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Fiscal compact signed: Strengthened fiscal discipline and convergence in the euro area
March 2, 2012--Twenty-five European leaders today1 signed the Treaty on Stability, Coordination and Governance aimed at strengthening fiscal discipline and introducing stricter surveillance
within the euro area, in particular by establishing a "balanced budget rule".
The content of the treaty had been endorsed at the last European Council meeting in January.
The main elements of the so-called fiscal compact include a requirement for national budgets to be in balance or in surplus, a criterion that would be met if the annual structural government deficit does not exceed 0.5% of GDP at market prices. This balanced budget rule must be incorporated into the member states' national legal systems, preferably at constitutional level, within one year after the entry into force of the treaty. In the event of deviation from this rule, an automatic correction mechanism will be triggered.
It will be defined by each member state on the basis of principles proposed by the European Commission. The EU Court of Justice will be able to verify national transposition of the balanced budget rule. Its decision is binding, and can be followed up with a penalty of up to 0.1% of GDP, payable to the European Stability Mechanism in the case of euro area member states.
view the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG)
Source: Council of the European Union
February turnover exceeds EUR 9.2 billion at Boerse Stuttgart
Further increases in all asset classes / Bond trading remains buoyant
March 2, 2012--According to the order book statistics, Boerse Stuttgart generated turnover in excess of EUR 9.2 billion in February 2012. This is equivalent to a rise of nearly 6 percent on the previous month and maintains the upward trend that has marked the year to date.
Turnover in January was itself up significantly on the figure for December 2011.
Securitised derivatives accounted for the lion’s share of trading. Turnover in this investment class reached over EUR 4.1 billion, an increase of nearly 5 percent on the previous month. Investment products generated over EUR 2.2 billion of trades, while leverage products contributed around EUR 1.9 billion to the overall figure.
Trading in bonds rose in February by over 7 percent to almost EUR 3.2 billion. At over EUR 1.5 billion, nearly half of the total was attributable to corporate bonds. In this category, turnover was just under 15 percent up on the previous month and over 22 percent on the same month in 2011.
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Source: Boerse Stuttgart
ESMA advises European Commission on Prospectus Directive's overhaul
March 1, 2012--ESMA publishes today the second part of its final advice (ESMA/2012/137) on possible delegated acts for the Prospectus Directive (PD). The advice was submitted to the Commission on 29 February 2012.
In its advice, ESMA proposes how to use a prospectus in a retail cascade and provides input on how to review the provisions of the Prospectus Regulation concerning tax information, indices, auditor’s report on profit forecasts and estimates and audited historical financial information. Today's advice follows a public consultation started on 13 December 2011.
Overall, the technical advice aims to achieve a high-level of investor protection and to increase across Europe the legal clarity and efficiency of the prospectus regime. Investment prospectuses as such are aimed to provide investors with easily accessible information on financial products so as to foster informed decisionmaking.
S & P warns on European mortgage-backed loans
March 1, 2012--The amount of unpaid debt on loans linked to packages of European commercial mortgages that thrived until the 2007-08 financial crisis could hit a record of €10bn by the end of the year, Standard & Poor's has warned.
The rating agency said analysis of the European commercial mortgage-backed securities (CMBS) showed that only one in four borrowers were able to repay their debt in January on these packages of loans on commercial properties, which were parcelled up as part of securitisations.
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Source: FT.com
Average daily volume of 8.7 million contracts at Eurex Group in February
March 1, 2012--In February 2012, the international derivatives markets of Eurex Group recorded an average daily volume of 8.7 million contracts (Feb 2011: 10.3 million).
Of those, 6.0 million were Eurex Exchange contracts (Feb 2011: 7.1 million), and 2.7 million contracts were at the U.S.-based International Securities Exchange (ISE) (Feb 2011: 3.2 million). In total, 179.3 million contracts were traded, thereof 125.8 million at Eurex and 53.5 million at the ISE.
Eurex Exchange recorded in its equity index segment, the largest product segment, approximately 58.3 million contracts compared with 58.4 million contracts in February 2011. Futures on the EURO STOXX 50® Index stood at 21.4 million contracts while 23.9 million options on this index were traded. Futures on the DAX totaled 3.0 million contracts while the DAX options reached another 5.2 million contracts. The Eurex KOSPI product reached 2.6 million contracts, compared to 138,000 contracts year-on-year.
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Source: Eurex
96 billion euros turned over on Xetra in February
18.4 million transactions on Xetra
March 1, 2012--Order book turnover on Xetra and the Xetra Frankfurt specialist trading stood at €102.1 billion in February -a decrease by 9 percent year-on-year (February 2011: €112.7 billion). Of the €102.1 billion, €96.4 billion were attributable to Xetra-a decrease by 9 percent y-o-y (February 2011: €105.5 billion). €5.6 billion were attributable to the Xetra Frankfurt specialist trading, a 22 percent decrease y-o-y (February 2011: €7.3 billion).
Order book turnover on Tradegate Exchange* totalled approximately €3.7 billion in February.
In equities, turnover reached €86.6 billion on Deutsche Börse’s cash markets (Xetra: €84.0 billion, Xetra Frankfurt specialist trading: €2.6 billion). Turnover in bonds was €1.5 billion, and in structured products on Scoach €2.1 billion. Order book turnover in mutual funds and exchange-traded funds (ETFs) amounted to €11.8 billion.
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Source: Xetra
STOXX Announces New Composition of Eastern Europe 50 Index
March 1, 2012--Results of the review to be effective on March 19, 2012
March 1, 2012--STOXX Limited, the market-moving provider of innovative, substantial and global index concepts, today announced the results of the first of the two regular semi-annual reviews of the STOXX Eastern Europe 50 Index.
Effective as of the open of European markets on March 19, 2012, the following companies will be added to
and deleted from the STOXX Eastern Europe 50 Index:
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Source: STOXX
Deutsche Bank to Integrate DB X Trackers Into DWS, FTD Reports
March 1, 2012--Deutsche Bank AG (DBK), which is selling most of its asset management operations, plans to integrate its DB X-Trackers unit into the parts of its DWS mutual fund business
that it is keeping, Financial Times Deutschland reported in a preview of a story that will be published tomorrow, without saying where it obtained the information.
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Source: Bloomberg
Three new SPDR equity index ETFs launched on Xetra
February 29, 2012--Three new exchange-listed equity index funds issued by SPDR (State Street Global Advisors) have been tradable on Xetra since Wednesday.
ETF name: SPDR S&P Euro Dividend Aristocrats ETF
Asset class: equity index ETF
ISIN: IE00B5M1WJ87
Total expense ratio: 0.30 percent
Distribution policy: distributing
Benchmark: S&P Euro High Yield Dividend Aristocrats Index
ETF name: SPDR S&P UK Dividend Aristocrats ETF
Asset class: equity index ETF
ISIN: IE00B6S2Z822
Total expense ratio: 0.30 percent
Distribution policy: distributing
Benchmark: S&P UK High Yield Dividend Aristocrats Index
Both these equity index ETFs from SPDR focus on companies with high dividend yields which have continually pursued a rising dividend policy for at least the last ten years. The SPDR S&P Euro Dividend Aristocrats ETF tracks the performance of 40 companies in the euro zone, whereas the SPDR S&P UK Dividend Aristocrats ETF focuses on 30 companies based in the UK. The selection of the high-dividend companies is based on the S&P Europe Broad Market Index.
ETF name: SPDR FTSE UK All Share ETF
Asset class: equity index ETF
ISIN: IE00B7452L46
Total expense ratio: 0.30 percent
