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Unscheduled adjustment in TecDAX
EVOTEC replaces IDS Scheer effective 28 October 2009
September 26, 2009--Deutsche Börse has announced an unscheduled adjustment in TecDAX®. The
freefloat of IDS Scheer has dropped below ten percent and does therefore no
longer meet the criteria of the index.
EVOTEC will replace the share of IDS
Scheer in TecDAX.
The next regular review of the equity indices of Deutsche Börse is scheduled for 3 December 2009.
TecDAX® is a registered trademark of Deutsche Börse AG.
Raise retirement age to 70, say Business Leaders
October 22, 2009-The Institute of Directors (IoD) launched a major new report into pensions ‘Roadmap for Retirement Reform 2009’ on October 19, 2009, which sets out a radical reform agenda, and direction of travel, for both the state and private retirement benefit systems.
Looking at the retirement policy scene holistically, it argues, is essential for effective change designed to deliver better outcomes for consumers, better understanding and better engagement in long term saving
The paper proposes 4 fundamental changes:
• In the face of greatly increased longevity, the state pension age should rise to 70 as soon as reasonably practical
• The State second pension should be abolished, together with most means tested state retirement benefits
• The savings made should be diverted to the provision of a universal Basic State Pension probably above the level we see today topped up by Pension Credit
• The current private pension saving regime does not meet 21st Century needs and should be replaced.
Commenting on the report, Graeme Leach, Chief Economist at the IoD, said:
“Radical simplification is needed. Startling increases in longevity in recent decades also mean that it is unrealistic to expect to be able to fund a potential 25 to 30 year retirement from an effective 30 to 35 year working life. New approaches are needed to recognise this reality. The whole area of retirement needs to be looked at holistically, including how we fund the care needs which will come with increasing longevity. We need a state and private retirement system fit for the 21st Century. This is a policy journey which needs to begin now.”
Malcolm Small, Senior Adviser, Pensions Policy at the IoD and author of the report, said:
“We were surprised at the appetite for radical reform amongst IoD members. Both state and private pension systems have now become so complex that people are becoming disengaged from pension saving and are looking for alternatives. If people don’t like the structure, they are less likely to stay in it, even if they are auto-enrolled into saving, as they will be from 2012.”
view Roadmap for
Retirement Reform 2009
Nomura Launches Ultra Low Latency Trading Service
October 23, 2009--Nomura today announced the launch of its next generation ultra low latency trading service. Utilising the latest networking technology, the platform will offer clients co-located software hosting and ultra fast connectivity to major exchanges and MTFs in Europe.
The low latency network has been designed by Nomura’s technology and product teams utilizing the expertise of COLT, a leading European infrastructure services provider to the finance community. COLT will provide the network infrastructure for this solution. A dedicated fibre optic network has been rolled out in three major European cities, setting new standards for speed and throughput.
“The fastest possible market data and the fastest possible trading connections are critical for the low latency trading community. At Nomura, we have combined leading networking and trading expertise with significant investments to achieve these goals,” said Jeff Zorek, Global Co-Head of Prime Product Management at Nomura.
Nomura’s co-location service is supported by a specialist infrastructure team, ensuring clients receive a dedicated end to end service. The platform also delivers a very high level of security and seamless integration with Nomura’s Prime Services products. Nomura and COLT aim to continue collaborating on future enhancements to the platform.
Tanuja Randery who heads COLT’s Global Business Division added, “Harnessing the power of ultra low latency network solutions is increasingly critical for our finance customers. We have worked closely with Nomura to build a solution that pushes the boundaries of latency. We have combined speed to market, advanced technology leveraging our Next Generation Platform and real market knowledge to help Nomura drive its business growth and we look forward to collaborating with Nomura to enhance the solution in the future.”
Nomura has this year climbed the ranks of the London Stock Exchange (LSE), reaching and retaining the number 1 spot in July, August and September 2009. “The launch of Nomura’s co-location network will help expand our market share across all European equities, and will assist us in becoming a top-five global trading house,” said Mr Zorek.
Pound slumps on economic growth shock
October 23, 2009--Sterling suffered its biggest fall against the euro in six months after worse-than-expected GDP data showed the UK is still in recession
The pound dropped 1.5% versus the euro, to €1.0887, its sharpest slide since 24 April, and by 1.5% against the dollar to $1.6345, the biggest decline since October 9.
Currency traders reacted after bombshell figures from the Office for National Statistics revealed that gross domestic product, far from growing by the expected 0.2% between July and September, had shrunk by a massive 0.4%.
Crédit Agricole and Société Générale name asset management arm Amundi
October 23, 2009--Crédit Agricole and Société Générale have named their combined asset management arm Amundi.
The companies say the name Amundi blends the initials of "asset management" with an allusion to the world.
The Latin origin of Amundi also harks back to the group's European roots.
Subject to the approval of the European competition authority, Amundi will come into being on 1 January 2010.
RBS to cut back reliance on APS
October 23, 2009-Royal Bank of Scotland is planning to significantly pare back its involvement in the government’s asset protection scheme, in a sign that the economic climate is improving.
The bank, which is 70 per cent owned by the state, had originally planned to ring fence about £325bn of potentially toxic assets under the insurance scheme. However, its latest plans will see this reduced below £300bn and possibly down as far as £265bn, according to people familiar with the matter.
Private investors start to take profits
October 23, 2009-Private investors have called time on the stock market rally and started to take profits, according to the trading records of 1.6m UK shareholders.
In August and September individual investors sold a net £199m of equities, according to Capita Registrars, which registers shareholdings in more than 2,000 UK and Irish companies. Before August, there had been nine consecutive months of net equity buying.
State pension faces population explosion
October 23, 2009-The population crisis facing the state pension has been highlighted by a new report showing the number of over-85s will more than double within the next 25 years.
The Office for National Statistics says there will be 3.3m people over 85 living in the UK by 2033, compared to 1.3m last year.
The severity of the population ageing will put more pressure on the UK's already creaking state pension system and radical action will be needed to tackle the problem.
Rising life expectancy is placing a heavy burden on those of working age, with more pensioners claiming benefits for longer.
Deutsche Börse adapts model for professional use of indices
Business model aligned with international practice /
Basic information remains free of charge
October 23, 2009-Deutsche Börse announced today the transition of its model for professional
and commercial use of its indices. The previous licenses for the indices are to
be replaced by use-based access to the main index parameters as of 1 January
2010. However, the licensing applicable to index trademarks for marketing and identification purposes remains unchanged.
In converting the model, Deutsche Börse is adapting to what has already become international practice. The conversion will make certain detail data required for professional and commercial use of the indices available exclusively to contracting parties of Deutsche Börse.
The high transparency of the DAX® index, however, will be maintained. The guidelines on the indices remain available free of charge; the 30 constituents will continue to be published. In addition, complete historical detail information with a maximum time lag of three months will be made available. To further increase transparency, Deutsche Börse will also provide a wide range of index-relevant key indicators, such as the performance of index constituents or the Sharpe Ratio, free of charge as part of the conversion.
To ease the changeover for market participants, a transition period lasting until 31 March 2010 will also be introduced. In addition, registered trading participants will continue to receive detail data for the sole purpose of trading DAX products on the Deutsche Börse trading platforms free of charge.
DB Index Research -- Weekly ETF Reports - Europe
October 22, 2009-Highlights
ETF Volume
Exchange based Equity ETF turnover rose by 5.3% on the previous week. Daily turnover for the previous week was E1.3bn. European fixed income ETF turnover declined by 6.6% to E179.9m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, iShares € Corporate Bond has the highest daily turnover of E17.92m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E69.68m.
