Strong month for Eurex' Equity segment
August 2, 2018--In July, Eurex, Europe's largest derivatives exchange and part of Deutsche Börse Group, has seen strong demand for its equity products. Traded equity contracts were up by 76 percent to 23,790,806 from 13,506,099 in July 2017.
Demand was particularly high for Single Stock Dividend Futures (+87 percent) with 435,018 traded contracts. Overall, the trading volume at Eurex increased by 9 percent to 109,870,543 from 100,888,442 in July 2017. In the Equity Index Segment, volumes went up by 10 percent to 55,354,047. Turnover in the Fixed Income space declined by 17 percent to 30,723,777 traded contracts. Eurex' recently launched EURO STOXX 50(R) options with month-end expirations had a successful start with nearly 40,000 traded contracts.
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Source: Deutsche Börse Cash Market
Boerse Stuttgart generates turnover in excess of EUR 5.4 billion in July
August 1, 2018--Trading volume of debt instruments (bonds) and investment fund units up on previous month
According to its order book statistics, Boerse Stuttgart generated turnover of more than EUR 5.4 billion in July 2018.
Securitised derivatives accounted for the largest share of the turnover. The trading volume in this asset class was around EUR 2.4 billion. Leverage products generated turnover of around EUR 1.4 billion – an increase of 15 percent on July 2017. Investment products accounted for around EUR 1 billion of the total turnover.
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Source: Boerse Stuttgart
Borsa Italiana Listings Notice-4 WisdomTree ETFs
August 1, 2018--Borsa Italiana is pleasured to welcome on ETFplus market 4 new ETF issued by WisdomTree:
WisdomTree US Multifactor UCITS ETF ACC (IE00BD8ZD313)
WisdomTree US Multifactor UCITS ETF (IE00BD8ZCY59)
WisdomTree Japan SmallCap Div UCITS ETF (IE00BFXYK923)
WisdomTree Japan SmCap Div UCITS ETF ACC (IE00BFXYKD63)
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Source: Borsa Italiana
EBA publishes final draft technical standards on risk retention for securitisation transactions
July 31, 2018--The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the requirements for originators, sponsors and original lenders related to risk retention as laid down in the new EU securitisation framework (STS Regulation).
These final draft RTS, which replace the current Commission Delegated Regulation on risk retention, aim to provide clarity on the requirements relating to risk retention, thus reducing the risk of moral hazard and aligning interests
These final draft RTS address the fundamental issue of the possible misalignment of interests and incentives in securitisation transactions between the investors on the one hand, and the originators, sponsors or original lenders on the other, by ensuring that the latter maintain their 'skin in the game' and retain at least 5% of material net economic interest in each securitisation.
view the EBA Draft RTS on risk retention
Source: The European Banking Authority (EBA)
EBA publishes final draft technical standards defining the homogeneity of the underlying exposures in securitisation
July 31, 2018--The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) setting out conditions for securitisation to be deemed homogeneous. Homogeneity is one of the crucial requirements for a securitisation transaction to be assessed as simple, transparent and standardised ('STS') and to be eligible for more risk-sensitive risk weights under the new EU securitisation framework.
Homogeneity is also a key element for investors when assessing the underlying risks and performing their due diligence. The RTS are part of 28 mandates assigned to the EBA within its important role in implementation of the new securitisation framework.
view the EBA Draft RTS on homogeneity of underlying exposures in securitisation
Source: The European Banking Authority (EBA)
Concerns grow as colour drains swiftly from eurozone economy
July 31, 2018--Concerns over a sharp slowdown in the eurozone are rising with its economy growing at its weakest rate in two years, reversing a bumper 2017.
The UK is now expected to have overtaken the eurozone in the second quarter of this year, after official figures showed that the bloc's economy expanded by only 0.3 per cent between April and June compared with the previous three months. The UK is expected to have grown by 0.4 per cent when the first estimates are released in a fortnight's time.
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Source: The Times
HANetf Confirms Authorised Participants Ahead of ETF Launches
July 31, 2018--First key ETF liquidity providers confirmed
Barriers to entry to European ETF markets lowered by first European independent white-label
ETF platform
HANetf, Europe's first independent 'white-label' UCITS ETF platform,
confirms the first tranche of Authorised Participants (AP's) that will provide essential liquidity to onplatform funds. The companies are leading global market making firms with extensive knowledge and
experience providing deep and efficient ETF markets on most major European stock exchanges.
HANetf will further expand the range of APs to create one of the most extensive AP and market making
networks in the European ETF market.
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Source: Hanetf
ETFGI reports that ETFs and ETPs listed in Europe gathered net inflows of US$661 million during June 2018, the lowest net inflows since May 2015
July 31, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Europe gathered net new assets of US$661 million during June 2018, marking the 45th consecutive month of net inflows.
These were the lowest net inflows since May 2015. (All dollar values in USD unless otherwise noted.)
Highlights
ETFs and ETPs listed in Europe gathered net new assets of $661 Mn during June 2018, marking the 45th consecutive month of net inflows.
Fixed Income products gathered the largest net inflows during June, while Equity ETFs/ETPs experienced the largest net outflows.
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Source: ETFGI
S&P Dow Jones Indices Europe Dashboard
July 31, 2018--Summary
European equities posted steady gains in July as last month's focus on trade tensions and political risk largely gave way to earnings figures, economic data, and central bank guidance. The S&P Europe 350 gained 3.22%, with nearly all countries contributing positively to returns.
This month, British Prime Minister Theresa May survived multiple cabinet resignations over her "Chequers plan" for Brexit. The S&P United Kingdom underperformed broader EU equities, gaining 1.46% in sterling; less in euros.
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Source: S&P Dow Jones Indices
IMF Country Focus Greece: Much Progress, but Action Needed to Address Crisis Legacies, Boost Inclusive Growth
July 31, 2018--Greece has successfully eliminated its extraordinarily high fiscal and current account deficits, and restored growth. It must now take action to address crisis legacies and boost inclusive growth, says the IMF in its annual health check of the country's economy.
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Source: IMF
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