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ETF Securities Launches Three New Equity Index ETFs and a New Commodity ETF on Xetra
May 6, 2010--Since Thursday, three new equity index funds and a new commodity index fund launched by ETF Securities have been tradable in Deutsche Börse’s XTF segment.
The three new equity index ETFs offer investors the opportunity to participate for the first time in the performance of the DAXglobal Coal, Shipping, and Steel (TR) USD indices.
Deutsche Börse’s DAXglobal index family tracks not only international equity markets, but also global subject areas and sectors, with each of the indices tailored to a specific investment area. In November 2009, Deutsche Börse extended its DAXglobal international index family further with indices such as DAXglobal Coal, DAXglobal Shipping and DAXglobal Steel.
These indices contain between 20 and 35 companies that generate at least 50 percent of their revenues in their given sector. The market capitalization of the index members must be at least US$500 million, and their average daily exchange turnover over the last three months must amount to US$2 million. The stocks have a maximum weighting of 15 percent in the index. The index composition is reviewed twice a year.
The DAXglobal Coal index tracks the largest companies in the coal sector and offers easy access to the international coal industry. The DAXglobal Shipping index is comprised of global companies that operate in the freight and shipbuilding sectors. The DAXglobal Steel index tracks the largest companies in the steel sector that generate at least 50 percent of their business from metal ore mines or steel production.
In addition, the new commodity ETF allows investors to participate for the first time in the performance of the Dow Jones-UBS Commodity 3 Month Forward Total Return Index. This index tracks the performance of 3-month futures and encompasses all commodity classes.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 655 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of €13 billion, makes Xetra Europe’s leading trading venue for ETFs.
The new products with the corresponding ISIN, investment focus and total expense ratio are listed in the table attached to this message.
view list
Source: Deutsche Börse
Eurex to Introduce Options on Three Benchmark ETFs
May 6, 2010--Eurex, the international derivatives exchange, announced today that it will list three new options on 17 May 2010, based on the Deutsche Bank ETFs db x-trackers MSCI Emerging Markets TRN, MSCI World TRN and MSCI Europe TRN. Additional ETF options are expected to be listed at Eurex later this year.
“With the relaunch of our ETF derivatives segment, we support the expansion of the ETF market by offering custom-made hedging opportunities for investors and ETF issuers”, said Peter Reitz, member of the Eurex Executive Board. “The European ETF market has grown tremendously in every category over the last ten years, ETF derivatives will contribute to the growth of this market.”
“Options on selected ETFs are a further demonstration of the growth of this asset class. ETF investors will now be able to reduce the costs of trading and hedging against benchmark indices through MSCI option products that are easy to trade and risk manage. This has value for hedging and overlay management purposes, as well as for investors looking for upside participation”, added Thomas Strenge, European Head of Synthetic Equity Sales, Deutsche Bank.
The new ETF options will be traded in euro, physically settled (European-style) and have maturities of up to 24 months. The contract size will be 100 units. Deutsche Bank will act as market maker to support liquidity in the order book.
The three underlying Deutsche Bank ETFs are listed at XTF, Deutsche Börse’s ETF trading segment. Since its launch in April 2000, the XTF segment has established its position as the leading trading venue for exchange-traded funds in Europe, with 651 listed funds and a market share of approximately 38 percent by European ETF turnover.
Source: Eurex
Eurex Group: New Daily Trading Volume Record of 24.1 Million Contracts on 5 May
May 6, 2010--Eurex set a new daily trading volume record yesterday with 19.5 million contracts, surpassing the previous record of 19.2 million contracts (on 14 May 2008).
ISE trading volume was 4.6 million contracts.
Eurex’s equity based derivatives (equity options and single stock futures) was the largest segment with 9.9 million contracts.
Eurex’s equity index derivatives segment totaled at 5.3 million contracts.
Eurex’s interest rate derivatives segment reached almost 4.3 million contracts.
Source: Eurex
CESR publishes an update to the Questions and answers on MiFID: Common positions agreed by CESR Members
May 6, 2010--Following the new organisation of CESR's work in the field of MiFID, the Q&A has been split into two documents, each dealing with a specific field. The majority of the Q&A have been published previously, however, there are two updates in the field of Investor Protection and Intermediaries.
view the Questions and answers on MiFID:Common positions agreed by CESR Members of the Investor Protection and Intermediaries Standing Committee
EESC for comprehensive financial regulation
May 6, 2010--The EESC tabled its opinion on the regulation of alternative investment funds, such as hedge funds and private funds. Although endorsing the much debated proposal of the European Commission, the EESC calls for uniform risk data provision for all such funds and emphasizes their responsibility in triggering the crisis.
"Within the European economy, the impact of hedge funds and private equity funds is more serious in social and employment terms than in the economic and financial sense," stated rapporteur Mr. Angelo Grasso (Various Interests Group, Italy). He nevertheless stressed that alternative investment funds have contributed to the increase of the leverage of and the inherent risk within the financial system, a fact lately illustrated by the downgrading of Greek sovereign debt which is pushing the Eurozone country to the brink of default.
The EESC therefore endorses efforts to regulate the industry and its recommendations to a corresponding Commission proposal was passed with a clear majority at the April session of the body.
At the April plenary, the EESC tabled a series of concrete recommendations to the Commission proposal aiming to create an appropriate and efficient regulatory and supervisory framework for the European alternative funds industry.
It believes that both the alternative investment fund managers and their products should urgently be regulated by the proposal, even if many aspects of the managers' regulation already impact the operation and features of the products.
As for hedge funds' and private equity funds' future obligations to hand over systemic risk data about their operations, the EESC recommends taking over the internationally supported principles worked out by the International Organisation of Security Commissions (IOSCO), specifying eleven kinds of data including much needed information from large leveraged funds.
In order to ensure transparency and to protect investors, the EESC insists that all alternative investment fund managers should be covered by the rules of the new directive, and therefore be required to record and submit key information. However, the data to be given and the rules to be complied by have to be scaled to the funds' sizes and the risks they run.
Financial supervisory package : Frequently asked questions
May 6, 2010--On the 10th May MEPs in the Economic and Monetary Affairs Committee will be voting on the reforms they wish to see made to financial supervision in Europe. This document provides a synthesis of why reform is generally needed and also an indication of the main proposals which will be voted upon. A short list of links to further information is also provided.
Please note that this document is intended as an aid to understand the vote in the EP's economics committee. It in no way attempts to prejudge the result of the vote nor to advance one line of thinking over another. There may also be some last minute changes made to the compromise texts between the time of publication of this document and the vote in committee.
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Source: European Parliment
Rising iTraxx reflects health fears for Europe’s banks
May 6, 2010--Fears over the health of European banks have heightened dramatically in recent days, according to indicators that measure sentiment in the financial sector.
The cost to insure European banks against default has jumped to record levels amid worries that another financial crisis may be looming.
Markit’s iTraxx senior financial index, which tracks the cost to insure the leading European banks against default, has risen by 45 basis points to 162bp since the start of the month.
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Source: FT.com
Europe may be losing control of debt contagion: analysts
May 5, 2010--Europe is at risk of losing control of the Greek debt debacle and may now be powerless to halt an onslaught elsewhere that could threaten the very existence of the eurozone, analysts warn.
Investors fear a 110-billion-euro EU-IMF rescue package may be inadequate and -- worse -- may prove insufficient to shield Spain and Portugal from the market pressures assailing Greece.
Stock markets are tumbling around the world while the euro, the lynchpin in the grand European experiment, has fallen from 1.45 dollars at the start of the year to 1.29, calling into question the very survival of the single currency.
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Source: EUbusiness
Put Trading on European Stock ETF Surges to Record
May 5, 2010-- Trading of bearish options on an exchange-traded fund tracking European stocks surged to a record yesterday after a single transaction betting on a 12 percent drop by July.
Almost 36,000 puts to sell the SPDR Euro Stoxx 50 Fund changed hands in U.S. trading, compared with the four-week daily average of 10 contracts. All of the trades were done through a put-spread strategy, less than 30 minutes before European stock exchanges closed, that involved buying about 18,000 July $34 puts and selling the same number of July $30 puts. The ETF lost 2.5 percent to $33.94, the lowest in 10 months.
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Source: Business Week
Source announces launch of new MSCI Emerging Markets ETF to create improved tracking
May 4, 2010--Source has launched the MSCI Emerging Markets ETF, tracking the MSCI Emerging Markets Total Return (net) index.
The ETF will provide consistent tracking of its underlying benchmark through Source’s multi-counterparty derivative approach.
The new product will achieve the performance of the index by entering into total return swaps, thereby providing better returns than are currently being delivered in these products in Europe.
Bloomberg Ticker: MXFS LN
In addition, it is listed on the London Stock Exchange and trades in USD, thereby minimising foreign exchange related tracking error.
Source: Source
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