Financial Stability Paper 37: Got to be certain: The legal framework for CCP default management processes-Jo Braithwaite and David Murphy
May 11, 2016--Central clearing offers numerous benefits to financial stability including multilateral netting of cleared exposures and the centralisation of default management. These benefits explain the pivotal role of central counterparties ('CCPs') in the post-crisis derivatives market reforms.
However they lead to a key financial stability question: will CCPs be able to manage a large member default effectively?
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Source: Jo Braithwaite and David Murphy Bank of England
ESMA sees continued high level of market risks in first quarter
May 11, 2016--The European Securities and Markets Authority (ESMA) has published today its Risk Dashboard for the first quarter of 2016.
The overall risks to securities markets in Q1 2016 remained unchanged at high levels, with market and credit risks being very high. This was reflected in major price swings in global equity markets, especially affecting financial institutions at the beginning of Q1 2016, and high volatilities across market segments. Corporate bond spreads increased substantially, especially for lower rated bonds, before moderating at the end of Q1 2016. Key risk sources were mostly related to the uncertain EU and global economic outlook, commodities price dynamics and global financial developments.
view the ESMA Risk Dashboard No.2, 2016
Source: ESMA
ETP providers launch ETF forum in the UK
May 11, 2016--A group of exchange traded product providers has banded together to launch the ETF Forum, an initiative designed to improve advisers' understanding of exchange-traded funds.
BMO Global Asset Management, ETF Securities, and Source, in association with Legal & General Investment Management and WisdomTree Europe, have created an 'education programme' designed to help adviser and wealth managers use ETFs better
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Source: international-adviser.com
UBS ETF on emerging market bonds with currency hedge launched on Xetra
ETF tracks more than 100 government and quasi-government bonds from over 60 emerging markets
May 10, 2016--A new UBS Global Asset Management bond index ETF has been tradable via Xetra and Börse Frankfurt since Tuesday.
ETF name: UBS ETF-Barclays USD Emerging Markets Sovereign UCITS ETF (hedged to EUR) A-acc
Asset class: bond index ETF
ISIN: LU1324516308
Ongoing charges: 0.47 percent
Distribution policy: accumulating
Benchmark: Barclays Emerging Markets USD Sovereign & Agency 3% Country Capped hedged to EUR Index
The new unit class of the UBS ETF-Barclays USD Emerging Markets Sovereign UCITS ETF combines an investment in emerging market bonds with a currency hedge.
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Source: Deutsche Börse Cash Market
Currency-hedged Amundi ETF Floating Rate USD Corporate UCITS ETF
May 10, 2016--Amundi ETF adds to its corporate bond offering by launching a new currency-hedged USD/EUR share class to its USD-denominated Floating Rate Notes ETF.
This new currency-hedged share class is exposed to the Markit iBoxx USD Liquid FRN Investment Grade Corporates 100 index1. It is offered with ongoing charges2 of 0.20%.
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Source: Amundi
New UBS commodity index ETF excluding agriculture and livestock sectors launched on Xetra
ETF offers access to performance of a broadly diversified basket of commodity contracts
May 9, 2016--A new UBS Global Asset Management commodity index ETF has been tradable via Xetra and Börse Frankfurt since Monday.
ETF name: UBS ETFs plc-CMCI ex-Agriculture SF UCITS ETF (USD) A-acc
Asset class: commodity index ETF
ISIN: IE00BZ2GV965
Ongoing charges: 0.37 percent
Distribution policy: accumulating
Benchmark: UBS Bloomberg CMCI Ex-Agriculture Ex-Livestock Capped Index
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Source: Deutsche and Börse Cash Market:
Winterflood launches 'watershed' fractional shares for ETFs
May 9, 2016--Winterflood Business Services (WBS) will offer trading and custody of ETFs on a fractional share basis from July.
The new service allows the trading and custody of ETFs to four decimal places.
It broadens access to the ETF universe for platforms, discretionary fund managers and financial advisers, which have been impeded by a lack of access, high transaction charges and the absence of fractional share dealing, says head of WBS Alex Kerry.
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Source: fundstrategy.co.uk
WisdomTree Launches Enhanced Commodity UCITS ETF on the London Stock Exchange
May 9, 2016--Demonstrating continued leadership in innovative index strategies to commodity ETFs
WisdomTree has launched its first broad-based WisdomTree Enhanced Commodity UCITS ETF (the "Fund") on the London Stock Exchange (WCOA)
The Fund tracks the Optimised Roll Commodity Total Return Index (EBCIWTT), a broadly diversified index whose weights are based on the Bloomberg Commodity Index and incorporates a smart roll mechanism, based on the S&P GSCI Dynamic Roll indices, that aims to deliver curve enhanced returns.
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Source: WisdomTree
National Statistics: UK official holdings of international reserves: April 2016
May 5, 2016--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets. These consist of gold, foreign currency assets and International Monetary Fund assets.
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Source: HM Treasury
SSGA launches 10 ETFs on Euronext
May 4, 2016--State Street Global Advisors (SSGA) has launched 10 World Sector SPDR ETFs on the Euronext Exchange.
The ETFs will be managed in Paris by the same team that has been managing the French domiciled World Sector index funds for the past 15 years.
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