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ETF Securities Launches Triple Long and Triple Short Currency ETCs
November 10, 2010--ETF Securities has listed 16 currency ETCs on the London Stock Exchange, tracking the triple long and triple short versions of the MSFXSM Indices published by Morgan Stanley & Co Inc. The launch of the triple leveraged currency ETCs is a first of its kind in Europe.
Structurally, the triple leveraged currency ETCs have unique features which are otherwise not available to investors wanting to access foreign exchange - they are at least 100% collateralised and the maximum possible loss is the value of the initial investment.
The MSFXSM Indices rebalance daily, meaning that returns over periods longer than one day are path dependent. The triple leveraged currency ETCs therefore have the scope to deliver compound returns in trending markets and will likely underperform in volatile, directionless markets. It is important that investors understand this feature of the returns, the details of which are further set out in the UK Listing Authority-approved prospectus for these products.
Commenting on the launch of the new products, Neil Jamieson, Director of Third Party Distribution at ETF Securities, said:
“This is an exciting opportunity for investors. The triple long and triple short currency ETCs can be used by investors both to hedge and to capture market trends. On the latter point, foreign exchange markets are often driven by momentum. Given the historically low levels of volatility on currency pairs, the triple currency ETCs can prove to be a powerful vehicle to capture market trends.
ETF Landscape: European STOXX 600 Sector ETF Net Flows week ending 05-Nov-10
November 10, 2010--For the week ending 05 November 2010, there were US$406.1 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in oil and gas with US$114.5 Mn and telecommunications with US$70.7 Mn while industrial goods and services experienced net outflows of US$16.3 Mn.
Year-to-date, STOXX Europe 600 sector ETFs have seen US$1,434.2 Mn net inflows. Banks sector ETFs have seen the largest net inflows with US$472.7 Mn, followed by basic resources with US$244.3 Mn while food and beverage has experienced the largest net outflows of US$115.9 Mn YTD.
As of 05 November 2010, there is US$11.5 Bn AUM invested in the STOXX sector ETFs which is more than double the US$4.7 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 18 out of 19 sectors.
Energy 2020 - A strategy for competitive, sustainable and secure energy
November 10, 2010--On 10 November 2010, the European Commission has adopted the Communication "Energy 2020 - A strategy for competitive, sustainable and secure energy"
The Communication ?defines defines the energy priorities for the next ten years and sets the actions to be taken in order to tackle the challenges of saving energy, achieving a market with competitive prizes and secure supplies, boosting technological leadership, and effectively negotiate with our international partners.
view Communication "Energy 2020 - A strategy for competitive, sustainable and secure energy"
European Parliament and Commission to join forces in a new step for improving transparency
November 10, 2010--Today, the High Level Group of the European Parliament and the European Commission concluded its discussions on a joint "Transparency Register". It reached consensus on a draft inter-institutional agreement for a common register for organisations and individuals engaged in EU policy making and policy implementation. The agreement is now subject to formal adoption by both institutions.
Vice-President Šef?ovi? declared: "I'm delighted that we have reached an agreement today, which is a major step forward in our ongoing efforts to enhance transparency in EU decision-making. We take transparency extremely seriously, because it's clear that the public needs to know who is involved in making and influencing decisions on its behalf. The joint register is a concrete example of the excellent cooperation between the Commission and Parliament and I'd like to thank Diana Wallis and her team for their efforts."
Europe approves hedge fund rules
November 11, 2010--Hedge funds are to be subject to EU-wide regulation for the first time after the European Parliament approved new rules for the sector
They aim to make the workings of the privately-run funds more transparent and to reduce the risks to investors.
MEPs voted 513 to 92 to pass a new directive, which will cover a range of funds worth 1bn euros (£850m; $1.4bn).
FSA consults on remuneration disclosure requirements
November 10, 2010--The Financial Services Authority (FSA) has today published a consultation on the implementation of remuneration disclosure requirements based on those set out in the Capital Requirements Directive (CRD3).
CRD3 requires firms to disclose information on their remuneration policies and pay-outs on an annual basis. This is to be included in their disclosures under Basel Pillar 3. Many important elements of these requirements are derived from the Financial Stability Board’s principles and standards on remuneration disclosure.
The FSA is consulting on the following:
Items to be disclosed - in brief, these are:
information on the remuneration decision-making process;
the link between pay and performance;
the most important design characteristics of the remuneration system;
performance criteria for assessment of remuneration;
the main parameters and rationale for variable compensation; and
aggregate quantitative information on total remuneration, variable remuneration, deferred remuneration, and sign-on and severance payments, in respect of senior management and staff with a material impact on the firm’s risk profile.
view the CP10/27: Implementing CRD3 requirements on the disclosure of remuneration
Turkish pension system grows apace, on track to reach €25bn by 2020 Trading in Financial Instruments: European Parliament dark pools report adopted After the vote Dr Swinburne said:
"Today the Parliament has clearly shown its concern for the integrity of our financial markets, and is asking the fundamental question: is the market still serving the needs of long term investors and businesses? "At the moment, there is a worrying lack of information readily available regarding the Over-The-Counter space, on broker-operated dark pools and on high frequency trading strategies. The European Parliament is asking for much more information to be made available and collected in a usable form. "The only way to really understand whether the market is functioning correctly is for regulators to have enough information to see what is going on in the market. When practices like quote stuffing and spoofing are alleged to be taking place alongside supposed barracuda trading strategies which seem to be forcing long term investors into trading within dark pools it suggests that some kind of market dysfunction may be taking place. "Hopefully, the Commission and Committee of European Securities Regulators will now use my report to take a long hard look at their reviews of Market Abuse Directive and MiFID and find answers to the questions I have raised." Europe leads the world in carbon awareness but more action is needed to achieve required emissions cuts The CDP 2010 Europe 300 Report, sponsored by the AXA Group, endorses the recent calls for increased collaboration and understanding between policy makers and business to address global climate change to allow greater planning and encourage sufficient investment in low-carbon technology. Connie Hedegaard, European Commissioner for Climate Action, commented on future policy: “Ensuring Europe maintains its leadership position and reaps the full economic benefits of the low carbon revolution requires a continued strong push from the policy side. This is one reason the European Commission has put decarbonising the economy at the heart of our vision for Europe’s development up to 2020 and beyond. “The EU’s long term goal is to cut emissions by 80% to 95% by 2050. This process will eventually impact on companies big and small across all sectors. Joining the Carbon Disclosure Project is a way for businesses to prepare themselves for this transition – and maximise their chances of profiting from it.” view the Carbon Disclosure Project (CDP) 2010 Europe 300 Report Chancellor announces financial services deals in Beijing
The announcements were made at the conclusion of the third annual UK-China Economic and Financial Dialogue (EFD) held in Beijing on 9 November 2010.
The EFD also agreed that the UK would be China's partner of choice on financial services cooperation, building upon the UK's major presence in the Chinese financial services sector. UK banks already account for 25% of foreign banking in China.
Further progress was also made on a bancasurrance partnership between Standard Life and the Bank of China, which is subject to the final conclusion of commercial negotiations.
In addition to the agreements on financial services, the EFD also covered trade, green investment and energy. view Combined Policy Outcomes of the Third China-UK Economic and Financial Dialogue
November 10, 2010--The Turkish private pensions system will hold more than TRY50bn (€25.65bn) in assets by 2020 and even has the potential to grow to twice that size, according to Meral Eredenk, chairwoman of the country's Pension Monitoring Centre (EGM).
Over the years, Turkey's private pension system – which celebrates its seventh anniversary this week – has grown from eight companies to 13.
November 9, 2010--The European Parliament's economics committee today adopted a report by European Conservatives and Reformists economics spokesman Kay Swinburne MEP into regulation of trading in financial instruments such as 'dark pools'.
Dr Swinburne's report accepts that, while the 2004 Markets in Financial Instruments directive (MiFID) has benefited the EU's financial markets through increased competition and provided a number of benefits to investors, it has coincided with a huge increase in the use of technology and an unprecedented increase in the speed of trading. She warns that technological advances require more sustainable legislation to reduce levels of systemic risk in the functioning of the markets, ensure fair competition and ensure market integrity.
The parliament's position will now be taken into account when the commission brings forward reviews of the MiFID and Market Abuse Directives (MAD).
November 9, 2010--Europe's largest companies lead the world in reporting carbon emissions and management, according to the Carbon Disclosure Project (CDP) 2010 Europe 300 Report, but Europe will still fail to meet the EU Emissions Trading System (EU ETS) emission cap by 2020 on the current trajectory set by the Europe 300 companies. If these companies achieve their current targets they could deliver an average emissions reduction of just 1.5% annually. These cuts fall short of the planned decrease in the absolute emissions under the EU Emissions Trading System (EU ETS) of 1.9% each year on average over 2013 to 2020, and up to 4.1% if the EU decides to embrace the 30% EU-wide GHG reduction target.
The analysis, conducted by CA Cheuvreux, shows while almost 80% of companies reporting to CDP have set an emissions reduction target, the majority will expire by 2012 and less than a quarter of the companies set targets beyond 2015. In order for business to increase these time horizons and realise the required higher targets, the report calls for a clear, long-term regulatory framework. Across all sectors of business almost nine out of ten companies recognise regulatory opportunities emerging from climate change policies.
November 9, 2010--In Beijing today the Chancellor George Osborne announced the completion of financial services deals with Chinese companies.
The deals announced in Beijing are:
A Royal Bank of Scotland joint venture with Guolian Securities, allowing RBS entry into the Chinese securities market. This is the first such joint venture by a UK bank and will enable RBS to participate in underwriting Chinese stock market listings.
Aberdeen Asset Management's authorisation to offer £200m per year of asset management services to Chinese clients.
