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116 Billion Euros Turnover at Deutsche Börse’s Cash Market in October
15 million trades executed on Xetra/ Total volume of 130 billion euros traded on all stock exchanges in Germany
November 2, 2009--In October, 115.6 billion euros were traded on Xetra® and on the floor at Börse Frankfurt – a decrease of 57 percent year-on-year (October 2008: 270.3 billion euros). Of the 115.6 billion euros, 108.0 billion euros were traded on Xetra, a decrease of 58 percent year-on-year (October 2008: 255.1 billion euros). 7.5 billion euros were traded on the floor.
Turnover in German equities amounted to 96 billion euros, while foreign equities turnover stood at 12 billion euros. Xetra and the floor at Börse Frankfurt accounted for 97 percent of the transaction volume in German equities on all stock exchanges in Germany. 93 percent of foreign equities traded on stock exchanges in Germany were traded on Xetra and on the floor in Frankfurt.
In October, 15.2 million transactions were executed on Xetra, a decrease of 50 percent against the same period last year (October 2008: 30.2 million).
According to the Xetra liquidity measure (XLM), SAP AG was the most liquid DAX® blue chip in October with 6.1 basis points (bp) for an order volume of 100,000 euros. HeidelbergCement AG was the most liquid MDAX® stock with 19.4 bp. The most liquid ETF was the db-x-trackers II EONIA T.R. 1C with 0.3 bp. The most liquid foreign stock was Total S.A. with 16.5 bp. XLM measures liquidity in electronic securities trading on the basis of the implicit transaction costs. It is expressed in basis points (1 bp = 0.01 percent); a low XLM denotes high liquidity in a security.
Deutsche Bank AG was the DAX stock with the highest turnover on Xetra in October at 6.9 billion euros. HeidelbergCement AG was the top MDAX stock at 1.9 billion euros, while Deutsche Wohnen Bank AG led the SDAX® stocks at 66.8 million euros and Aixtron AG headed the TecDAX® at 981.8 million euros. At 1.8 billion euros, the iShares DAX was the exchange-traded fund with the highest turnover.
On all stock exchanges in Germany 130.1 billion euros were traded in October according to orderbook turnover statistics – a decrease of 56 percent compared year-on-year (October 2008: 293.4 billion euros). This total includes 119.1 billion euros in equities, warrants and exchange-traded funds, as well as 10.9 billion euros in fixed-income securities.
Deutsche Börse: Deutsche Börse launches pan-European blue chip trading on “Xetra International Market”
Key markets to be linked up gradually/
Coverage of DJ EURO STOXX 50 equities by mid-January 2010
November 2, 2009--Deutsche Börse has launched the initial phase of its pan-European trading segment “Xetra International Market” (XIM). As of today, Xetra participants can trade European blue chips via XIM and settle the transactions in their domestic market. The first stocks to be available for trading on XIM are the most liquid ones from Belgium, France and the Netherlands. These will be joined in a few weeks by stocks from Finland and Spain, and in mid-January 2010 by the Italian blue chips.
By introducing the individual markets progressively until mid-January 2010, Deutsche Börse is addressing the requirements of the market participants. All processes, systems and interfaces for trading, clearing and settlement can now be checked per domestic market along the entire process chain and integrated gradually.
By the end of the initial phase, a total of 96 equities in the trading currency EUR will have been accepted into the XIM trading segment. These will comprise the stocks from the DJ EURO STOXX 50® index and highly liquid stocks from other indices.
Transactions executed on Xetra International Market will be offset via Eurex Clearing and settled cost-effectively in the respective domestic markets. Clearstream forms the interface between Eurex Clearing and the domestic markets enabling it to use the latter's settlement liquidity.
Due to top market quality, the competitive price model, and the low set-up costs for participants, XIM will significantly strengthen Deutsche Börse’s competitive position on the European equities trading market. Deutsche Börse Group uses economies of scale for the new trading segment on Xetra and in the clearing house as XIM is set up on the existing infrastructure, generating hardly any additional costs in system operation. Deutsche Börse thus expects XIM to be a very sustainable business model.
CESR publishes an update on the assessement of the proposals for MiFID pre-trade transparency waivers
Octoner 30, 2009--The MiFID compliance of these functionalities has been assessed at CESR level on the basis of the new joint process that CESR launched in February 2009.
at CESR level on the basis of the new joint process that CESR launched in February 2009. The table(Ref. CESR/09-324) includes information on a new assessments made at CESR level regarding an application for a waiver to be granted on the basis of the MiFID Implementing Regulation that CESR considered not to be compliant with MiFID.
New Source ETC Launched on Xetra
October 30, 2009--An additional exchange-traded commodity from the ETC offering of Source Commodity Markets has been admitted to trading on Xetra®.
ETC name: S&P GSCI Enhanced Crude Oil Source T-ETC
Asset class: commodity
ISIN: XS0454792184
Management fee: 0.49 percent
Distribution policy: accumulating
Benchmark: S&P GSCI TM Crude Oil Enhanced Total Return Index
With the S&P GSCI Enhanced Crude Oil Source T-ETC, investors will be able to participate in the performance of the WTI Crude Oil futures contract for the first time. The S&P GSCI Crude Oil Enhanced TR Index is designed to alleviate the impact of negative roll returns which might occur when exchanging future contracts that are due to expire. The index applies a dynamic rolling rule when determining into which new expiration a WTI Crude Oil futures contract is rolled.
The product offering in Xetra’s ETC segment comprises 137 exchange-traded commodites, making it the largest offering of all European stock exchanges. The average monthly trading volume in ETCs amounts to around 400 million euros.
British Offshore Financial Centres
October 30, 2009--The final report of Michael Foot’s Review of the opportunities and challenges facing the British Crown Dependencies (Guernsey, Isle of Man, Jersey) and six Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos Islands) was published on 29 October.
The recommendations made to these jurisdictions cover: the quality and extent of economic planning; meeting international standards on tax transparency, financial sector regulation, and tackling financial crime; ensuring that deposit protection schemes can be understood by depositors; considering whether an Ombudsman scheme is justified; and crisis prevention and resolution measures.
These recommendations provide benchmark standards against which each of the jurisdictions can assess their performance and consider what action may be necessary to ensure a sustainable future. The report suggests that the jurisdictions should periodically publish reports on how the benchmark standards are being met, or on how and when they will be met.
View Final report of the independent Review of British offshore financial centres
Pensions Regulator investigation finds mixed standards in DC pre-retirement literature
October 29, 2009--Good practice in the provision of pre-retirement literature in DC trust-based schemes is the focus of a report published today by the Pensions Regulator.
Material from 97 trust-based DC schemes was assessed on adherence with legislative requirements, good practice in areas such as the description and prominence of the Open Market Option, and the use of clear, plain English.
The review has provided valuable insight into current practice in this area and has highlighted that levels of compliance and good practice vary widely across the DC market.
Of 97 schemes who submitted literature:
98% offered the open market option (OMO), although take up of the OMO was viewed as remaining low, at 23% of DC members retiring
57% of schemes had some scope for improvement in the standards of the retirement information sent to members
30% had alleged legislative breaches of retirement disclosure regulations
6% were referred to regulator casework teams to follow up the substantial changes required to their retirement literature or processes
Following the publication of the report, a letter will be sent to 4,500 schemes, highlighting the findings of our investigation and encouraging trustees to review the pre-retirement literature sent out to their members.
“Compliance with the legislative requirements is important as a minimum standard, says June Mulroy, Pensions Regulator executive director of operations.
But we expect to see adoption of good practice as the norm. This will help members to make the right decisions at retirement, which we recognise can make a significant difference to the income they receive.
It is encouraging to see examples of excellent practice, but we do recognise that there is room for improvement. The economic downturn has had an impact on the value of many DC members' pension savings and as such the importance of making informed decisions is higher than ever.”
The study is part of an ongoing campaign focused on increasing the support and guidance offered to members in DC schemes through improving standards in administration and governance across the DC market.
view report-A review of retirement information for DC members
Divided EU leaders urged to agree climate funding
October 29, 2009--The Swedish EU presidency urged European leaders to use Thursday's summit to agree on hard figures to help poor nations tackle climate change, amid resistance especially from eastern Europe.
But while leaders have already agreed on broad objectives for reducing greenhouse gas emissions, vowing to cut them by 20 percent by 2020, they are split on how to share the costs, both within and outside Europe.
"I want a mention of a sum... let's see what is possible, it's coming close to the decisive moment, we're not ready yet," said Swedish Prime Minister Fredrik Reinfeldt, whose country holds the rotating EU presidency.
Culture shock a test for Source
October 28, 2009--Senior managers at Source, a newly launched exchange-traded products business, are grappling with the culture shock of moving from investment banking to asset management. Source is a joint venture between Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley.
“We have switched hats,” said Ted Hood, chief executive officer of Source, a former Morgan Stanley man. “Those of us inside the box have already found we sometimes have to say to our sponsors and partners: ‘We can’t do it like that.’” The main difference between the two cultures is the need to prioritise the interests of investors above those of shareholders, he said
DB Index Research -- Weekly ETF Reports -- Europe
October 28, 2009-Highlights
ETF Volume
Exchange based Equity ETF turnover rose by 4.1% on the previous week. Daily turnover for the previous week was E1.4bn. European fixed income ETF turnover remained at about the same level at E181m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, iShares € Corporate Bond has the highest daily turnover of E18.25m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E76.30m.
There were 31 listings in the last week. Credit Suisse AM cross listed 17 ETFs on Borsa Italiana, Lyxor cross listed 7 ETFs on Swiss Stock Exchange and BGI cross listed 7 ETFs on Deutsche Borse.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E406m accounting for 29.33% of total ETF turnover, followed by European Regional ETFs with total turnover of E384m with 27.69% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E198m across the nine listed products and accounting for 14.3% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 14.9% of turnover trading E207m per day with liquidity split across 26 ETFs and 42 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.1% of total turnover. The Euronext NextTrack platform has 21.2% market share. The LSE’s combined Italian Exchange and London market share is now 26.3%.
Assets under Management (AUM)
Total European Equity related AUM declined by 1.8% to E100.8bn during last week. AUM for DJ Euro STOXX 50 ETFs was E19.4bn accounting for 19.3% of total European AUM. Fixed Income ETF AUM rose by 2.8% to E33.9bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E4.9bn. 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 proposes requirements for management company passport and improved investor disclosures for UCITS
October 28, 2009--CESR delivers today its advice in two key areas relating to Undertakings for Collective Investment in Transferable Securities (UCITS): the regulatory framework that should underpin the management company passport (Ref. CESR/09-963);
and the format and the content of key investor information disclosures(Ref. CESR/09-949).
CESR’s advice follows a Commission mandate received in February 2009. The publication of today's advices is accompanied by a press release.
