ESMA study shows impact of short-selling disclosure on investor behaviour
April 12, 2018--The public disclosure of net short positions in EU shares influences investors' behaviour, a recent study by the European Securities and Markets Authority (ESMA) finds
ESMA's latest Trends, Risks, Vulnerabilities (TRV) Report No. 1, 2018, analysed net short positions reported under the Short-Selling Regulation (SSR).
The SSR data shows that there were 210,341 net short positions reported from January 2013 to December 2016. These net short positions related to over 2,000 European shares, the majority being UK and German securities.
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Source: ESMA
EU financial regulators warn against risks for EU financial markets, Brexit, asset repricing and cyber-attacks key risks
April 12, 2018--The securities, banking and insurance sectors in the European Union (EU) face multiple risks, the latest report on risks and vulnerabilities by the Joint Committee of the European Supervisory Authorities (ESAs) shows.
The ESA report for the second half of 2017 outlines the following risks as potential sources of instability:
sudden repricing of risk premia as witnessed by the recent spike in volatility and associated market corrections;
uncertainties around the terms of the UK's withdrawal from the EU; and
cyber-attacks.
The ESA report also reiterates their warning to retail investors investing in virtual currencies and raises awareness for risks related to climate change and the transition to a lower-carbon economy.
Barclays to Shut $1.2 Billion of ETNs, But Do Holders Know?
April 11, 2018--Investors remain in 50 notes that Barclays will close Thursday
The British bank is 'streamlining' platform and lowering fees
If you own an exchange-traded note sold by Barclays Plc, go check your mail. Now.
The British bank is retiring or replacing roughly half of its U.S. offerings on Thursday, according to statements from the company. The plan affects 50 ETNs with about $1.2 billion in assets, data compiled by Bloomberg show. Yet, as of last week, assets stubbornly remained in the notes, meaning investors appear to be oblivious to a shake up that could strand them with hard-to-trade securities.
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Source: Bloomberg
Fidelity fires broadside in battle to cut fund fees
April 11, 2018--Fidelity International has returned fire on its rivals in the ferocious price war being fought by investment managers in Europe-with a new range of low-cost index-tracking funds.
Bermuda-based Fidelity is to launch six Irish-domiciled equity index funds and trim fees on three UK-domiciled index funds in...
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Source: FIN24
Indxx Blockchain Index Licensed by First Trust for Europe's First UCITS "Blockchain" Exchange Traded Fund
April 11, 2018--Indxx is pleased to announce the Indxx Blockchain Index (the "Index":) has been licensed to UK-based ETF provider First Trust Global Portfolios as the underlying benchmark for the First Trust Indxx Innovative Transaction & Process ETF (LSE:BLOK). With this announcement, there are now ETFs that track the Index available in the US, Canada, and EU.
The Index (ticker: ILEGR) tracks the performance of companies with their primary listing in developed or emerging market countries (as defined by Indxx) that are either actively using, investing in, developing, or have products that are poised to benefit from blockchain technology. Each constituent is extensively researched and classified by Indxx according to a proprietary three-tiered scoring system, and only companies ranked within the top two tiers are eligible for inclusion in the Index.
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Source: Indxx
ESMA data shows EU exchange-traded derivatives market volumes at 200tn Euro
April 10, 2018--The EU market for Exchange-Traded-Derivatives (ETDs) is worth approximately €200tn-with an average daily turnover of €1.3tn- a recent report by the European Securities and Markets Authority (ESMA) shows.
According to the Market in Financial Instruments Directive (MiFID), ETDs cover asset classes such as equity, credit, interest rate and commodity derivatives.
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Source: ESMA
New Xtrackers ETF focussed on high dividend companies launched on Xetra
April 10, 2018--A new exchange traded fund (ETF) issued by Deutsche Asset Management has been tradable on Xetra and Börse Frankfurt since Tuesday.
The Xtrackers Morningstar Global Quality Dividend UCITS ETF enables investors to participate in the performance of stock corporations from industrialised countries that are characterised by high dividend yields and exceptional quality. The reference index comprises 200 large and medium-sized companies that meet pre-defined quality criteria based on their key financial figures and that have sufficient liquidity.
Name: Xtrackers Morningstar Global Quality Dividend UCITS ETF
Asset class: equity index ETF
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Source: Deutsche Börse Cash Markets
ECB-Account of the monetary policy meeting of the Governing Council of the European Central Bank, held in Frankfurt am Main on Wednesday and Thursday, 7-8 March 2018
April 9, 2018--1. Review of financial, economic and monetary developments and policy options
Financial market developments
Mr Cœuré reviewed the latest financial market developments.
Since the Governing Council's monetary policy meeting on 24-25 January 2018, despite a short-lived and concentrated spike in market volatility, valuations across broad asset classes had remained consistent with continued optimism about the outlook for global growth.
Real long-term yields had risen by around 30 basis points in the United States and 20 basis points in the euro area since the start of the year. While part of this movement reflected adjustments in term premia, it also likely reflected investors' views on growth prospects, including the expected impact of the fiscal stimulus package adopted by the US Administration. Ten-year break-even inflation rates in the euro area had barely moved since the start of the year. By contrast, in the United States they had increased by more than 20 basis points. Markets had also reappraised the near-term monetary policy outlook in the United States, in part reflecting recent US employment and inflation data releases.
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Source: ECB
Monday Morning Memo: Blaming ETFs-A New Sport for Active Managers?
April 9, 2018--While observing the discussion around ETFs, especially in Europe, I become a bit concerned that the critiques are getting too tired-pundits seem to be going over the same topics again and again. In some cases the arguments have been proven wrong or are the result of the nature of the investment products.
To give an example, some critics-mainly from the active management industry-raising the point that ETFs are always fully invested and don't do active asset allocation, which leads to losses if the underlying index declines. Well, that's obviously right, but I can't see an issue here. Investors want their ETFs to track the underlying index as closely as possible. To be explicit, it is the aim of an ETF to replicate the risk/return profile of its underlying index as exactly as possible in all market circumstances. This means the ETF and therefore the investor will face losses when the market goes down-a fact any ETF investor should be aware of prior to his decision to buy an ETF.
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Source: Detlef Glow, Head of EMEA Research-Thomson Reuters Lippe
New ETF Listing on Euronext-Amundi Asset Management
April 9, 2018--Euronext is pleased to announce that Amundi Asset Management will list 1 new ETF on 10/04/2018:
ISIN: LU1778293313
ETF Trading name: AMUNDI G AG500 UH
ETF Symbol:GAHU
Venue: Euronext Paris
Underlying index: Bloomberg Barclays Global Aggregate (500 Million)
TER (%) 0,10
Euronext now offers 751 Trackers listed on the European markets.
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Source: Euronext
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