Central banks call for lower capital requirements on top-quality pooled debt
March 27, 2015-Bonds based on high-quality loans should benefit from lower capital requirements to kick-start the market in Europe, the Bank of England and European Central Bank (ECB) said on Friday.
The two central banks were responding to plans from the European Union's executive, the European Commission, to revive the asset-backed securities (ABS) market to improve funding for companies.
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Source: Reuters
Russia business sentiment bounces back in March
March 27, 2015--Russian business sentiment improved in March from a record low in the previous month, although a further decline in orders suggests that the recovery may be short-lived, according to the MNI Russia Business Sentiment Indicator.
The MNI Russia Business Sentiment Indicator rose by 16.2% to 48.8 in March from 42.0 in February. In spite of the rise, almost 85% of our panel thought that overall business conditions had not changed since February, with only 7% of respondents reporting that they had improved.
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Source: ftseglobalmarkets.com
Vanguard chief plans two-pronged UK retail market assault
March 27, 2015--US asset management giant Vanguard is weighing up a two-pronged assault on the UK's growing retail investment market,
its chief executive told Financial News, with a funds platform and personal advice service in the offing.
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Source: Financial News
Unscheduled adjustment in MDAX: CTS Eventim AG & Co. KGaA to replace TUI AG
March 27, 2015--Deutsche Börse today announced adjustments to its indices MDAX and SDAX.
Upon request of the company, the shares of TUI AG will be delisted from the Prime Standard of the Frankfurt Stock Exchange. The Executive Board of the Frankfurt Stock Exchange is expected to decide on this request on 31 March 2015. Subject to its approval the following changes will become effective on 1 April 2015.
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Source: Deutsche Börse
London launches Europe's first yuan money market fund
March 26, 2015--The London Stock Exchange has launched a yuan-denominated money market fund, allowing investors direct access to the Chinese interbank lending market.
The newly listed Exchange Traded Fund (ETF) is the first in Europe to offer both institutional and retail investors exposure to money market instruments that invest in the China Interbank Bond Market (CIBM) via Germany's Commerzbank and CCB International (CCBI), a subsidiary of China's second largest lender, China Construction Bank (CCB).
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Source: International Business Times
Monetary Developments in the Euro Area
March 26, 2015--The annual growth rate of the broad monetary aggregate M3 increased to 4.0% in February 20151,
from 3.7% in January 2015 (revised down from the previous release)2.
The three-month average
of the annual growth rates of M3 in the period from December 2014 to February 2015 increased to 3.8%, from 3.5% in the period from November 2014 to January 2015.
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Source: ECB
STOXX Launches Daily Currency Hedged Versions Of Key Indices
EURO STOXX 50 Daily GBP Hedged and EURO STOXX 50 Daily USD Hedged Indices licensed to Lyxor ETF
March 26, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today introduced daily currency hedged versions of the EURO STOXX 50, EURO STOXX, EURO STOXX Select Dividend 30, STOXX Europe 600 and STOXX Europe Select Dividend 30 indices.
The new indices are aimed at investors seeking exposure to these well-known STOXX benchmarks, while at the same time looking to reduce the risk of currency fluctuations.
The GBP and USD hedged versions of the EURO STOXX 50 Index have been licensed to Lyxor ETF, to underlie two exchange-traded funds, which are available on London Stock Exchange.
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Source: STOXX
Finansinspektionen Supervision of the securities market
March 26, 2015--Three key areas are the focus of FI's new report Supervision of the securities market; financial infrastructure, transparency on the securities market as well as new rules for market supervision and the enforcement of financial information.
Central counterparties, central securities depositories, stock exchanges and other types of firms that make up financial infrastructure are necessary for the financial system to work. As a consequence of new regulation following the financial crisis, central counterparties have become more important to the financial system, which in turn has given rise to new requirements for such operations
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Source: Finansinspektionen-Swedish Financial Supervisory Authority
IMF-Ireland: Selected Issues
March 25, 2015--TECHNICAL CHALLENGES IN IMPLEMENTING EU
FISCAL RULES IN IRELAND-A.Introduction
1. Ireland is expected to exit the Excessive Deficit Procedure (EDP) in 2015.1 From a peak of 13.3 percent of GDP in 2010, the overall deficit was
brought down to an estimated 3.9 percent of GDP in 2014.
On staff estimates, this entailed consolidation effort totaling almost 16 percent of GDP over six years in
2009–14, generating an estimated improvement in the primary balance in structural terms of 13½ percent of
GDP in that period. Solid revenue growth combined with restrained growth in primary spending and a decline in
the interest bill is expected to bring the overall deficit below the 3 percent of GDP EDP ceiling in 2015.
view the IMF-Ireland: Selected Issues report
Source: IMF
EDHEC-Risk's annual European ETF Survey confirms high satisfaction levels and increasing interest in products tracking smart beta indices
March 25, 2015--EDHEC-Risk Institute has announced the results of the EDHEC European ETF Survey 2014, a comprehensive survey of 222 European ETF investors.
The survey was conducted as part of the Amundi ETF & Indexing research chair at EDHEC-Risk Institute on "ETF and Passive Investment Strategies."
Among the key findings of the 2014 survey:
Satisfaction has remained at high levels especially for traditional asset classes (satisfaction rate higher or equal to 90%). There have been increases in satisfaction for corporate bond, government bond and equity ETFs but satisfaction rates for ETFs based on the most liquid ETF asset classes are far more consistent compared to those based on illiquid asset classes.
ETF investors plan to further increase their use of ETFs and data shows growing appetite to rely on ETFs for ever more aspects of portfolio management. ETFs which until now frequently represented portfolio reallocation tools or the realisation of tactical bets are becoming candidates for core investment strategies.
Among the biggest priorities seen by investors for future product development in the ETF space, four concern indices relating to smart beta approaches, namely smart beta equity (37%), equity factor (31%), equity style (29%), and smart beta bond (25%).
view the The EDHEC European ETF Survey 2014
Source: EDHEC-Risk Institute
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