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ETF world split over trade body
May 31, 2011--BlackRock iShares, the world’s largest ETF provider, has rejected proposals for a new trade body to represent the exchange traded funds industry in Europe.
Lyxor and db-x trackers, the ETF business of Deutsche Bank, have been pressing hard for a European ETF trade body to speak for the industry, in particular to answer recent concerns raised by regulators.
EU carbon emissions plummeted in 2009: official
May 31, 2011--Greenhouse-gas emissions by the 27 members of the European Union (EU) fell by 7.1 percent in 2009 over 2008, driven by economic recession but also a switch to renewable energy, the European Environment Agency (EAA) said on Tuesday.
Emissions of the 15 countries that signed up to the Kyoto Protocol before EU enlargement fell by 6.9 percent in 2009 over the previous year, it said in a press release.
Their target under Kyoto is an overall reduction of eight percent for the 2008-2012 period compared with the benchmark year of 1990.
By the end of 2009, their emissions were 12.7 percent below those of 1990.
Flash estimate - May 2011 Euro area inflation estimated at 2.7%
May 31, 2011--Euro area1 annual inflation2 is expected to be 2.7% in May 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.8% in April3.
Computation of flash estimates
Euro area inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States for which data are available4 as well as early information about energy prices.
The flash estimation procedure for the MUICP combines historical information with partial information on price developments in the most recent months to give a total index for the euro area. No detailed breakdown is available. Experience has shown the procedure to be reliable (19 times exactly anticipating the inflation rate and 5 times differing by 0.1 over the last two years). Further information can be found in Eurostat News Release 113/2001 of 5 November 2001.
db X-trackers offers exposure to high dividend Asian stocks.
May 31, 2011-- Deutsche Bank’s exchange-traded funds (ETF) platform, db X-trackers, has expanded its emerging markets segment in London with, among others, the launch of an ETF that provides exposure to Asian equities that aim to offer a higher than average dividend yield.
The db x-trackers MSCI AC Asia Ex Japan High Dividend Yield Index ETF offers exposure to an index-tracking basket of companies that have been screened for their dividend suitability. Securities entering the index must have a dividend yield at least 30% higher than the dividend yield of the MSCI AC Asia ex Japan Index. In a low interest rate environment, high dividend stocks could be an attractive opportunity for investors searching for yield.
The new ETF has been listed on the London Stock Exchange alongside two other new db X-trackers emerging markets products: the db x-trackers MSCI Philippines IM TRN Index ETF, and the db x-trackers MSCI BRIC TRN Index ETF
The former tracks the performance of large, mid and small-cap companies in the Philippines, while the latter offers collective exposure to Brazil, Russia India and China.
“The launch of these new db x-trackers provides investors with cost-effective, transparent and liquid emerging markets investment tools. Due to our robust swap-based replication technology, we can offer products on emerging markets at various levels, including that of the individual country, while keeping tracking difference to a minimum,” said Manooj Mistry, London-based head of db X-trackers for the UK.
Source Physical Gold P-ETC Receive Shari'ah Approval
May 31, 2011--Source, the US$8.7 BN specialist provider of
Exchange Traded Products (ETPs) working in partnership with BofA Merrill Lynch,
Goldman Sachs, J.P. Morgan, Morgan Stanley, Nomura, and other market makers, is pleased to announce that its Source Physical Gold P-ETC (SGLD LN) has been confirmed, by Amanie, as permissible Islamic investment certificates complying
with the requirements of Shari'ah law.
The Source product was approved on 20thMay 2011 by a Board of Shari'ah Scholars facilitated by Amanie Islamic Finance Consultancy and Education LLC ("Amanie").
The Shari'ah Supervisory Board included representation from world-renowned scholars versed in differing schools of fiqh including Dr. Mohammed Ali Elgari (Kingdom of Saudi Arabia), Dr. Mohd Daud Bakar (Malaysia), Dr. Muhammed Amin Ali Qattan (Kuwait), and Dr. Osama Al Dereai (Qatar). This Shari'ah Board has been retained by Source as its dedicated Shari'ah Supervisory Board (Please see below for board member biographies).
Ted Hood, CEO of Source commented: "We are delighted to have received Shari'ah approval for the Source Physical Gold P-ETC. We have seen increasing demand for robust and efficient precious metals commodity products in the Islamic finance market and, we have worked hard over the past months to deliver to our clients a Shari'ah compliant physical gold product."
Autorité Des Marchés Financiers: Risk And Trend Mapping No10 - 2011 Risk And Trend Mapping For Financial Markets And Retail Savings - Executive Summary
May 30, 2011--As in previous years, the AMF’s risk and trend mapping study for 2011 covers market trends and the financing of economic activity (Chapter 1), structural trends affecting markets and intermediaries (Chapter 2), household saving (Chapter 3) and collective investment (Chapter
4). Most of the risks identified in the April 2010 study have materialised this year, and some have intensified with Europe’s sovereign debt crisis. In addition, some of the main
issues highlighted by the AMF now constitute new and significant areas of focus for the G-20 work programme on financial regulation:
the transfer of risks from the banking sector to other parts of the financial system, now addressed from the broad angle of shadow banking1;
the goals of market transparency, integrity and efficiency;
supervision and oversight of commodity derivatives markets.
At global level, credit and equity markets consolidated in 2010. In a context of ample liquidity and low interest rates, the search for returns benefited the high yield and emerging market segments, while commodity markets continued to bring in substantial investment flows. In Europe, however, the sovereign debt crisis combined with fears about the banking sector put a damper on markets, which also had to cope with a sluggish upturn in the securitisation market.
Invest more at EU level to counter crises, says Financial Crisis Committee
May 30, 2011--Shifting policy making and spending in cross-border areas such as energy and transport from national to EU level would improve investment returns and cut costs by generating economies of scale. It would also give an urgently-needed boost to EU competitiveness, says a draft resolution voted by the Financial Crisis Committee on Monday. The committee's final report also proposes introducing Euro-bonds and a financial transaction tax.
"Tackling the public debt crisis and increasing the EU's competitiveness, convergence and solidarity require a shift of competences and spending towards the Union", stresses the committee's non-legislative final report on the financial, economic and social crisis, as drafted by Pervenche Berès (S&D, FR), and approved with 32 votes in favour, 9 against and 2 abstentions.
The Special Committee on the Financial Crisis was set up to analyse the reasons for the current crisis and set out recommendations on how to avoid similar crises in the future, as well as to present a long-term vision for a European growth model to ensure competitiveness. To this end, the committee proposes a European "new deal" to boost innovation while ensuring social cohesion, job creation, education and sustainable growth.
First ETC on Rhodium listed on Xetra by db-X ETC
May 30, 2011-A further exchange-traded commodity issued by db ETC Index plc has been tradable on Xetra since Monday.
ETC name: db Physical Rhodium ETC
Asset class: Commodities
ISIN: DE000A1KJHG8
Total expense ratio: 0.95 percent
Benchmark: Rhodium spot price
Due to its limited natural resources and broad applicability Rhodium is one of the most valuable precious metals. The automobile industry uses it primarily with catalytic converters to absorb nitrogen oxides. It also protects the surface of premium jewellery or works as an alloy when combined with Platinum.
The new ETC from db ETC Index plc enables investors for the first time to participate in the performance of physical Rhodium. Pricing is carried out by tracking the performance of the Rhodium spot price. Collateral for the db Physical Rhodium ETC (EUR) is provided by physically deposited Rhodium.
Deutsche Börse’s ETC segment product range currently comprises 181 instruments. The monthly trading volume of ETCs on Xetra averages around €700 million.
Deutsche Börse Monthly Carbon Report reveals lower carbon emissions in 2011
January and February emissions in Europe lower than in 2010 / impact of “Fukushima” and ensuing energy discussion on carbon emissions to be seen in following reports
May 30, 2011--The newest Monthly Carbon Report (MCR) from Deutsche Börse – Market Data & Analytics shows that effective carbon emissions for the EU27 countries decreased versus 2010. Carbon emissions in January and February 2011 totalled 323,3 million tonnes versus 337,7 million tonnes in the same time period 2010.
The impact of the energy discussion in Europe that followed the Fukushima incident will be seen in reports throughout the year.
Deutsche Börse’s Monthly Carbon Report (MCR) provides transparency for effective carbon emissions in Europe. Deutsche Börse uses a proprietary calculation model to compute the monthly emission data for all EU27 countries. The report uses data provided by large emissions contributors as well as from additional data sources. The monthly data is validated and calibrated annually with the official emission data from the European Commission. For 2010 data, the divergence between MCR data and the official numbers (published in April 2011) was only 1.8%, reflecting the high quality of the model.
Boerse Stuttgart extends early trading to all equities
From June onwards, retail investors will be able to start trading in all German equities from 8.00 hours
May 30, 2011-As of 1 June 2011, Boerse Stuttgart will extend early trading to include all German equities. On 1 April, Boerse Stuttgart initially brought forward the starting time from 9.00 hours CET to 8.00 hours CET for German DAX, MDAX, SDAX and TecDAX shares and for international equities, participation certificates and debt instruments.
“So far, our turnover figures indicate that the extension of trading hours has been met with interest by retail investors. Our trading experts have demonstrated that we can guarantee excellent price quality as early as from 8.00 hours CET and thus maintain the high quality standards of our stock exchange. As a result of this positive experience, we decided to include all German equities in early trading,” observed Christoph Lammersdorf, CEO of Boerse Stuttgart Holding GmbH.
The extension comes in response to the wishes of many retail investors who want to be in a position to react even more quickly to international trends and events through the stock market, perhaps before going to work in the morning.
More information on the services offered by Boerse Stuttgart can be found at www.boerse-stuttgart.de.
