UK dark pools and reference prices
September 15, 2016--There is evidence that major UK dark pools sometimes experience delays in receiving prices, but overall, the costs associated with inferior reference prices are small, and do not outweigh the useful service dark pools provide, according to new analysis by FCA economists Matteo Aquilina and Peter O'Neill and academics Sean Foley and Thomas Ruf.
Dark pools have attracted significant attention over the last few years-going so far as to make an unlikely leap from the business press to popular bookshelves.
One technical concern has been a gradual increase in reports among industry participants about the reliability of reference prices in dark pools. The concern being that investors could be persistently trading at stale, out-of-date prices.
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Source: fca.org.uk
Packaged retail investment products: Parliament returns draft law to Commission
September 14, 2016--Draft legislation designed to protect retail investors was rejected by MEPs on Wednesday as so "flawed and misleading" that it could actually lose them money. Unusually, it will be returned to the EU Commission for revision.
MEPs passed a resolution calling for changes to legislation on "packaged retail and insurance-based investment products" (PRIIPs)--a market worth up to €10 trillion in Europe-by 602 votes to 4, with 12 abstentions.
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Source: European Parliament
Lyxor research highlights the growing role of Smart Beta in new investment strategies
September 14, 2016--Lyxor Asset Management today unveils the results of a new wide-ranging study that compares the performance of European domiciled active funds with that of their benchmarks.
The research highlights the growing importance of risk factors and other Smart Beta strategies in generating performance in the current challenging market conditions.
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Source: Lyxor
Solactive launches european quality market neutral index-Licensed to Natixis
September 14, 2016--Solactive is announcing the launch of the Solactive European Quality Market Neutral Index licensed to Natixis. The index is to be used as an underlying for structured products issued by Natixis.
The Solactive European Quality Market Neutral Index is constructed by matching a long position in the Solactive European Quality Index with a short position in Euro Stoxx(R) 50 Index Futures.
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Source: Solactive
iShares launches first ETFs on innovative sector indices in iSTOXX FactSet Thematic index family on Xetra
September 13, 2016--ETFs track themes: Automation & Robotics, Breakthrough Healthcare, Digitalisation and Ageing Population
Four new sector ETFs issued by BlackRock have been tradable on Xetra and Börse Frankfurt since Tuesday.
The four iShare ETFs enable investors to invest for the first time in sectors only very recently offered by the iSTOXX FactSet Thematic index family. The ETFs track the themes: Automation & Robotics, Breakthrough Healthcare, Digitalisation and Ageing Population.
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Source: Deutsche Börse Cash Market
Xetra-Gold exceeds 100 ton mark in gold holdings
September 13, 2016--The gold held in custody by Deutsche Börse Commodities GmbH for the purpose of physically backing the Xetra-Gold bearer note has risen to a new record high of 100.7 tons, an increase of approximately 70 per cent since the beginning of the year.
For each Xetra-Gold note, exactly one gram of gold is deposited in the central vaults for German securities in Frankfurt.
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Source: Deutsche Börse Commodities
Borsa Italiana: ETFstat August 2016
September 13, 2016--New Listing
5 new instruments were listed on ETFplus market
At the end of August there were listed 1137 instruments (706 ETFs, 301 ETCs/ETNs and 130 open-end CIUs)
AUM
At the end of August, the Asset Under Management (AUM) deposited in Italy reaches € 51.57bn (46.12bn for ETFs, 5.37bn for ETCs/ETNs and 0.083bn for open-end CIUs) with a grow of 14.05% compared to August 2015
Trading
343,798 trades registered during August
view Details for each instrument
view the ETF Moritor
Source: Borsa Italiana
Newly launched iSTOXX FactSet thematic indices to underlie four exchange-traded funds
September 12, 2016--STOXX Ltd., the operator of Deutsche Böerse Group's index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched iSTOXX FactSet Thematic Indices that capture megatrends in investing have been licensed to iShares to underlie four exchange-traded funds (ETFs).
iShares is a leading provider of ETFs and owned by BlackRock.
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Source: Deutsche Böerse Group
DB-Synthetic Equity & Index Strategy-European Monthly-ETF Market Review-EM and Smart Beta continue to draw Investment
September 12, 2016--Data in this report is as of 31st August 2016
European ETP Monthly Highlights (Assets & Flows)
Assets: European ETPs assets increased by €8bn and stood at $565bn (€508bn) at the end of Aug'16, up by 2% (MoM in € terms).
Flows: European domiciled ETPs registered inflows of +€6bn across all major asset classes (equity, fixed income and commodity).
Once again, Fixed Income ETFs lead with inflows of +€2.7bn closely followed by Equity ETFs (+€2.2bn) and Commodity ETPs (+€1bn).
New Product Launches-2 new products
Lyxor listed 2 fixed income ETFs on London Stock Exchange providing exposure to FTSE Actuaries Govt Securities UK GILTS TR under 5 Yr and Barclays US Inflation Linked Bonds TR. Investment Themes for the Month
Global EM and US exposed ETFs attracted inflows of +€1.2bn and +€0.7bn respectively.
Germany and Broad European equities (e.g. MSCI Europe / STOXX 600) focused ETFs witnessed outflows of -€0.9bn, & -€0.5bn respectively.
Smart Beta ETFs witnessed inflows of +€0.7bn in August with year-to-date flows stood at +€6.9bn.
Once again, Corporate (+€1.4bn) and Sovereign (+€1.2bn) bond ETFs were the strongest segments within Fixed Income. Within Corporate Bonds, IG bonds registered inflows of +€1.4bn.
Gold ETPs registered inflows of +€1.6bn (+€7.3bn so far this year).
Turnover: MoM turnover activity down by 24%
The total turnover activity into European ETPs was down by 24% (€56bn) from
the previous month's total (€74bn). At the asset class level, on a MoM basis,
Fixed Income ETFs turnover activity decreased most (-30%) followed by Equity
(-23%) and Commodity ETPs (-18%).
Price premium/discount to NAV monitor
The maximum premiums/discounts to NAV in June were observed in the
following categories:
Equities: Deepest discount (-1.21%) and highest premium (0.27%) occurred within Country ETFs.
Fixed Income: Deepest discount in Broad ETFs (-0.48%) while highest premium in Corporate ETFs (0.54%). US Market: European Exposed ETFs witness outflows in August European exposed ETFs listed in US had outflows of -$1.8bn (-$4.8bn in Jul'16) during August. European exposure ETFs remained weak so far this year with net outflows of -$18.5bn in US listed ETFs.
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Source: Deutsche Bank Markets Research-Europe-Synthetic Equity & Index Strategy
London Stock Exchange Request For Quote -ETFs & ETPs-Go Live December 2016
September 12, 2016--Complimentary RFQ Trading for 6 months
RFQ trading will be complimentary for the first 6 months from launch.
RFQ functionality set to be available from end of December 2016.
Customer testing of RFQ available from October 2016.
As part of our ongoing efforts to develop a comprehensive offering for ETF trading, London Stock Exchange is launching a Request For Quote (RFQ) functionality for ETFs and ETPs on our London market.
There is now a dedicated section to RFQ available at www.lseg.com/rfq.
Source: London Stock Exchange Group
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