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Gold hits all-time highs in Euro and Sterling
April 9, 2010--The gold price hit a new all-time high in Euro and the British Pound yesterday as the debt crisis in Greece and concerns about a hung parliament in the UK weigh on the Euro and Pound, and demand for gold as an alternative currency continues to rise. The gold price surged to EUR 862oz yesterday, up 12% year-to-date and 30% over the past twelve months (11% and 24% in British Pounds), highlighting gold’s increasing use as a hedge not just against US dollar weakness, but sovereign risks more broadly.
Investment demand for gold has soared since the outbreak of the financial crisis in the second half of 2008. Total annual gold investment more than doubled in 2009 to $55bn from $25bn in 2008 according to GFMS data.
• Gold price surges to new all time highs in Euro (EUR 862/oz) and GBP (£754/oz)
• Gold rises to 3 month high of $1,157/oz today, less than 5% below its all time USD high, despite strength of US dollar
• Platinum and Palladium prices hit new post-crisis highs as ETF Securities’ physically-backed platinum and palladium ETF holdings rise to $1.6bn, up 80% YTD and up 900% since 31 December 2008
• ETF Securities’ gold holdings rise to $8.7bn at end 1Q 2010, the largest gold ETF holdings in Europe and a 64% increase over end 2008 levels
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Source: Commodities Now
Xetra – Ten Years as Leading Trading Venue for ETFs in Europe
651 listed ETFs with fund assets totaling €134.6 billion/ Blue-chip ETFs are the most liquid instrument group on Xetra
April 8, 2010--On 11 April 2000, Deutsche Börse became the first European stock exchange to start trading in exchange-traded index funds (ETFs) with its XTF segment. The segment has been growing on an ongoing basis ever since: with 651 listed ETFs of 14 providers, fund assets totaling €134.6 billion and an average monthly trading volume of €12.6 billion, Xetra is now by far the leading European trading venue for ETFs.
“As the number one ETF trading venue, Xetra offers private and institutional investors alike the largest product range in the whole of Europe, as well as highly liquid trading and, as a result, very favorable conditions. Issuers benefit from the international scope of our infrastructure and from the low-cost, comprehensive services offered by Xetra as a listing venue”, said Rainer Riess, Managing Director of Xetra Market Development at Deutsche Börse.
The first ETFs on Xetra were based on the European equity indices EURO STOXX 50 and STOXX Europe 50, as well as on the DAX. Today, ETFs on equities, bonds and commodities are available to private and institutional investors also when employing a variety of different strategies such as short, dividend yields or value/growth. Around €93 billion of the current fund assets totaling over €134 billion is invested in equity index ETFs. The iShares DAX ETF achieves the highest trading volume in the XTF segment by far with an average of €1.3 billion per month.
STOXX not only offered the first indices for ETFs in Europe, but has made an ongoing contribution to the development of the ETF segment with its broad range of innovative indices. The most recent example is the STOXX Europe 600 Optimised Marked Quartile index family, which was expanded to include four additional ETFs listed on Xetra this week. All in all, more than 30 percent of the ETF assets in Europe are invested in ETFs on STOXX indices. “Innovative indices and the ETFs launched on them offer a broad investor base cost-effective access to entire themes, sectors and markets, and allow for a whole range of strategies. Successful ETFs are based on transparent, strictly rule-based and tradable indices,” noted Hartmut Graf, head of Deutsche Börse's index business and CEO of STOXX Ltd.
In Europe, more than 40 percent of ETF trading volume goes through Xetra, a figure that is as high as around 95 percent as far as Germany is concerned. The liquidity bundled in this manner narrows the trading spreads and lowers trading costs. In 2009, the bid-ask spread for the 20 most liquid equity ETFs on Xetra averaged only 9 basis points, and came in at an average of 8 basis points in the first quarter of 2010. Blue-chip ETFs are the most liquid instrument group on Xetra.
Click here for an overview of further facts and figures on 10 years of ETF trading in Europe.
Source: Deutsche Börse
German industrial production stagnates
April 8, 2010--German government data show that industrial production in Europe's biggest economy stagnated in February -- but the outlook remains promising.
The Economy Ministry said Thursday that February's unchanged reading followed a month-on-month increase of just 0.1 percent in January. That was revised downward from an initial estimate of 0.6 percent.
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Source: Todays Zaman
EPEX Spot / EEX Power Derivatives: Power Trading Results in March 2010
April 8, 2010--In the framework of their cooperation, the European Energy Exchange AG (EEX) and the French Powernext SA integrated their Power Spot and Derivatives Markets in 2009.
In March 2010, a total volume of 103.9 TWh was traded on the joint subsidiaries EPEX Spot SE and EEX Power Derivatives.
Power trading on the day-ahead auctions on EPEX Spot accounted for a total of 22 667 777 MWh and can be broken down as follows:
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Source: EPEXSPOT
BME Creates A Fixed Income Electronic Trading Platform For Retail Investors - To Start On 10 May - It Will Be Called Sistema Electrónico De Negociación De Deuda (SEND)
April 8, 2010--Bolsas y Mercados Españoles (BME) has created, through its Fixed Income
Market (AIAF), an electronic trading platform for bonds geared to retails
investors, which will start operations on May 10th under the
name Sistema Electrónico de Negociación de Deuda (SEND).
The new
platform is a major step towards enhancing the transparency and liquidity of the
Spanish Corporate Debt Market.
Source: Online News
STOXX Ltd. Commemorates 10th Anniversary Of European Exchange-Traded Funds
April 8, 2010--STOXX Limited, a global index provider and creator of the leading European equity indices, celebrates the 10th anniversary of European exchange traded-funds (ETFs). The two first ETFs launched in Europe were based on the EURO STOXX 50 and STOXX Europe 50 indices and were listed on Deutsche Börse's Xetra platform on April 11, 2000.
The STOXX Indices have become the standard underlying for European index-based investments such as ETFs, futures & options and structured products, as well as passively managed investment funds. Currently, there are 219 ETFs - including the top three ETFs in Europe by assets under management - based on STOXX Indices. 30 percent of all European assets under management are invested into ETFs based on STOXX Indices. Options on the EURO STOXX 50 Index show the highest open interest in Europe and the third highest worldwide.
Facts & Figures:
April 11, 2000: The first two ETFs in Europe are based on the EURO STOXX 50 and STOXX Europe 50 indices. They are part of Merrill Lynch's LDRS- product line (today part of BlackRock's iShares ETF portfolio).
At the end of December 2000, 3 out of a total of 6 ETFs listed in Europe are based on STOXX Indices. At the end of December 2009, 215 out of approximately 650 equity ETFs are based on STOXX Indices.
At the end of December 2000, 0.51 billion Euro are invested into ETFs based on STOXX Indices. At the end of December 2009, AUM are 35.5 billion Euro - which equals over 30% of all AUM in Europe. No other equity index provider has a similarly large market share.
At the end of December 2009 nineteen ETFs based on the EURO STOXX 50 are listed in Europe.
In 2001, the first nine sector ETFs in Europe are based on the STOXX Europe 600 Supersector Indices. At the end of December 2009, there are130 sector ETFs based on STOXX Indices listed in Europe.
In April 2005, STOXX launches the STOXX Select Dividend Indices, the first European index family selected by dividend yield. The first ETFs on these indices are listed on Deutsche Börse later that year.
In April 2005, STOXX also launches the VSTOXX, the first index to track volatility in the euro zone. This index is the first part of the STOXX Strategy Index Family, which today consists of the EURO STOXX 50 Daily Short and Daily Leverage Indices, the EURO STOXX 50 BuyWrite Index, the EURO STOXX 50 PutWrite Index, the EURO STOXX 50 Daily Double Short Index, the STOXX Europe 600 Daily Double Short Index, the 19 STOXX Europe 600 Supersector Daily Short Indices and the VSTOXX.
At the end of December 2009, 25 ETFs based on STOXX Strategy Indices are listed in Europe.
In July 2009, STOXX launches the STOXX Europe 600 Optimised Supersector Indices, the first European sector indices to take into account the ability to borrow a stock in their index methodology. Source issues ETFs on 18 of the 19 new indices, which reach record AUMs in a very short time. At the end of 2009, 981.6 million Euro are invested into these ETFs.
Please visit www.stoxx.com for further information on the STOXX Indices.
Source: STOXX
IOSCO publishes Disclosure Principles for Public Offerings and Listings of Asset Backed Securities
April 8, 2010--The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a final report – Disclosure Principles for Public Offerings and Listings of Asset Backed Securities (ABS Disclosure Principles) – containing principles designed to provide guidance to securities regulators who are developing or reviewing their regulatory disclosure regimes for public offerings and listings of asset-backed securities (ABS).
The objective of the ABS Disclosure Principles is to enhance investor protection by facilitating a better understanding of the issues that should be considered by regulators in developing or reviewing their disclosure regimes for ABS.
The ABS Disclosure Principles provide guidance for listings and public offerings of ABS, defined as those securities that are primarily serviced by the cash flows of a discrete pool of receivables or other financial assets that by their terms convert into cash within a finite period of time, such as RMBS (residential mortgage-backed securities) and CMBS (commercial mortgage-backed securities), among others.
The principles are based on the premise that the issuing entity will prepare a document used for a public offering or listing of ABS that will contain all material information, clearly presented, that is necessary for full and fair disclosure of the character of the securities being offered or listed in order to assist investors in making their investment decision.
view DISCLOSURE PRINCIPLES FOR PUBLIC OFFERINGS AND LISTINGS OF ASSET-BACKED SECURITIES Final Report
Source: IOSCO
MEPs draft a report on cross-border crisis management
April 8, 2010--MEPs drafted yesterday a report with recommendations to the Commission on cross-border crisis management in the banking sector. The Committee on Economic and Monetary Affairs makes recommendations on a common EU crisis management framework, on systemic banks, EU financial stability fund, and on a resolution unit.
EU Framework for Cross-Border Crisis Management
MEPs recommend that the legislative act should create a European crisis management framework with a common minimum set of rules and ultimately a common resolution and insolvency law, applicable to all banking institutions operating in the Union and with the following objectives:
promote stability of the financial system; limit/prevent financial contagion; limit public cost of interventions; optimize position of depositors and guarantee their equal treatment across countries;
preserve provision of core banking services;
avoid moral hazard and charge costs to industry and shareholders;
ensure equal treatment of each class of creditors in the Union;
strengthen the EU financial services internal market and its competitiveness.
Systemic Banks
Systemic Banks, due to their special risk profile, require to be urgently addressed by a new special regime to be known as the European Bank Company Law to be designed until the end of 2011.
Systemic Banks shall adhere to the new special regime which shall overcome legal impediments to effective action across borders while ensuring clear and predictable treatment of shareholders, depositors, creditors and other stakeholders.
EU Financial Stability Fund
MEPs recommend the creation of an EU Financial Stability Fund, under the responsibility of the EBA, to finance interventions (rehabilitation or orderly winding-up) aimed at preserving the system’s stability and limit contagion from failing banks. The Commission shall present to the Parliament, by April 2011, a proposal with details of the Fund’s charter, structure, governance, size, operating model as well as a precise calendar for implementation.
Resolution Unit
The report says that a Resolution Unit shall also be established within the EBA to lead the resolution and insolvency procedures for Systemic Banks. This unit shall:
operate within the strict boundaries defined by the legal framework and the EBA’s competencies;
be a pool of legal and financial expertise specially skilled in bank restructurings, turnarounds and liquidation;
cooperate closely with national authorities on implementation, technical assistance and sharing of staff;
propose the disbursements from the Stability Fund.
view the Draft report-with recommendations to the Commission on Cross-Border Crisis Management
in the Banking Sector
Source: EU Business
EU finance boss insists no discrimination against US funds
April 8, 2010-Europe's financial services overlord Michel Barnier has told US counterpart Timothy Geithner that new EU regulation will avoid protectionist overtones, according to a letter seen by AFP Thursday.
Frenchman Barnier said in the letter, dated March 29, that "discrimination has no place in the emerging regulatory framework" covering hedge fund and alternative investment fund managers which has angered the City of London.
The EU commissioner said the aim was to "create the conditions for fair competition" on both sides of the Atlantic, just weeks after plans for European finance ministers to vote through the new laws were ditched at the last minute.
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Source: EUbusiness
HSBC launches FTSE 250 exchange-traded fund
April 8, 2010--HSBC has launched a FTSE 250 exchange traded fund (ETF) today (8 April), which will initially be listed on the London Stock Exchange with further registrations in Europe planned in the coming months.
The total expense ratio (TER) of the HSBC FTSE 250 ETF is 0.35 per cent.
The HSBC FTSE 250 ETF is part of a range of ETFs that HSBC plans to launch across Europe.
HSBC announced its entry into the European ETF market in August 2009 with the launch of the HSBC FTSE 100 ETF, providing exposure to the largest UK-listed companies.
Since then, HSBC has added ETFs linked to the Euro Stoxx 50, CAC 40 and MSCI Japan indices.
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Source: FT Adviser
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