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SEC welcomes Lehman report as 'helpful'
March 18,2010--The Lehman Brothers report will be “helpful” to US regulators investigating whether to bring civil fraud charges against the failed bank’s top managers, Mary Schapiro, US Securities and Exchange Commission chairman, told Congress.
But former prosecutors and white-collar crime experts say it is far from certain that federal enforcers will find evidence to support criminal charges, let alone convictions, against key players in the Lehman collapse or the broader financial crisis.
The hurdles are lower for the SEC, which brings civil fraud cases, than for the Department of Justice, which seeks to put people in jail.
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Source: FT.com
Eurex Clearing Introduces Real-time Risk Management for all Customers
Clearing and trading members benefit from real-time monitoring and management of their risk positions/ Enhanced Risk Solution to significantly improve market safety and integrity
March 18, 2010--On 15 March 2010, Eurex Clearing successfully launched its new “Enhanced Risk Solution”, an industry-leading real-time risk data distribution service. Europe's largest clearing house is the first central counterparty worldwide to offer risk management and margining data in real-time to its trading and clearing members. This innovative service further expands Eurex Clearing’s existing state-of-the-art risk management tools. The Enhanced Risk Solution is available across all asset classes and products – including derivatives, cash equities, bonds and repo transactions – for all connected exchanges and trading venues where Eurex Clearing offers clearing services.
The new service is free of charge and will allow all members to optimize their intra-day risk monitoring, risk controlling and treasury management towards Eurex Clearing.
“Our Enhanced Risk Solution significantly contributes to the regulators’ and supervisors’ goal of improving market safety and integrity by increasing transparency“, said Thomas Book, member of the Eurex Executive Board and responsible for clearing. “Our customers will directly benefit from increased control over their own risk management and greater efficiency in their collateral management. By offering such a service Eurex Clearing actively contributes to policy makers’ goal of a safe and sound financial market structure.”
The Enhanced Risk Solution is a strategic milestone in Eurex Clearing’s risk management roadmap. With its suite of services, Eurex Clearing responds to industry trends like algorithmic trading and direct market access which dramatically increase the number of transactions and speed of trading. In June 2009, Eurex Clearing migrated its internal risk monitoring to a real-time system that permanently recalculates risk data based on price changes and actual positions. Eurex Clearing’s services also comprise comprehensive pre- and post-trade risk control measures including a stop button. The stop button enables clearing and non-clearing members of Eurex Clearing to delete all orders and quotes of the respective member and prevents further order and quote entry in emergency situations.
The Enhanced Risk Solution distributes risk-relevant margin parameters, position information, overall margin requirements, detailed margin components, cash flows, the value of provided collaterals and the respective margin shortfall or surplus information. This data allows members to perform real-time valuations of all open positions and transactions, thus enabling clearing members to precisely monitor their non-clearing members; non-clearing members will be able to control their own risk exposure accurately.
The new offering is based on open standards to allow customization of the data stream into in-house applications. It is based on the Advanced Message Queuing Protocol (AMQP) for delivering messages and the FIXML*) format for the application layer messages, which follows industry standard.
*) FIXML is the XML vocabulary for creating Financial Information eXchange (FIX) protocol messages.
Source: Eurex
ICMA-ERC survey shows strong recovery in European repo market
March 18, 2010--UK) The European Repo Council of the International Capital Market Association (ICMA) today released the results of its 18th semi-annual survey of the European repo market. The survey sets the baseline figure for market size at EUR 5,582 billion, representing an increase of 14.7% on the figure of EUR 4,868 billion for the previous survey in June 2009.
This latest survey shows robust overall growth in volumes in the second half of 2009, which confirms the tentative signs of recovery seen in June 2009. The data also demonstrates the resilience of the European repo market, which largely continued to function during the financial crisis of 2008-09. The repo market provided a vital link between central banks and banks during the crisis, and a strong repo market will also be vital in the future if there is to be an orderly withdrawal by central banks of their exceptional liquidity support and a revival of bank lending to customers, as this will depend on the revival of interbank liquidity, for which repo is essential.
The ICMA survey also showed further evidence that the market has taken on board the lessons of the market crisis, with higher use of Central Counterparty (CCP) clearing (already well established in repo), the greater focus on netting generally and the reduction in undocumented transactions.
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Source: International Capital Market Association (ICMA)
Closer Policy Coordination Needed in Europe
March 17, 2010--The global financial crisis has heightened the need for closer international cooperation, globally and in Europe, to help avoid future crises such as the one the world economy just went through, IMF Managing Director Dominique Strauss-Kahn told the European Parliament.
“I fear that as financial markets bounce back and economic growth resumes, the determination to make lasting changes is already receding,” Strauss-Kahn told more than 120 members of the European and national EU parliaments, who met in Brussels on March 17 for the annual meeting of the European Parliament’s Committee on Economic and Monetary Affairs.
Greater policy coordination, on issues ranging from fiscal policy to financial sector regulation, was needed to make Europe’s institutions stronger, more resilient to crisis, and hence better able to promote growth and prosperity, he said.
The IMF is forecasting GDP growth of 1 percent for the European Union in 2010.
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Source: IMF
IMF chief presses for new financial rules
March 17, 2010--International Monetary Fund head Dominique Strauss-Kahn voiced concern Wednesday at the lack of will among major nations to work together to build a coordinated system of financial regulation.
"Now I think it's our opportunity and duty to shape our institutions to make them stronger to (resist) crises," such as the one that plunged the world into its worst post-war recession, he said at the European parliament in Brussels.
"For me the main question is are we making the most in this historical opportunity and I'm a bit worried because economic growth is resuming, it's good news, but at the same time, (the will) that every country wants to work together, is somewhat receding," he complained.
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Source: EUbusiness
FSA publishes Business Plan for 2010/11
March 17, 2010--The Financial Services Authority (FSA) has today published its Business Plan setting out its priorities for 2010/11.
The Plan is a demanding programme of work for the year requiring greater policy and supervisory resources, and focusing on a number of key areas:
Delivering effective supervision backed by credible deterrence in enforcement.
Continuing to embed the organisational and cultural change needed to implement intensive supervision.
The policy reform programme driven by the Turner Review and the wider policy agenda mandated by the European Union.
Playing a role in promoting financial stability should the Financial Services Bill be enacted. The FSA will be recruiting an additional 460 staff in 2010 to implement Solvency 2, and to deliver the intensive supervisory approach needed for the very largest firms.
view Business Plan
Source: FSA.gov.uk
db x-trackers listet Short-ETF auf den Schweizer Aktienindex SMI
March 17, 2010--db x-trackers hat den weltweit ersten Short-
ETF auf den Schweizer Aktienindex SMI an der Deutschen Börse gelistet. Der SMI® SHORT DAILY ETF bildet die umgekehrte tägliche Wertentwicklung des SMI-Index
zuzüglich eines anteiligen Zinsanteils ab.
Der SMI-Index (Swiss Market Index) ist ein
Schweizer Blue-Chip-Index. Er enthält maximal 20 der größten und liquidesten
Aktien des Large- und Mid-Cap-Segments. Die im SMI-Index enthaltenen
Wertpapiere repräsentieren derzeit über 85 Prozent der gesamten
Marktkapitalisierung aller Schweizer und Liechtensteiner Aktien, die an der SIX
Swiss Exchange notiert sind.
Der SMI-Index (Swiss Market Index) ist ein Schweizer Blue-Chip-Index. Er enthält maximal 20 der größten und liquidesten Aktien des Large- und Mid-Cap-Segments. Die im SMI-Index enthaltenen Wertpapiere repräsentieren derzeit über 85 Prozent der gesamten Marktkapitalisierung aller Schweizer und Liechtensteiner Aktien, die an der SIX Swiss Exchange notiert sind.
db x-trackers ETF auf: SMI® Short Daily
Währung:Euro (EUR)
Pauschalgebühr (p.a.):0,50%
ISIN:LU0470923532
Mit der Auflage des SMI Short Daily ETF bietet db x-trackers insgesamt 16 Short-
ETFs auf Aktienindizes in Europa, Nordamerika und Asien an. Damit baut die Index-
Tracking-Plattform der Deutschen Bank seine Marktstellung als größter Anbieter von
Short-ETFs in Europa weiter aus. Für die kommenden Wochen plant db x-trackers
das Listing von Short- und Hebel-ETFs auf die die Aktienindizes DAX, S&P 500, DJ
EuroStoxx 50 und FTSE 100.
Source: db x-trackers
21 New Amundi ETFs Launched on Xetra
ETFs cover MSCI Europe sector indices for the first time/ XTF segment now contains 610 index funds
March 16, 2010--Since Tuesday, twelve equity index funds, eight bond index funds and one money market index fund from the issuer Amundi ETF have been tradable on Xetra.
10 of the 21 Amundi ETFs cover the following super-sectors of the MSCI Europe Index: Banks, Consumer Discretionary, Consumer Staples, Health Care, Industrials, Insurance, IT, Materials, Telecom Services and Utilities.
The index is weighted by freefloat market capitalization, and aims to reflect the performance of the equity markets of the following 17 industrialized nations: Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Greece, Ireland, Italy, the Netherlands, Northern Ireland, Norway, Portugal, Spain, Sweden and Switzerland.
The Amundi ETF MSCI EMU High Dividend and the Amundi ETF MSCI Europe High Dividend enable investors to participate in the performance of companies with the highest dividend yields in the euro zone/Europe.
Amundi also offers investors the possibility of participating in the performance of bond ETFs from the EuroMTSBroad index family. Investors have the choice of between six bond ETFs with various maturities, containing euro-zone government bonds with a minimum residual maturity of one year and an outstanding minimum volume of two billion euros.
The money market index fund tracks the performance of the EuroMTS Government Bill Index. This index tracks the yield of government bonds issued by euro-zone member states and which have a maturity of no more than six months.
The Amundi ETF Euro Inflation allows investors to participate in the performance of government inflation-indexed bonds issued by euro-zone member states and which have an outstanding nominal amount of at least two billion euros.
The offering is rounded off by the Amundi ETF Euro Corporate, which tracks the performance of the Markit iBoxx Euro Liquid Corporates Index. This index contains 40 investment grade corporate bonds denominated in euro.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 610 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around €11 billion, makes Xetra Europe’s leading trading venue for ETFs.
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Source: Deutsche Börse
Splintered Europe share market seen ripe for abuse
March 15, 2010--The splintering of Europe's share markets into numerous trading platforms in recent years has created a fertile field for market abuse and made it more difficult to detect, a group of London market consultants said.
The EU's Markets in Financial Instruments Directive (MiFID) in 2007 opened exchanges to competition from low-cost new rival platforms known as multilateral trading facilities (MTFs).
"Now there is so much market fragmentation and competition that we have got away from a fair and orderly market," said Brian Taylor, a member of the new Alliance of Independent Advisors to Financial Markets, or Avenues, at a media briefing on Tuesday.
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Source: Yahoo Finance
The value of shares listed on the Spanish Stock Exchange reaches €85 billion
BME’s Report: Listings and Public Offerings, the pillars of economic transformation and stock market growth
In 230 listings and public offerings over the last 25 years
March 16, 2010--Between 1986 and 2009 there were 230 listings and public offerings on the Spanish stock exchange worth €85 bn, according to the Report on Initial Public Offerings and Listings, presented today by BME.
The report describes Spain’s extraordinary economic development over the last 25 years, with GDP that has increased more than five times since 1986, the year the country joined the EU.
The report highlights the importance of the stock exchange as the key driver of this phenomenon, as it channels multiple corporate activities that have made possible the transfer and secure reallocation of significant capital and equity flows.
During the presentation of the report, Domingo García Coto, Director of BME´s Research Department, stated that “there has been a transition from a financial system model in which bank intermediaries were the prevailing and almost the only source of financing to a model in which stock markets have gradually increased their weight to become key instruments in the financial system for their ability to channel investment flows to the economy and provide asset valuation at any time”.
In 1986, the market value of listed companies, or capitalisation, stood at €39 bn. This figure increased by 28 times in 2009 to €1.1 trillion in 2009, posting a cumulative average annual growth rate of 15.7%, double that of Spain´s GDP. As regards Equity trading volume, it increased exponentially, from €12.6 billion in 1986 to €897 billion in 2009.
The objective of the report is to review and analyse those market-based capital raising processes and to make it clear that for any company, listing on the stock exchange is a crucial decision and one that has a clear beneficiary: shareholders. Companies need equity to finance their investment processes and shareholders benefit from the liquidity, objective pricing, knowledge of latent capital gains and greater protection.
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Source: Bolsa de Madrid (BME)
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