SCM Direct finds smart beta ETFs beat human active fund managers in 2016
January 17, 2017--New research from SCM Direct into smart beta ETFs claims that while they are by no means perfect, they can be a much better investment choice than traditionally managed active funds.
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Source: wealthadviser.co
Brexit drives push for bigger Frankfurt role in exchange merger
January 17, 2017--Germany and the European Central Bank are pushing harder for Deutsche Boerse (DB1Gn.DE) and the London Stock Exchange (LSE.L) to give Frankfurt a greater role once they merge, now Britain is leaving the European Union, people involved said.
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Source: Reuters
MAR guidelines on commodity derivatives now available in all EU languages
January 17, 2017--The European Securities and Markets Authority (ESMA) has issued today the official translations of its final guidelines on commodity derivatives under the Market Abuse Regulation (MAR).
The Guidelines clarify one element of the definition of inside information in relation to commodity derivatives under the Market Abuse Regulation (MAR).
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Source: ESMA
Borsa Italiana: ETFstat December 2016
January 17, 2017--New RFQ functionality
Starting from the 5th December 2016 the new RFQ functionality is live on the ETFplus market.
The aim of the RFQ functionality is to offer to all the market members a fast and efficient way to find on-exchange (but off-book) market makers for large-in-scale trades, without counterparty risk and with an integrated and automated post-trade process.
Records of the Year
The highest trading figures ever recorded: 5,099,137 trades (+3.59% vs 2015) with a turnover €107.73bn (+3.25%).
ETFplus AUM set a new historical record: €52.92bn (47.74bn for ETFs, 5.08bn for ETCs/ETNs and 0.105bn for open-end funds) with a grow of 11.07% compared to December 2015.
10 new issuers: Rivage Investment SAS, AISM Low Volatility Fund, Silk, Eiger Sicav, Finlabo Investment Sicav, Atomo, Sella Gestioni listed their first open funds, while Fullgoal (first Chinese issuer), Structured Invest (Unicredit Group) and ICBC Credit Suisse-WisdomTree listed their first ETFs.
New Listing
In December, 4 new instruments were listed on ETFplus market.
At the end of December there were listed 1147 instruments (720ETFs, 302ETCs/ETNs and 125open-end funds).
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Source: Borsa Italiana
Israel issues largest ever Euro bond offering on London Stock Exchange
January 17, 2017--Israel's €2.25 billion 10 & 20 year government bonds start trading on London Stock Exchange today
First non-European sovereign to issue a euro-denominated bond in 20 year tenor
Euro-denominated debt listing is the first for Israel in three years
Investor demand surges for the offer, reaching more than €9.5 billion and four times oversubscribed
Demonstrates vote of confidence in Israel's economy
Reinforces London's status as a leading global financial centre
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Source: London Stock Exchange Group
ETF & ETP Monthly Update January 2017
January 17, 2017--Record Year
We are pleased to announce that 2016 saw a record orderbook value traded of just under £100 billion in ETFs and other ETPs on London Stock Exchange, up by 29% compared to 2015.
Listings
3 new ETFs and 30 other ETPs were listed on London Stock Exchange in December. 125 new ETFs and 50 new other ETPs were listed in 2016.
There are now 884 ETFs (available as 1,360 lines through multi-currency offerings) and 441 other ETPs (available as 501 lines) on our London market.
UBS launched 30 ETCs in December, bringing their total number of other ETPs to 107.
BMO launched a multi-factor ETF: BMO MSCI Emerging Markets Income Leaders UCITS ETF. It tracks the MSCI Emerging Markets Select Quality Yield Index, which first screens stocks for quality before selecting those with the highest dividend yields.
Vanguard listed the Vanguard USD Emerging Markets Government Bond UCITS ETF, which offers regional exposure to USD denominated debt issued by governments in emerging markets.
iShares launched the iShares OMX Stockholm Capped UCITS ETF, giving exposure to the 80 largest and most frequently traded stocks listed on the Stockholm Stock Exchange.
Trading Activity
Orderbook value traded for ETFs and other ETPs in December 2016 was £8.4 billion (223k trades), up by 40% compared to December 2015.
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Source: London Stock Exchange Group
LSE dismisses report on moving clearing to Germany
January 16, 2017--UK exchange operator hits out at study commissioned by merger partner Deutsche Börse.
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Source: FT.com
European ETFs attract 47.9bn Euro net inflows during 2016, finds Morningstar
January 16, 2017--The European exchange-traded-fund market attracted €11.5bn in net new money in the fourth quarter of 2016, bringing the grand total for the year to €47.9bn, according to Morningstar's ETF fund flows report for Q4 2016.
Assets under management (AUM) for the European ETF industry increased to €546bn from €466bn in 2015.
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Source: etfstrategy.co.uk
ESMA issues briefing on transaction reporting requirements under MiFID II
January 16, 2017--Toward the end of 2016, ESMA published guidelines for transaction reporting under the Markets in Financial Instruments Directive (MiFID II) and Regulation(MiFIR).
Additionally, ESMA released technical requirements and templates further detailing the relevant reporting requirements under MIFID II and MIFIR
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Source: ESMA
BNP Paribas Easy Low Carbon 100 Europe UCITS ETF launched on Xetra
January 16, 2017--ETF offers access to European companies with greater environmental awareness
A new equity index fund issued by BNP Paribas Easy has been tradable via Xetra and Börse Frankfurt since Tuesday.
The BNP Paribas Easy Low Carbon 100 Europe UCITS ETF enables investors to participate in the performance of companies based in Europe, that have a greater sense of environmental responsibility according to the international Academy for Energy.
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Source: Deutsche Börse Cash Market