Eurex to Introduce New Pricing Model Effective 1 February 2011
New pricing model shall enhance market quality and encourage volume growth/ Fee reductions in index and equity derivatives will benefit end customers
December 13, 2010-- The international derivatives exchange Eurex will introduce a new pricing model, effective 1 February 2011. The overarching goal is to further increase the attractiveness of the Eurex marketplace by offering incentives for market quality and volume contribution as well as fee reductions in a number of key products.
“The new pricing model is designed to further encourage volumes, enhance order book quality and attract new customers. Our new model will help fuel growth in trading volumes across key product segments,” said Andreas Preuss, CEO of Eurex.
The enhancement of order book trading shall support market transparency and price discovery. To achieve this goal, the highest proportion of incentives will be given to market makers in exchange for providing value to the order book. Additionally, the two current market making schemes will be further differentiated to reward market makers according to their market quality contributions.
Members who provide significant trading volume will benefit from modified rebate schemes for both futures and options products.
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Source: Eurex
Dow Jones Indexes And The Global Fund Launch The Dow Jones Global Fund 50 Index
December 13, 2010--- Dow Jones Indexes is launching a new index, in collaboration with the Global Fund to Fight AIDS, Tuberculosis and Malaria, which will help generate resources for the Global Fund’s work.
The Dow Jones Global Fund 50 Index measures the performance of the largest companies that support the mission of the Global Fund. A portion of revenues generated through the licensing of the index will go to the Global Fund.
The Dow Jones Global Fund 50 Index is the flagship of a new index series, which will include indexes with overlaying strategies and additional themes. The index has been licensed to db X-trackers, the leading ETF platform of Deutsche Bank, to serve as a basis for a financial product, the db x-trackers Global Fund Supporters ETF. The ETF begins trading today on the Frankfurt stock exchange.
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Source: Dow Jones Indexes
db X-trackers listet ersten ETF auf einen christlich orientierten Index: STOXX Europe Christian Index
December 13, 2010--db X-trackers, die Plattform der Deutschen Bank für
Exchange Traded Funds (ETFs), hat den ersten ETF aufgelegt, der einen christlich orientierten Index abbildet. Der db x-trackers STOXX® Europe Christian Index ETF (DR) bildet den gleichnamigen Index ab, in dem Unternehmen nach christlichen
Kriterien ausgewählt wurden.
Der STOXX® Europe Christian Index misst die Wertentwicklung ausgewählter Titel
aus dem STOXX® Europe 600 Index, der seinerseits rund 95 Prozent der frei
handelbaren Marktkapitalisierung der 18 wichtigsten Börsen Europas repräsentiert. Für den Index werden nur Aktien von Unternehmen ausgewählt, die nach Angaben von Stoxx Ltd. mit den Werten und Prinzipien des christlichen Glaubens vereinbar sind. Ausgeschlossen sind danach Unternehmen, die in den Bereichen Pornografie,
Geburtenkontrolle, Waffen sowie Glücksspiel engagiert sind. Um die Qualität des Index und die Integrität der im Index enthaltenen Unternehmen gewährleisten zu können, wurde eine unabhängige Kommission gebildet, die über die Qualitätskriterien wacht. Die Kommission setzt sich aus Experten der Christian Brothers Investment Services Inc. sowie weiteren Investmentspezialisten
zusammen. Aktuell enthält der STOXX® Europe Christian Index 545 Titel.
„Der db x-trackers STOXX® Europe Christian Index ETF (DR) ist eine sinnvolle Ergänzung unserer Produktpalette und erweitert die Kriterien der Auswahl von Indexmitgliedern um eine ethische Komponente“, sagt Thorsten Michalik, verantwortlich für db X-trackers. „Wir wissen, dass für viele Investoren ethische Aspekte mit der Kapitalanlage verknüpft sind.“
„Der STOXX Europe Christian Index bietet eine breite Abdeckung von europäischen Unternehmen, die umweltbewusst sowie ethisch und sozial verantwortungsvoll handeln und sich damit in Übereinstimmung mit christlichen Werten befinden“, sagt Hartmut Graf, Chief Executive Officer (CEO) von STOXX® Limited. „Durch die Lizenzierung des STOXX Europe Christian Index bietet die Deutsche Bank den ersten ETF, der auf dem Index basiert.“
Im Unterschied zu allen anderen bisher aufgelegten db X-trackers ETFs zielt der db x-trackers STOXX® Europe Christian Index ETF (DR) darauf ab, die Wertentwicklung des Index direkt abzubilden, indem er in ein Portfolio liquider Wertpapiere investiert, das alle im Index enthaltenen Wertpapiere oder eine repräsentative Auswahl davon umfasst. ETFs von db X-trackers mit physischer Indexabbildung tragen die Abkürzung „DR“ für „Direct Replication“ im Namen. Auch weiterhin wird db X-trackers in den weit überwiegenden Fällen die Methode der synthetischen Indexreplikation anwenden, bei der die Indexrendite über eine Swap- Vereinbarung mit der Deutschen Bank dargestellt wird. Nur in Einzelfällen werden bei entsprechender Kundennachfrage – wie beim db x-trackers STOXX® Europe Christian Index ETF (DR) – voll replizierende ETFs angeboten.
db x-trackers STOXX® Europe Christian Index ETF (DR) : Auf einen Blick
Name:db x-tracker STOXX ®
Europe Christian Index
ETF (DR)
Fondswährung: EUR
Bloomberg Ticker: XECD
ISIN:E00B3QWFQ10
Jährliche
Pauschalgebühr: 0,40%
Index Bloomberg Ticker: SXCHP
Source: db X-trackers
Capital inflows to Turkey spur rate cut plan
December 13, 2010--Turkey’s central bank is considering cutting interest rates in an attempt to stem excessive capital inflows, even though its economy will be one of the world’s fastest-growing this year.
Erdem Basci, central bank deputy governor, said strong capital inflows, fuelled by quantitative easing in developed economies, could create asset bubbles in emerging economies. The best response would be to cut interest rates gradually, while using other tools to restrain domestic banks’ loan growth, he argued.
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Source: FT.com
OECD warns eurozone on debt
December 13, 2010--Eurozone nations are enjoying a sustained if muted recovery but need to adopt tough measures to correct economic imbalances and must soon begin to cut their massive debt loads, the OECD said Monday.
The eurozone should also put in place a permanent crisis resolution mechanism that would force nations to carry out reforms to get aid, the OECD said, an issue European leaders are expected to tackle at a summit later this week.
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Source: EUbusiness
Eurozone bond would cost Germany EUR 17bn: report
December 13, 2010--- Issuing a common eurozone bond would cost Germany at least 17 billion euros (22 billion dollars) more per year, the daily Frankfurter Allgemeine Zeitung (FAZ) said on Monday.
The newspaper did not cite the source for its figure but said Chancellor Angela Merkel "could count on it" during a European Union summit meeting in Brussels later this week.
Merkel is staunchly opposed to a proposal by Eurogroup chairman Jean-Claude Juncker of Luxembourg to issue common eurozone bonds, an idea backed by several countries in southern Europe.
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Source: EUbusiness
db x-trackers launches ETF to help finance the fight against Aids, tuberculosis and malaria.
December 13, 2010-- In a global first for the exchange-traded funds (ETFs) industry, Deutsche Bank’s ETF platform, db x-trackers, has launched a socially-conscious ETF to help finance the fight against Aids, tuberculosis and malaria.
The db x-trackers Global Fund Supporters ETF, which tracks the Dow Jones Global Fund 50 Index to Fight AIDS, Tuberculosis and Malaria(SM), launched today on the Frankfurt Stock Exchange.
The index tracks the performance of the largest public companies that support the mission of the Global Fund. db x-trackers’ management revenues in respect of the Global Fund Supporters ETF, after costs for running the fund, will go towards the Global Fund, a unique global public/private partnership dedicated to attracting and distributing resources to prevent and treat HIV/Aids, tuberculosis and malaria. To date, the Global Fund has committed US$19.8 billion in 149 countries to support large-scale prevention, treatment and care programs. “By making the Dow Jones Global Fund 50 Index available in ETF format we have made it truly investable. We fully support the Global Fund and its efforts to combat these terrible diseases, and are happy to direct profits from this new product to their cause,” said Thorsten Michalik, global head of db x-trackers. “We’ve seen a massive uptake in our ETFs since we launched in 2007. With ever increasing numbers of investors embracing the products, and with more of those investors wishing to invest along socially-conscious lines, we are confident that the db x-trackers Global Fund Supporters ETF will be a success.” The Dow Jones Global Fund 50 Index emerged from a collaboration between leading index provider Dow Jones Indexes and the Global Fund. “The collaboration with Deutsche Bank is an example of innovative financing that can benefit investors and serve humanitarian purposes,” said Prof. Michel Kazatchkine, Executive Director of the Global Fund. “With Deutsche Bank the Global Fund is showing that it is possible to do well and to do good at the same time.”
The Global Fund Supporters ETF uses physical replication to track its index. This is a first for db x-trackers (see additional press release), which traditionally replicates indices using a swap-based – also commonly referred to as synthetic – replication method. However, if clients, due to investment restrictions or tax treatments, request the physical replication method, then db x-trackers can replicate those ETFs physically. This is the case with the Global Fund Supporters ETF.
Source: db x-trackers
db x-trackers launches first Christian-oriented ETF.
December 13, 2010-- db x-trackers, Deutsche Bank’s exchange-traded funds (ETF) platform, has launched the world’s first ETF for Christians who wish to invest in line with their faith.
The db x-trackers STOXX ® Europe Christian Index ETF (DR) tracks the performance of a basket of stocks selected to comply with the values and principles of Christianity. Companies are chosen from the broader STOXX ® Europe 600 Index, with suitability for inclusion determined by an independent Christian faith commission. Companies active in certain areas, such as the arms trade or gambling for example, are excluded from the index. “The db x-trackers STOXX ® Europe Christian Index ETF (DR) is a meaningful addition to our product range, giving faith and ethics-driven investors the flexibility to invest in line with their beliefs,” said Thorsten Michalik, Global Head of db x-trackers. “The STOXX® Europe Christian Index offers a broad coverage of European companies that act in an ethically and environmentally conscious and socially responsible manner and thus are in line with Christian values,” said Hartmut Graf, Chief Executive Officer of STOXX ® Limited. “By licensing the STOXX® Europe Christian Index, Deutsche Bank offers the first ETF based on the index.”
Unlike previously launched db x-trackers ETFs, the db x-trackers STOXX ® Europe Christian Index ETF (DR) aims to replicate the performance of its underlying index by directly investing in a portfolio of liquid securities. db x-trackers ETFs utilising physical index replication bear the abbreviation "DR", for "Direct Replication", in their name. The vast majority of db x-trackers’ products use a swap-based – also known as synthetic – index replication method. However, in certain cases where, for tax purposes or for the purposes of meeting particular internal investment requirements, customers specifically ask for the direct physical replication method, then db x-trackers can accommodate those wishes. This is the case with the db x-trackers STOXX ® Europe Christian Index ETF (DR).
Source: db x-trackers
Pimco and Source to partner and create a range of Fixed Income ETFs.
December 13, 2010--PIMCO, a leading global investment management firm and Source, a specialist provider of exchange traded products, have entered into an agreement to introduce and distribute fixed income ETFs in the European market. Together, PIMCO and Source are creating a range of products designed to provide fixed income exposure to
European investors.
PIMCO Source Fixed Income ETFs (PIMCO Source) will combine the transparency and operational ease that investors expect from Source ETFs with PIMCO's four decades of investment management expertise and thought leadership. Investors can expect the first products to be launched early 2011.
PIMCO Source are designing ETFs to meet investor demand for more than the traditional benchmark exposure. Fixed income is a broad and complex asset class where passive, traditional indexation may not always be the best solution. PIMCO Source will develop and offer UCITS ETFs, ranging from short maturity strategies to those investing in longer term securities. All PIMCO Source ETFs will benefit directly from PIMCO?s fixed income expertise, and rigorous investment management process in conjunction with Source's proven distribution model and ability to enhance trading liquidity.
Commenting on the launch, Source CEO Ted Hood said: "Through our range of equity and commodity index products, Source is now one of the fastest growing ETP providers in Europe. Developing fixed income products is a natural next step. The credit crunch proved that every fixed income portfolio needs a mix of skilled product engineering and experienced active management. PIMCO, as one of the world?s leading fixed income managers, is well positioned to provide an enhanced approach to both active and passive exposure, and is the perfect partner for Source in this venture."
"Our approach is to create "well engineered solutions? that reflect PIMCO's thought leadership, risk management and product design expertise. We believe PIMCO Source Fixed Income ETFs fulfill a demand among European investors for smarter ETFs, with a range of active funds for benchmark outperformance and passive funds with forward-looking benchmarks offering more advantageous exposure. Collaborating with Source is the ideal way to deliver PIMCO's expertise in a liquid, transparent and robust investment vehicle," said Tammie Arnold, Managing Director at PIMCO.
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Source: Source ETF
DB Global Equity Index & ETF Research : European Weekly ETP Review: European ETF industry set to register the highest growth rates for 2010
December 10, 2010--Europe registers the highest market growth among the three major global regions
As the year draws to a close the global ETF industry is set to finish 2010 on a high note. In addition to product launches reaching a new record high (as we reported in our last weekly report) ETF asset growth rates are also showing continued strong investor confidence in the sector. This strong growth is further supported by Q4-10 asset allocation investment patterns that are favoring the sector’s largest asset class: equity.
The success story is more pronounced in Europe, where the ETF market is set to register the strongest growth rate among the three major global regions. The European market, 2010 YTD added €46.1 billion and registered asset growth of 29.2%, reaching €204.0 billion, up from €157.8 billion at the beginning of the year. Close to two thirds of new assets (€29.6 billion) came from new flows to the industry while the remainder is attributed to market appreciation.
The European ETF market growth rate compares very favorably to the global ETF industry growth rate of 22.6%. Asia and the US are registering asset growth rates of 24.1% and 23.0% for the year, respectively, as of December 3rd 2010.
Asset allocation: Closing the loop
As the year draws to a close, fourth quarter ETF asset allocation patterns signal market optimism. A review of 2010 quarterly cash flows indicates a return of equity investors to the market, at levels slightly above those of the first quarter of the year. It is important to note the trend at the beginning of December, as often year end inflow figures can include flows which are temporary in nature and migrate away at the beginning of the year. These are more often associated with year-end corporate balance sheet window dressing for accounting purposes.
Total European market ETP flows for the year totaled €32.8 billion for 2010 YTD, with commodities (largely gold - €4.8 billion - and other precious metals – €1.3 billion) contributing €6.8 billion.
Cash flow patterns for 2010, in addition to the return into equities, they indicate a retraction from sovereign benchmarked ETFs as well as a reduction in gold ETFs inflows, especially in the last two quarters of the year. Sovereign and gold benchmarked ETFs benefited significantly during 2010, with very pronounced cash flows in the second quarter of the year. Q4 numbers on the chart represent cash flows up to the week that finished on December 3, 2010.
Emerging markets and major European equity indices lead the way
Total equity ETF flows for the year totaled €20.0 billion for 2010, contributing 58% to the new flows into the European ETF market.
ETF emerging markets investing held very strong throughout the year, reaching a high in the fourth quarter. Emerging market ETFs amassed cash flows of €1.5 billion, €1.6 billion, €2.2 billion and €2.7 billion, for Q1-10, Q2-10, Q3-10 and Q4-10 (to Dec. 3rd) respectively. While emerging market flows have largely been driven by favorable fundamentals, they also reflect increased usage of ETFs as an emerging markets allocation tool. ETFs minimize tracking error often associated with unlisted mutual funds, in addition to carrying lower TERs and affording the ability to trade intra-day.
With the exception of several large tax optimization cash flows in the German market that occurred in the second quarter of the year, European major equity benchmarked ETF investors left the market at the end of the first quarter and did not return in significant numbers until the end of the third quarter of the year. European major equity benchmarked ETFs received flows of €491 million inflow, € 1.0 billion outflows, €1.5 billion inflows and €1.9 billion inflows for Q1-10, Q2-10, Q3-10 and Q4-10 (to Dec. 3rd) respectively.
Investors in non-European developed equity market benchmarked ETFs followed similar investment patterns to those in European benchmarked equity ETFs. Developed non-European benchmarked ETF cash flows netted €2.0 billion inflows, €942 million inflows, €3 million outflows and €1 billion of inflows for Q1-10, Q2-10, Q3-10 and Q4-10 (to Dec. 3rd) respectively.
Fixed Income: Sovereign inflows all but disappear
Total fixed income ETF flows for the year totaled €6.1 billion for 2010, contributing 18% to the new flows into the European ETF market. The second quarter of the year saw a very strong influx of investment in sovereign benchmarked ETFs (close to €3 billion), a move that was largely motivated by market volatility. Some of the Euro sovereign fears that generated concerns in May and June resurfaced in late November, however, that did not generate a proportional migration towards sovereign ETF investment.
While sovereign inflows continued in the third quarter, the increase in corporate bond investment is what left the strongest mark in third quarter of the year with over €1 billion of inflows.
Overall, the fourth quarter appears to be the weakest for the fixed income asset class as a whole. That is partly the case due to the change in investment appetite for sovereigns and the fact that the European ETF fixed income market is dominated by sovereign benchmarked ETFs.
There are some good news however, two corners of the European ETF fixed income market saw some renewed attention from investors: Credit and corporate benchmarked ETFs. While the overall investment in these two fixed income sub-sectors is by no means comparable to the migration into sovereign debt earlier in the year, it does indicate the possibility that the European fixed income ETF market is examining new products, such as the iTraxx benchmarked ETFs, under a new light.
Ultimately, the lackluster sovereign flows do not just paint a picture which reflects Euro sovereign solvency concerns. It is a reaction to improving conditions in the equity markets and how fixed income fares from an expected return standpoint. Stubbornly low Euro-zone interest rates together with rising inflation expectations are also proving to play a decisive role on keeping fixed income ETF flows subdued.
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Source: DB Global Equity Index & ETF Research
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