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FTSE/Xinhua China 25 Index is basis of first Chinese themed ETF in Malaysia
July 9, 2010--FTSE Xinhua Index Ltd (FXI), the leading Chinese index specialist, has licensed the FTSE/Xinhua China 25 Index to CIMB-Principal Asset Management Berhad (CIMB-Principal) as the basis of the first Chinese themed Exchange Traded Fund (ETF) in Malaysia, which lists today.
The ETF will be the first international ETF listed on Bursa Malaysia, giving local investors exposure to offshore markets. CIMB-Principal is also listing a FTSE ASEAN 40 Malaysia feeder fund which will further expand the range of FTSE based ETFs in Malaysia.
The FTSE Xinhua Indices are widely recognized as the definitive set of indices for China. They are based on FTSE’s global indexing standards and give international investors the most comprehensive, investable and representative view of the Chinese market. The indices continue to meet the growing demand for China themed products with more than 55 per cent of China themed ETF AUM (approximately USD 18 billion) tracking FTSE Xinhua indices globally.
Paul Hoff, Managing Director, Asia Pacific, FTSE Group said, “FTSE Xinhua indices have become the natural choice globally for investors who want Chinese themed investment products developed using internationally recognised standards. CIMB-Principal listing both an ETF and a feeder fund based on our Asian indices highlights why they are the ideal for capturing unique Asian opportunities. We are pleased to be working with CIMB-Principal as they develop their ETF product suite for their Asian and global clients.”
Campbell Tupling, Chief Executive, CIMB-Principal Asset Management Berhad, added “There is a growing interest among our clients to explore investment opportunities in the Chinese market. Designing an ETF based on the FTSE/Xinhua China 25 Index enables us to use FTSE’s expertise and international standards to meet the needs of investors. We look forward to continuing our relationship with FTSE as our product offerings expands.”
The FTSE/Xinhua China 25 Index comprises of the 25 largest H shares and Red chips by market capitalisation and is the first index to track their performance, giving international investors access to the China market without the need for a QFII quota. The index is designed to meet fund regulatory requirements worldwide, with constituent weightings capped at 10% to avoid over-concentration in any single stock. The index is based on FTSE’s award winning methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules.
For more information on the FTSE/Xinhua China 25 Index or other FTSE Xinhua indices please visit www.ftse.com/xinhua. For more information on the FTSE/ASEAN 40 Index please visit www.ftse.com/asean.
Source: FTSE.com
Deloitte: Turkish financial sector remains strong amidst global crisis
July 8, 2010--Turkey’s financial sector was less affected by the global financial crisis compared with other sectors and other countries, the findings of a study released yesterday show.
In a report on the performance of the Turkish financial sector during the global financial crisis released yesterday by Deloitte, the main factors behind the Turkish banking sector’s successful resistance to the global financial meltdown were enumerated as its robust asset quality, capital adequacy, risk management and internal control systems.
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Source: Todays Zaman
European Parliament backs EIOPA and pension stability fund
July 8, 2010--Members of the European Parliament (MEPs) have backed plans to establish three new European Supervisory Authorities for financial services.
They have delayed, however, the vote on the legislative resolution to allow for further negotiations with the European Council.
Yesterday, the Parliament adopted amendments to the legislation that would give a number of powers to the three new authorities – including the replacement for CEIOPS, the EU Insurance and Occupational Pensions Authority (EIOPA) – such as the power to settle disputes between national supervisors. (See earlier IPE articles: EIOPA might end up with fewer powers – Bernardino and EC presses ahead with plans to end CEIOPS)
However, the Parliament also deferred the final vote on the legislation, allowing its negotiators a few more weeks for an agreement to be reached at the first reading with the European Council after the summer break.
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Source: IP&E
Deutsche Börse launches post-trade transparency product
MiFID Post Trade“ provides trading prices for all MiFID relevant instruments
July 8, 2010-- Deutsche Börse is expanding its market data offering by launching a pure post-trade transparency product for its regulated exchanges. The new Information Product, “MiFID Post Trade”, provides trading prices and volumes for all MiFID relevant instruments traded on the Frankfurt stock exchange (Xetra and trading floor) as well as Tradegate Exchange. The data which is non-delayed and quality assured offers greatest transparency and more value than data that is available for OTC markets.
“MiFID Post Trade satisfies our clients’ needs for a pure post-trade transparency product for MiFID relevant stocks,” said Georg Gross, Head of Front Office Data & Analytics at Deutsche Börse. “MiFID Post Trade will become available in fall 2010. It will be offered at a lower price than already existing Information Products to allow the consolidation of post-trade transparency data in a cost efficient way.”
The new product complements Deutsche Börse’s existing Information Product “MiFID OTC” which provides post-trade transparency for the OTC market.
Source: Deutsche Börse
Bank danger 'stress tests' now cover most EU risk: regulator
July 8, 2010--Tests of how European banks can face up to critical danger have been expanded to cover 91 banks, four times as many as last year, accounting for 65 percent of EU banking, regulators now say.
The committee of European banking supervisors, CEBS, revealed the enlarged extent of the danger tests, known as "stress tests", overnight.
It said that among the dangers it had considered were a sharp unexpected fall in EU economic output, or rise in interest rates driven by sudden strains on sovereign debt markets.
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Source: EUbusiness
Newedge appoints new CEO
July 8, 2010--Newedge, the world’s biggest futures brokerage, announced on Thursday that Nicolas Breteau had taken over as chief executive from Patrice Blanc, who the company said had quit “for personal reasons”.
Mr Blanc has run the Paris-based company since Newedge was created in 2008 from a merger of Société Générale’s Fimat unit and the futures brokerage arm of Calyon. He was formerly head of Fimat.
Mr Breteau steps up to fill the chief executive role from his former position as global head of sales. Before that, he was managing director of Newedge’s Europe and Middle East division.
Mr Blanc’s departure comes as his goal of breaking into the over-the-counter derivatives markets seems closer than ever, thanks to the financial regulatory reform bill recently agreed by the US Congress and which awaits approval by the Senate before becoming law
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Source: FT.com
Deutsche Börse: Four new ComStage ETFs launched on Xetra
July 7, 2010--Three new listed equity index funds and an additional bond index fund issued by ComStage have been tradable in Deutsche Börse’s XTF segment since Wednesday.
ETF name: ComStage ETF DAX FR
Asset class: equity index ETF
ISIN: LU0488317024
Total expense ratio: 0.15 percent
Distribution policy: distributing
Benchmark: DAX Index (price index)
ETF name: ComStage ETF EURO STOXX 50 FR
Asset class: equity index ETF
ISIN: LU0488317297
Total expense ratio: 0.15 percent
Distribution policy: distributing
Benchmark: EURO STOXX 50 Index (price index)
ETF name: ComStage ETF FTSE 100 TR
Asset class: equity index ETF
ISIN: LU0488316216
Total expense ratio: 0.25 percent
Distribution policy: non-distributing
Benchmark: FTSE 100 Total Return Index
ETF name: ComStage ETF iBoxx € Germany Covered Capped Overall TR
Asset class: bond index ETF
ISIN: LU0488317610
Total expense ratio: 0.17 percent
Distribution policy: non-distributing
Benchmark: Markit iBoxx € Germany
Covered Capped TR Index
ComStage ETF DAX FR tracks the DAX price index, which comprises the 30 largest and best-performing German companies. ComStage ETF Euro STOXX 50 FR tracks the EURO STOXX 50 price index, which comprises the euro zone’s top 50 industry leaders. ComStage ETF FTSE 100 TR tracks the performance of the FTSE 100 TR Index and thus the performance of the 100 largest companies headquartered in the UK.
The performance of the Markit iBoxx € Germany Covered Capped TR Index is tracked by the ComStage ETF iBoxx € Germany Covered Capped Overall TR bond index fund. The index comprises euro-denominated covered bonds issued in Germany. All bonds must always have an outstanding volume of at least €1 billion, and have a residual maturity of at least one year at the time of rebalancing. This is a total return index, which means coupon payments are reinvested in the index.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 678 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around €14 billion, makes Xetra Europe’s leading trading venue for ETFs.
Source: Deutsche Börse
Euro STOXX Small Index Licensed To Amundi ETF To Underlie Exchange-Traded Fund
July 7, 2010--STOXX Limited, a global index provider and creator of the leading European equity indices, today announced that the EURO STOXX Small Index has been licensed to Amundi ETF to underlie an exchange-traded fund. The AMUNDI ETF EURO STOXX SMALL CAP will be available at NYSE EURONEXT in Paris today.
“The EURO STOXX Small Index is a sophisticated and rules-based tool for market participants who wish to participate from the performance of those Euro zone small capitalization companies which are also included in the well known STOXX Europe 600 Index,” said Hartmut Graf, chief executive officer, STOXX Limited.
Valérie Baudson, Managing Director of Amundi ETF added: “We continue to strengthen our presence on the European ETF market and increase our product offering to meet clients’ demand. We announced the launch of two new ETFs today on NYSE Euronext Paris, including Amundi ETF EURO STOXX SMALL CAP and we are delighted to continue working with a high quality index provider such as STOXX Limited.”
The EURO STOXX Small Index was launched on October 11, 1999. A subset of the STOXX Europe 600 Index, it represents approximately 100 small capitalization companies in the following 12 Euro zone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal and Spain. The index is weighted by free float adjusted market capitalization, and each component's weight is capped at 20% of the index's total free-float market capitalization.
The EURO STOXX Small Index is available in price and net return versions, and is calculated in euro and U.S. dollars. It is reviewed quarterly in March, June, September and December.
For more information on the EURO STOXX Small Index please visit www.stoxx.com.
Source: STOXX
Green Paper on pensions
July 7, 2010--Why is the Commission launching this Green Paper now?
European pension systems are under pressure from demographic ageing as a result of increases in longevity and declining birth rates. From 2012, the working age population in Europe will begin to shrink, so the challenge is very much upon us. Many Member States have been reforming their pension systems to varying degrees to meet this challenge, but the financial and economic crisis has made the situation more difficult and more urgent.
Against this background, it is timely to launch an open debate on whether and how the EU level pensions framework should be developed to best support Member States in their difficult task of ensuring they provide their citizens with adequate, sustainable and safe pensions – both now and in the future.
What is the EU's role on pensions?
The design of pension systems is largely the responsibility of Member States and the Green Paper does not question this. The regulatory framework at the EU level covers four main points:
1. Cross border coordination of social security pensions to facilitate the free movement of workers and equal treatment for workers who change country.
2. Establishing an internal market for funded occupational schemes and the necessary minimum standards on prudential rules to protect scheme members and beneficiaries.
3. Minimum guarantees concerning occupational pensions and accrued rights in case of the insolvency of enterprises as sponsors.
4. Anti-discrimination rules apply, although with some differentiation, to both statutory and private pension schemes.
Beyond this, there is a coordination process (the Open Method of Coordination) used to facilitate and promote national reform, share best practice and set high level objectives and indicators. At EU level the agreed objectives for pension systems are that they are adequate and sustainable, as well as being modern and transparent.
view the Green Paper and online consultation
Source: Europa
ETF Landscape: European STOXX 600 Sector ETF Net Flows, week ending 02-Jul-10
July 7, 2010--Last week saw US$103.0 Mn net inflows from STOXX Europe 600 sector ETFs. The largest sector ETF inflows last week were in Industrial Goods & Services with US$46.9 Mn and Chemicals with US$31.9 Mn while Banks experienced net outflows of US$50.0 Mn.
Year-to-date, Media has seen the largest net inflows with US$283.2 Mn net new assets, followed by Industrial Goods & Services with US$94.9 Mn. Banks sector ETFs have seen the largest net outflows with US$210.4 Mn YTD. In total, STOXX Europe 600 sector ETFs have seen US$539.9 Mn net outflows YTD.
The assets invested in the ETFs are greater than the open interest in the corresponding futures contract in all 19sectors.
to request report
Source: Global ETF Research & Implementation Strategy Team, BlackRock
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