Europe ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
CESR launches a consultation on Trade Repositories in the European Union
September 29, 2009-The financial crisis, especially the default of Lehman Brothers, underlined the importance of a robust and adequately functioning post-trading infrastructure, highlighted the need for more transparency on exposures generated by the over-the counter (OTC) market, in particular for derivatives, notably credit default swaps (CDS), and demonstrated the need to safeguard the OTC market from abusive behavior.
The CESR/ESCB Recommendations for Securities Settlement Systems and Central Counterparties in the European Union, upon request of the ECOFIN, have been reviewed in order to encompass the OTC derivatives dimension. On 31 July 2009 the European Commission announced a major step towards financial stability for the European CDS market in (defined as the market in CDS that reference European entities and indices), related to European entities and indices will be cleared through central counterparties as of that date. The fact that various providers of clearing services have now expanded (or are in the process of doing so) their scope of services to central clearing of CDS is an important reason to consider what further improvements can be made in order to enhance risk mitigation and to improve the transparency and efficiency of the post-trading process as a whole. On 3 July 2009 the European Commission published a Communication on ensuring efficient, safe and sound derivatives markets. In the Communication the Commission referred to the forthcoming report of CESR on trade repositories, on the basis of which the Commission will take appropriate actions. It also raised several other issues that it considers to be important in the context of derivatives markets.
CESR invites responses to this consultation paper by 6 November 2009. All contributions should be submitted online via CESR’s website under the heading ‘Consultations’ at www.cesr.eu. All contributions received will be published following the close of the consultation, unless the respondent requests their submission to be confidential.
Source: CESR
On 1 October 2009, the Luxembourg Stock Exchange will launch 2 new indices for GDRs (Global Depositary Receipts).
September 29, 2009--On 1 October 2009, the Luxembourg Stock Exchange will launch 2 new indices for GDRs (Global Depositary Receipts).
Named Lux GDRs India and Lux GDRs Taiwan, these two indices are weighted capitalisation indices whose respective constituents comprise all the GDRs from India and Taiwan that are listed on the Luxembourg Stock Exchange. These indices reflect the moves in the prices of the constituent securities
Except for the distinction by country, the requirements for entry to both of the indices are identical.
The base dates for Lux GDRs India and Lux GDRs Taiwan are 1 January 2009.
Data and information related to Lux GDRs India and Lux GDRs Taiwan will be made available on the website of the Luxembourg Stock Exchange (www.bourse.lu) on the ‘Indices’ page of the ‘Consultation’ section.
This launch is a further sign of the position of the Luxembourg Stock Exchange as an important exchange for listing depositary receipts and in particular GDRs. It has currently 223 quotation lines of depositary receipts from 17 countries.
Source: Bourse de Luxembourg
NYSE Euronext is pleased to announce the listing of ten additional CASAM ETF s today
September 29, 2009-- Euronext lists 10 additional CSAM ETFs
CASAM ETF MSCI WORLD ENERGY-ISIN:FR0010791145-Ticker:CWE
CASAM ETF MSCI WORLD FINANCIALS-ISIN:FR0010791152-Ticker:CWF
CASAM ETF MSCI EUROPE MATERIALS-ISIN:FR0010791137-Ticker:C8M
CASAM ETF SHORT MSCI EUROPE DAILY-ISIN-FR0010791186-Ticker:C8E
CASAM ETF SHORT MSCI USA DAILY-ISIN:FR0010791194-Ticker:C2U
CASAM ETF REAL ESTATE REIT IEIF-ISIN:FR0010791160-Ticker:C8R
CASAM ETF FTSE 100-ISIN:FR0010791129-Ticker:C1U
CASAM ETF SHORT DAX 30-ISIN:FR0010791178-Ticker:C2D
CASAM ETF DOW JONES STOXX 50-ISIN:FR0010790980-Ticker:C5E
CASAM ETF DOW JONES STOXX 600-ISIN:FR0010791004-Ticker:C6E
Source: NYSE EURONEXT
LCH.Clearnet to buy back up to 45 pct of shares
* To redeem up to 33.3 mln shares at 10 euros each
* Euroclear to sell back entire stake
* Expects redemption to take place in early November
September 29, 2009--LCH.Clearnet, Europe's biggest independent clearing house, moved to shrink its shareholder base with an offer to buy out settlement house Euroclear's stake as part of a 444 million euro ($651 million) payout.
LCH, which has been under pressure to revamp its shareholder structure for months, said on Tuesday it would buy back up to 45 percent of its shares and pay a dividend to all its owners, mostly major banks that clear trades using its systems.
read full story
Source:Reuters
BNP throws down challenge with cash call
September 29, 2009--BNP Paribas threw down a challenge to the European banking industry on Tuesday as it sought to escape the yoke of state support through a €4.3bn ($6.3bn) rights issue.
Baudouin Prot, chief executive of Europe’s second-biggest bank by market value, said the rebound in the stock market presented an “opportunity” to repay “as soon as possible” the €5.1bn of non-voting preference shares issued to the French government in March.
read full story
Source: FT.com
BATS Europe Exceeds 10% FTSE 100 Market Share
Announces New Fourth Quarter 2009 Pricing - Surpasses 10% Mark During Intraday Trading For The First Time On 25 September - Announces Aggressive Pan-European Pricing Beginning 1st October
September 28, 2009--BATS Europe, an innovative and technology-leading European Multilateral Trading Facility (MTF), on 25 September recorded a new intraday market share record with more than 10% of the FTSE 100.
The fast-growing MTF also announced an aggressive maker/taker pricing tariff for its pan-European Integrated Book. From the 1st October until the 31st December, participants adding liquidity will be rebated 0.20 basis points, whilst participants removing liquidity will be charged 0.25 basis points, a reduction from the previous liquidity removal charge of 0.30 basis points.
We are delighted to have reached this significant market share milestone, which is a proud moment for the BATS Europe team,” said Chief Executive Mark Hemsley. “Less than one year ago we launched the BATS Europe platform with expectations of becoming a leading alternative European trading destination and we thank our investors and participants for their support.”
read more
Source: BATS Europe
GLG launches fund to buy company debt
September 28, 2009--GLG Partners, one of London’s largest hedge funds, has launched a new fund to invest in the debt of troubled UK and European companies.
The fund will be one of the most significant launches in London so far this year, as a growing number of hedge fund managers and investors turn to so-called distressed strategies in pursuit of potentially huge returns.
GLG’s fund already manages about $300m of clients’ money, according to people familiar with the situation. It began trading earlier this month, having previously been run as a component strategy within GLG’s existing credit and market-neutral funds since July last year.
Statement of IASB Chairman Sir David Tweedie to the Economic and Monetary Affairs Committe
I am particularly pleased that you have made time to allow me to provide an update on the IASB’s work at this critical juncture for financial markets. I and my colleagues on the IASB look forward to working with the Committee in the coming years, and we remain committed to seeking your input on important aspects of our work at an early stage in the decision-making process. I also know that the Trustees of the IASC Foundation, the IASB’s oversight body, have already expressed their willingness to meet the Committee later this year.
This session is particularly timely. The G20 leaders met last week and have repeatedly affirmed the importance of achieving a single set of high quality global accounting standards. This is something that the European Union and your predecessors on this Committee recognised well in advance of the current crisis. The European Union’s strategy to adopt an international standard, rather than a particularly European one, has been vindicated. As a direct result of your leadership in this area, over 100 countries now require or permit the use of the International Financial Reporting Standards (IFRSs) issued by the IASB. It is crucial for the achievement of global standards and the effective functioning and prosperity of the European economy, and indeed the global economy, that the EU remains committed to global standards.
read statement
Dearth of listings hurts Plus Markets read full story EDHEC research suggests that the traditional approach to private wealth management is misguided
The EDHEC-Risk analysis has great potential implications for the wealth management industry. Most private bankers actually implicitly promote an ALM approach to wealth management. In particular, they claim to account for the investor's goals and constraints. The technical tools involved, however, are often inappropriate and do not give the clients any insight on the risk related to reaching their objectives.
Broadly speaking, the EDHEC analysis shows that taking an ALM approach to private wealth management generates two main benefits:
1. First, it has a direct impact on the selection of asset classes. In particular, it leads to a focus on the liability-hedging and goal-specific properties of various asset classes, a focus that would, by definition, be absent from an asset-only perspective. 2. Second, it leads to defining risk and return in relative rather than absolute terms, with the liability portfolio used as a benchmark or numeraire. This is a critical improvement on asset-only asset allocation models, which fail to recognise that changes to asset values must be analysed in comparison to changes in liability values. In other words, private investors are not seeking terminal wealth per se so much as they are seeking terminal wealth whose purchasing power enables them to achieve such goals as preparing for retirement or buying property. This study was produced by EDHEC-Risk as part of the ORTEC Finance ‘Private ALM’ research chair.
View the publication “Asset-Liability Management in Private Wealth Management” For more information, please contact:
Carolyn Essid, EDHEC-Risk: If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: FT.com
September 28, 2009--Madam Chairwoman, Members of the Economic and Monetary Affairs (ECON) Committee, I welcome this opportunity to appear before you today to present how we at the International Accounting Standards Board (IASB) are responding to issues arising from the financial crisis.
I will focus my formal remarks on our response on the financial crisis and, in particular, our response to issues raised by EU institutions. However, I should be happy to discuss any other issues that members of the Committee wish to raise.
Source: International Accounting Standards Board (IASB)
September 28, 2009--Pre-tax losses more than doubled at Plus Markets in the six months to June 30, after the junior stock exchange suffered from a dearth of listings and had to find an extra £2.5m ($3.97m) in costs arising from a threatened court battle with the London Stock Exchange.
The dispute with the LSE over the rights of Plus to report trades in the shares of all the companies quoted on Aim delayed the group’s expansion plans, ratcheted up lawyers’ costs and meant Plus needed an injection of £5.5m from Middle Eastern investors, Amara Dhari Investments.
Source: FT.com
September 28, 2009-The results of a new study by EDHEC-Risk entitled “Asset-Liability Management in Private Wealth Management,” by Noël Amenc, Lionel Martellini, Vincent Milhau and Volker Ziemann, suggest that suitable extensions of portfolio optimisation techniques used by institutional investors can be transposed to private wealth management, precisely because these techniques have been engineered to incorporate in the portfolio construction process an investor's specific context, objectives, and horizon.
According to EDHEC-Risk, while the private client is routinely asked all kinds of questions about his current situation, goals, preferences, constraints, etc., the resulting service and product offering mostly boil down to a rather basic classification in terms of risk profiles with no link to the recommendation. In this new paper, EDHEC provide a formal framework suggesting that asset-liability management can ensure that private wealth managers are able to offer their clients investment programmes and asset allocation advice that improve the probability of meeting their individual objectives.
Tel.: +33 (0)4 93 18 78 24 – E-mail: carolyn.essid@edhec-risk.com
Sascha Vrolijk, ORTEC Finance:
Tel.: +31 (0) 10 498 66 66 – E-mail: svrolijk@ortec.nl
Source: EDHEC
