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Average Daily Volume of 9.9 Million Contracts at Eurex and ISE in September
Eurex Repo reached new record volume
October 1, 2010--At the international derivatives markets of Eurex, an average daily volume of 9.9 million contracts was traded in September (September 2009: 10.6 million). Thereof, 7.3 million contracts were traded at Eurex (September 2009: 6.9 million) and 2.6 million contracts were traded at the International Securities Exchange (September 2009: 3.7 million). In total, 216.1 million contracts were traded on both exchanges (September 2009: 230.8 million), thereof, 161.6 million contracts at Eurex and 54.5 million contracts at ISE.
At Eurex, the equity index derivatives segment was the most active segment, totaling 69.4 million contracts, compared with 74.1 million contracts in September 2009. Futures on the EURO STOXX 50 reached 34.6 million contracts and options on this index recorded another 22.3 million contracts. The futures and options on the DAX index reached a combined turnover of about 9 million contracts.
The Eurex segment of equity-based derivatives (equity options and single stock futures) recorded 30.0 million contracts (September 2009: 28.4 million). Thereof, equity options totaled 25.3 million contracts, single stock futures 4.7 million contracts.
Eurex’s interest rate derivatives segment reached 61.7 million contracts, compared with 49.6 million in September 2009 – the best monthly result in 2010. Approximately 26.5 million contracts were traded in the Euro-Bund-Future, 14.0 million contracts in the Euro-Bobl-Future, 13.7 million contracts in the Euro-Schatz Future and nearly 115,000 contracts in the Euro-BTP-Future.
Dividend derivatives traded roughly 352,000 contracts, an increase of more than 22 percent y-o-y. Commodities derivatives totaled at 91,500 contracts, compared with almost 44,500 in September 2009. Volatility derivatives totaled at more than 53,000 contracts.
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Source: Eurex
“C” List Stocks to be excluded from ISE Stock Market Indices
September 30, 2010--New trading rules aimed at the protection of investors, introduced by the Capital Markets Board (CMB) and the Istanbul Stock Exchange (ISE) shall start to be implemented in the ISE Stock Market on October 1, 2010. Within this framework, stocks classified into three groups, namely, “A” List, “B” List, and “C” List, will be subject to different trading rules.
According to the new arrangements:
1. Stocks transferred to “C” List shall be excluded from all of the ISE Stock Market Indices, effective from October 1, 2010.
2. Stocks that are transferred from “A” or “B” Lists to “C” List as a result of the quarterly reviews shall immediately be excluded from all of the ISE Indices, and if necessary, replaced by the substitute stocks for the ISE-100, ISE-50, ISE-30, and ISE-10 Bank Indices.
3. Stocks that are transferred back from “C” List to either “A” or “B” Lists as a result of the quarterly reviews shall be included in the ISE-100, ISE-50, ISE-30, ISE-10 Banks, ISE Corporate Governance, and ISE City Indices in the next index review period, provided that they fulfill the relevant requirements, while they will only be included in other indices on the day that they start trading on “A” or “B” Lists.
4. With regard to the stocks that were announced on September 14, 2010 to be included in any of the ISE Indices for the period October 1 – December 31, 2010, those that will be included in “C” List on October 1, 2010, will be excluded from all ISE Indices on such date, and if necessary, will be replaced by the substitute stocks for the ISE-100, ISE-50, ISE-30, and ISE-10 Banks Indices.
Source: Istanbul Stock Exchange (ISE)
United Kingdom—2010 Article IV Consultation
September 30, 2010--Overview
1. The UK economy is on the mend. Economic recovery is underway, unemployment has stabilized, and financial sector health has improved. The government’s strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability. The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery. Fiscal tightening will dampen short-term growth but not stop it as other sectors of the economy emerge as drivers of recovery, supported by continued monetary stimulus.
Upside and downside risks around this central scenario of moderate growth and gradually falling inflation are balanced. Monetary policy will need to be nimble if risks materialize, and fiscal automatic stabilizers should operate freely. Meanwhile, the UK authorities should continue to provide leadership and build support for ambitious global reform of financial regulation. Ensuring a smooth transition to a new supervisory architecture at home will also be important to secure a safer post-crisis environment.
Outlook and risks
2. Economic recovery is underway, but will likely proceed at a moderate pace as the economy undergoes a difficult but necessary rebalancing.
• Households are likely to remain thriftier than before the crisis but will be in a position to gradually raise their consumption as labor markets recover.
• Corporates are beginning to draw on their strong financial positions and increase investment as the demand outlook strengthens.
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Source: IMF
Ebner Becomes State Street ETF Product Chief
September 30, 2010--State Street Global Advisors has hired Scott Ebner as managing director and global head of ETF product development. Based in London, Ebner reports to James Ross, senior managing director and global head of exchange-traded funds at SSGA.
Ebner was previously senior vice president and global head of ETF products at NYSE Euronext in the Paris office, where he ran the listing and trading not only of ETFs but also warrants, certificates, structured noted and investment funds. Before that, he was in charge of European ETFs at NYSE Euronext.
Prior to joining NYSE Euronext, Ebner was senior vice president of the ETF marketplace at the American Stock Exchange.
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Source: Financial Planning
Irish Stock Exchange adopts new rules in relation to corporate governance
September 29, 2010--The ISE is to require Irish listed companies to comply or explain against the provisions of the UK Corporate Governance Code. Additional corporate governance provisions arising from the recommendations contained in the report on Compliance with the Combined Code on Corporate Governance by Irish listed companies (“the ISE/IAIM Commissioned Report”)1 will come into force later this year. These requirements are outlined in the feedback statement on proposed changes to the ISE Listing Rules relating to corporate governance published today.
Irish listed companies have been required to comply or explain against the Combined Code for some years. In May 2010, the Financial Reporting Council (FRC) replaced the Combined Code with the UK Corporate Governance Code2. The FRC’s Code is widely regarded as best practice internationally and a benchmark for corporate governance standards. The ISE’s Listing Rules will maintain their existing parity with the standards applying in the UK, by requiring Irish listed companies to comply or explain with the provisions of the UK Corporate Governance Code, with effect from 30th September 2010.
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Source: WFE
NASDAQ OMX Starts Trading In Eight New ETFs From XACT
September 29, 2010--NASDAQ OMX today starts trading in eight new Exchange traded funds (ETFs) from XACT. All the XACT ETFs are based on NASDAQ OMX indexes and will be traded on NASDAQ OMX Stockholm. The new ETFs are XACT Nordic 120, which tracks the 120 largest and most traded Nordic companies, and seven sector ETFs tracking the largest listed Nordic companies within the sectors bank & insurance, material, construction & real estate, energy, consumer goods, health care and industrials.
Jenny Rosberg, Senior Vice President at NASDAQ OMX said, "These new ETFs from XACT will make a great addition to both professional and private investors looking for exposure in individual sectors. The ETFs follow new NASDAQ OMX indexes that include all major Nordic listed companies, and also encompass Norwegian shares."
Henrik Norén, Managing Director of XACT Fonder, commented, "ETFs are one of the fastest growing trading products in the world and have with its low fees become attractive instruments also for long-term investments. With this new offering we will be able to meet the increasing demand for ETFs with exposure to Nordic companies."
The following eight new ETFs will be listed on Nasdaq OMX Stockholm as of today:
XACT Nordic 120 (the 120 largest and most traded Nordic companies)
XACT Bank (the largest Nordic banking & insurance companies)
XACT Materials (the largest Nordic companies, within the material sector) XACT Construction & Real Estate (the largest Nordic construction & real estate companies)
XACT Energy (the largest Nordic energy companies)
XACT Consumer Goods (the largest Nordic consumer goods companies)
XACT Health Care (the largest Nordic healthcare companies)
XACT Industrials (the largest Nordic companies within the industrial sector)
Source: NASDAQ OMX
Treasury to probe high-frequency trading
September 29, 2010--The UK Treasury has commissioned a study into the practice in markets of ultra-fast automated trading because of concerns that a computer-generated error could have “significant impact” on the economy
The move is a sign of rising concern about the rapid growth of computer algorithms and so-called “high-frequency trading”, which allows traders to buy and sell shares, derivatives and foreign exchange in fractions of a second.
The practice now accounts for up to 60 per cent of US equity markets, while the London Stock Exchange estimates that more than a quarter of its trades are driven by high-frequency trading. But it has generated controversy in the wake of the “flash crash” in the US on May 6, when the Dow Jones index plunged 1,000 points in 20 minutes before recovering.
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Source: FT.com
ECB chief warns Europe to stick with financial reforms
September 29, 2010--- European Central Bank president Jean-Claude Trichet urged politicians and financial market actors on Wednesday to stay the course and push for reforms to avoid future crises.
"Effective financial reform needs perseverance," Trichet said in a speech to the Eurofi forum of European financial services in Brussels.
A copy of his remarks was posted on the ECB's website.
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Source: EUbusiness
Deutsche Börse Commodities: Deutsche Börse Commodities launches Xetra-Gold in UK and Netherlands
September 29, 2010--The Xetra-Gold bearer note, issued by Deutsche Börse Commodities GmbH, has met all requirements to be admitted for sale in the UK and the Netherlands. Xetra-Gold (ISIN: DE000A0S9GB0) represents the investor’s right to have one gram of gold stored or delivered per bearer note. The note is exchange-listed in Deutsche Börse’s ETC segment and is tradable on the pan-European Xetra platform as a highly liquid security.
“Our innovative securitization provides private and institutional investors with access to the gold market and gives them an efficient and cost-effective portfolio diversification opportunity,” said Martina Gruber, Managing Director of Deutsche Börse Commodities GmbH. “There is already demand for Xetra-Gold in the Netherlands – so far predominantly from private investors, as in Germany. We expect demand in the UK, in contrast, to come more from institutional investors,” she continued.
Xetra-Gold holders may assert their claim for delivery of physical gold. When buying or selling, investors benefit from the transparent pricing and favorable conditions of stock exchange securities trading. The price of one Xetra-Gold bearer note is always exactly the same as the price of one gram of gold on the world market in euros. The spread on Xetra between the bid and ask price of Xetra-Gold is generally around 0.1 percent – a maximum of 1 percent is permitted.
Xetra-Gold is always backed 100 percent by gold. Deutsche Börse Commodities’ gold reserve for Xetra-Gold is currently around 50 tons – valued at around €1.6 billion at current prices. Private investors can have the physical gold delivered to their bank and receive it there personally. More than 400 private investors have taken this option to date. Deutsche Börse Commodities also delivers the physical gold backing the bearer note to markets outside Germany where Xetra-Gold is admitted for trading and sales.
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Source: Deutsche Börse Commodities GmbH
New Strategy indices launched for STOXX and DAX index families
September 29, 2010--STOXX Limited, a global index provider and creator of the leading European equity indices, today announced the launch of the EURO STOXX 50 Monthly Leverage and EURO STOXX 50 Monthly Double Short indices, and the LevDAX x2 (monthly) and ShortDAX x2 (monthly) indices. The new indices replicate leveraged and short investment strategies based on a monthly rebalancing methodology.
The EURO STOXX 50 Monthly Leverage, EURO STOXX 50 Monthly Double Short, LevDAX x2 (monthly) and ShortDAX x2 (monthly) indices are designed to underlie financial products such as exchange-traded funds (ETFs) and structured products.
“The new EURO STOXX 50 Leveraged and Double Short indices and LevDAX and ShortDAX x2 monthly indices enable market participants to track investment strategies based on their bullish and bearish sentiments on European and German equities,” said Hartmut Graf, chief executive officer, STOXX Ltd. “The new indices complement the existing daily leverage and short indices on the EURO STOXX 50 and the DAX by allowing investors to bypass daily market fluctuations and take a more long-term approach. Furthermore, product issuers and their customers also benefit from reduced transaction costs, as portfolios would only have to be balanced once a month instead of on a daily basis.”
The EURO STOXX 50 Monthly Leverage Index is linked to the monthly performance of the EURO STOXX 50 Net Return Index – measured as of the third Friday of the month - in a leveraged way: A positive performance of the EURO STOXX 50 Index results in twice the positive performance of the EURO STOXX 50 Monthly Leverage Index, and vice versa. The EURO STOXX 50 Monthly Double Short Index replicates a short investment strategy that is inversely linked to the monthly performance of the EURO STOXX 50 Gross Return Index, also as of the third Friday of the month. A negative performance of the blue-chip index results in a positive change of twice the performance the EURO STOXX 50 Monthly Double Short Index, and vice versa.
The LevDAX x2 (monthly) also rises and falls twice as much as the performance of the DAX index, thus providing an effective and innovative strategy for magnifying participation in market movements. The ShortDAX x2 (monthly) measures double the negative monthly performance of the DAX index. Its performance is positive when the DAX falls. The index is designed for investors who expect negative performance on the DAX index or who are looking for an efficient hedge against falling prices.
The leverage factor is adjusted on a monthly basis to ensure that LevDAX x2 (monthly) always achieves twice the performance of the underlying index based on the closing level on the third Friday of the previous month. It complements the existing range of daily leveraged indices. However, if an investment is made between the monthly adjustment dates the leverage generally deviates from the factor 2.
The new STOXX and DAX strategy indices are calculated in euro. Daily historical index values are available back to December 31, 1991 for the EURO STOXX 50 Monthly Leverage and Short indices and back to December 30, 1987 for the LevDAX x2 (monthly) and ShortDAX x2 (monthly) indices. The cost of borrowing and the benefit of earning interest are also taken into account in the calculation of the new indices.
The EURO STOXX 50 Monthly Leverage and EURO STOXX 50 Monthly Double Short indices are part of the STOXX Strategy Index family. Further information on the new indices is available at www.stoxx.com.
The LevDAX x2 (monthly) and ShortDAX x2 (monthly) indices are part of the DAXplus family. Further information is available at www.dax-indices.com.
Source: STOXX
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