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Eurex and Bombay Stock Exchange Partner to Launch Futures and Options on Indian SENSEX Index
Launch on 4 October 2010/ New listings are latest Eurex product offering targeting the Asia-Pacific region
July 14, 2010--Bombay Stock Exchange (BSE), the Indian securities market operator and Eurex, the international derivatives exchange, today announced that they will launch futures and options on the SENSEX, the blue-chip index of the BSE, on 4 October 2010 at Eurex. The SENSEX Index tracks the daily performance of 30 of the largest and most actively traded companies listed on the Bombay Stock Exchange. It is a value-weighted index that represents approximately half of the float-adjusted market capitalization of all stocks traded on BSE.
“We are committed to offering our members a diverse and truly global product offering across key geographies and asset classes. The SENSEX is the most widely recognized gauge for the Indian market and complements our suite of leading equity index derivatives”, said Peter Reitz, member of the Eurex Executive Board. “By introducing futures and options on this prominent benchmark, we also will advance our efforts in the Asia-Pacific region by creating trading opportunities for customers seeking access to this fast-growing emerging economy.”
Madhu Kannan, Managing Director and CEO of the BSE, commented, “We are very pleased to be working with Eurex to develop a broader international investor base focused on the SENSEX. The SENSEX will now be trading during a larger portion of the global trading day, which will increase its appeal and value. Moreover, we see the growth of overseas liquidity in the SENSEX as helping us to broaden and deepen the market for SENSEX products within India.”
The new contracts will be denominated in US dollars and settled in cash. The futures will have maturity dates of the three nearest months, and the following March, June, September and December. Two market-making schemes will be in effect until the end of December 2011 – one to support liquidity during the overlap of Indian and European trading hours and one for European market hours. The expiration dates of the options will be in the three nearest calendar months, the next three quarters and two next semi-annual expiries.
Source: Eurex
Euro area annual inflation down to 1.4%
EU down to 1.9%
July 14, 2010-Euro area1 annual inflation was 1.4% in June 20102, down from 1.6% in May. A year earlier the rate was -0.1%. Monthly inflation was 0.0% in June 2010.
EU3 annual inflation was 1.9% in June 2010, down from 2.0% in May. A year earlier the rate was 0.6%. Monthly inflation was 0.0% in June 2010.
These figures come from Eurostat, the statistical office of the European Union.
Inflation in the EU Member States
In June 2010, the lowest annual rates were observed in Ireland (-2.0%), Latvia (-1.6%) and the Netherlands (0.2%), and the highest in Greece (5.2%), Hungary (5.0%) and Romania (4.3%). Compared with May 2010, annual inflation fell in fifteen Member States, remained stable in four and rose in eight.
The lowest 12-month averages4 up to June 2010 were registered in Ireland (-2.5%), Latvia (-1.6%) and Portugal (-0.3%), and the highest in Hungary (5.2%), Romania (4.6%) and Poland (3.5%). Euro area
The main components with the highest annual rates in June 2010 were transport (3.9%) and alcohol & tobacco (3.7%), while the lowest annual rates were observed for communications (-1.1%), recreation & culture (-0.2%) and food (0.2%). Concerning the detailed sub-indices, fuels for transport (+0.45 percentage points), heating oil (+0.17) and tobacco (+0.10) had the largest upward impacts on the headline rate, while gas, cars and telecommunications (-0.09 each) had the biggest downward impacts.
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Source: Eurostat
Trading of nine new ETFs begins on the Spanish stock exchange
TRADING OF NINE NEW ETFs BEGINS ON THE SPANISH STOCK EXCHANGE
July 13, 2010--This represents a significant increase in the number of underlying assets
The Spanish stock exchange started trading nine new exchange traded funds (ETFs), issued by Lyxor Asset Management, today. This issue brings the number of ETFs listed on the Spanish stock exchange to 41, thus significantly increasing the number of underlying assets available with new international and sectorial equity indices, both in Asia and North America as well as fixed income indices.
The Spanish exchange traded funds segment, which started on 20 July 2006, marks its fourth anniversary with over 40 listed products. Thanks to a recent change in the regulations, new ETFs will be listed on the market in the coming months.
Trading volume for the ETF segment in June was up 53% on the same month of 2009, at €750 million. The number of trades totalled 6,762 in June, up 83% year-on-year.
Below is a list of the new ETFs listed on the Spanish stock exchange:
Lyxor ETF Stoxx Europe 600 Telecommunications
Lyxor ETF Stoxx Europe 600 Health Care
Lyxor ETF Stoxx Europe 600 Utilities
Lyxor ETF Stoxx Europe 600 Oil & Gas
Lyxor ETF MSCI World
Lyxor ETF MSCI Europe
Lyxor ETF MSCI USA Real Estate
Lyxor ETF MSCI Ac Asia Ex Japan Real Estate
Lyxor ETF Euromts AAA Government Bond
Source: BME
European Repo Market White Paper emphasises importance of repo and urges reform of market infrastructure
July 13, 2010--ICMA’s European Repo Council (ERC) has today published a White Paper on the European repo market, including the role of short-selling, the problem of settlement failures and the need for reform of the market infrastructure. It emphasises the importance of the repo market for the efficiency and stability of the financial system.
The White Paper was commissioned by ICMA’s ERC in response to current regulatory considerations which will impact the repo market. There is concern that regulatory initiatives should not constrain the capacity of the repo market in Europe at a time when increasing demands are being made on it, both by the regulators themselves in terms of proposals for enhanced collateral management to reduce risk and by governments in terms of increased debt issuance.
Proposals relating to the restriction of short-selling would have unintended consequences for the securities market, which will increase costs and risks for issuers and investors.
view white paper
Source: ICMA
Borsa Italiana ETF Stat May 2010 Report
July 13, 2010--The ETF Statistics of May 2010 are now available.
view report
Source: Borsa Italiana
NYSE Euronext to List Non-U.K. Companies in London
July 13, 2010--NYSE Euronext plans to introduce a platform in London to list non-U.K. companies in a bid to compete with the London Stock Exchange Group Plc, according to a statement on the company’s Paris-based website.
Trading in shares and depositary receipts of companies opting for this venue can be in U.S. dollars, euros or pounds, according to a Euronext document. The market was mentioned in March at a NYSE Euronext investor day conference in New York.
“Why not? It’s a me-too strategy and at low marginal cost there’s the chance to attract listings and some trading volume,” said Bruce Weber, a professor at the London Business School who specializes in exchanges and electronic trading. “It’s an opportunity for NYSE though they certainly have competition. London has been a center for international equities trading since the 80’s.”
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Source: Bloomberg
Coalition Government launches consultation document on Bank Levy
July 13, 2010--Financial Secretary to the Treasury, Mark Hoban MP, today launched a consultation document on the Bank Levy. The document sets out issues around technical aspects of the design and implementation of the Bank Levy. This consultation exercise will help to ensure that the Levy is designed in a way that best meets its objectives, including ensuring the compliance costs faced by firms are minimised.
It is proposed that draft legislation will be published in the autumn to allow for further comments from stakeholders. Final draft legislation for inclusion in the 2011 Finance Bill will be published towards the end of 2010, ahead of implementation of the Levy. The structure of the Levy is intended to encourage the banks to move away from riskier funding models, reducing systemic risk. Once fully in place, the Levy is expected to generate around £2.5 billion per annum.
Copies of the consultation document and consultation stage impact assessment have been deposited in the Vote Office and the libraries of both Houses. Mark Hoban said:
"Excessive risk taking in the banking sector was a significant contributory factor in the recent financial crisis. Alongside the wider financial regulatory reform aimed at increasing the resilience of the financial sector, the Levy is intended to ensure that the banking sector makes a fair contribution that reflects the risks it poses to the financial system and the wider economy, and to encourage banks to move away from riskier funding – problems with risky funding led to serious liquidity problems that played a key role in the financial crisis."
view the Bank Levy: a consultation paper
Source: HM Treasury
Bank teams rush to set up new funds
July 13, 2010--The hedge fund industry is seeing a rush of start-ups amid a series of high-profile spin-outs from the in-house trading teams at investment banks.
In spite of one of the worst second-quarter performances for the industry on record, the new funds also are attracting strong backing from investors.
In spite of one of the worst second-quarter performances for the industry on record, the new funds also are attracting strong backing from investors.
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Source:FT.com
CESR Publishes 8th Extract from EECS’s
July 13, 2010--CESR has published Eight Extract From EECS’s Database Of Enforcement Decisions (Ref: CESR/10-834)
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Source: CESR
CESR: EFRAG’s draft comment letter on the IASB’s Exposure Draft Fair Value Option for Financial Liabilities
July 13, 2010--The Committee of European Securities Regulators (CESR) has considered, through its standing committee on corporate reporting (CESR-Fin), EFRAG’s draft comment letter on the IASB’s Exposure Draft (ED) Fair Value Option for Financial Liabilities.
The ED is part of the IASB’s revision of IAS 39 – Financial Instruments: Recognition and Measurement, of which IFRS 9 – Financial Instruments: Classification and Measurement as published in November 2009 was the first part.
CESR supports the IASB’s tentative decision to maintain the current IAS 39 requirements regarding financial liabilities except for specific amendments on the cost exception for equity derivatives and the treatment of credit risk for liabilities designated under the fair value option.
CESR welcomes the IASB’s initiative to maintain the bifurcation of embedded derivatives on the liabilities side but is at the same time concerned that this might create inconsistencies with the assets side where bifurcation is prohibited. CESR therefore would like the IASB to consider further assessment in due course whether bifurcation of a hybrid contract with a financial asset host would provide users with more decision-useful information.
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Source: CESR
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