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Investors hold record £860bn in ETFs
April 14, 2011--Investors have put record sums of money into exchange-traded products such as ETFs, according to a report.
Assets held in exchange-traded funds and similar products totalled just under $1.4 trillion (£860bn) in the first quarter of this year, the report from BlackRock, the fund manager, found. Last year the figure was just under £800bn.
ETFs and exchange-traded commodities give private investors easy access to a huge range of assets, from index tracker funds to gold bullion. They are traded on the stock market in exactly the same way as shares and are normally a low-cost way to invest.
In an indication of the rapid growth in investors' appetite for ETFs over the past decade, total assets in 2001 amounted to just £64bn. In 1993, the first year covered by BlackRock's report, investors had a total of only £500m in exchange-traded products.
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Source: Telegraph.co.uk
ESMA sets out guidelines on risk measurement and the calculation of global exposure for certain types of structured UCITS
April 14, 2011--ESMA publishes today the final report on the guidelines on risk measurement and the calculation of the global exposure for certain types of structured UCITS (ESMA/2011/112). The report contains the policy
approach agreed by ESMA, the cost-benefit analysis, the feedback from the public consultation and the
draft guidelines in English to be addressed to competent authorities and UCITS management companies.
The final version of the guidelines (which will be unchanged) will be translated into all the European
Union languages and will be available at a later stage on the ESMA website. The guidelines will take effect
when this translation process is completed and will accompany the Level 2 implementing measures of the
UCITS Directive that take effect on 1 July 2011. The report published today will nevertheless help UCITS
management companies and national competent authorities prepare in a timely manner.
The purpose of the guidelines is to propose, for certain types of structured UCITS, an optional regime for the calculation of the global exposure. The specific approach adopted by ESMA consists of the calculation, for each scenario to which investors can be exposed at any one time, of the global exposure using the commitment approach. Under this approach, each scenario must comply at all times with the 100% global exposure limit.
The guidelines, when they take effect, will supplement the guidelines published by the Committee of European Securities Regulators (CESR) in July last year on Risk Measurement and the Calculation of the Global Exposure and Counterparty Risk for UCITS (Ref. CESR/10-788).
ESMA considers that the scope of this alternative approach must be clearly defined. Therefore, a list of all the criteria with which structured UCITS should comply in order to be able to benefit from this specific approach is set out in Guideline 1 of the report. A number of examples have also been included to illustrate how the optional regime should be applied in practice. Guideline 2 in the report, meanwhile, sets out additional disclosure obligations on UCITS that make use of the optional regime.
J.P. Morgan To Provide Clearing Services On UBS MTF For Knight Capital
April 14, 2011-- J.P. Morgan Worldwide Securities Services today announced that its GlobeClear business has been appointed to provide clearing and settlement services for Knight Capital Europe Limited when executing trades on UBS MTF, the pan-European equities trading venue. This represents the continuation of J.P. Morgan’s on exchange strategy to offer clients access to multiple exchanges and trading platforms, providing them with greater flexibility and choice.
“Our clients want access and solutions that support diverse trading strategies as they look for opportunities across a fragmented market,” said Mike Reece, Market Manager for Banks and Broker Dealers for J.P. Morgan Worldwide Securities Services EMEA. “Providing clearing and settlement services for Knight on UBS MTF represents another important step in our market coverage and provides our clients with even more choice.”
Robert Barnes, CEO of UBS MTF, said: “UBS MTF aims to provide participants with the benefits of choice, fair access and innovation, which led us to establish, among other unique features, our CCP model. Through J.P. Morgan’s GlobeClear, members will find it easy to connect to UBS MTF through a major GCM, accessing cost-efficient matching of multi-country shares spanning blue chips to small caps, ETFs and more.”
Kee-Meng Tan, Managing Director, Knight Capital Europe Limited, said: “J.P. Morgan has been a long-standing partner for our European clearing and settlement needs and we are pleased that they will be extending their services to support our trading activity on UBS MTF.”
GlobeClear supports over 50 trading venues, providing access to the major European exchanges and MTFs. It provides global clearing and settlement agency services covering fixed income and equity securities for banks, brokers and hedge funds that trade in the global markets.
Source: JP Morgan
Ausstehendes Volumen im Euro währungsgesicherten Gold-ETC steigt auf 500 Millionen Euro; insgesamt 1,2
April 14, 2011--Im ersten Jahr nach dem Start im März 2010 hat db-X ETC, die Plattform der Deutschen Bank für börsengehandelte Rohstoffprodukte (Exchange Traded
Commodities, ETC) hohe Zuflüsse verzeichnet. Gröβtes Produkt ist mit einem ausstehenden Volumen von 500 Millionen Euro per Anfang April 2011 der db Physical Gold Euro Hedged ETC. „Wir freuen uns über den großen Zuspruch der
Anleger.
Dies zeigt, dass unsere Entscheidung richtig war, einen währungsbesicherten Gold-ETC als Innovation in den Markt einzuführen“, sagt Thorsten Michalik, verantwortlich für db-X ETC. Der db Physical Gold Euro Hedged
ETC wurde 2010 als weltweit erster ETC aufgelegt, mit dem Anleger täglich flexibel am Goldpreis partizipieren können, wobei gleichzeitig das Euro/US-Dollar-Währungsrisiko minimiert wird. Wie bei allen Edelmetall-ETCs von db-X ETCs erfolgt eine Besicherung durch Barren des jeweiligen Edelmetalls, die physisch eingelagert werden.
Aufgrund der großen Nachfrage von internationalen Investoren wird db-X ETC zudem eine neue in Britische Pfund abgesicherte Anteilsklasse des db Physical Gold ETC auflegen. Der db Physical Gold GBP Hedged ETC wird ab 14.04.2011 an der London Stock Exchange (LSE) in London gelistet.
Insgesamt ist das ausstehende Volumen bei allen Angeboten von db-X ETC auf
mehr als 1,2 Milliarden Euro gestiegen (Stand 12. April 2011, Quelle: Deutsche
Bank). Bisher wurden 38 ETCs emittiert, die die Entwicklung einzelner Rohstoffe
oder definierter Rohstoffkörbe abbilden. Bei allen db-X ETCs erfolgt eine physische Besicherung mit Goldbarren oder mit dem entsprechenden Edelmetall in allozierter
Form. Der Zuspruch bei den Investoren zeigte sich besonders stark im ersten
Quartal des Jahres 2011. Von allen Anlegergeldern, die in das Segment ETCs in Europa flossen, entfielen über zwei Drittel auf db-X ETCs (Quelle: Deutsche Bank Research).
Source: Deutsche Bank
Newly Launched Euro STOXX Optimised Banks Index licensed to source
Apri 14, 2011--STOXX Limited, the market-moving provider of innovative, substantial and global index concepts, today announced the launch of the EURO STOXX Optimised Banks Index. The new index, which is part of the STOXX Optimised Index family, applies the well-known STOXX Optimised methodology
to the Euro zone’s banks supersector following the Industry Classification Benchmark (ICB).
The EURO STOXX Optimised Banks Index has been licensed to Source to underlie an exchange-traded fund (ETF) which will be available on Deutsche Boerse/Xetra today.
“With the launch of the EURO STOXX Optimised Banks Index, we are taking another step to expand our well-known STOXX Optimised Index family, which applies superior concepts to improve liquidity and diversification in the indices,” said Hartmut Graf, chief executive officer, STOXX Limited. “The EURO STOXX Optimised Banks index offers market participants a way to focus on the performance of Euro zone banks only, while at the same time relying on the innovative methodology of the STOXX Optimised Indices.”
Ted Hood, chief executive officer, Source, said: "The STOXX Europe 600 Optimised Supersectors indices have been highly popular with investors. We are convinced that applying this optimisation technology to the Euro bank sector will offer investors a compelling and innovative tool for meeting their ongoing investment objectives."
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Source: STOXX
BlackRock New Report ETF Landscape: STOXX Europe 600 Sector ETF Net Flows - Week Ending 08-Apr-2011
April 13, 2011--For the week ending 08 April 2011, there were US$50.5 Mn net inflows from STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in automobiles and parts with US$48.3 Mn followed by oil and gas with US$46.4 Mn net inflows while banks experienced net outflows of US$50.9 Mn.
Year to date, STOXX Europe 600 sector ETFs have seen US$468.6 Mn net inflows. Oil and gas has seen the largest net inflows with US$477.0 Mn, followed by banks with US$387.1 Mn net inflows while industrial goods and services experienced the largest net outflows with US$168.2 Mn.
As of 08 April 2011, there is US$11.1 Bn AUM invested in the STOXX sector ETFs which is almost double the US$5.7 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 16 out of 19 sectors.
to request report
Source: Global ETF Research & Implementation Strategy Team, BlackRock
STOXX Equal Weight Indices Licensed to Ossiam
STOXX Europe 600 Equal Weight and newly launched EURO STOXX 50 Equal Weight indices to underlie exchange-traded funds
April 13, 2011--STOXX Limited, the market-moving provider of innovative, substantial and global index concepts, today introduced the EURO STOXX 50 Equal Weight Index. The new index and the existing STOXX Europe 600 Equal Weight Index have been licensed to Ossiam to underlie two exchange-traded funds (ETFs).
This is the first time that the EURO STOXX 50 Equal Weight and STOXX Europe 600 Equal Weight indices will be used as the basis of an ETF.
“STOXX is dedicated to not only bring innovative index concepts to the market, but also apply new and superior strategies to existing indices. With the launch of the EURO STOXX 50 Equal Weight Index we take a new weighting approach to the leading European blue-chip index,” said Hartmut Graf, chief executive officer, STOXX Ltd. “By licensing the EURO STOXX 50 Equal Weight and STOXX Europe 600 Equal Weight indices, Ossiam is first to offer market participants access to an equal weight scheme applied to Europe’s leading indices.”
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Source: STOXX
Agencies Seek Comment on Swap Margin and Capital Requirements
April 12, 2011--Five federal agencies are seeking comment on a proposed rule to establish margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The rule is proposed by the Federal Reserve Board, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, and the Office of the Comptroller of the Currency. The proposed rule would require swap entities regulated by the five agencies to collect minimum amounts of initial margin and variation margin from counterparties to non-cleared swaps and non-cleared, security-based swaps
The amount of margin that would be required under the proposed rule would vary based on the relative risk of the counterparty and of the swap or security-based swap. A swap entity would not be required to collect margin from a commercial end user as long as its margin exposure is below an appropriate credit exposure limit established by the swap entity. A swap entity would also not be required to collect margin from low-risk financial end users as long as its margin exposure does not exceed a specific threshold. The proposed margin requirements would apply to new, non-cleared swaps or security-based swaps entered into after the proposed rule's effective date. The proposal also seeks comment on several alternative approaches to establishing margin requirements.
Provisions in the Dodd-Frank Act also require the agencies to establish capital requirements for regulated swap entities. The proposed rule would implement these provisions by requiring swap entities to comply with the existing capital standards that apply to those entities as part of their prudential regulation, as those capital standards already address non-cleared swaps and non-cleared, security-based swaps.
Staff of the agencies consulted with staff of the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission in developing the proposed rule.
The agencies request comments on the proposed rule by June 24, 2011.
view the MARGIN AND CAPITAL REQUIREMENTS FOR COVERED SWAP ENTITIES
Source:Board of Governors of the Federal Reserve System
iShares enters exchange traded commodity market
April 12, 2011--iShares has branched out into exchange traded commodities (ETCs) after listing four physically backed products on the London Stock Exchange.
The iShares Physical Gold ETC, iShares Physical Silver ETC, iShares Physical Platinum ETC and iShares Physical Palladium ETC aim to track the spot prices of the underlying metals.
ETCs are debt securities, rather than funds or ETFs, backed by metals held in separate accounts in secure vaults. They give investors exposure to the prices of precious metals without them having to take physical ownership.
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Source: Money Observer
Deutsche Börse offers currently fastest connectivity for trading community in London
April 12, 2011-Deutsche Börse today announced a significant improvement of its IT network between the financial center London and Deutsche Börse Group's trading platforms in Frankfurt/Main.
The Group deployed new enhanced 10 Gigabit data links between Frankfurt and London delivering the currently lowest possible latency of 4.33 milliseconds. Technical partner for this ultra-fast connectivity is Colt Technology Services. These links connect the London based new Deutsche Börse low latency access point at Telehouse with the matching engines of Eurex and Xetra in Frankfurt.
“We are very pleased to offer our UK based customer unprecedented fast connection between the financial centres,” said Michael Girg, Head of Networks Support at Deutsche Börse. “With new shortest geographical paths, Colt has set a new benchmark that supports us in our continuous striving for delivering fastest access to our trading platforms.”
"The connectivity we deployed for Deutsche Börse onto our ultra-low latency market leading London-Frankfurt route is another proof of Colt’s commitment to continuously enhance its information delivery platform to help our finance customers deliver higher trading performance" said Bernhard Pussel, Director Wholesale Germany at Colt Technology Services GmbH.”
In February, Deutsche Börse had announced an agreement with Telehouse, whereby Deutsche Börse said that it plans to use Telehouse’s data center as a low latency access point in London.
Source: Deutsche Börse
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