ESMA issues clarification on credit ratings and rating outlooks publication timelines
March 29, 2017--The European Securities and Markets Authority (ESMA) has published an update to its Questions & Answers (Q&A) on the application of the CRA Regulation, adding a new section on Disclosure and Presentation of Credit Ratings.
The new section contains new Q&As which provide clarification to credit rating agencies (CRAs), users of ratings, rated entities and market participants more generally.
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Source: ESMA
European Commission Article 50 of the Treaty on European Union-Q&A
March 29, 2017--What is Article 50?
Article 50 of the Treaty on European Union sets out the procedure for a Member State to withdraw
from the European Union, if it should wish to do so. It was first introduced by the Lisbon Treaty in 2007.
How does a Member State trigger Article 50?
A Member State must notify the European Council of its intention to leave. There are no particular equirements regarding the form.
What happens once Article 50 has been triggered?
The withdrawal agreement must be negotiated in accordance with Article 218 (3) of the Treaty on the Functioning of the European Union.
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Source: Europa
ESMA discusses haircuts in EU securities financing transactions
March 27, 2017--The European Securities and Markets Authority (ESMA) issued a research piece on shadow banking published in its recent report on trends, risks and vulnerabilities (TRV).
The piece provides a stock-take of the multi-trillion €-large market for securities financing transactions (SFTs) in the European Union and firms' use of collateral haircuts. ESMA's research aims at understanding the level and the calculation methodologies of haircuts used in the EU by SFT market participants.
view the ESMA resrach paper-Haircuts in EU securities financing markets
Source: ESMA
Solactive Expands Smart Beta Offering With The Launch Of Two New Global Infrastructure Income Indices Licensed To J.P. Morgan
March 24, 2017--Solactive is announcing the release of two new indices in the infrastructure space, the Solactive Global Infrastructure High Income Index and the Solactive Global Infrastructure Income Index.
These indices offer exposure to an investible basket of infrastructure companies from developed markets screened for high dividend yield and low volatility. The Solactive Global Infrastructure High Income Index offers more focus on dividend income, by only selecting stocks that are expected to pay a dividend in the next quarter.
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Source: solactive.com
Four new iShares sector ETFs launched on Xetra
March 23, 2017--ETFs provide access to US companies from the consumer staples, industrials, materials and utilities sectors
Four new equity index ETFs issued by iShares have been tradable on Xetra and Börse Frankfurt since Thursday.
Name: iShares S&P 500 Consumer Staples Sector UCITS ETF USD (Acc)
Asset class: equity index ETF
ISIN: IE00B40B8R38
Total expense ratio: 0.1 percent
Distribution policy: accumulating
Benchmark: S&P 500 Consumer Staples Capped 35/20 Index
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Source: Deutsche Börse Group
EU to formally veto Deutsche Boerse LSE merger shortly: sources
March 22, 2017--The European Commission will shortly veto a proposed merger between Deutsche Boerse (DB1Gn.DE) and the London Stock Exchange (LSE.L), four sources close to the matter said on Wednesday, scuppering plans to create Europe's biggest exchange.
The European Commission, the London Stock Exchange and Deutsche Boerse declined to comment.
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Source: Reuters
ESMA sees relatively ample liquidity in sovereign bond markets
March 21, 2017--The European Securities and Markets Authority (ESMA) latest research piece on market liquidity published in its recent report on trends, risks and vulnerabilities (TRV) finds improved liquidity in European sovereign bonds markets.
Episodes of short-term volatility and liquidity stress across several markets over the past few years have increased concerns about the worsening of secondary market liquidity, in particular in the fixed income segment. ESMA's report confirms the negative effects of both the financial and...
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Source: ESMA
ESMA sees high market and valuation risk amid substantial political and policy uncertainty
March 20, 2017--The European Securities and Markets Authority (ESMA)'s latest report on Trends, Risks and Vulnerabilities No. 1, 2017 (TRV) identifies political and policy uncertainty-such as potential repercussions from the upcoming elections in some EU Member States-as the main risk drivers for 2017.
Risks in the markets under ESMA remit remained at high levels, reflecting very high risk in securities markets, and elevated risk for investors, infrastructures and services.
view the ESMA Report on Trends, Risks and Vulnerabilities
No. 1, 2017
Source: ESMA
Theresa May to trigger article 50 on 29 March
March 20, 2017--EU sources say May missed chance of swift start to negotiations and EU27 will keep her waiting before formal response
The UK's permanent representative to the European Union, Sir Tim Barrow, notified the EU on Monday morning that a letter should be expected on that date. The move will put the UK on course to leave the EU on the same date in 2019.
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Source: theguardian.com
db x-trackers II EUR High Yield Corporate Bond UCITS ETF (DR) launched on Xetra
March 20, 2017--ETF provides access to liquid euro-denominated corporate bonds
A new db x-trackers bond index ETF from Deutsche Asset Management's product offering has been tradable via Xetra and Börse Frankfurt since Monday.
Name: db x-trackers II EUR High Yield Corporate Bond UCITS ETF (DR)
Asset class: bond index ETF
ISIN: LU1109943388
Total expense ratio: 0.35 percent
Distribution policy: accumulating
Reference index: Markit iBoxx EUR Liquid High Yield Index
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Source: Deutsche Börse Group
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