IMF Working Paper-Designing Central Bank Digital Currencies
November 18, 2019--We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of payment instruments dependent on the number of their users.
CBDC can be designed with attributes similar to cash or deposits, and can be interest-bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank's tradeoff.
view the IMF Working Paper-Designing Central Bank Digital Currencies
Source: IMF
Bassanese Bites: QE is coming
November 18, 2019--Global Markets
Global markets are currently enjoying a "no news is good news period"-ever hopeful that a US-China trade deal will get done, and no news to the contrary is encouraging as it suggests both parties are still at least talking.
What we don't want is President Trump flying off in a rage again-and jacking up tariffs-due to 11th hour haggling by the Chinese. But as I’ve discussed here previously, Trump seems less likely to do this now given growing signs that an extension of the trade dispute would put the US economy at risk as we head into the 2020 Presidential election year.
Source: BetaShares
Alarm sounds over heavy short selling of junk bond ETFs
November 17, 2019--Funds' holdings and 'design flaws' vulnerable to market downturn prompt concern
Junk bond exchange traded funds are being short sold in bulk.
Almost 40 per cent of the US's biggest junk bond ETFs available for borrowing are on mortgage...
Source: FT.com
NSE may set up derivatives desk in Riyadh
November 11, 2019--However, restrictions on future share sales mean an international IPO may be ruled out
The National Stock Exchange has signed a deal with Saudi Arabia's Tadawul stock exchange to collaborate, share information and technology, and facilitate joint assignments in both the countries in its first such deal, said two people with direct knowledge of the matter.
Source: economictimes.indiatimes.com
OTC derivatives statistics at end-June 2019
November 8, 2019--Notional amounts of OTC derivatives rose to $640 trillion at end-June 2019. This is up from $544 trillion at end-2018 and the highest level since 2014. It marks a continuation of the trend increase evident since end-2016.
The gross market value of OTC derivatives, summing positive and negative values, also rose, from $9.7 trillion to $12.1 trillion, led by increases in euro interest rate derivative contracts.
The lastest semiannual data benefit from the addition of more comprehensive information for smaller dealers collected as part of the BIS Triennial Survey.1 Dealers in emerging market economies (EMEs) accounted for 9% of the outstanding notional amounts of foreign exchange and commodity derivatives globally at end-June 2019, up from 7% at end-June 2016.
Source: BIS
Pensions Venture Into Risky Corners of the Market in Hunt for Returns
November 7, 2019--Retirement programs are increasing bets on private debt, junk bonds and real estate as negative yields pare asset growth
Some pension-fund managers are venturing further into unusual investment territory as this year's plunge in bond yields makes it harder to find decent long-term returns.
Funds are dabbling in riskier asset classes, including private markets, real-estate projects, infrastructure financing and direct lending. Some are making riskier fixed-income bets, buying volatile assets such as 100-year Argentine government bonds. Others are going farther afield, investing in greenhouses and waste management.
Source: Wall Street Journal
Growth fears force exchange traded funds into gold
November 6, 2019--SPDR Gold Trust, the world's biggest gold ETF, sees inflows of $6.5bn this year.
Source: FT.com
Statement on IOSCO study of emerging global stablecoin proposals
November 4, 2019--At its meeting on 30th October in Madrid, the Board of the International Organization of Securities Commissions (IOSCO) met, amongst other things, to consider the risks and benefits arising from 'stablecoin' initiatives with a potential global reach ('global stablecoins'), and how securities market regulation may apply to such initiatives.
This year, IOSCO has examined a number of these initiatives. The IOSCO Board acknowledges that stablecoins can potentially offer benefits to market participants, consumers and investors. However, it is also aware of potential risks in a number of areas, including consumer protection, market integrity, transparency, conflicts of interest and financial crime, as well as potential systemic risks.
To support its discussions, the IOSCO FinTech Network produced an assessment for the Board of how IOSCO Principles and Standards could apply to global stablecoin initiatives. The detailed assessment concluded that a case-by-case approach is needed to establish which IOSCO Principles and Standards, and national regulatory regimes, would apply.
Source: IOSCO
Mystery is part and particle of smart beta
November 4, 2019--Mainstream theory says quantum particles can exist in many places and states at the same time, yet when they are observed the spell is broken...
Source: FT.com
IMF Working Paper-Swing Pricing and Fragility in Open-end Mutual Funds
November 4, 2019--Summary:
How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds' net asset values to pass on funds' trading costs to transacting shareholders.
Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.
view the IMF Working Paper-Swing Pricing and Fragility in Open-end Mutual Funds
Source: IMF
| April 03, 2025 Advisors Series Trust files with the SEC-Reverb ETF |
| April 03, 2025 Investment Managers Series Trust II files with the SEC-Tradr 1X Short Innovation Daily ETF |
| April 03, 2025 Baillie Gifford ETF Trust files with the SEC |
| April 03, 2025 Tidal Trust II files with the SEC-4 Defiance Daily Target 2X Long ETFs |
| April 02, 2025 First Trust Exchange-Traded Fund VIII files with the SEC-FT Vest Laddered Max Buffer ETF |
| April 03, 2025 Baillie Gifford ETF Trust files with the SEC |
| April 03, 2025 Advisors Series Trust files with the SEC-Reverb ETF |
| April 03, 2025 Investment Managers Series Trust II files with the SEC-Tradr 1X Short Innovation Daily ETF |
| April 03, 2025 Tidal Trust II files with the SEC-4 Defiance Daily Target 2X Long ETFs |
| April 02, 2025 iShares Trust files with the SEC-iShares S&P 500 3% Capped ETF |
view SEC filings for the Past 7 Days
| March 24, 2025 MarketVector Strengthens Leadership in Multi-Assets Strategies with the Launch of the MarketVector Crypto-Balanced Multi-Asset Index (TOPMDL) |
| March 24, 2025 21Shares expands European footprint with new listings on Nasdaq Stockholm |
| March 28, 2025 HashKey Group and Bosera Launch World's First Tokenised Money Market ETF |
| March 25, 2025 Southeast Asia's Economies Can Gain Most by Packaging Ambitious Reforms |
| March 17, 2025 E Fund: Harnessing AI Trends in China to Drive Innovation and Enhance ETF Offerings |
| March 12, 2025 Viet Nam's Economy Forecast to Grow 6.8 Percent In 2025: WB |
| March 12, 2025 Coinbase returns to India: Crypto exchange confirms securing FIU regulatory nod |
| March 21, 2025 Qatar's Economy Grows 2.4% in 2024, Q4 GDP Up 6.1% Year-on-Year |
| March 20, 2025 Egypt's economic growth set to improve in Q2, driven by industry: minister |
| March 11, 2025 Qatar: QSE fully waives trading fees on ETFs, aims improved market liquidity |
| March 07, 2025 IMF-Financial Conditions and Their Growth Implications for Qatar: Qatar |
| March 07, 2025 IMF-Artificial Intelligence in Qatar: Assessing the Potential Economic Impacts |
| March 30, 2025 Africa's Debt Crisis Under-Reported-AFRODAD |
| March 27, 2025 Africa's Digital Payments Economy to Reach $1.5trn By 2030-Report |
| March 24, 2025 Bitcoin Price Trends and the Future of Digital Transactions in Africa |
| March 10, 2025 IMF-Boosting Growth and Prosperity in South Africa |
| March 06, 2025 How Africa could help diversify the booming global semiconductor industry |
| March 30, 2025 Africa: Fast Fashion Fuelling Global Waste Crisis, UN Chief Warns |
| March 26, 2025 'Renewables are renewing economies', UN chief tells top climate forum |
| March 20, 2025 How DeepSeek has changed artificial intelligence and what it means for Europe |
| March 10, 2025 IMF-Driving Change: Women-Led Economics |
| March 05, 2025 F&D: Reconnecting Morality with Political Economy |
| March 21, 2025 Could Digital Currencies Lead to the Disappearance of Cash from the Market? |
| March 12, 2025 IMF Note-Fund Investor Types and Bond Market Volatility |
| February 28, 2025 IMF Working Paper-Not all Housing Cycles are Created Equal: Macroeconomic Consequences of Housing Booms |
| February 28, 2025 Pension Reform and Stock Market Development |
