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NASDAQ OMX Stockholm And Valueguard Launch New Housing Price Index
November 19, 2009--NASDAQ OMX Stockholm AB, part of the NASDAQ OMX Group (NASDAQ:NDAQ), together with Valueguard today introduced a new suite of housing price index, “NASDAQ OMX Valueguard-KTH Flats” (HOX), based on the price development for privately held flats in Sweden's three largest cities.
The HOX index will increase the transparency of the housing market by providing timely and trustworthy information of the monthly price movements. This is the first step in building a standardized market for financial products with housing prices as the base. In the longer run, households will be able to invest in products that give a return equal to the price changes in the housing markets.
The calculation of the index is done by Valueguard Index Sweden, based on a methodology developed together with the KTH Royal Institute of Technology. The index base value is 100 and the base date is January 2005, and distribution starts today.
“The housing market in Sweden is about the same size as the market capitalization of the entire NASDAQ OMX Stockholm”, says Erik Thedéen, President NASDAQ OMX Stockholm. “For most households, the house is the largest asset and we believe that many house-owners could benefit from being able to manage their exposure to this market and to save in financial products with the return linked to house prices”.
Håkan Toll, CEO of Valueguard, says: ”We are pleased to launch this suite of indices together with NASDAQ OMX. We believe that this is the first step for the introduction of financial products based on these indices that can be used by both professional and retail investors to manage their exposure to this market.”
Structured Product Market Will Expand 20% In 2010
November 19, 2009--OPAL, the UK’s largest provider of structured product administration to investment companies, banks, building societies and other third parties, predicts that, despite the high profile issues in 2009, the market will continue to grow by 20 percent in 2010.
OPAL also predicts that there will be a move to create a new classification for ‘no risk’ / guaranteed products such that they do not become tainted by some of the more esoteric structures, more commonly associated with structured products.
Tony Collins, managing director, OPAL, comments: “2009 has been a turbulent year, but despite this, many companies see the benefits that a specific type of structured product can offer. I personally welcome the closer review by the FSA as this will help to create stability in the market and, more importantly, give companies the confidence to launch what are really compelling products. Returns of above 5 per cent, capital protection and protection under the FSCS give the market a healthy future.”
CESR has published the DIRECTIVE 2009/65/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
November 18, 2009--CESR has published the DIRECTIVE 2009/65/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL-on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)(recast)
view Directive 2009/65/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
DB Index Research -- Weekly ETF Reports -- Europe
November 18, 2009-Highlights
ETF Volume
Exchange based Equity ETF turnover remained at about the same level on the previous week. Daily turnover for the previous week was E1.5bn. European fixed income ETF turnover remained at about the same level at E183m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, db x-trackers II EONIA TR Index ETF has the highest daily turnover of E18.11m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E75.98m.
There were 44 listings in the last week. ETF Securities Ltd listed 22 new ETCs and cross-listed 18 ETCs on the London Stock Exchange, AXA IM/BNP Paribas cross-listed 2 ETFs on Borsa Italiana and UBS listed 1 new and cross-listed 1 existing ETF on Swiss Stock Exchange.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E458m accounting for 31.31% of total ETF turnover, followed by European Regional ETFs with total turnover of E385m with 26.34% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E205m across the nine listed products and accounting for 14.0% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 13.5% of turnover trading E198m per day with liquidity split across 26 ETFs and 46 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.6% of total turnover. The Euronext NextTrack platform has 21.6% market share. The LSE’s combined Italian Exchange and London market share is now 25.7%.
Assets under Management (AUM)
Total European Equity related AUM rose by 2.8% to E104.6bn during last week. AUM for DJ Euro STOXX 50 ETFs was E20.2bn accounting for 19.3% of total European AUM. Fixed Income ETF AUM remained at about the same level at E33.8bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E5.2bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.2bn.
To request a copy of the report click here
CESR publishes 2009 Half-Yearly Report
November 18, 2009--CESR today published its Half-Yearly Report for 2009. The interim report for 2009 complements CESR’s Annual Report for 2008, published in August 2008, and provides a half-yearly update on the activities of CESR to the European Commission, Parliament and the European Securities Committee.
The report covers the period from January to June 2009.
View the 2009 Half-Yearly Report
NASDAQ OMX Baltic Creates A Single Marketplace - A New Trading Venue For Shares Listed On Three Existing Exchanges
November 18, 2009--NASDAQ OMX Baltic, part of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), today announced its intention to create a new single marketplace to trade shares listed on the regulated markets NASDAQ OMX Tallinn, NASDAQ OMX Riga and NASDAQ OMX Vilnius. The Euro will be the trading and settlement currency for the marketplace scheduled to launch in the first half of 2010, subject to member readiness and necessary approval from local authorities.
“NASDAQ OMX is committed to improving the liquidity in the exchanges in Estonia, Latvia and Lithuania and we believe that launching a single currency trading venue will be beneficial to all market participants, listed companies and investors locally and internationally”, said Hans-Ole Jochumsen, President NASDAQ OMX Nordic. “Trading and settling in one currency for the members and investors will increase the accessibility to the Baltic market and thereby make it more attractive”.
The new marketplace will be set up on the same trading platform as the regulated markets, with no additional costs to members and investors to access the new market. This marketplace will have one rulebook and will offer trading in all shares listed on the Baltic stock exchanges. This includes the Baltic Main list as well as the Baltic Secondary list, with all shares that are officially admitted to the regulated markets of all three Baltic countries.
Trading on the regulated markets in local currencies will remain operational after the launch of the new marketplace but the majority of trading is expected to move to the new trading venue. The date of the launch will be decided together with the members, respective Central Banks and Financial Supervisory Authorities as well as other stakeholders.
The listing service and function will not be affected by this change and will remain local. Additionally, there will be no changes in information disclosure rules for the listed companies or information distribution channels for market professionals and investors in the Baltic markets.
London Stock Exchange To Launch New Retail Bond Market For The UK
November 19, 2009--The London Stock Exchange today announces that it will introduce a new order-driven trading service for bonds. This new electronic order book will be available for a select number of gilts and UK corporate bonds and will offer private investors with an on-screen secondary market in London-listed debt securities for the first time. This new service is expected to go live in February next year.
Pietro Poletto, Head of Fixed Income for London Stock Exchange Group, said:
"London is a global centre for the listing and trading of debt, and in the current climate of low interest rates and equity market volatility, the retail appetite for bonds has increased substantially. This new initiative aims to meet that demand by offering private investors exposure to this market for the first time through transparent, efficient access to fixed income securities listed in the UK.
"London Stock Exchange Group's ‘MOT' market operated by Borsa Italiana is the most liquid and most heavily traded retail fixed income platform in Europe. We are delighted to offer the established benefits of this model to retail investors in the UK."
Over 10,000 debt securities are already admitted to the London Stock Exchange but the vast majority are currently available for trade reporting only.
The main characteristics of the new trading service are:
An electronic order-driven model, with retail-friendly order sizes, and continuous two-way trading provided by market makers. Two new segments for electronically tradable gilt-edged securities (UK Gilts) and electronically tradable UK fixed interest securities (UK Corporates) will be introduced on London Stock Exchange Group's TradElect trading system.
The trading day will be made up of an initial opening auction phase followed by continuous trading until market close. There will be no closing auction.
All order book trades in securities admitted to the new segments will settle in CREST. Routing of trade information to Euroclear UK & Ireland will be carried out by London Stock Exchange Group's post-trade router, X-TRM.
The new trading service is not expected to impact existing wholesale bond or gilt trading and trade reporting arrangements and does not aim to change established practices in the institutional fixed income markets.
ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows. For the week ending 13 November 2009
November 18, 2009--Highlights
Last week saw US$102.8 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Telecommunications with US$51.2 Mn and Food & Beverage with US$34.2 Mn while Health Care experienced net outflows of US$19.7 Mn.
Year-to-date, Basic Resources has been the most popular sector with US$481.7 Mn net new assets, followed by Telecommunications with US$311.6 Mn net inflows. Financial services sector ETFs have been the least popular with US$28.3 Mn net outflows YTD.
Visit Barclays Global for more information.
Successful Launch of new Eurex Release 12
Functional basis established for Eurex/ISE link and cooperation with KRX/ Real-time risk management for all Eurex participants through Enhanced Risk Solution
November 18, 2009--The international derivatives exchange Eurex successfully launched its new system Release 12 on Monday.
Among the most important changes coming with the release are two links to other international exchanges, further significant improvements in clearing, new functionalities for trading, and partly new programmed software components to further reduce latency.
Release 12 lays the technological foundation for two important partnerships, the Eurex/ISE link and the link between the Korean Exchange (KRX) and Eurex. The Eurex/ISE link will provide Eurex participants with access to ISE's product range, pending approval by the US supervisory authority, the Securities and Exchange Commission (SEC). The Eurex/KRX link will enable Eurex clients to trade the KOSPI 200 option after Korean trading hours via their existing access as of the beginning of 2010.
In Release 12, Eurex also addresses continued acceleration in trading by converting to real-time risk management. As of March 2010, the Enhanced Risk Solution interface will be available to all Eurex participants. The Enhanced Risk Solution will inform every member of its positions (number of contracts) and corresponding risk exposure (margin requirements) in real time. General Clearing Members (GCM) currently receive information on their current aggregate risk position approximately every ten minutes. Future real-time risk management supplements the risk control functions launched during the past two years, e.g. the stop button. In case of emergency, all of a participant’s orders and quotes can be deleted and entry of additional orders and quotes prevented by activating the stop button. The combination of these components offers Eurex customers optimized risk control with minimum latency and increases market stability.
In addition, Release 12 expands the trading functionalities. For the first time, OTC volatility strategies including the associated equity transactions leg can also be entered. The Multilateral Trade Registration functionality has also been further expanded; it enables participants to use Eurex Clearing’s central counterparty service for OTC transactions in which multiple parties are involved.
The technical improvements of Release 12 include significantly reduced order and quote processing times as well as enhancements of the two high-speed interfaces Enhanced Transaction Solution and Enhanced Broadcast Solution. With Eurex Release 12, the daily average round trip times of futures orders for Eurex members located in proximity services have been reduced from approximately 5 milliseconds to approximately 2 milliseconds.
Like Releases 10 and 11, Release 12 is also a key milestone on the Eurex Technology Roadmap. This roadmap, which was launched in Q1 2006, bundles a variety of components for system optimization: software and hardware upgrades, launches of new offers and services, and the distribution of new, customizable data packages.
The Technology Roadmap is Eurex’s response to current trends in electronic derivatives trading. Software-induced trading (algorithmic trading) and the increasing number of contracts result in a considerable rise in daily transaction volume. With the Technology Roadmap, Eurex anticipates these new challenges by adjusting the system on an ongoing basis. The aim is to increase trading speed and throughput, expand system performance and improve the distribution of real-time data, interfaces and risk management.
Please note: On 18 November 2009 Eurex observed a performance degradation on its system at 11:20 am CET, affecting all members in the same manner. To ensure market integrity, Eurex decided to set trading to halt for all products and informed the market accordingly. After restart of the Eurex system, the market was re-opened at 1:00 pm CET with the initiation of the pre-trading phase.
Unscheduled Adjustment in SDAX
Villeroy & Boch replaces OVB Holding effective 20 November 2009
November 18, 2009--Deutsche Börse has announced an unscheduled adjustment in SDAX®. The freefloat of OVB Holding has dropped below ten percent and does therefore no longer meet the criteria of the index.
Villeroy & Boch will replace the share of OVB Holding in SDAX.
The next regular review of the equity indices of Deutsche Börse is scheduled for
3 December 2009.
