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DTCC Launches Equity Derivatives Reporting Repository
Derivatives Repository Ltd Receives FSA Regulatory Approval
August 5, 2010--The Depository Trust & Clearing Corporation (DTCC) announced today two significant developments: 1) the launch of its Equity Derivatives Reporting Repository (EDRR) and 2) FSA approval of DTCC Derivatives Repository Ltd subsidiary.
The building of the EDRR repository, follows a competitive request for proposal process (RFP) led by the International Swaps and Derivatives Association (ISDA) last year, and represents the industry's efforts to strengthen its operational infrastructure and improve transparency across all major OTC derivatives asset classes. All of the 14 global market dealers are now live on EDRR.
EDRR’s central registry will hold key position data, including product types, notional value, open trade positions, maturity and currency denomination for participants’ transactions, as well as counterparty type. OTC equity derivatives products the service will initially support include options; equity, dividend, variance and portfolio swaps; CFD (contracts for difference); accumulators and a final category covering other structured products.
By aggregating and maintaining the data, DTCC’s EDRR will generate reports that keep industry participants and regulators up to date on the industry’s outstanding notional and positions as well as other position related information through a single, secure, easy-to-access portal.
"DTCC played an important role in bringing this new service to market over an aggressive timeframe, allowing the OTC derivatives community to meet commitments made to global regulators to have a repository service running for equity derivatives by the end of July," said Patrick Dempsey, managing director and CFO, Global Equity Derivatives Group at J.P. Morgan and chairman of the International Swaps and Derivatives Association's (ISDA’s) Equities Steering Committee, EDRR subgroup.
ETF Landscape: STOXX Europe 600 Sector ETF Net Flows, week ending 30-Jul-10
August 4, 2010--Last week saw US$284.6 Mn net inflows to STOXX Europe 600 sector ETFs. The largest sector ETF inflows last week were in Banks with US$150.9 Mn and Telecommunications with US$98.2 Mn while Industrial Goods & Services experienced net outflows of US$44.2 Mn.
Year-to-date, STOXX Europe 600 sector ETFs have seen US$150.2 Mn net outflows. Basic Resources sector ETFs have seen the largest net outflows with US$144.7 Mn, followed by Telecommunications with US$114.0 Mn while Media has experienced the largest net inflows with US$240.1 Mn net new assets YTD.
The assets invested in the ETFs are greater than the open interest in the corresponding futures contract in all 19 sectors.
EEX trading results for Natural Gas and CO2 Emission Rights in July
August 4, 2010--In the framework of their cooperation, the European
Energy Exchange AG (EEX) and the French Powernext SA integrated their Power Spot
and Derivatives Markets in 2009.
In July 2010, a total volume of 116.1 TWh was traded on the joint subsidiaries EPEX
Spot SE and EEX Power Derivatives (same month of the previous year: 83.6 TWh).
Power trading on the day-ahead auctions on EPEX Spot accounted for a total of 22,318,803 MWh and can be broken down as follows:
Deutsche Börse Publishes Prices For “MiFID Post Trade” - Post-Trade Transparency Product To Be Available As Of 1 December 2010
August 4, 2010--As of 1 December 2010, Deutsche Börse will offer market participants a pure post-trade transparency product for equities, “MIFID Post Trade". The post-trade product is considerably cheaper than existing information products, which usually make a combination of pre- and post-trade data available. The monthly fee is 15 euros for professional investors and 1 euro for private investors.
With this product, Deutsche Börse supports the cost-effective consolidation of stock exchange, MTF and OTC post-trade transparency data in Europe. The new information product contains the last traded prices and volumes for all MiFID-relevant instruments traded on the Frankfurt Stock Exchange (Xetra and the trading floor) and via Tradegate Exchange, without delay and with quality assured.
UCITS inflows swell to €49bn in first quarter: EFAMA
August 4, 2010-- Investment poured back into UCITS funds in the first quarter, surging to more than €49bn against just €1bn in the fourth quarter of 2009, according to the European Fund and Asset Management Association (EFAMA).
Inflows were even more pronounced when excluding hard-hit money market funds, reaching more than €87bn, their highest level since the first quarter of 2006.
EFAMA reported outflows for money market funds for the fourth quarter in a row, with investors withdrawing more than €38bn in the first quarter alone.
BNY Mellon Completes Acquisition of BHF Asset Servicing GmbH
-- Combined German business has EUR569 billion (US$744 billion) in assets under custody & administration and depotbanking volumes of EUR122 billion (US$159 billion)
-- Expands BNY Mellon's existing capabilities to include German domestic custody and KAG fund administration
August 4, 2010--BNY Mellon, the global leader in asset management and securities servicing, has completed its acquisition of BHF Asset Servicing GmbH from BHF-BANK Aktiengesellschaft and Sal. Oppenheim jr. & Cie. S.C.A. The transaction, first announced on March 8, 2010 and which closed on August 1, 2010, also includes the purchase of BHF Asset Servicing's wholly-owned fund administration affiliate, Frankfurter Service Kapitalanlage-Gesellschaft mbH (FSKAG).
BHF Asset Servicing and FSKAG become part of BNY Mellon's global Asset Servicing business. The transaction makes BNY Mellon the #2 provider by assets held in this key European market, the world's fourth largest economy. In addition, the acquisition expands BNY Mellon's existing capabilities to include German domestic custody and KAG fund administration.
Tim Keaney, Chairman of Europe at BNY Mellon and co-CEO of BNY Mellon Asset Servicing, said: "We continue to enhance our leadership position globally by strengthening our local expertise and capabilities in a number of attractive markets. This transaction expands our offering in Germany to allow us to provide a full range of tailored solutions to investment companies, financial institutions and institutional investors."
"BHF Asset Servicing is a very valuable and well-respected provider, one with whom we have enjoyed a very successful partnership since 2002," Keaney added. "The business is highly complementary to our own German asset servicing operation and offers a strong platform to support expansion across our other businesses. By bringing our two companies together, we are in a very strong position to support our clients in Germany as they pursue their business goals in an environment characterised by ever greater complexity and heightened compliance requirements."
The new combined German business has EUR569 billion* (US$744 billion) in assets under custody and administration and a depotbanking volume of EUR122 billion (US$159 billion).
Headquartered in Frankfurt am Main with 352 staff, the new combined business is headed by Juergen P. Frank, Michelle Grundmann and Christopher V. Friedrich. They report to Frank Froud, Head of EMEA at BNY Mellon Asset Servicing.
The purchase price was EUR253 million (US$330 million) and the acquisition is expected to be accretive in the first year.
BNY Mellon has been serving clients in Germany since 1931. The company opened its first office in Frankfurt in 1972 and following this transaction has 572 people in Germany. In addition to asset servicing, depotbanking, fund administration and asset management, BNY Mellon is active in Germany in the areas of corporate trust, treasury services, depository receipts and client management. It has over 100 institutional relationships in Germany and offers regional coverage for 14 countries in the German speaking and Central Eastern and South Eastern European region.
*Includes EUR112 billion held by FSKAG
UK official holdings of international reserves-July 2010
August 4, 2010--This monthly press notice shows details of movements in July 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.
If such interventions were to occur, then they would be shown and explained in this release. The Background note at the end of this release explains more about the reserves, and about these statistics.
In summary this month’s release shows that, in July 2010:
No intervention operations were undertaken.
Movements in reserves and levels of reserves were as follows:
Eurex Marks One-year Anniversary of Agriculture Derivatives Segment
Successful expansion into new non-financial asset class
August 3, 2010--The international derivatives exchange Eurex celebrates the first anniversary of its agriculture derivatives segment. Since its introduction on 20 July 2009, trading volume, open interest and market interest have been rising consistently.
Since the launch, open interest for the agricultural product suite has grown more than 50 percent: at the end of July it stood at around 5,700 contracts. The future on European processing potatoes, in particular, has experienced significant growth with 10,512 contracts traded in July – this is the first time it has exceeded the 10,000-contract mark in a given month. Already in June, the future had set a new monthly record of 4,629 contracts.
“Since the introduction of the agriculture derivatives segment last year, we’ve seen a steady increase in the number and types of member firms who use the contracts to hedge against price fluctuations in the respective European markets. Based on this growing demand, we also launched futures on butter and skimmed milk powder earlier this year,” said Peter Reitz, member of the Eurex Executive Board. “As this asset class continues to mature, we plan to further develop our product offerings to benefit a broad range of industry participants, from farmers, producers, and processing firms to institutional investors.”
Futures on European processing potatoes, London potatoes, hogs and piglets have been available on Eurex since July 2009. Based on consultations with customers and industry participants, Eurex further expanded the agriculture segment in May 2010 by introducing futures on butter and skimmed milk powder. Eurex is the first European exchange to offer these products, which have already seen first trades in the order book.
Funds totaling TL 1.6 billion raised through the Istanbul Stock Exchange in 2010
August 3, 2010--Eighteen companies offered their shares to the public through the Istanbul Stock Exchange during the first seven months of 2010, raising funds in excess of TL 1.6 billion.
Of these companies, the amount of the funds that 14 companies that went public have raised is well over TL 1.250 million. As a result of the increased interest for the Turkish capital markets following the Initial Public Offering (IPO) Campaign realized in Istanbul on May 7-8, the Istanbul Stock Exchange has registered its best performance in terms of the number of IPOs since 2000.
During the first half of 2010, Istanbul Stock Exchange also made a significant leap in terms of the variety of the financial instruments traded. Non-voting shares and warrants were listed on the ISE for the first time. Furthermore, as a consequence of the decreased public borrowing requirement, private sector borrowing instruments, which have remained inactive so far, have revived. During the first half of 2010, five companies raised funds amounting to TL 281 million through bond issues. Currently, two listing applications (one for a corporate bond, and another for a bank bill) totaling TL 240 million exist at the ISE.
Moreover, an “Offerings Market for Qualified Investors” was launched in the ISE, where the joint stock companies traded on the ISE may issue debt securities without preparing a prospectus and a circular, and is open for trade for qualified investors only. The first application for the relevant market was filed on July 28, 2010.
Qbasis plans UK launch for managed futures ETF
August 3, 2010--Qbasis, a Liechtenstein-based hedge fund, has gained approval from UK regulators to start marketing the Qbasis Futures Fund, the first managed futures ETF.
The fund will replicate the investment strategy of the Qbasis managed futures hedge fund but at a far lower cost for retail investors
The ETF will charge 75 basis points a year, compared with 2.5 per cent plus a 25 per cent performance fee for the Qbasis hedge fund.
The minimum investment is €2,000 (£1,600), compared with $100,000 for the Qbasis hedge fund.
