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Eurex Clearing, Eurex Repo and Clearstream to Optimize Use of Collateral
Effective 26 November, Eurex Clearing customers can re-use GC Pooling collateral for margining // Joint initiative of Eurex Clearing, Eurex Repo and Clearstream for more efficient use of collateral // Eurex Repo GC Pooling average outstanding volume reached more than € 100 billion
November 24, 2010-- Eurex Clearing, Eurex Repo and Clearstream announced today that as of 26 November Eurex Clearing customers participating in the GC Pooling trading at Eurex Repo will be in a position to re-use GC Pooling collateral to fulfil their overall Eurex Clearing margin obligations.
Eurex Clearing members can make use of the new offering via their existing infrastructure. The Eurex Clearing member only has to set an exposure amount while the allocation of the individual collateral securities will be managed by Clearstream’s collateral management system Xemac up to the defined exposure amount.
Thomas Book, member of the Executive Board of Eurex, said: “Eurex Clearing members now have an additional option to fulfil their margin obligations by accessing and re-using the multi-billion euros repo collateral pool created by trading on Eurex Repo. With this new offering we continue to meet the demand of our customers for an efficient use of collateral, reducing the operational costs and operational effort of our clearing members while maintaining the integrity of the clearinghouse.”
Marcel Naas, Managing Director of Eurex Repo, said: “We continue to observe a growing need for secured money market transactions in an environment where collateral is scarce. Eurex Repo now expands the re-use possibility of collateral: cash providers can allocate collateral they received from cash takers to Eurex Clearing in the scope of the GC Pooling® ECB basket consisting of high-grade ECB-eligible instruments.”
Stefan Lepp, member of the Clearstream Executive Board, said: “This initiative is another step to grow and improve our Global Risk Management and Liquidity Hub. As the leading service provider in the area of integrated and international collateral and liquidity management, Clearstream continues to follow its global securities financing strategy to provide its customers the service to cover their global exposure through a consolidated and optimized collateral pool.”
Overall, Eurex Repo markets have all seen tremendous growth in 2010 and reached in September a new average outstanding volume record of a total of € 255.3 billion. The fastest growing market is GC Pooling®, which achieved an average outstanding volume of € 93 billion in October 2010 compared to € 75 billion in October 2009. The current record was on 28 September 2010 with a daily outstanding volume of € 109 billion. Simultaneously, the number of users has increased from 35 in January 2010 to currently 49. GC Pooling consists of a Euro and a US Dollar segment.
STOXX Changes Composition of Benchmark Indices
Results of the Fourth Regular Quarterly Review to be Effective on December 20, 2010
November 24, 2010--STOXX Limited, a global index provider and creator of the leading European equity indices, today announced the new composition of the STOXX Global 1800 Index, STOXX Europe Total Market Index, STOXX Europe 600 Index, STOXX Americas 600 Index, STOXX Asia/Pacific 600 Index, STOXX EU Enlarged Total Market Index, STOXX Eastern Europe Total Market Index, STOXX Eastern Europe 300 Index and their sub- and sector indices, as well as that of the STOXX Europe Football Index and STOXX Europe Private Equity 20 Index.
Effective as of the open of European markets on December 20, 2010, the following stocks will be added to and deleted from the STOXX Europe 600 Index and its respective size
and sector indices:
All floor trading in Frankfurt to take place through Xetra specialists from May 2011
Exchange Council of the Frankfurt Stock Exchange resolves early termination of lead-broker based floor trading/ Trading Hall remains in use/ Exchange’s competitive position and economic role ensured
November 24, 2010--The Exchange Council of the Frankfurt Stock Exchange resolved on Wednesday to terminate lead-broker based floor trading and to introduce the Xetra specialist model for shares and bonds as well, with effect from 23 May 2011.
From this date on, trading will take place exclusively via the Xetra system. Xetra uses specialists who ensure sufficient liquidity in trading. Despite the termination of lead-broker based floor trading using the Xontro system, the presence of specialists will ensure that the Trading Hall of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse, FWB) remains in operation.
With the transition to the Xetra specialist model, the Frankfurt Stock Exchange is strengthening its position amid increasing competition on the European market. Xetra’s international orientation and the performance requirements of its specialists will further increase the market quality of the FWB. Since 2008, the Xetra specialist model has been successfully used for trading structured products on Scoach as well as in fund trading on the FWB.
New financial market supervision system signed into law
November 24, 2010--The President of the European Parliament, Jerzy Buzek, and Belgium's State Secretary for European Affairs, Olivier Chastel, on Wednesday formally signed into law the financial supervision package, which will establish new authorities oversee the operation of banks, securities markets and insurance companies, as well as monitoring the build up of risk in the economic system as a whole.
The new watchdogs are set to be operational by 2011 and will have tough new powers to settle disputes among national financial supervisors, to ban risky financial products and activities, and to directly supervise credit rating agencies. If national supervisors fail to act, then the authorities may also impose decisions directly on financial institutions, such as banks, so as to remedy breaches of EU law.
Mr Buzek said, "This legislative package is one of the key cornerstones in rebuilding economic growth in the EU. The new and strengthened financial supervisory authorities will help to ensure that we avoid deep financial crises in the future. It is now essential to make fast progress towards a strong economic governance model for the Eurozone which is needed to effectively respond to market tensions."
ETF Landscape: European STOXX 600 Sector ETF Net Flows week ending 19-Nov-10
November 24, 2010--For the week ending 19 November 2010, there were US$64.7 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in insurance with US$57.2 Mn and automobiles and parts with US$48.0 Mn while industrial goods and services experienced net outflows of US$62.5 Mn.
Year-to-date, STOXX Europe 600 sector ETFs have seen US$542.3 Mn net inflows. Banks sector ETFs have seen the largest net inflows with US$252.8 Mn, followed by utilities with US$106.9 Mn while food and beverage has experienced the largest net outflows of US$152.7 Mn YTD.
As of 19 November 2010, there is US$10.2 Bn AUM invested in the STOXX sector ETFs which is more than double the US$4.5 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 17 out of 19 sectors.
London Stock Exchange ETFs and ETPs Update
November 24, 2010--Trading Statistics October 2010
Value traded in ETFs have seen a 24% increase this month compared with figures for September and ETPs have seen a 4% increase.
On a year-on-year comparison, value traded in ETFs have increased 33% and ETPs 12% in October 2010 from October 2009.
News
ComStage, a new ETF issuer, introduced 5 new ETFs in October now trading on the Main Market. Other ETF providers who have introduced new instruments include HSBC, iShares and Lyxor.
DB Climate Change Advisors issues first comprehensive review of U.K. renewable energy programme
November 24, 2010--DB Climate Change Advisors (DBCCA), the climate change investment business of Deutsche Asset Management, today released the first comprehensive review of the U.K.’s renewable energy programme since the U.K.’s Comprehensive Spending Review (CSR). The report, U.K. Renewable Energy Investment Opportunity: Creating Industries and Jobs, identifies the investment opportunity, benefits, and roadblocks as the country tries to meet its 15% renewable energy goal by 2020.
According to Mark Fulton, Global Head of Climate Change Investment Research, DBCCA, before private investors will commit large amounts of capital to the renewable sector there must be transparent, long-term and certain regulations governing carbon emissions, renewable energy and energy efficiency. “The U.K.’s energy policy has increasingly demonstrated transparency, longevity and certainty and now, in order for it to firmly take hold, needs to enter a period of stability over the coming years without major changes,” he said.
Fulton added that there is now a need for investment from the private sector in U.K. energy systems. “As existing energy plants are retired, there is an opportunity both to fill the gap and to enhance energy security by investing heavily in new, renewable sources of energy,” he said. “But the renewable policy landscape has to enable the investment case to be made in the U.K., and there is evidence that the new coalition government is serious about doing this.”
view UK Renewable Energy Investment Opportunity: Creating Industries & Jobs report
London Stock Exchange launches new guide to listing
November 24, 2010--This week the London Stock Exchange will be launching its new guide to joining the Main Market for companies and advisers. "A guide to listing on the London Stock Exchange" provides a practical outline of the listing process for companies that are considering an IPO.
The guide has been developed with contributions from a range of advisers and market participants. It combines extensive market experience with expert insight, offering guidance on the listing and admission to trading of shares and depositary receipts on the London Stock Exchange's markets.
Tracey Pierce, Director of Equity Primary Markets, London Stock Exchange Group, said:
"We are very pleased to be launching our new listing guide this week. We are committed to supporting companies who are looking to develop their business, raise capital and increase their profile by admitting to trading on one of our markets.
"For those companies looking to float, this new guide offers clear, practical advice, furnishing them with the knowledge they need to conduct a successful IPO."
Gold prices peak on Istanbul Gold Exchange
November 24, 2010--
A kilogram of gold has reached the TL 65,000 level on the Istanbul Gold Exchange (IAB), an all-time record for the IAB.
On Monday gold closed on the ?AB at TL 63,035 per kilogram. On Tuesday the price of gold per kilogram hovered at the TL 64,100 level but by the end of the day managed to climb to the historic record of TL 65,300.
Eurex to Launch Canadian Single Stock Futures Starting 25 November 2010
November 23, 2010-- Eurex, the international derivatives exchange, today announced that it will launch single stock futures on leading Canadian companies on 25 November 2010. The new listings reflect customer demand for expanded offerings in the rapidly growing equity derivatives segment.
The futures contracts will be based on shares of Bank of Montreal, BCE, Canadian Imperial Bank of Commerce and Sun Life Financial.
“Single stock futures have quickly become one of our fastest growing product segments. The contracts give customers greater flexibility in executing trading strategies in more than 750 names in Europe and internationally. The new Canadian listings will provide members with further trading opportunities in the North American market,” said Michael Peters, member of the Eurex Executive Board.
Eurex first introduced single stock futures on companies included in the DAX, EURO STOXX 50 and SMI indices in October 2005. Since then the product suite has expanded to include stocks in additional European countries, the U.S., and emerging markets Russia and Brazil. Volumes have risen steadily in recent years; for example, the U.S. single stock futures have grown nearly fourfold to more than 498,000 contracts as of end of October 2010 compared to the same period of 2009.
The specifications of the new contracts will follow the U.S. listings. Each contract represents 100 shares denominated in U.S. dollar and is cash settled. They will have expiry dates up to three years for the next 13 calendar months, plus the two following annual contract months out of the December cycle. The Eurex Block Trade facility also is allowed for the Canadian single stock futures.
