Dow Jones Euro STOXX 50 Short Index Licensed to ETFlab to Underlie Exchange-Traded Fund
December 14, 2009--STOXX Limited, the leading provider of European equity indexes, today announced that the Dow Jones EURO STOXX 50 Short Index has been licensed to ETFlab Investment GmbH to serve as underlying for an exchange-traded fund (ETF). The ETFlab DJ EURO STOXX 50 Short will be available on Deutsche Boerse today.
The Dow Jones EURO STOXX 50 Short Index is part of the Dow Jones STOXX strategy index family. It replicates a short investment strategy, which is tied to the performance of the Dow Jones EURO STOXX 50 Index.
"The Dow Jones EURO STOXX 50 Short Index is an effective tool for investors aiming to track the performance of a short trading strategy that generates positive returns in declining markets. By licensing this index, ETFlab adds a product with a key investment strategy to its ETFs offering," said Ricardo Manrique, chief executive officer, STOXX Ltd. "The index's sophisticated, rules-based and transparent methodology enables market participants to access an innovative solution that can be used for both taking a specific view on the direction of markets or for hedging."
"For us the launch of the ETFlab DJ EURO STOXX 50 Short is a logic step towards offering a broad ETF toolbox to our customers. With the ETFlab DJ EURO STOXX 50 and the new complementary Short version we enable the investor to profit by bullish and bearish European equity markets," said Andreas Fehrenbach, CEO at ETFlab.
The Dow Jones EURO STOXX 50 Short Index replicates the inverse daily performance of the total return version of the Dow Jones EURO STOXX 50 Index. A negative performance of the blue-chip index results in a positive performance of the Dow Jones EURO STOXX 50 Short Index, and vice versa. If the Dow Jones EURO STOXX 50 Index loses -5%, the Dow Jones EURO STOXX 50 Short Index consequently gains 5%. The cost of dividends and the benefit of earning interest are also taken into account in the index calculation.
The Dow Jones STOXX Strategy Index series is designed to track enhanced investment strategies and includes the Dow Jones EURO STOXX 50 Short Index, Dow Jones EURO STOXX 50 Double Short Index, Dow Jones EURO STOXX 50 Leveraged Index, Dow Jones EURO STOXX 50 BuyWrite Index, Dow Jones EURO STOXX 50 PutWrite Index, the VSTOXX, Dow Jones STOXX 600 Supersector Short Indexes and Dow Jones STOXX 600 Double Short Index.
Further information on the Dow Jones EURO STOXX 50 Short Index is available at www.stoxx.com.
Source: Dow Jones Indexes
Darling defies bank threats on bonus tax
December 14, 2009--Alistair Darling has warned banks that he will not water down his 50 per cent supertax on bonuses or offer special deals in a standoff in which brokers and banks have threatened to move key staff out of the UK.
The chancellor has been deluged with claims by banks that the tax would raise far more than the £550m he predicted. They have demanded that he make the levy less onerous.
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Source: FT.com
ETFlab offers short ETF based to DJ EURO STOXX 50
Profiting from Declining Markets
December 14, 2009--2009. ETFlab Investment GmbH, the Munich specialist for exchange traded
funds, allows to participate inversely in the movements of the Dow Jones EURO STOXX 50 through
ETFlab DJ EURO STOXX 50 Short. “With it, market participants can profit from declining markets but
also safeguard portfolios”, Andreas Fehrenbach, the CEO of ETFlab Investment GmbH, emphasizes.
Because of the financial market turbulence, the demand for inverse ETFs has strongly increased over
the last view months, as, like all ETFs, they can be traded very flexibly and allow differentiated acting
in negative stock-markets. According to findings of ETFlab, particularly active portfolio managers
increasingly utilize these passive instruments to safeguard positions on a short term basis or to
generate additional yields. „Short ETFs are especially helpful for investors, who are not allowed to
use derivatives, as they are also issued as investmentfunds”, Fehrenbach explains.
The new ETF is designed to gain in percent, on a daily basis, exactly what the DJ EURO STOXX 50 performance index loses, and vice versa. For example, if the DJ EURO STOXX 50 declines by two percent, the Short ETF will rise by two percent. In addition, interest accrues daily, based on the latest EONIA rate. The proportional management fee, which for the ETFlab DJ EURO STOXX 50 Short amounts to 0.4 percent annually, will be abated from this.
“By that, we want to address highly experienced investors in particular”, Andreas Fehrenbach points
out. Because of the fact that the Short ETF always provides the inverse performance of the DJ EURO
STOXX 50 on a daily basis, only, it is not expected to provide the performance exactly contrary to a
corresponding long product, in all market periods. This may become important in volaltile markets
and a longer holding period, in particular. Should the markets, however, decline continuously over a
longer period, as was the case during the baisse from 2000 to 2003, and from 2007 to 2009, the
investor will, as a rule, profit from a Short ETF to an above-average degree.
Source: ETF LAB
EU pledges 10 billion dollars to climate battle
Decemeber 11, 2009--The European Union on Friday pledged 7.2 billion euros (10.6 billion dollars) to help poor nations battle global warming, upping the stakes at the UN climate summit.
The money, to be spent over three years, ramps up pressure on rich countries to do more at the summit where a text of a draft statement sets a target of limiting global warming to 1.5 or 2.0 degrees Celsius (2.7 or 3.6 degrees Fahrenheit).
The EU money was immediately welcomed in Copenhagen. "The fact that Europe is going to put a figure on the table will, I think, be hugely encouraging to the process," said UN climate chief Yvo de Boer.
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Source: EU Business
Discussion document on role of financial sector
December 10, 2009--The Treasury has today published a discussion document on possible international options to reduce the cost to taxpayers of financial sector failures.
Risk, reward and responsibility: the financial sector and society is a contribution to the international debate on the future of the global financial sector.
The document highlights the importance of the financial sector to the UK economy alongside the risks it poses to society. Whilst some risk-taking is inherent in financial sector operations, the recent financial crisis has shown the high cost to taxpayers when risk-taking becomes excessive.
The document considers ways in which the financial sector might contribute to the potential costs of any residual risks it poses to taxpayers and to broader social objectives.
view the Risk, reward and responsibility:
the financial sector and society Report
Source: HM Treasury
Gold yields highest monthly real returns in November
December 11, 2009--With the value of gold breaking record levels worldwide, bullion in Turkey yielded the highest monthly real returns among investment instruments in November, 6.72 percent when adjusted for inflation using the Producer Price Index (PPI) and 6.74 percent when adjusted for the Consumer Price Index (CPI).
The Turkish Statistics Institute (TurkStat) yesterday announced the rates of real return yielded by investment instruments, according to which the monthly real return rates of the euro and the US dollar were 0.5 percent and 0.01 percent, respectively, last month, when adjusted for PPI. Deposit interest and trading on the stock exchange, on the other hand, suffered a monthly real loss, with rates of 0.64 and 6.9 percent, respectively, when adjusted for PPI during the same month. CPI-adjusted losses of 0.62 percent in deposit interest and 6.88 percent in stock exchange activity were recorded, while the euro yielded a profit of 0.52 percent and the US dollar a profit of 0.03 percent in November.
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Source: Todays Zaman
Thomson Reuters MiFID Market Share Reports November 2009
December 11, 2009-The Monthly Equity Market Share reports are sourced from our Equity Market Share Reporter. Both the Volume and Turnover data are calculated based on each individual trade reported by all European Exchanges, MTFs, and OTC trade reporting venues.
We separately identify the trading volumes of the Independent Dark Pools where these are reported through OTC Trade publication services such as Markit BOAT through reference to specific flags on these feeds or from specific trade flags on the feeds from the MTFs that provide their own feeds.
The definition of country in the country reports is based on the domicile of the stocks included through reference to the two character country code at the beginning of each ISIN.
Turnover is normalised to Euros at trade level using currnency spot rates from the date of trade.
In November we decided to enhance the reports to break out the data into separate sheets for Turnover & Volume per country and index. Within each sheet we now break out the data into the following trade types and provide a summary of the activity by each trade type at the bottom of the sheet
Order Book - trades generated by trading on electronic open limit order book excluding trades executed during an auction period
Auction Trades - trades executed during an auction period operated by electronic open limit order book
Dark Order Book - trades generated by a dark pool of liquidity or through the interaction of purely dark order on an open limit order book
Off Order Book - trades reported under the rules of an exchange which may be as a result of trading on quotes from market makers or just OTC trades reported under the rules of a regulated market or MTFs.
MiFID OTC - trades reported through pure reporting venues like Markit BOAT or the equivalent services offered as off-exchange reporting by the exchanges such as Euronext or Nasdaq OMX.
view the 2009 Market Share Report (Jan - Nov)
Source: Thompson Reuters
ETF Stat November 2009-ETF Plus Market
December 11, 2009--The November ETF Stat report of the Borsa Italiana are now available.
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Source: Borsa Italiana
Britain, France unite behind bank bonus tax plans
December 11, 2009--Britain and France are to place one-off "community" taxes on bankers' bonuses at the heart of a joint bid to impose new social responsibilities on profitable financial firms.
British Prime Minister Gordon Brown, who faces a general election in the new year, and French President Nicolas Sarkozy used a "convivial" 30-minute "tete-a-tete" in Brussels on Thursday evening to ram home crowd-pleasing measures.
Their meeting, on the sidelines of a European Union summit, was also designed to dispel recent Anglo-French tensions stemming from EU banking supervision rows, and revisited ideas for a so-called 'Tobin,' or social tax on financial services.
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Source: EU Business
FSA strengthens stress testing regime
December 11, 2009-The Financial Services Authority (FSA) has strengthened its stress testing regime by requiring firms to improve their stress testing capability, enhance their capital planning stress testing and by introducing a reverse stress testing requirement for firms.
The FSA’s integrated approach to stress testing consists of three main elements:
Firms' own stress testing – The FSA expects firms to develop, implement and action a robust and effective stress testing programme which assesses their ability to meet capital and liquidity requirements in stressed conditions, as a key component of effective risk management
FSA stress testing of specific firms – As part of its more intrusive supervisory approach the FSA runs its own stress tests on a periodic basis for a number of firms. This is carried out regularly for specific high impact firms and for other firms as the need arises, to assess their ability to meet minimum specified capital levels throughout a stress period.
Simultaneous system-wide stress testing – This is undertaken by firms using a common scenario for the purposes of specific system-wide analysis for financial stability purposes. The FSA is taking steps now to strengthen all elements of its stress testing approach although the changes mentioned in this policy statement refer to firms’ own stress testing.
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Source: FSA
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