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ETF Landscape: European STOXX 600 Sector ETF Net Flows week ending 29-Oct-10
November 3, 2010--For the week ending 29 October 2010, there were US$166.1 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF net inflows last week were in banks with US$99.5 Mn and basic resources with US$72.5 Mn while retail experienced net outflows of US$81.7 Mn.
Year-to-date, STOXX Europe 600 sector ETFs have seen US$1,044.8 Mn net inflows. Banks sector ETFs have seen the largest net inflows with US$470.8 Mn, followed by basic resources with US$205.3 Mn while food and beverage has experienced the largest net outflows of US$134.8 Mn YTD.
As of 29 October 2010, there is US$10.7 Bn AUM invested in the STOXX sector ETFs which is more than double the US$4.3 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.
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Source: Global ETF Research & Implementation Strategy Team, BlackRock
Financial Stability Board proposes to establish regional consultative groups
November 3, 2010-The Financial Stability Board (FSB) announced today arrangements to expand and formalise outreach beyond its membership. Regional consultative groups will be established to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.
In globally integrated financial markets, consistent implementation of financial reforms across countries underpins the maintenance of a level playing field and guards against regulatory arbitrage that could otherwise undermine the reforms. At the same time, to be globally applicable, reforms need to take into account differences across countries in legal systems, financial sophistication and capacity, as well the diversity of national experiences and vulnerabilities exposed by the latest financial crisis.
Every country brings experiences and perspectives from which others can learn. To fully benefit from this diversity, the FSB recognises the importance of consulting widely and engaging a broader range of countries in its work. This includes the need to take account of perspectives of emerging market countries – not only of those which are FSB members but others as well.
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Source: The Financial Stability Board (FSB)
UK official holdings of international reserves, October 2010
October 3, 2010--This monthly press notice shows details of movements in October in the UK’s official holdings of international reserves, which consist of gold, foreign currency assets and International Monetary Fund assets. These reserves are maintained primarily so that the UK Government’s reserves could be used to intervene to support Sterling, or the Bank of England’s reserves could be used to support the Bank’s monetary policy objectives.
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Source: HM Treasury
Barclays launches iPath® VSTOXX Mid-Term Futures Exchange Traded Note
New iPath ETN offers investors exposure to medium-term European volatility
November 3, 2010-- Barclays Bank PLC today announces the launch of the iPath® VSTOXX Mid-Term Futures ETN listed in Euros on the London Stock Exchange (LSE) and XETRA under the ticker VSXY and in Sterling on the LSE under the ticker VSYG. The ETN is designed to provide exposure to European volatility.
“We are pleased to offer investors simple and transparent access to medium-term European volatility through our iPath VSTOXX Mid-Term Futures ETN,” said Uwe Becker, Head of Investor Solutions for Barclays Capital in Europe. “While the VSTOXX Short-Term ETN was designed to suit investors taking a view on equity volatility in the near future, this ETN is a useful solution for buy-and-hold investors. While it may be less sensitive to small movements in short term volatility, it is designed to exhibit a lower cost of carry over a longer holding period. It therefore aims to provide a cost-efficient tool for portfolio diversification, potentially going some way to providing protection against a market crash.”
“With two iPath ETNs referencing European volatility over different terms, Barclays Capital can now offer even more flexible solutions to manage risk to a broad range of investors,” added Antti Suhonen, Head of Origination, Equity and Funds Structured Markets (EFS).
iPath® VSTOXX Mid-Term Futures ETNs are senior, unsecured, unsubordinated callable debt securities, issued by Barclays Bank PLC. They are linked to the performance of the underlying EURO STOXX 50 Volatility Mid-Term Futures Index (VSTOXX Mid-Term Futures Index), which tracks the 4th, 5th, 6th and 7th month futures of the VSTOXX. The index futures are rolled continuously throughout each month from the fourth month VSTOXX futures contract into the seventh month VSTOXX futures contract while exposure to the fifth and sixth month contracts is being held constant.
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Source: Barclays Capital
SIX Swiss Exchange and SIX Exfeed publish consultation paper on reference markets
November 3, 2010--SIX Swiss Exchange and SIX Exfeed have published their questionnaire to consult with market participants and regulators on the significance of reference markets for securities and the rules which should govern them. All stakeholders are invited to give their valuable input until 30 November 2010.
Link: http://www.six-swiss-exchange.com/download/participants/consultation.pdf
The issues raised can broadly be split into two areas:
1. The principles of real-time reference data pricing We are seeking advice on the definition, categorization and pricing of the usage of reference data sourced from home markets by alternative venues and others.
2. The meaning of reference markets and reference prices in Europe
As operators of the regulated market for Swiss securities, which are widely traded by EU market participants, SIX Swiss Exchange seeks acknowledgement as the “Reference Market” for these securities, irrespective of the fact that Switzerland is outside the EU. SIX Swiss Exchange also looks to clarify the meaning of “Reference Prices” with regulators, both domestically and within the EU in order to validate the current rules and their cross-border implications and the impacts these have on investors and issuers.
Christian Katz, CEO, SIX Swiss Exchange, commented: “We have received a lot of encouragement in our efforts to lead this industry wide consultation and we are looking forward to sharing the results of this query with the European trading community.”
Source: SIX Swiss Exchange
World Bank Launches its 23rd Russian Economic Report
November 2, 2010--With moderating global and Western European growth and oil prices and volatile capital flows, Russia is likely to grow by 4.2 percent in 2010, followed by 4.5 percent in 2011 and 3.5 percent in 2012 as domestic demand expands in line with gradual improvements in the labor and credit markets says World Bank’s Russian Economic Report No. 23 launched today in Moscow.
view Russian Economic Report 23
Source: World Bank
A new A-type exchange traded fund starts trading on the Istanbul Stock Exchange tomorrow: “Finansbank A.Ş. GT-30” Wednesday, November 3, 2010 (*) Greece-Turkey 30 Index
Sabotage fears as LSE platform crashes read more Poll suggests Industry unprepared for the AIFM Directive Of the 186 asset managers questioned, 41% were also concerned that the new EU regulation would lead to increased management fees. read more EU may legislate on corporate social and environmental data
Proposal 38 referred to the widely anticipated green paper on corporate governance. But the Commission added that it would also “launch a public consultation on the possible ways to improve the transparency of information provided by businesses on social and environmental matters and respect for human rights”.
view Towards a Single Market Act-For a highly competitive social market economy-
50 proposals for improving our work, business and exchanges with one another If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
November 2, 2010--A new A-type investment fund, namely “Finansbank A.Ş. GT-30 A Tipi Borsa Yatirim Fonu” (A-type Exchange Traded Fund), founded by Finansbank will start trading on the Istanbul Stock Exchange (ISE) on November 3, 2010.
On the occasion of the first trading day of Finansbank A.Ş. GT-30 A-type Exchange Traded Fund(*), executives and guests of Finansbank and the intermediaries will visit the Istanbul Stock Exchange and ring the opening bell of the Stock Market on Wednesday, November 3, 2010. Mr. Hüseyin ERKAN, ISE Chairman & CEO, and Dr. Ömer ARAS, Chairman of the Board and CEO of Finansbank will deliver speeches, following which they will ring the opening bell and start the session at 09:30.
08.45 : Meeting at the ISE Exhibition Hall
09.15 : Arrival at the ISE Stock Trading Floor
09:20 : Speeches
09.30 : Session opening
Source: Istanbul Stock Exchange (ISE)
November 2, 2010--The London Stock Exchange was scrambling to establish how a human error in possibly "suspicious circumstances" had knocked out one of its dealing platforms on Tuesday as the exchange conceded it would now have to delay switching over to a new trading system until next year.
The developments are a blow to the efforts by Xavier Rolet, LSE chief executive, to restore the fortunes of the exchange at a time when it is launching an unprecedented set of initiatives designed to catapault the bourse back into the front ranks of global exchanges.
Source: CNN
November 2, 2010--The UK asset management industry is unprepared for the implementation of the Alternative Investment Fund Managers (AIFM) directive, with only 2% saying they know how to implement the changes, according to a study conducted by PwC.
Additionally, more than half of respondents were concerned that the directive, which is awaiting final approval at a plenary session of the European Parliament next Thursday, would reduce their profit margin.
Source: IP&E
New initiative alongside corporate governance green paper
November 2, 2010--The European Commission says it may legislate not only on corporate governance but also on the transparency of corporate social, environmental and human rights information.
The Commission, the executive arm of the European Union, unveiled a set of 50 proposals last week to improve the bloc’s internal market in a 46-page ‘communication’ Towards a Single Market Act: For a highly competitive social market economy.
Source: Responsible Investor
