Europe ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
EU defends hedge-fund rules in face of US pressure
May 12, 2010-- EU internal market commissioner Michel Barnier on Wednesday defended Europe's right to set tough new hedge-fund rules as he sought to heal a transatlantic spat.
Ending a three-day US visit, Barnier met Treasury Secretary Timothy Geithner to discuss rules that could force speculative US investors to obtain a "passport" to operate in European Union markets.
In a statement after the meeting, the two men said they had agreed broad principles to move forward, but did not give details.
EC report looks to relaunch single market
May 12, 2010--A report for the European Commission calls for a replacement for the Lisbon strategy, a strategy which, according to Euro-Parliament president Jerzy Buzek, has not been a success. The report, presented to MEPs by former Commissioner Mario Monti, stresses the need to "seek a balance between economic factors, such as competitiveness, and the rights of consumers and workers in order to "relaunch" the single market before 2012.
As the EU (established in 1992 by the Maastricht Treaty) approaches its 20th anniversary, Mario Monti was asked by José Manuel Barroso in October 2009 to draw up a strategy to revitalise the single market by 2012. Six months later, Professor Monti presented the fruit of his work, done in parallel with a similar parliamentary project, to EP President Jerzy Buzek and MEPs.
"The Lisbon strategy, let's be frank, was not a success", said Mr Buzek. "It was based on the co-ordination method. We must learn from this. It is the Community method, reinforced by the Lisbon Treaty and defended by Parliament, which is right. It is this method that will enable us to revitalise the internal market. Relaunching it is essential to the European economy in the years to come, but also to emerging from the current crisis".
FESE statement - CESR Consultation Paper on Equity Markets
May 12, 2010--FESE welcomes the CESR Consultation Paper on Equity Markets, April 2010, which aims to assist CESR on providing the European Commission (EC) with technical advice on the MiFID Review regarding equity markets by July 2010.
The CESR CP confirms that about 38% of all EU trading is OTC, a figure which has been the subject of much public debate for a year. FESE therefore welcomes this finding and the CP, which confirms our estimates of the OTC business done in EU markets based on the best publicly available figures.
FESE statement - CESR Consultation Paper on Equity Markets
db x-trackers expands ETF range and launches seven daily leveraged ETFs
May 12, 2010--db x-trackers, Deutsche Bank’s Exchange Traded Fund (ETF) platform, has listed seven new daily two times leveraged ETFs on the London Stock Exchange; three tracking daily leveraged short indices and four tracking daily leveraged long indices from recognised index providers. The three daily leveraged short ETFs track indices that provide two times daily inverse exposure to the DAX®, Euro STOXX 50® and S&P 500. The four daily leveraged long ETFs track indices that provide two times daily long exposure to the DAX®, Euro STOXX 50®, FTSE 100 and S&P 500. The launch of the daily leveraged ETFs complements the range of 16 daily one times short equity ETFs from db x-trackers, the leading provider of such products in Europe.
The daily leveraged ETFs are suitable for financially sophisticated institutional investors who want to use them for short-term trading or hedging strategies to react in real time to intra-day market fluctuations and take advantage of rising or declining markets. As they are ETFs they are easy and convenient to use and can be traded and settled in the same way as any listed stock or security. For some investors they can be an effective substitute for other short term derivatives such as futures and CFDs/swaps without the need for opening or maintaining a margin account or entering into derivatives agreements.
Manooj Mistry, head of db x-trackers UK said: “Our experience of marketing the range of db x-trackers short ETFs has shown that there are many institutional investors who want to take tactical leveraged or short positions in their portfolios but do not necessarily have the infrastructure to use derivatives or to go short through borrowing ETF shares. When used correctly, the daily leveraged ETFs can provide sophisticated institutional investors with a liquid and efficient way to implement short term trading or hedging strategies within their portfolios.”
