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Law firm introduces new fund structure for Jersey
September 22, 2010--A new fund structure for Jersey has been devised by Jersey-based law firm Crill Canavan and fund administrator Herald Fund Services.
The Standard Form Expert Fund, the first fund of which has been approved by the Jersey Financial Services Commission, aims to cut the time and cost involved in setting up funds domiciled in Jersey by about 70 per cent.
The new structure makes use of Jersey’s Incorporated Cell Company legislation and works in a similar way to an umbrella fund.
Individual investment funds are established as separate incorporated cells and an investment manager is appointed to each fund. Different investment managers can be appointed to each of the separate cells within the ICC.
Source Offers a Passive Alternative To Hedge Fund Investment
September 21, 2010--Source now offers a truly passive approach to alternative
investment, with the launch of two ETFs tracking the Merrill Lynch Factor Model strategy. This strategy, developed by BofA Merrill Lynch, aims to generate similar performance to
funds-of-funds without investing directly in hedge funds.
Instead, the Model uses a portfolio
of six liquid and well-known market indices to replicate the global performance of hedge
funds. The BofAML Hedge Fund Factor Source ETFs are available in US Dollars and Euro and will be listed on the London Stock Exchange and Xetra respectively. They are highly
liquid, UCITS III compliant and have a 0.7% per annum management fee.
Although the performance potential of hedge funds is attractive, there are still strong deterrents for some investors: lack of liquidity, lower transparency and single manager risk. The Merrill Lynch Factor Model was designed to generate similar returns to the broad hedge fund universe from a transparent portfolio of well-known market indices. Historically, the model has achieved returns comparable to the HFRI Fund Weighted Composite Index, a recognised benchmark for the hedge fund industry.
Commenting on the launch, Source CEO Ted Hood said: “Some investors love the idea of hedge fund exposure but find the potential illiquidity problematic. The new Source ETFs aim to provide broad, generic exposure to the hedge fund industry, without investing in individual hedge funds. These ETFs could be particularly interesting as part of a core-satellite approach, in combination with some top class individual managers, or as a liquid cash management solution for funds-of-funds.” These products are the latest additions to Source’s “alternative” range1,, which aims to complement Source’s existing range of exchange-traded equity and commodity products.
A Review on Euro Stoxx 50 ETFs
September 21, 2010--Plain vanilla Euro Stoxx 50 ETFs play a dominate role in the European ETF market, as they are one of largest peer groups by assets under management. For this reason, Lipper analyzed this segment of the European ETF market and will publish a research study on September 16th. Within this 20 minutes presentation we will give an unique overview on the Euro Stoxx 50 ETFs, which are available to investors in Europe.
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CESR publishes the responses to four consulations concerning the Key Investor Information Document
September 21, 2010--CESR has published the responses to four consulations concerning the Key Investor Information Document.
view responses
FSA Chairman welcomes the decisions reached on the Basel III package of capital and liquidity reforms
September 21, 2010--In a speech at the Mansion House tonight, the Chairman of the Financial Services Authority, Lord Turner, will say that to design an effective regulatory response to the financial crisis, we need to move beyond the demonization of over-paid financial traders and recognise the fundamental mistakes made by policy makers.
"In finance and economics", he will say, "ill-designed policy is a more powerful force for harm than individual greed and error".
He will argue that the crisis had many causes, including "absurd bonuses for excessive risk taking" and "an explosion of exotic socially useless product development", but that underlying these problems were prudential rules and an entire philosophy of market regulation which failed to identify and address the dangers of excessive leverage, and which too confidently relied on supposedly efficient and rational markets always to produce good results.
Addressing that failure requires the implementation of three major sets of reform: significant increases in bank capital and liquidity requirements; clear strategies to ensure that banks will not be bailed out by tax-payers; and macro-prudential tools which can slow down excessive credit growth. But applying these tools will sometimes have unpopular consequences for the supply of credit which society needs to be willing to accept.
Kostenlose Sparpläne mit db x-trackers ETFs und db
September 20, 2010--Ab sofort fallen für Sparpläne auf ausgewählte db xtrackers ETFs und db ETCs ab einem Mindestbetrag von derzeit 50 EUR bei der
DAB bank, München, keine Transaktionsgebühren mehr für den Kunden an. Dies haben die Direktbank und die Deutsche Bank AG, welche die Erstattung der Transaktionsgebühren übernimmt, vereinbart.
Damit sind db x-trackers und db ETC
die ersten Anbieter in Deutschland, deren ETFs und ETCs künftig gebührenfrei als Sparplan erhältlich sind. Die Kooperation wurde für fünf Jahre – mit Option auf Verlängerung – geschlossen und gilt sowohl für bestehende als auch für neu
abgeschlossene Sparpläne.
“Mit dieser neuen Kooperation setzen wir im Segment der Sparpläne bei der DAB bank mit ETFs und ETCs neue Maßstäbe“, sagt Thorsten Michalik, Global Head of db x-trackers ETFs und db ETCs der Deutschen Bank. „Immer mehr Privatanleger scheinen börsennotierte Indexprodukte für sich als Instrument für den langfristigen Vermögensaufbau zu entdecken. Die Abschaffung der Transaktionsgebühren für den Kunden wird dazu beitragen, dass ETFs ihren Weg in die Depots selbst entscheidender Privatanleger finden werden.“
„Wir waren 2001 die Ersten, die auf dem deutschen Markt ETF-Sparpläne angeboten haben“, so Niki Bat, Bereichsleiter Products & Services bei der DAB bank. „Jetzt bestätigen wir unsere Pionierstellung ein weiteres Mal: Wir sind die erste Bank in Deutschland, die die Transaktionsgebühren für ETF-Sparpläne für die Kunden abschafft.“
Mit dem Start der Kooperation steigt die Zahl der bei der DAB bank angebotenen Sparpläne auf db x-trackers ETFs auf 59. Neu angeboten werden zum Beispiel der db x-trackers Portfolio Total Return Index ETF, der einen Mix aus verschiedenen Anlageklassen abbildet, der db x-trackers EuroStoxx 50 ETF und verschiedene Aktien-ETFs auf Schwellenländer-Märkte. Aus dem Rentensegment werden neu Sparpläne auf ETFs angeboten, die über entsprechende Indizes die Wertentwicklung von Staatsanleihen mit verschiedenen Laufzeiten, Pfandbriefen oder inflationsgeschützten Anleihen abbilden.
Erstmals wurden auch Sparpläne auf sieben ETCs der Deutschen Bank von der DAB
bank ins Programm aufgenommen. db ETC ist die Plattform der Deutschen Bank für
Börsengehandelte Rohstoffprodukte (Exchange Traded Commodities – ETC). Zu den Silber, Palladium und Platin. Anleger partizipieren durch die Wertpapiere an der
Entwicklung der Kassakurse des Edelmetalls. Bei den neu von der DAB bank als Sparplan angebotenen db ETCs besteht zudem ein
Währungssicherungsmechanismus.
EU to include commodities in new market rules
September 20, 2010--The European Commission said on Monday it intends to use a plan to reform financial markets to rein in speculation on commodities markets, notably by reinforcing controls and extend the market abuse legislation.
The European Commissioner in charge of financial reform services Michel Barnier made the announcement in the opening speech of a conference on the revision of the Market in Financial Instruments Directive (MiFID) in Brussels, along with his colleague, European Union Agriculture Commisionner Dacian Ciolos. “The revision of MiFID is one of the key elements of an ambition reform of the raw materials markets,” the EU’s financial markets chief said, stressing that commodities markets regulation was a high on his agenda. “We are ready to go further. This is a key issue. We will not hesitate to consider further measures,” Barnier, a former French farm minister, also said.
Trading in financial products – new rules for safer markets
September 20, 2010--Proposed changes to EU rules would make short-selling and trading in over-the-counter derivatives safer and more transparent.
The reforms are part of a series of steps being taken by the Commission to create a more harmonised and sounder financial system for the EU in the wake of the global economic crisis.
The proposals, announced yesterday, would reduce risk and help coordinate preventative action among EU countries, says internal market commissioner Michel Barnier.
One of the draft regulations would require investors to clear trades in over-the-counter derivatives through central counterparties. The trades would have to be reported to registered central repositories under the regulation of the new European Securities Market Authority.
Eurex to Launch New Future on Short-term Italian Government Bonds
Listing on 18 October 2010/ Existing Euro BTP Future to be complemented
September 20, 2010--The international derivatives exchange Eurex announced today that it will be launching a new future that is based on notional short-term debt instruments issued by the Republic of Italy (Buoni del Tesoro Poliennali – BTP) on 18 October 2010. The contract will complement the Eurex benchmark interest rate derivatives family; along with the existing 10-year Euro BTP Future, the short-term BTP contract will serve as an appropriate hedging instrument for all non-triple-A-rated European government bonds as well as for other interest rate instruments (such as swaps).
Following the launch of the new future, the short-term Italian government bond market will additionally benefit from the ensuing increase in basis and repo trading opportunities. Spread trading strategies will also be possible, thereby enhancing trading volumes in both futures.
“The success of the Euro BTP Future we launched in September 2009 underlines the market needs for a complementary short-term hedging instrument,” said Peter Reitz, member of the Eurex Executive Board. “Since its launch, more than 1.3 million contracts have been traded in our Euro BTP Future. This shows that market participants are actively using our contract as a hedging instrument for government bonds with a non-triple-A-rating.”
The short-term Euro BTP Future will be based on deliverable bonds with a remaining maturity of 2 to 3.25 years and have a notional coupon of 6 percent as well as a contract value of EUR 100,000. The minimum tick size will be 0.01 percent (EUR 10 per tick) in line with the tick sizes of the BTP, Bund and Bobl futures. Trading hours will be from 8:00 a.m. to 7:00 p.m. CET.
Eurex will also be offering a market-making program. Various banks have already shown an interest in market-making to provide sufficient liquidity from the outset.
Euronext calls for OTC trade threshold
September 20, 2010--Regulators should impose a minimum size on trades that can be done in off-exchange share markets because a large proportion of such transactions are not contributing to the way prices are established in the markets overall, NYSE Euronext has said.
The call by Rolande Bellegarde, head of NYSE Euronext’s European cash equities business, highlights the tension between exchanges and participants, such as banks, that do much of their trading in over-the-counter markets.
