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DB Index Research -- Weekly ETF Reports -- Europe
December 17, 2009--ETF Liquidity Trends
ETF Volume
Exchange based Equity ETF turnover remained at about the same level on the previous week. Daily turnover for the previous week was E1.3bn. European fixed income ETF turnover rose by 4.7% to E180.2m.
In exchange based bond ETFs, iShares € Corporate Bond has the highest daily turnover of E12.03m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E62.05m.
There were 7 new listings last week. HSBC issued one new ETFs on NYSE Euronext Paris. Barclays Capital issued two new ETNs and Source issued four new ETCs on Deutsche Borse. All new listings were primary listings.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E377m accounting for 29.78% of total ETF turnover, followed by European Regional ETFs with total turnover of E344m with 27.20% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E172m across the fourteen listed products and accounting for 13.6% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 12.7% of turnover trading E160m per day with liquidity split across 17 ETFs and 44 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.4% of total turnover. The Euronext NextTrack platform has 20.7% market share. The LSE’s combined Italian Exchange and London market share is now 25.1%.
Assets under Management (AUM)
Total European Equity related AUM remained at about the same level at E107.2bn during last week. AUM for DJ Euro STOXX 50 ETFs was E21.1bn accounting for 19.7% of total European AUM. Fixed Income ETF AUM remained at about the same level at E34bn.
Overall, the largest ETF by AUM was Lyxor ETF DJ Euro STOXX 50, an Equity based ETF, with AUM of E5.1bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.2bn.
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NYSE Euronext welcomes first Total Market and AMX Midcap ETF’s
December 17, 2009-- NYSE Euronext is delighted to announce that Think Capital, an independent Dutch issuer of Exchange Traded Funds (known as ETFs or Trackers) has launched five new ETFs on NYSE Euronext, Amsterdam. With these ETFs Think Capital is focusing specifically on the Dutch market.
The new products also include innovations, in the form of the new AMX Midcap Tracker and the Total Market Trackers.
ThinkCapital has launched five ETFs on NYSE Euronext; the Think AEX® Tracker, the Think AMX® Tracker and three Total Market Trackers: Think TMT Defensief, Think TMT Neutraal and Think TMT Offensief.
The Think AEX Tracker is linked to the best-known index in the Netherlands, the AEX Index, and its unit price is approximately one-tenth of the leading Dutch index.
The Think AMX Tracker is the first ETF to be linked to the Amsterdam midcap-index. It offers investors the opportunity to invest in this popular index in a transparent structure and at low cost.
The Total Market Trackers invest in a mix of equities, bonds and real estate in a previously set allocation depending on the chosen profile: defensive, neutral or aggressive. The investments are spread over 40 equities in different sectors and different European countries, 10 different government bonds with varying maturities, and 10 different real estate funds.
Joost van der Does de Willebois, CEO of NYSE Euronext, Amsterdam, said “We are delighted to welcome Think Capital as one of the first Dutch ETF issuers. It shows that these products are becoming increasingly known and popular in the Netherlands as well.”
“We are extremely pleased to welcome ThinkCapital as a new issuer to the NYSE Euronext ETF markets. The introduction of Think ETFs on the AEX and AMX indexes is a welcome response to strong demand from investors for products based on the most important benchmarks for Dutch blue-chip and midcap stocks, and the three new Total Market Trackers based on multi-asset indexes are the first of their kind on Euronext”, said Scott Ebner, Senior Vice President, European Exchange Traded Products of NYSE Euronext.
“We are very happy with the listing of our products on the Amsterdam market of NYSE Euronext”, said Martijn Rozemuller, Managing Director van ThinkCapital, “Trackers already are successful for years in the countries around us and in the US. With our Trackers we hope to offer Dutch investors a good alternative for the Investment Funds that are common in the Netherlands.”
Egeli urges Turkish investors to invest in Greece during crisis
December 17, 2009--Turkish-Greek Business Council President Selim Egeli yesterday said that just as Greek banks had invested in the Turkish financial sector, Turkish investors should also look for possible investment opportunities in Greece despite the severe financial difficulties the country faces.
Speaking to the Anatolia news agency, Egeli said he does not expect the financial crisis in Greece to expand and influence other countries, such as Turkey, as he predicts the Greek government will take necessary measures to prevent such a thing from happening. However, he added that the Turkish private sector can take advantage of this crisis by attracting Greek consumers with its cheaper and high quality goods. “If Turkey’s exports to Greece increase by 5 percent, annual exports [to Greece] will rise from their current level of $3.5-5 billion to some $8 billion,” Egeli said, predicting that this figure can be reached within one to one-and-a-half years.
NASDAQ OMX And HQ Bank Launch New ETF Based On NASDAQ-100 Index
NASDAQ OMX Stockholm, part of the NASDAQ OMX Group (NASDAQ:NDAQ), today starts trading in a new Exchange Traded Fund (ETF), NASDAQ-100 ETF. The ETF, issued by December 17, 2009--Sweden-based HQ Bank, is based on the NASDAQ-100 Index and includes 100 of the largest domestic and international securities listed on The NASDAQ Stock Market in the U.S.
Jenny Rosberg, Deputy President at NASDAQ OMX Nordic said, "The NASDAQ-100 ETF allows Nordic investors easy and cost-efficient access to some of the world's largest and most well-known brands. This product is a great example of the possibilities of being a global exchange company, and how to transform this to benefits for our local customers."
NASDAQ-100 ETF, which is traded in SEK with USD as denominated currency, aims to give a daily return equivalent to NASDAQ-100 Index. The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The NASDAQ Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
The weight of the shares included in the underlying index (NASDAQ-100 Index) is based on the company's total market value but limited to ten percent. This is in line with the rules in the UCITS (Undertakings for Collective Investments In Transferable Securities) directive.
Companies encompassed within the NASDAQ-100 ETF include Apple, Cisco, Dell, Google, Intel, Microsoft, Oracle, Starbucks, Symantec and Yahoo. For a complete list of the companies included in NASDAQ-100 Index, visit: http://dynamic.nasdaq.com/dynamic/nasdaq100_activity.stm
Eurex to Roll-out Enhanced Trader Development Program in 2010
December 17, 2009--The international derivatives exchange Eurex will continue to expand its global distribution network by launching an enhanced Eurex Trader Development Program in January 2010 based on the current successful program. The new scheme offers an extensive range of training, further education measures and lucrative trading conditions for new traders who start trading on Eurex next year.
Michael Peters, member of the Eurex Executive Board, said: “On 1 January 2010, Eurex will introduce the next generation of its Trader Development Program which will support traders new to Eurex markets by providing them with broad educational support and reduced trading and clearing fees. In particular, our program aims to support Eurex members who plan to extend their trading activities through the training of junior staff.”
The reduction and waiver of trading and clearing fees depends on the trader’s location and on the number of individually traded contracts per month. Preconditions are that they are performing proprietary trading via order routing systems and have not been admitted to trading on Eurex before.
Applications for the Trader Development Program will be accepted until 31 December 2010, and the benefits will be granted for one year from application.
Clearstream to Launch Global Emissions Market Access
December 17, 2009--Clearstream, the international central securities depository within Deutsche Boerse Group, is launching Global Emissions Market Access (GEMA), a settlement and custody service for carbon trading rights.
Clearstream to Launch Global Emissions Market Access
17. December 2009
Clearstream: Clearstream, the international central securities depository within Deutsche Boerse Group, is launching Global Emissions Market Access (GEMA), a settlement and custody service for carbon trading rights.
GEMA is aimed at financial institutions interested in carbon trading rights without the burden and risk of manual settlement of trade. As of February 2010, it will leverage Clearstream’s existing connectivity and applications by simply making carbon rights - European Union Allowances (EUAs) and Certified Emission Reductions (CERs) –eligible in Clearstream Banking (Luxembourg). GEMA thereby provides customers with access to a new market without requiring any system developments or new back office processes. Identification codes for carbon rights will be allocated using industry recognised formats as for any other security eligible in Clearstream.
According to the World Bank, the volumes of traded carbon rights worldwide doubled to € 86 billion in 2008 compared to € 43 billion in 2007. The European Union Emissions Trading Scheme and the Clean Development Mechanisms currently account for the great majority of traded volumes.
Carbon emission rights trading is a way of controlling pollution by providing an economic incentive for reducing levels of carbon dioxide emissions. A cap is set on the total amount of emissions any given installation may produce. Installations reducing their emissions are able to sell their excess rights to others, resulting in a financial reward for protecting the environment. Financial institutions active in this market can act as intermediaries but also hold and trade proprietary positions.
Dividend and bonus rules face reform
December 17, 2009--Banks will be blocked from paying dividends to shareholders or bonuses if their capital levels fall below a minimum threshold, under the terms of a new, more invasive international regulatory regime unveiled on Thursday.
The Basel Committee on Banking Supervision, which is reviewing the rules governing banks’ strength, said the ban would apply if a bank failed to maintain a yet-to-be determined buffer above a new regulated minimum.
Euro-Parliament approves EUR 123bn budget for 2010
December 17, 2009--The European parliament on Thursday approved a 122.9-billion-euro EU "recovery" budget for 2010, a six percent increase over this year, aimed at helping the bloc emerge from recession.
"If we want Europeans to feel more secure in 2010, we have to implement this budget cleverly," parliamentary rapporteur Laszlo Surjan said ahead of the vote.
"This is why we are enhancing energy security, supporting the creation of jobs, introducing the microfinance facility. We support research and development and life-long learning. We want to help the milk sector and mitigate the harmful effects of climate change," he added.
Spending on the bloc's common agriculture policy, rural development and the environment continues to account for the biggest slice of the EU's budgetary pie in 2010, amounting to over 50 billion euros (72 billion dollars).
Measures adopted by CESR Members on short selling - Updated -
December 17, 2009--EU securities regulators are closely monitoring the functioning of the markets under the current circumstances and are considering together possible actions which might be taken to contribute to orderly functioning markets. Any such actions will be taken with a view to strengthening confidence in financial markets and protecting investors.
Particularly, CESR, in its role as a network bringing together EU securities regulators, has been co-ordinating actions by its Members regarding the short selling practices, in particular in financial companies. Some EU securities regulators have adopted measures in their respective markets either to limit, or to introduce stringent requirements or further reporting obligations by firms to supervisory authorities on short-selling.
Publication of DWP research report 623: Employer Attitudes to Collective Defined Contribution Pension Schemes: A Qualitative Study
December 17, 2009--A report is published today by DWP which presents the findings from qualitative research with forty-five employers examining their attitudes to, and understanding of, potential collective defined contribution (CDC) pension schemes.
If enabled in the UK, these schemes would be similar to defined contribution (DC) schemes for employers as they would provide no guarantee of any level of pension and employer contributions would be fixed. For the employee, the risks associated with a pure DC scheme could be somewhat mitigated as contributions would be paid into a collective fund and investment risk could be shared between different generations of members. In particular they could increase certainty for members about the pension they can expect as they approach retirement.
This research was commissioned as part of the Governments’ response to a consultation last year, which looked at a range of ways in which risks could be shared in pension schemes. The consultation was part of the rolling deregulatory review of private pension legislation, announced in the 2006 White Paper ‘Security in retirement: towards a new pensions system”.
view the Employer attitudes to collective defined contribution pension schemes report
