Deutsche Börse and Clearstream launch joint funds trading on exchange
January 13, 2011--More than 80,000 mutual funds can be made eligible for trading via Xetra - Major advantages: cost reduction, immediate execution, price transparency and reduction of operational risks - Potentially 700 billion euros of new collateral through re-use of funds shares
Deutsche Börse and Clearstream, the central securities depository (ICSD) within Deutsche Börse Group, have launched their joint funds trading on Deutsche Börse’s cash market Xetra.
As of today, more than 80,000 investment funds that are currently on Clearstream’s order routing platform Vestima+ can be introduced for trading via Xetra by market makers (funds specialists). After execution, the funds will be settled through Clearstream’s post-trade facility for mutual funds, the Central Facility for Funds (CFF).
Currently, in the primary market, the value of an individual funds share can only be identified the next day, i.e. once the net asset value has been calculated. Stock exchange execution will allow individual funds units to be priced and monetized immediately. Accordingly, customers trading investment funds on exchange and pooling them within Clearstream can use their funds units as collateral to efficiently secure financial transactions involving counterparty risk.
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Source: Clearstream:
Commerzbank unveils debt for equity swap
January 13, 2011--Commerzbank has taken long-awaited action to shore up its capital base, buying back some of its debt and issuing €626m ($835m) of shares.
The measure is short of the substantial capital increase that Commerzbank is still expected to carry out to repay more than €18bn of government aid, which the bank needed two years ago to carry it through its takeover of German rival Dresdner Bank at the height of the financial turmoil.
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Source: FT.com
Spain passes critical debt test
January 13, 2011--Spain passed a major test on Thursday in its first bond auction of 2011, bolstering its case that it has no need for an emergency bailout that would rock the entire eurozone.
Spain sold its maximum target of 3.0 billion euros ($3.9 billion) in five-year bonds with demand oustripping supply by two-to-one.
The Treasury had to fork out an average interest rate of 4.542 percent to lure investors, a competitive rate when compared to the previous day's market close of 4.767 percent.
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Source: EUbusiness
Enhancing safety of European financial markets: common rules for Central Securities Depositories (CSDs) and securities settlement
January 13, 2011--As part of its work in creating a more transparent and stable financial system, the European Commission Services have today launched a consultation on Central Securities Depositories (CSDs) and on the harmonisation of certain aspects of securities settlement in the European Union. The purpose of this consultation is to gather input from all stakeholders in order to inform the legislative proposals due in June 2011. The deadline for replies is 1 March 2011.
CSDs are systemically important infrastructures in modern securities markets. They perform crucial services that allow at a minimum the registration, safekeeping, settlement of securities in exchange for cash and efficient processing of securities transactions in financial markets. While securities markets traditionally relied on the physical exchange of paper, CSDs now assume a critical role to guarantee a safe and efficient transfer of securities that exist to a large extent only in book entry form. In many ways, they are a central point of reference for an entire market. Given the systemic importance of CSDs, there is a strong need for an appropriate regulatory framework for CSDs.
The initiative is an important part of the Commission's agenda to enhance the safety and soundness of the financial system. Together with the proposal for a Regulation on "OTC derivatives, central counterparties and trade repositories" (EMIR) adopted by the European Commission on 15th September 2010 and the Markets in Financial Instruments Directive (MiFID, currently under review), it will form a framework in which systemically important securities infrastructures (trading venues, central counterparties, trade repositories and central securities depositories) are subject to common rules on a European level.
This need for an appropriate regulatory framework for CSDs is agreed internationally. In its meeting of 20 October 2010, the Financial Stability Board re-iterated the call for updated standards for more robust core market infrastructures and asked for the revision and enhancement of existing standards for financial market infrastructures. Recommendations have been adopted by Central Banks and Securities Regulators both at global1 and at European2 level. While these rules are important, they remain of a high-level and non binding nature.
Due to an increase in cross border investment over the last years, the European Commission considers that the time has come to install a common and binding regulatory framework for CSDs on a European level.
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Source: Europa
Deutsche Bank: Europe ETF market may double
January 12, 2011--Germany's biggest lender Deutsche Bank expects assets under management of exchange-traded funds (ETFs) in Europe to nearly double by the end of 2013, it said today.
Assets under management of ETFs traded in Europe are seen growing to about 444 billion euros by end-2013, up from 227 billion at the end of 2010, an annual growth of roughly 25 percent.
"In our view, this is a conservative estimate," Thorsten Michalik, global head of db x-trackers, Deutsche Bank's ETF arm, said on Wednesday, adding that the number of ETFs in Europe would rise to about 2,000 by end-2013 from 1,367 at the end of last year.
Money manager BlackRock told Reuters in December it expected the global market for ETFs may grow 20-30 percent this year, boosted by a maturing market in Asia. In November last year Blackrock valued the global ETF market at $1.231 trillion.
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Source: Business World
ETF Landscape: European STOXX 600 Sector ETF Net Flows for Week Ending 07-Jan-2011
January 12, 2011--For the week ending 07 January 2011, there were US$30.0 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in technology with US$41.9 Mn followed by retail with US$25.5 Mn net inflows while basic resources experienced net outflows of US$54.2 Mn.
Year to date, STOXX Europe 600 sector ETFs have seen US$30.0 Mn net inflows. Technology has seen the largest net inflows with US$41.9 Mn, followed by retail with US$25.5 Mn net inflows while basic resources experienced the largest net outflows with US$54.2 Mn.
As of 07 January 2011, there is US$9.5 Bn AUM invested in the STOXX sector ETFs which is more than double the US$4.1 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in all 19 sectors.
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Source: Global ETF Research & Implementation Strategy Team, BlackRock
db X-trackers steigert verwaltetes Vermögen auf 36 Milliarden Euro; Verdopplung des europäischen Marktes für börsennotierte Indexprodukte bis 2013 erwartet
January 12, 2011-db X-trackers, die Plattform der Deutschen Bank für Exchange Traded Funds (ETFs), hat das verwaltete Vermögen in seinen ETFs 2010 auf 36,3 Milliarden Euro gesteigert.
Dies entspricht einer Steigerung von 38 Prozent genüber dem Vorjahresstand. Damit ist db X-trackers der einzige der drei großen ETF-Anbieter Europas, der Marktanteile dazu gewinnen konnte. Die Nettomittelzuflüsse in ETFs von db X-trackers beliefen sich 2010 auf 7,1 Milliarden Euro. „Die Zuflüsse zeigen,
dass unsere ETFs einen Mehrwert für eine Vielzahl von Investoren bieten. Wir haben 2010 unsere Produktpalette deutlich ausgeweitet, db X-trackers ist nach der Zahl der angebotenen Produkte nun der zweitgrößte ETF-Anbieter Europas“, sagt Thorsten Michalik, verantwortlich für db X-trackers. Das Produktangebot umfasst aktuell 174
ETFs. Nach Angaben von Deutsche Bank Research ist db X-trackers nach
verwaltetem Volumen derzeit der drittgrößte ETF-Anbieter Europas und die Nummer fünf weltweit.
Insgesamt ist der Markt für börsennotierte Indexprodukte in Europa 2010 um 34 Prozent auf 227 Milliarden Euro gewachsen. Die Nettomittelzuflüsse haben 2010 in Europa 35,3 Milliarden Euro betragen, mehr als im Jahr zuvor (Quelle: Deutsche Bank, Stand Ende Dezember 2010). In dieser Statistik werden neben ETFs auch börsennotierte Rohstoff-Produkte (Exchange Traded Commodites, ETCs) gezählt. db X-trackers rechnet damit, dass das verwaltete Volumen beziehungsweise das ausstehende Kapital in börsennotierten Indexprodukten in den nächsten Jahren um 25 Prozent p.a. wächst. Damit würde sich das Marktvolumen bis 2013 auf rund 440 Milliarden Euro verdoppeln. „Die Gründe für das weiter erwartete Marktwachstum sind der verstärkte Einsatz von ETFs in Portfolios von institutionellen Investoren, aber auch das spürbare Engagement von Privatanlegern beziehungsweise von Vermögensverwaltern“, sagt Michalik/
Um das Interesse der Investoren zu bedienen, plant db X-trackers für 2011, die Produktpalette weiter auszubauen. Ein Schwerpunkt wird dabei auf ETFs liegen, die
Renten- und Kreditindizes abbilden, auf währungsgesicherten ETFs sowie auf ETFs,
die ein Portfolio aus verschiedenen Indizes abbilden.
Source: db X-trackers
Changes In The Composition Of The ATHEX Indices
January 12, 2011--Due to the transfer of trading of the shares of the company « VARDAS S.A. » to the Low Dispersion & Special Features Category of the Athens Exchange, the following changes will take place:
FTSE/ATHEX SmallCap-The shares of the company are removed from the index without replacement.
FTSE/ATHEX Market Index-The shares of the company are removed from the index without replacement.
FTSE/ATHEX Retail-The shares of the company are removed from the index without replacement.
All changes are effective from Thursday, January 13, 2011.
Source: Online News
Eurex to launch equity options with weekly expirations for the first time
Launch set for 24 January 2011
January 12, 2011-The international derivatives exchange Eurex will introduce equity options with weekly expiration dates on 24 January 2011. This is the first time that weekly options on individual stocks will be available on Eurex.
. The Eurex Weekly Equity Options will be listed as separate contracts and will initially comprise derivatives based on shares of Daimler, Deutsche Bank, Deutsche Telekom and Nokia (four per underlying stock).
Eurex will offer Weekly Equity Options for the first, second, fourth and fifth Friday of a calendar month, complementing the standard equity options series, which expires on the third Friday of every month. All other contract specifications will correspond to those of Eurex’s existing equity options.
Weekly options have been available on the EURO STOXX 50 and DAX indices since April 2006. Their success with market participants is illustrated by their trading volumes: In 2010 more than 2.6 million contracts were traded.
Source: Eurex
State Street planning European ETF push
January 11, 2011--State Street Global Advisors is preparing to launch a range of new exchange traded funds in Europe, aiming to bolster its presence in a region where it has previously lagged behind some of its main competitors.
Although State Street is the second largest ETF provider in the US and worldwide, it is only the 20th biggest player in Europe, with assets of just $1.1bn at the end of December, according to BlackRock data.
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Source: FT.com
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