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Deutsche Börse becomes majority shareholder in Tradegate Exchange to be formed in Berlin
Expansion of stock exchange offering for private investors/
Deutsche Börse reinforces its position in European retail business
November 30, 2009-Deutsche Börse is to acquire a 75-percent holding plus one share in Tradegate Exchange GmbH, Berlin, with effect from 8 January 2010. Tradegate Exchange GmbH operates the off-exchange trading platform (MTF) TRADEGATE, which has been running successfully since 2001. At the beginning of 2010 it will commence operation as a stock exchange; the former MTF TRADEGATE will receive the status of “Regulated market within the meaning of MiFID”, becoming Tradegate Exchange.
Deutsche Börse AG will also acquire a 5-percent share in Tradegate AG Wertpapierhandelsbank, one of the market makers in TRADEGATE/the future Tradegate Exchange. Deutsche Börse will also have the option of gradually increasing its share in Tradegate AG to a maximum of 20 percent.
Deutsche Börse is investing an amount in the single-figure million euro range for its share in Tradegate Exchange GmbH and the initial 5-percent holding in Tradegate AG.
“The transition of the successful MTF TRADEGATE into a regulated trading venue as Tradegate Exchange is an opportunity for Deutsche Börse to employ its core competency and to operate an additional stock exchange in Germany. Our common objective is to expand retail business across Europe,” said Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the Xetra business area.
“The market share of the MTF TRADEGATE has grown continuously and significantly in recent years. This shows that our strategy to develop a trading platform in tune with the needs of private investors has borne fruit. We are pursuing further growth of the platform into the rest of Europe with Deutsche Börse’s renown and strength in terms of distribution,” said Holger Timm, CEO of Tradegate AG.
Deutsche Börse’s majority interest in Tradegate Exchange GmbH will serve to expand its trading offering for private investors and strengthen its position in the European retail market; with the Tradegate Exchange, it will be operating a platform which offers particularly online brokers new trading functions, longer trading hours and innovative order types at attractive prices.
Source: Deutsche Börse
The share of China in EU27 trade in goods continued to rise in the first six months of 2009
EU27 deficit fell in the first half of 2009
November 27, 2009--In the first half of 2009 the value of EU27 exports to China fell to 37 bn euro, compared with 39 bn in the first half of 2008, and imports decreased to 103 bn from 112 bn. As a result, the EU27 trade deficit with China dropped from 73 bn in the first half of 2008 to 65 bn in the same period of 2009 .
The fall in EU27 trade with China recorded between the first halves of 2008 and 2009 was less steep than the general downward trend in the EU27 's total external trade, leading to an increase in the share of China in the EU27 's total external trade in goods to more than 7% of exports and 17% of imports in the first half of 2009, compared with 6% and 14% respectively in the first half of 2008. China is the EU27 's second most important trading partner, after the USA .
It should be noted that between 2000 and 2008, EU27 trade in goods with China had more than tripled in value, and the share of China in the EU27 's total external trade in goods doubled.
On the occasion of the 12 th European Union - China summit, which will take place on 30 November in Nanjing , Eurostat, the Statistical Office of the European Communities , issues data on trade in goods between China and the EU . Data on trade in services and investments can be found in the recent News Release published for the previous EU - China summit.
Germany, the Netherlands and the United Kingdom: largest trading partners of China
Among the EU27 Member States, Germany (16.2 bn euro or 43% of EU exports) was by far the largest exporter to China in the first half of 2009, followed by France (3.7 bn or 10%), Italy (3.4 bn or 9%), the United Kingdom (2.5 bn or 7%) and the Netherlands 2 (2.1 bn or 6%). Germany (21.9 bn or 21%) was also the largest importer, followed by the Netherlands 2 (16.0 bn or 16%), the United Kingdom (13.9 bn or 14%), Italy (9.9 bn or 10%) and France (8.7 bn or 9%). .
view EU-China Trade figures
Source: Eurostat
Britain, France lead push for climate fund
November 27, 2009-- Britain and France on Friday committed to paying developing nations to combat global warming by leading calls for a multi-billion-dollar climate fund financed by rich countries.
Prime Minister Gordon Brown and President Nicolas Sarkozy, attending a closed-door Commonwealth summit in Trinidad, separately called for the fund to be adopted at climate talks to be held in Copenhagen December 7-18.
Brown, on his official website, spoke of an initial commitment of 10 billion dollars to which Britain would contribute 1.3 billion dollars over three years.
read more
Source: EU Business
Currency ETCs supported by seven liquidity providers on LSE
November 26, 2009--ETF Securities says its newly launched exchange-traded currencies are now supported by seven liquidity providers on the London Stock Exchange.
In addition, two multilateral trading facilities have started quoting the Currency ETCs with another two MTFs planning to quote the new ETCs within the next few weeks.
The first 18 currency ETCs were listed on the LSE on 12 November and track MSFX Currency Indices.
Source: ETF Express
Natural gas ETC inflows continue to surge
November 26, 2009--Natural gas exchange-traded commodity inflows continued to surge last week, receiving the strongest investor interest across ETF Securities’ commodity ETC platform.
Combined inflows into ETFS Natural Gas, ETFS Forward Natural Gas and ETFS Leveraged Natural Gas increased by USD56m, bringing total inflows this year to nearly USD1.5bn, more than any single commodity play other than gold.
Source: ETF Express
Deutsche Börse connects 100th participant to Proximity Services
Algotraders benefit from low latency / Total of more than 1,000 logical network connections
November 27, 2009--100 Eurex and Xetra participants, vendors and service providers already use the two Proximity data centers in Frankfurt, benefiting from the low latency and the high bandwidth of the Enhanced Broadcast Solution and Enhanced Transaction Solution interfaces. Another five customers are soon to be connected.
"This confirms Deutsche Börse Group's irrefutable role as leading European exchange in this field and highlights its attractiveness for trading houses that pursue latency-sensitive algorithmic trading strategies," said Matthias Kluber, Executive Vice President and Head of Networks and Infrastructure at Deutsche Börse Systems. "Since the launch of the first Proximity data center in 2006, we have experienced continuous growth in demand for low-latency locations from our trading participants, despite the deepening economic crisis. For us, this is the result of constantly optimizing not only our own infrastructure but also the range of additional proximity and low latency trading services we offer."
For example, Deutsche Börse Group has made it possible to transmit private newsfeeds unencrypted via the Enhanced Transaction Solution interface, thereby saving more time. This communication channel is safeguarded by way of additional technical features such as infrared surveillance systems and armored conduit for cable ducts. Since August 2009, a new 10GBit/s backbone data line has also been in place between London and Frankfurt, setting new standards with its network latency of under five milliseconds.
New Proximity participants can initially test the new services with their algorithms and trading engines under the Proximity Tryout scheme – which features 100 percent realistic conditions in terms of latency and data throughput. Teams and services from Customer Technical Support and ExServes will be available to help. In order to manage its permanent proximity installations securely and cost-effectively in the long term, Deutsche Börse Systems offers fast and reliable management links via its worldwide network.
"We will continue to meet the high demands many customers place on our trading infrastructure in terms of latency, performance and implementing technological progress in the future," commented Matthias Kluber. "And our IT security and availability standards will remain high."
The Eurex and Xetra members that use Deutsche Börse Group's Proximity Services come from all over the world. Eleven different countries are represented, including Germany, the UK, the US, the Czech Republic, Hong Kong and Singapore. The participants include international universal banks, renowned hedge funds and highly specialized algotraders. 21 percent of all Eurex and 18 percent of all Xetra members already use a Proximity data center.
Source: Deutsche Börse
DB Index Research -- Weekly ETF Reports -- Europe
November 26, 2009--Highlights
ETF Volume
Exchange based Equity ETF turnover declined by 3.2% on the previous week. Daily turnover for the previous week was E1.4bn. European fixed income ETF turnover declined by 2.5% to E178.4m, 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 E15.95m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E72.26m.
There were 10 listings in the last week. Lyxor listed 2 new ETFs on NYSE Euronext Paris. ETF Securities Ltd listed 1 new ETC on the London Stock Exchange and UBS 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 E454m accounting for 32.05% of total ETF turnover, followed by European Regional ETFs with total turnover of E371m with 26.23% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E192m across the nine listed products and accounting for 13.5% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 13.1% of turnover trading E185m 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 37.5% of total turnover. The Euronext NextTrack platform has 21.5% market share. The LSE’s combined Italian Exchange and London market share is now 25.4%.
Assets under Management (AUM)
Total European Equity related AUM remained at about the same level at E104.3bn during last week. AUM for DJ Euro STOXX 50 ETFs was E20.1bn accounting for 19.3% of total European AUM. Fixed Income ETF AUM rose by 2.3% to E34.6bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E5.1bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.2bn.
To request a copy of the report FSA statement re: Walker Review
The FSA introduced a remuneration code in August 2009. It comes into effect on 1 January 2010. Sir David Walker has expressed strong support for, and his recommendations are broadly consistent with, the FSA’s existing remuneration code.
The FSA reiterates its commitment to reviewing its remuneration code next year in order to take any international developments into account. This review will also consider whether, and how, to implement Sir David’s wider recommendations on remuneration.
In relation to shareholder engagement, on conclusion of the Financial Reporting Council’s consultation on the ‘Stewardship Code’ the FSA will consult upon a rule introducing a ‘comply or explain’ disclosure requirement for relevant investment management firms.
The FSA continues to participate actively in international fora to ensure that the UK continues to lead the way in setting high standards for governance and remuneration. Government to implement Walker reforms on pay and governance
Sir David’s review was commissioned by the Government earlier this year to explore failures of corporate governance and management of banks. His final report suggests a series of reforms to strengthen the role of shareholders, improve the quality of bank boards, and to increase transparency of pay and bonus policies.
“One of the fundamental causes of the financial crisis was bad management of some our major banks. Too many people around board tables did not ask the right questions; some chief executives did not fully understand the risks being taken by their traders; pay and bonuses encouraged reckless risk taking instead of responsible behaviour. Banks failed because some of the top people running banks failed to do their jobs. “Tougher regulation, including stronger capital and liquidity requirements, reform of the mortgage market, greater competition, consumer protection, and living wills will help to make our system safer for the future. But the culture of the banks themselves must change.
“Sir David’s proposals are the blueprint for how banks must be run in the future. His interim report recommended changes to control bonuses that have already become part of a global standard agreed by the G20. The Government strongly supports his recommendations and will take steps to implement them as soon as possible.”
Sir David’s report recommends action to be taken by the Government, the Financial Services Authority, the Financial Reporting Council, bank owners, and the banks themselves. For its part, the Government accepts all the recommendations and will begin immediate work to implement them.
Specifically, the Government’s Financial Services Bill will allow the Treasury to issue regulations forcing banks to disclose in bands the number of staff earning more than £1million per annum. We will issue draft regulations for consultation in the New Year and bring them into force as soon as practicable after enactment of the Bill. This will force disclosure for the 2010 performance year.
In addition, the Financial Services Secretary Paul Myners will shortly meet with major institutional investors to discuss steps they can take to implement Walker’s recommendations as owners of UK banks. A review of corporate governance
in UK banks and other financial
industry entities-Final recommendations-Walker Report
16 New Xmtch ETFs Launched on Xetra
The seven new Xmtch ETFs based on the MSCI Small and Large Cap index series offer investors the opportunity of participating in the performance of small and large caps from the UK, Japan, the USA and the euro zone.
The Xmtch ETF (Lux) based on the MSCI Emerging Market index also gives investors the possibility to participate in the performance of companies from 25 emerging markets.
The product offering in Deutsche Börse’s XTF segment currently comprises 541 exchange-listed index funds, making it the largest offering of all European stock exchanges. With this offering and an average monthly trading volume of around €11 billion, Xetra is the leading trading venue for ETFs in Europe.
The table attached to this message contains the 16 bond and equity ETFs admitted to trading in the XTF segment on 25 November along with their ISIN, trading currency and management fee.
16 new Xmtch ETFs on Xetra If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: Source: Aram Flores and Shan Lan -DB Index Research
November 26, 2009--The Financial Services Authority (FSA) welcomes the publication of Sir David Walker’s final review of corporate governance in UK banks and other financial institutions.
Many of the recommendations complement work the FSA is already carrying out, such as the increased focus on the quality of governance and risk management at FSA-regulated firms. The FSA has already strengthened its approach to the approval of individuals who manage and influence firms at a senior level and will publish a further consultation paper on governance and approved persons early next year.
Source: FSA
November 26, 2009--The Government will move quickly to implement the reforms of bank pay and governance proposed today by Sir David Walker.
Chancellor of the Exchequer Alistair Darling said:
Source: HM Treasury Department
Seven ETFs tradable in euros and US dollars, respectively, and two products tradable in pounds sterling, all now listed in Deutsche Börse’s XTF segment
November 25, 2009--Eight new Xmtch bond index funds and eight equity index funds from the ETF offering of Credit Suisse are tradable on Xetra®. Of the 16 new products, seven are tradable in euros, seven in US dollars, and two ETFs in pounds sterling.
Six of the new Xmtch ETFs allow investors to participate in the performance of the Markit iBoxx EUR Sovereigns or Markit iBoxx USD Treasuries index series. These indices track government bonds with maturities of between one and three, three and seven, and seven and ten years, and which are issued by euro zone governments or the US government. The ETFs based on the Markit iBoxx USD Tips Inflation-Linked and Markit iBoxx Euro Sovereigns Inflation-Linked indices replicate the performance of government inflation-linked bonds in the USA and the euro zone with an outstanding nominal amount of at least two billion US dollars or euros.
Source: Deutsche Börse
