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Deutsche Bank’s Exchange Traded Commodity Platform Lists Ten New ETCs On LSE
July 12, 2010--Deutsche Bank’s Exchange Traded Commodity (db ETC) platform today announces the listing of ten new Exchange Traded Commodities (ETCs) on the London Stock Exchange.
The new ETC range enables investors to gain simple and efficient exposure to a wide spectrum of commodities. This includes the db Physical Gold ETC and the db Physical Silver ETC that are backed by the relevant precious metal being tracked by the ETC.
Also being launched are a range of index linked ETCs such as the db S&P GSCI Industrial Metals ETC and db Energy Booster ETC which are unique because the exposures to the swap transactions incorporated in these ETCs are fully collateralised with physical gold.
: Another distinguishing feature of some of the index linked ETCs is that they are linked to Deutsche Bank’s Optimum Yield commodity indices. The indices underlying ETCs are typically linked to the performance of a basket of commodity futures contracts. Due to the costs (or gains) associated with “rolling” commodity futures contracts (i.e. selling a maturing contract and buying a new one) there may be a divergence between the spot and future price of a commodity. The “Optimum Yield” technique represents a way of investing into commodities with the aim of minimising such costs (or maximising gains) from the “rolling” of commodity futures contracts. The index linked ETCs which utilise the Optimum Yield technique have the word “Booster” in their name.
All of the db ETC products have competitive fees and are offered with full liquidity through Deutsche Bank which acts as market maker for all of the products. These ten new db ETC products add to the range of 19 which were listed on Xetra Frankfurt earlier this year.
Deutsche Bank Exchange Traded Product (ETP) research shows that the ETC market is one of the fastest growing investment segments in the ETP market. Total assets in ETPs across Europe grew by 145% in 2009, compared to only 43% in equities and 17% in fixed income.
David Silbert, Global Head of Commodities at Deutsche Bank said, “The ETC platform offers investors a simple, efficient and liquid way to gain exposure to a wide range of commodities at a competitive price. We anticipate strong demand for these products.”
UK slump deeper than thought, gov’t spending key in Q1
July 12, 2010--Britain’s record recession was even deeper than previously thought, and the economy could still have contracted in the first quarter of this year were it not for hefty government spending, official data showed on Monday.
The Office for National Statistics left its earlier estimate of first-quarter growth unrevised at 0.3 percent, giving an unchanged annual decline of 0.2 percent.
Britain faces mixed prospects for the second quarter, after data released at the same time showed that services output contracted 0.3 percent in April, the biggest fall since January.
Risk and Trend Mapping No9 - 2010 risk and trend mapping for financial markets and retail savings
July 12, 2010--Introduction
Risks identified and action taken in 2009
From the financial crisis to the economic crisis
The AMF published its previous risk and trend mapping study in June 2009, when markets conditions were still
highly volatile. The report highlighted the tensions prevailing in credit markets and the considerable uncertainty
about future changes in asset prices and the balance sheets of banking and financial intermediaries. Accordingly,
when monitoring the financial crisis, the AMF paid special attention to financial reporting by banks and the
application of accounting standards.
Moreover, the sharp deterioration in post-crisis economic conditions created
specific problems involving market disclosures by struggling companies and the enforcement of standards,
especially in the event of breaches of covenants. Some companies carried out capital raising exercises in very short
timeframes, which led to particular problems when processing their requests for regulatory approval. In this harsh
economic environment, there were almost no initial public offerings in 2009 (apart from one major flotation at
year's end) and very few tender offers – a similar pattern to 2008. By contrast, fundraising through rights issues and convertible bond issuance reached record levels, especially for large capitalisation companies.
The 2009 report also pointed to operational risk in the over-the-counter (OTC) market for derivatives, particularly credit derivatives, caused by a lack of robust post-trade procedures. In accordance with the recommendations of the G-20, the international financial community made major efforts in this respect, under the guidance of regulators; and these initiatives are ongoing in 2010. The AMF chairs the Post-Trading Standing Committee of the Committee of European Securities Regulators and is monitoring projects involving clearing houses and trade repositories in connection with the forthcoming legislative proposal from the European Commission on clearing and settlement. The AMF is also contributing to the review of the CPSS-IOSCO standards.
CESR launches a consultation on the advice to the Commission in the context of the MiFID Review – Client Categorisation
July 12, 2010--In the context of its review of the Markets in Financial Instruments Directive (MiFID), the European Commission (EC) posed a series of questions to CESR. The purpose of this consultation is to gather stakeholders’ views on client categorisation issues to assist CESR in its responses to the Commission’s questions on these issues.
The main points in this consultation paper are under the following three headings:
Technical criteria to further distinguish within the current broad categories of clients [“other authorised or regulated financial institutions”, “locals”, “other institutional investors” (Annex II.I(1) (c), (h), (i) of MiFID)]: Part 1 of the consultation paper asks whether distinctions should be made between regulated entities for the purposes of determining which entities are to be treated as “per se” professional clients.
Public debt bodies: Part 2 of the consultation paper asks whether it is necessary to clarify, for the purposes of the client categorisation regime, whether local authorities/municipalities can be treated as public debt bodies.
Other client categorisation issues: Part 3 of the consultation paper asks whether tests of knowledge and experience should be used more widely for client categorisation than is currently the case, whether for very complex products (such as asset backed securities and non-standard OTC derivatives) the scope of the eligible counterparty categorisation should be narrowed and what standards should apply to transactions done with eligible counterparties.
Responses to the consultation paper should be submitted online in the section Consultations by 9 July 2010.
NYSE Euronext And Warsaw Stock Exchange Announce Strategic Partnership
Warsaw bourse to acquire state-of-the-art cash and derivatives trading platform provided by NYSE Technologies™ as part of a multi-year business partnership
Aims to strengthen WSE’s position as a regional hub for CEE
Brings the potential to open WSE products to NYSE Euronext’s SFTI connected community
Offers an order routing link to the leading market venue in the CEE region July 12, 2010--NYSE Euronext (NYX) and the Warsaw Stock Exchange (WSE) today announced the establishment of a strategic, long-term cooperation agreement covering the development of future mutually-beneficial business initiatives and the migration of WSE markets to NYSE Technologies™ Universal Trading Platform. Financial terms were not disclosed.
As part of a multi-year commercial agreement, NYSE Euronext will provide WSE with the Universal Trading Platform for its cash and derivative markets. Both parties will explore new trading, market data and business development initiatives serving investors and issuers of a wide range of financial instruments. NYSE Technologies, the commercial technology unit of NYSE Euronext, will deliver the Universal Trading Platform and work with WSE to develop new IT-based opportunities in Poland and the Central and Eastern Europe region. This will build on the distribution capabilities of SFTI™ and further broaden the community of SFTI connected markets.
“NYSE Euronext welcomes this partnership with the Warsaw Stock Exchange, a regional leader that is well positioned for further growth and success, said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. I am thrilled that the WSE has selected NYSE Euronext at this critical point in its international strategy. We look forward to working together on this and other initiatives to benefit our respective markets, customers and stakeholders.”
“The undertaking we are now starting with NYSE Euronext is, without any doubt, one of the most significant moves aimed at developing the WSE further as an international market place, said Ludwik Sobolewski, Chief Executive Officer, Warsaw Stock Exchange. It is a direct consequence of the strategy adopted and implemented by the WSE Board in recent years. We are at the very beginning as regards the strategic partnership, but this beginning comes at a very appropriate moment, complementing other, already much more advanced endeavours. ”
Dominique Cerutti, President and Deputy Chief Executive Officer of NYSE Euronext, said, “Our relationship with WSE goes back many years and we are excited to both further our partnership and to serve such an important role in its future success by applying our technology assets and expertise. WSE’s decision to use the NYSE Euronext Universal Trading Platform enables our partner to take full advantage of our investment in innovative exchange solutions and communications infrastructure.”
New Standard Commodities Gold ETC Launched on Xetra
July 9, 2010-- A further gold ETC issued by the provider Standard Commodities Limited, the ETC platform of the Royal Bank of Scotland, has been tradable on Xetra since Friday.
ETC name: Standard Commodities Goldtracker
Asset class: commodities
ISIN: DE000A1ESY66
Management fee: 0.28 percent
Benchmark: London Gold Market AM fix price
The Standard Commodities Goldtracker is aimed primarily at institutional investors and tracks the performance of the London Gold Market AM fix price in US dollars. It is an exchange-traded bond that is backed by physically deposited gold in accordance with the LBMA standard.
Deutsche Börse’s ETC segment currently comprises 172 products. The monthly trading volume of ETCs on Xetra averages around €550 million.
Increasing demand may lower gold prices, says council official
July 9, 2010--World Gold Council Turkey President Cihan Göksel has said skyrocketing gold prices could drop gradually following an anticipated increase in demand from both domestic and foreign markets.
Speaking to reporters in ?stanbul on Friday, Göksel said that although it is too early to say anything definitive, a price drop can be expected in the long run, triggered by a recovery in demand. “World markets have maintained a steady growth in demand for gold, and such a trend is expected to continue in the months to come,” he said, noting that gold still remains one of the safest investment tools in markets and that such confidence is expected to increase.
Head of Issuer and Investor Markets Martin Steinbach leaves Deutsche Börse Group
July 9, 2010--Martin Steinbach (43), since 2000 with Deutsche Börse Group, Head of Issuer and Investor Markets and Executive Director left Deutsche Börse
surprisingly at his own request, to take a new perspective. With Steinbach (holds a Master of Business Administration and a Ph.D.) Deutsche Börse looses an experienced
manager and international expert in the primary market.
We regret Steinbachs decision and would like to thank him for his longstanding
contributions creating and developing a vital primary- and secondary market
for issuers, campaign management towards investors and his engagement for the cash market. We wish him all the best for his future career”, said Frank Gerstenschläger, board member, responsible for XETRA.
German regulator calls for regular stress tests for investment companies
July 9, 2010-- German regulator BaFin has unveiled new guidelines for German investment companies (KAGs) that will force them to conduct regular stress tests.
The new rules governing risk management for investment companies (InvMaRisk) were drawn up after changes to German investment law in 2007 meant the banking code MaRisk no longer applied to KAGs.
Arno Kempf, a partner specialising in financial services at PricewaterhouseCoopers, said implementing a strict risk management system was in everyone's interest, as it affected a KAG's bottom line.
"For example," he said, "the company itself is exposed (indirectly) to any financial risk involved in fiduciary management, as it affects all administration fees and, finally, the company's balance sheet."
France, Germany push EU on global bank tax
July 9, 2010--France and Germany want the European Union to keep up the fight for a global bank tax even though the proposal was rejected by the Group of 20, according to a letter released Friday.
The French and German finance ministers wrote to Belgium, which holds the rotating presidency of the European Union, to say that such a global tax was "possible and necessary."
"Even though a consensus has not been found, we are convinced that the European Union must continue to try to create such a tax," wrote Christine Lagarde of France and Wolfgang Schaueble of Germany.
