises the 40 companies with the highest liquidity and market capitalization that are listed on Borsa Italiana.
The product offering in Xetra’s XTF segment currently comprises 589 exchange-traded index funds, making it the largest offering of all European stock exchanges. With this offering and an average monthly trading volume of around €11 billion, Deutsche Börse’s XTF segment is the leading trading venue for ETFs in Europe.
ETF Landscape: European STOXX 600 Sector ETF Net Flows, week ending 05-Mar-10
March 10, 2010--Last week saw US$200.7 Mn net inflows to STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Media with US$90.7 Mn and Banks with US$63.9 Mn while Utilities experienced net outflows of US$50.3 Mn.
Year-to-date, Media has been the most popular sector with US$275.4 Mn net new assets, followed by Utilities with US$139.8 Mn net inflows. Telecommunications ETFs have been the least popular with US$307.8 Mn net outflows YTD.
The assets invested in the ETFs are greater than the open interest in the corresponding futures contract in 17 out of 19 sectors.
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Deutsche Börse to Expand Product Offering on Xetra International Market
Deutsche Börse to Expand Product Offering on Xetra International Market
March 10, 2010--Deutsche Börse plans to expand the scope of tradable instruments on its pan-European platform Xetra International (XIM) market from 86 securities at present to 1,000.
By summer 2010 the existing offering for France, the Netherlands, Belgium, Finland, Spain and Italy will be enlarged by 700 securities. In this way all EURO STOXX instruments from these countries and additional highly liquid ones will become tradable and will be settled in their home countries.
In the second half of 2010 Deutsche Börse plans to admit to trading securities from the STOXX Europe 600 from Switzerland, Great Britain, and Ireland – the first two in their domestic currency, Ireland in euro. Planned to follow at the end of the year are shares from Austria, Denmark, Greece, Norway, Portugal and Sweden as well as Polish shares from the STOXX Eastern Europe 300 and further highly liquid securities from these seven countries. In total 1,000 shares will then be available for trading on XIM. The expansion is subject to respective national regulatory approval.
Transactions executed on Xetra International Market will be offset via Eurex Clearing and settled cost-effectively in the respective domestic markets. Clearstream forms the interface between Eurex Clearing and the domestic markets enabling Clearstream to use the settlement liquidity of these markets.
With its top market quality, competitive price model, and low set-up costs for participants, XIM will significantly strengthen Deutsche Börse’s competitive position on the European equities trading market. Deutsche Börse Group uses economies of scale for the new trading segment on Xetra and in the clearing house as XIM is set up on the existing infrastructure, generating hardly any additional costs in system operation. Deutsche Börse thus expects XIM to be a very sustainable business model.
ETF Stat February 2010 Report-ETF Plus Market
March 10, 2010--ETF Stat February 2010 Report-ETF Plus Market is now available.
view report
ETF Securities Offers First Currency-ETNs on Xetra
March 10, 2010--Ten Exchange Traded Notes (ETNs) issued by the issuer ETF Securities have been tradable on Xetra since Wednesday.
With the new ETNs, ETF Securities offers investors a first opportunity to participate in the performance of currencies.
The underlying indices display the exchange rate development of the Euro against Swiss Franc, British Pound, Norwegian Krone, Swedish Krona and Yen. Depending on the investor’s choice he has the opportunity to benefit from an either rising or declining Euro rate.
“We welcome these further innovative listings – they underline our market-leading position of trading in Europe,” said Rainer Riess, Managing Director of Xetra Market Development at Deutsche Börse.
Unlike exchange traded commodities (ETCs), which have been tradable with Deutsche Börse since 2006, ETNs are based on indices outside the commodities sector. Deutsche Börse combines the asset categories ETCs and ETNs into the product range Exchange Traded Products (ETPs). The ETF- and ETP product range currently comprises 589 ETFs, 155 ETCs and 12 ETNs.
Barclays' nous lifts hopes of US dream
March 10, 2010--Frits Seegers, the former retail banking chief at Barclays, was famously bearish about the US. “There are huge opportunities in Europe. The US is very different – it’s a bet on the economy and the risk-reward calculation doesn’t make sense yet,” he told the FT last September.
How times change. Economic prospects, particularly in the US, might look that much brighter six months on, but the crucial difference now is that a new man is in charge, after Mr Seegers was ousted late last year. And Antony Jenkins, his replacement and former Citigroup executive, is a fan of America.
ECB to examine European IMF plan: Trichet
March 10, 2010--The European Central Bank will examine Germany's proposal for the creation of an emergency loan fund for eurozone economies in distress, ECB chief Jean-Claude Trichet said on Wednesday.
"We don't reject the idea at this stage. We have to look at it and look at the details," Trichet told reporters on the sidelines of an exhibition opening in Frankfurt, where the ECB is headquartered.
Euro-Parliament urges tax on financial operations
March 10, 2010--The European Parliament on Wednesday called for a worldwide tax on financial transactions that would help pay for the economic crisis and could aid the fight against global warming.
"The European Union should come up with a common position... on options for the financial sector to make a just and substantial contribution" through such a tax, read the text of a resolution by the parliament.
If a global agreement is impossible, the EU should "elaborate its own strategy", EU lawmakers added in their non-binding resolution.
