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Eurex Clearing launches the first major element of its new Client Asset Protection Services
New “Individual Clearing Model” offers individual client segregation to ensure maximum protection and portability of client assets/ Upcoming European regulatory requirements of EMIR on segregation of clients’ and intermediaries’ assets already addressed/ Important contribution to increase market safety and integrity
August 22, 2011--Eurex Clearing, Europe’s leading clearinghouse, announced the launch of its “Individual Clearing Model”, the first major element of a new suite of industry leading client segregation services. The new service is the first segregation solution offered by a clearing house enabling full legal and operational segregation of all assets (positions and margin collateral) for its non-clearing members (clients with trading admission) at the clearing house level.
The new model allows for collateral and positions to be transferred immediately in the event of a clearing member default, thus clients are protected and enabled to continue their trading activities.
The Individual Clearing Model responds to the increasing demand of buy-side firms for central counterparty (CCP) services. Through the new service, Eurex Clearing makes an important contribution to market safety and integrity and already offers a service which fulfils the planned regulatory requirements as specified in the published draft versions of the European Markets Infrastructure Regulation (EMIR). Eurex Clearing is the first CCP globally to offer full legal and operational segregation across all cleared markets.
The new service will be offered in addition to the existing Eurex Clearing model. Eurex Clearing will also launch a so-called Omnibus Model, offering segregation of client assets in an omnibus account with higher operational efficiency and flexibility for the clearing member. The three different levels of protection enable clearing members to offer tailor-made access to Eurex Clearing and provide choice for clients.
“Maximum legal protection and immediate portability of client assets are at the heart of the value proposition for CCP clearing”, said Thomas Book, Eurex Executive Board member responsible for clearing. “In close collaboration with our participants, we have developed a unique offering of flexible alternatives for how client positions and assets can be held at Eurex Clearing, depending on clients’ individual protection needs.”
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Source: Eurex
Istanbul Stock Exchange (ISE) daily bulletin starts to be disseminated on the Public Disclosure Platform on August 22, 2011
August 19, 2011--Sub-paragraph 1, article 64 of the Istanbul Stock Exchange Regulations has been revised as “ISE daily bulletin is disseminated on the ISE Public Disclosure Platform on the first next business day”. Such revision went into force after being published in the Official Gazette no. 28030 dated August 19, 2011.
Consequently, ISE daily bulletin shall no more be printed starting from August 22, 2011, and shall instead be accessible under “ISE Daily Bulletin” on the main page of the ISE Public Disclosure Platform at www.kap.gov.tr. The English version of the ISE daily bulletin includes quantitative data only.
Source: Istanbul Stock Exchange (ISE)
Response to ESMA Consultation Paper on possible delegated acts concerning the Prospectus Directive
August 19, 2011--FESE fully agrees with European supervisors that there is an adequate level of flexibility in the current Prospectus regime. We feel strongly that the current distinction between a Regulated Market and an MTF should be retained.
This requires the continued application of the principle that admission to trading on a MTF, as opposed to admission to trading on a RM or a public offer, does not trigger the obligation to publish a prospectus. Furthermore, FESE does not support the proposal of what is called a «proportionate» regime for SMEs.
STOXX Statement On Current Market And Regulatory Developments
August 18, 2011--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced that it is monitoring current market and regulatory developments closely.
During the last week, bans on short-selling of financial stocks have been introduced in Europe.
In the interest of its clients, STOXX currently reviews the details of these bans and potential measures to ensure the tradability and liquidity of the STOXX indices.
Source: STOXX
European Senior Fixed-Income Investor Survey Q311
Investors Cut Expectations, Reassess Risks
August 18, 2011--Risk Aversion:
Fitch Ratings latest quarterly survey (Q311) of fixed-income investors across Europe shows that, even before the early August market turmoil, investors had already sharply
downgraded their expectations for most fixed-income segments. Responses to the survey, which was conducted in the four weeks ending 29 July, reflected a greater aversion to risk, with more negative expectations about credit fundamentals (Figure 1), issuance volumes ands preads.
Economic Growth Concerns: Investor sentiment remains muted on growth prospects for developed markets, in contrast to the optimism around emerging markets. The survey shows
European investors remain very bearish on the outlook for the European economy in the next year, with almost three-quarters of respondents expecting growth at below 2%. This sharply
contrasts with virtually all respondents expecting expansion by over 2% for emerging markets.
Reduced Risk of Inflation: Expectations of inflation fell to their lowest point since Q410, with 46% of participants expecting an increased risk from higher price levels, compared to a peak of 68% in Q211. The result marks a turning point in expectations about inflation, which has been on an upward path in consecutive quarters since Q310. This switch is likely to reflect increased fears over the likelihood of a double-dip recession, with the proportion of investors ranking this as a high risk threat to credit markets almost doubling to 40% from 21% in the prior quarter.
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Source: Fitch Ratings
BlackRock ETF Landscape: STOXX Europe 600 Sector ETF Net Flows: week ending 12-Aug-11
August 18, 2011--For the week ending 12 August 2011, there were US$397.8 Mn net outflows from STOXX Europe 600 sector ETFs. The largest sector ETF net outflows last week were in healthcare with US$85.3 Mn followed by chemicals with US$70.9 Mn net outflows while telecom experienced net inflows of US$35.2 Mn.
Year to date, STOXX Europe 600 sector ETFs have seen US$435.9 Mn net outflows. Utilities has seen the largest net outflows with US$249.0 Mn, followed by basic resources with US$241.2 Mn net outflows, while banks experienced the largest net inflows with US$260.9 Mn.
As of 12 August 2011, there is US$8.2 Bn AUM invested in the STOXX sector ETFs which is greater than the US$5.9 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 14 out of 19 sectors..
to request report
Source: Global ETF Research & Implementation Strategy Team, BlackRock
France backs down on short-selling loophole
August 18, 2011--French regulators have failed in an attempt to extend the short-selling ban to major European stock market indices in a climbdown that will allow investors to continue to bet on further falls in financial stocks.
There was confusion among traders on Thursday over whether they could roll over existing short positions on key European indices. Investors were particularly unclear over the status of equity index derivatives, which consist of baskets of stocks from around the continent including shares in banks, and are operated from countries not covered by the short-selling ban.
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Source: FT.com
Europe's financial transactions tax
August 17, 2011-- European policymakers have long toyed with the idea a tax on financial transactions to raise revenue and counter speculation but critics say such a measure could only be effective at a global level.
French President Nicolas Sarkozy and German Chancellor Angela Merkel announced Tuesday at a eurozone crisis summit that they would make proposals next month for an EU-wide financial transaction tax.
The idea of a financial transactions tax traces its roots to Nobel prize-winning US economist James Tobin, who proposed in the 1970s a very small tax on currency transactions to dampen speculation on foreign exchange markets.
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Source: EUbusiness
Banks blast "Tobin tax" proposal
August 17, 2011--Banks blasted Franco-German plans to push again for a Europe-wide tax on financial transactions, saying the tax would be destabilising, ineffective and costly to industry.
Financial markets players have said that even if France and Germany could persuade all 27 European Union member states to adopt the tax - overcoming long-standing UK opposition - it would simply drive many transactions offshore to less-regulated financial centres.
The Association for Financial Markets in Europe, which represents top banks, also worried the tax would hurt companies and crimp economic growth.
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Source: Cityam
EMCF, Chi-X Join Push for Interoperability in European Clearing
August 17, 201-- Suddenly,
"interoperability" is starting to look like a word (and practice) every European clearinghouse will be using.
matters to the effective operation of capital markets.
The European Multilateral Clearing Facility (EMCF), Europe's largest central counterparty for stocks, said it has “decided to engage in interoperability with competitors” servicing electronic venues and exchanges. The clearer also said it was introducing cutting fees as much as 50 percent for large customers, as part of the move.
"The time is now to take the next step in opening up the European clearing landscape. Interoperability will make European markets more efficient and it is a tool to open up the clearing and settlement silos in Europe,’’ EMCF chief executive Jan Booij said.
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Source: Securitites Technoology Monitor
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