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Eurex to Launch Options on Six Lyxor ETFs
New listings to expand successful ETF derivatives segment
August 24, 2010--Eurex, the international derivatives exchange, announced today that it will list six new options based on the Lyxor ETFs on the indices DJ Russia Titans, DJ Turkey Titans, Hang Seng China Enterprise Index (HSCEI), Hang Seng Index (HSI), CECE Eastern Europe (CECE EUR) and MSCI Emerging Markets. Launch date will be 20 September 2010. Since the launch of the ETF options product suite in May 2010, more than 70,000 contracts have been traded.
"By adding six more ETF derivatives covering emerging markets, we support the expansion of the ETF market by offering hedging opportunities for investors and ETF issuers. Right now, we offer 13 options and three futures on ETFs”, said Peter Reitz, member of the Eurex Executive Board. “Interest and trading activities in ETF derivatives have seen steady growth since our launch a few months ago.”
“Lyxor as the leading provider in emerging markets ETFs is committed to providing clients with the safest and most liquid tools to implement their strategies. Listed options represent the most natural complement to this goal, allowing yield-enhancement and leverage strategies in a very simple and transparent way, accessible to an ever wider array of investors”, added Alain Dubois, Chairman of the Board of Lyxor AM.
Lyxor is the second largest ETF provider in Europe. With the launch of options on Lyxor ETFs, Eurex now offers options on five ETF issuers, which together stand for approximately 75 percent of the assets under management in ETFs in Europe.
The new ETF options will be traded in euro, physically settled (American-style) and have maturities of up to 24 months. The contract size will be 100 units. Société Générale will act as market maker to support liquidity in the order book.
All six Lyxor ETFs are listed at XTF, Deutsche Börse’s ETF trading segment. Since its launch in April 2000, the XTF segment has established its position as the leading trading venue for exchange-traded funds in Europe, with 680 listed funds and a market share of approximately 38 percent by European ETF turnover.
Source: Eurex
London Circuit-Breakers Temporarily Halt Trading in Five Stocks
August 24, 2010--Trading was temporarily halted yesterday on five stocks on the London Stock Exchange after unusual price moves triggered circuit breakers meant to prevent excessive volatility, a spokesman for the exchange said.
BT Group Plc, Hays Plc, Next Plc, Northumbrian Water Group Plc and United Utilities Group Plc were halted. The circuit breakers went into effect at around 2 p.m. yesterday in London after each of the stocks rose or fell more than 5 percent from their opening price.
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Source: Bloomberg Businessweek
CESR publishes responses to the Consultation on Transaction Reporting on OTC Derivatives and Extension of the Scope of Transaction Reporting Obligations
August 24, 2010--CESR has published the responses to the Consultation on Transaction Reporting on OTC Derivatives and Extension of the Scope of Transaction Reporting Obligations.
view responses
Source: CESR
Chi-X receives approach from ‘third party’
August 23, 2010--Chi-X Europe, the pan-European share trading platform, said on Monday it had received an approach that could lead to an offer being made for the company.
It said the “enquiry” from an unnamed third party “may not lead to an offer for the whole or partial sale of the company”.
A sale of the company could lead to a big shake-up of Europe’s share trading markets.
In recent months there has been speculation that interested bidders for Chi-X, which was been for sale periodically in the past 18 months, would be Nasdaq OMX and Deutsche Börse. Neither would comment on Monday night
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Source: FT.com
Eurozone recovery slows slightly in August: survey
August 23, 2010--- The economic recovery in the 16-nation eurozone slightly lost momentum in August, with growth still depending on powerhouses Germany and France, a leading indicator showed on Monday.
The purchasing managers' index (PMI), a survey of 4,500 euro area companies compiled by data and research group Markit, fell to 56.1 points from 56.7 points in July, when it had accelerated for the first time in three months.
"The reading was still consistent with a robust rate of expansion and combined manufacturing and service sector output has now risen for 13 consecutive months," Markit said.
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Source: EUbusiness
On-exchange turnover in European ETF segment reaches all-time high
August 20, 2010--Assets under management in the pan-European exchange-traded funds segment continued to grow over Q2 2010, gaining 1.79 per cent to EUR183.24bn, a surprising inflow because of movements on the global stock markets, a report by Lipper says.
The average monthly turnover in euros for Q2 2010 was up 31.40 per cent—from EUR39.11bn for Q1 2010 to EUR51.40bn for Q2—driven by a new all-time high in on-exchange turnover in May 2010.
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Source: ETF Express
Basel proposal for bank ‘bail-ins’
August 19, 2010--Bank debt holders would have to take losses or have that debt converted into equity before any government rescue could take place, under proposals put forward on Thursday by international regulators and central bankers.
Dubbed a “bail-in”, the proposal is a direct response to the recent financial crisis, which saw taxpayers forced to stump up billions of dollars to save big banks while bond holders and creditors were largely protected.
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Source: FT.com
Bank of Scotland pulls out of Ireland
August 19, 2010--Bank of Scotland, one of the most aggressive lenders during Ireland’s property boom, on Thursday became the latest foreign bank to quit the Irish market.
The decision followed a strategic review of its operations by Lloyds Banking Group, its parent. Lloyds said Bank of Scotland (Ireland) would stop offering banking services from the end of December.
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Source: FT.com
German economic growth set to hit 3%
August 19, 2010--Germany’s economy will grow by 3 per cent this year, according to a sharply upward revised Bundesbank forecast issued as investors pushed the cost of borrowing by its government towards fresh record lows.
The economic recovery in Europe’s largest economy was increasingly generating its own momentum, the country’s central bank said on Thursday, with positive ripple effects spreading to other eurozone countries. In June, the Bundesbank had forecast almost 2 per cent growth in 2010.
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Source: FT.com
European Weekly ETP Review: Another quiet week as the Summer draws to an end
Weekly European ETP Market Roundup
August 19, 2010--Highlights
Net Cash flows
Major European market indices largely reversed last week’s gains. The Euro Stoxx 50 index was down 2.6%, the CAC 40 index fell by 2.8%, the DAX fell by 2.4% and the FTSE 100 index dropped by 1.1%. The Euro was down 3.6% against the US dollar and the price of gold (USD/oz) rose by 0.8%.
The somber mood carried in the European ETF market and it almost entirely silenced flows. Total Inflow for the week amounted to just €56 million, compared to €1.1 billion of inflow last week. False start or warm-up, not clear, reality is that investors are still proving to be cautious with the mood clearly undefined.
European ETP cash flow activity was subdued across all asset classes. Equity net inflows totaled: €17 million (€825 million in previous week), fixed Income net inflows totaled €48 million (€210 million last week) and commodity ETPs netted €23 million of outflow ($1 million inflow last week). There were no meaningful cash flow trends within assets classes during the week that ended August 13 2010.
New Listings
Source listed one ETF targeting the Merrill Lynch Factor Model Index. The Merrill Lynch Factor Model is an index designed to track the performance of alternative investments, including hedge funds, funds of hedge funds and hedge fund indices, as represented by the HFRI Fund Weighted Composite Index.
Turnover
On-exchange daily average ETP turnover rose up by 1.8% to €1.73 billion, for the week that ended August 13 2010. This is the first rise in daily turnover in the past three weeks.
More analytically, equity ETF turnover rose by 0.9% to €1.26 billion, fixed income turnover rose by 1% to €203 million and commodity turnover rose by 7.1% to €251 million.
Assets Under Management (AUM)
European ETP AUM remained unchanged finishing the week at €198.1. Year to date, European AUM are up by 18.4%.
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Source: DB Global Equity Index & ETF Research
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