Monday Morning Memo: European Investors Continue in "Risk-on" Mode
May 28, 2019--Even though the market environment turned negative, April was the sixteenth consecutive month showing a positive picture for long-term mutual fund flows.
European fund promoters enjoyed net inflows into mixed-asset funds (+€5.0 bn), followed closely by equity funds (+€5.0 bn) and alternative UCITS funds (+€3.4 bn) as well as bond funds (+€1.7 bn), commodity funds (+€1.5 bn), "other" funds (+€0.9 bn) and real estate funds (+€0.2 bn).
These fund flows added up to overall net inflows of €17.6 bn into long-term investment funds for April. ETFs contributed €0.5 bn to these inflows.
Money Market Products
After posting net outflows for February and March, money market funds were the best-selling asset type overall for April (+€10.6 bn). In line with their actively managed peers, ETFs investing in money market instruments posted net inflows of €0.1 bn.
This flow pattern led the overall fund flows to mutual funds in Europe to overall net inflows of €28.2 bn for April and to estimated net inflows of €125.8 bn for the year 2018 so far.
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Source: Detlef Glow, Head of EMEA Research-Thomson Reuters Lippe
ESMA updates Q&A on Short-Selling Regulation
May 28, 2018--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) on the Short-Selling Regulation (SSR).
The overall SSR Q&A revises a pre-existing answer regarding locate arrangements, further specifying the requirements for 'easy-to-borrow and purchase' lists.
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Source: ESMA
ESMA promotes consistent (anti-)procyclicality margin measures for CCPs
May 28, 2018--The European Securities and Markets Authority (ESMA) has issued today final guidelines on anti-procyclicality margin measures for central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR).
The Guidelines seek to establish consistent, efficient and effective supervisory practices and to ensure a common, uniform and consistent application of EMIR in order to limit procyclicality of CCP margins.
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Source: ESMA
Deka product manager joins VanEck
May 25, 2018--US ETF provider Vaneck has expanded its European ETF business and has appointed Dominik Schmaus as its new product manager.
Based in Frankfurt, Schmaus will support the company in the development of new products and help to further expand the product offering for European customers.
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Source: Investmenteurope.net
ESMA updates Q&A on MiFIR data reporting
May 25, 2018--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) on data reporting under the Market in Financial Instruments Regulation (MiFIR).
The Q&As provide clarifications in relation to the requirements for submission of transaction reports and reference data under MiFIR.
In particular, the Q&As relate to Complex Trades and National client identifiers for natural persons.
The Q&A on complex trades provides new answers on reporting transactions and reference data for instruments where the execution results in a complex trade as defined under Article 12 of RTS 22.
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Source: Deutsche Börse Cash Markets
New SPDR ETF on global convertible bonds launched on Xetra
May 24, 2018--A new exchange traded fund issued by State Street Global Advisors is tradable on Xetra and Börse Frankfurt as of Thursday.
The new bond index ETF gives investors access to the global convertible bond market. The reference index comprises investment grade and non-investment grade convertible bonds as well as instruments without a rating.
The convertible bonds can be fixed or floating rate. The index components must meet certain minimum size requirements in their national currency for inclusion in the reference index. The ETF uses a hedging strategy to minimise the exchange rate risk between the base currency of the index components and the euro.
Name: SPDR Thomson Reuters Global Convertible Bond UCITS EUR Hdg ETF (Acc)
Asset class: bond index ETF
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Source: Deutsche Börse Cash Markets
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