Global ETF News Older than One Year
Basel Committee and IOSCO agree to one-year extension of the final implementation phase of the margin requirements for non-centrally cleared derivatives
July 23, 2019--The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) acknowledge the progress that has been made to implement the framework for margin requirements for non-centrally cleared derivatives.
In the final phase of implementation, initial margin requirements are scheduled to apply to a large number of entities for the first time. In March 2019, the Basel Committee and IOSCO published a statement noting that the framework does not specify documentation, custodial or operational requirements if a covered entity's bilateral initial margin amount does not exceed the framework's €50 million initial margin threshold.
Further, the Basel Committee and IOSCO have agreed to extend by one year the final implementation of the margin requirements.
Source: BIS
Bassanese Bites: Fed fatigue
July 22, 2019--Global Markets
Global equities pulled back from record highs last week-reflecting an early batch of mixed US earnings results and continuing disappointment that the Fed is still not inclined to cut rates by an aggressive 0.5% next week. Trump's renewed sabre rattling-suggesting a deal with China was still some way off and he could still raise tariffs-didn’t help.
Meanwhile, US consumer spending held up nicely, with June retail sales comfortably beating market expectations. Gold and iron-ore prices reached new six-monthly highs, though oil slumped due to an easing in US-Iranian tensions.
The bottom line of all this, however, is that trade tensions have helped modestly slow global growth in recent months and US earnings are also going through a slow patch.
Source: BetaShares
New Survey: 49% of Americans and Brits Don't Trust Facebook's Libra
July 22, 2019--July 22, 2019--Almost half of Americans and Brits would not trust Facebook in regards to its long-awaited stablecoin Libra, technology and market-focused news platform Telecoms.com reported on July 22.
Facebook's trust issues could hurt Libra project
Citing a survey from instant messaging application Viber, the news outlet reveals that 49% of users in the United Kingdom and the United States said that they would not put trust in the social media giant when it comes to its own digital currency. Those respondents specified that they would not trust Facebook at all in regards to keeping their private information secure when using Libra.
Source: cointelegraph.com
Statement on IOSCO Liquidity Risk Management Recommendations for Investment Funds
July 18, 2019--July 18, 2019--Liquidity problems which have recently affected some investment funds have been the subject of extensive media coverage. The Bank of England published a Financial Stability Report of the Financial Policy Committee (FPC), a committee of the Bank of England, earlier this month, which discusses potential mismatches between the liquidity of fund assets and redemption terms offered by funds to their investors.
These developments have led some to question whether recommendations previously issued by the International Organization of Securities Commissions (IOSCO) on the liquidity management of open-ended investment funds (OEFs) adequately address risks in OEFs which could disadvantage investors or lead to broader financial system contagion.
Source: IOSCO
IMF-World Economic Outlook, July 2019 Still Sluggish Global Growth
July 18, 2019--Global growth remains subdued. Since the April World Economic Outlook (WEO) report, the United States further increased tariffs on certain Chinese imports and China retaliated by raising tariffs on a subset of US imports. Additional escalation was averted following the June G20 summit. Global technology supply chains were threatened by the prospect of US sanctions, Brexit-related uncertainty continued, and rising geopolitical tensions roiled energy prices.
Against this backdrop, global growth is forecast at 3.2 percent in 2019, picking up to 3.5 percent in 2020 (0.1 percentage point lower than in the April WEO projections for both years). GDP releases so far this year, together with generally softening inflation, point to weaker-than-anticipated global activity. Investment and demand for consumer durables have been subdued across advanced and emerging market economies as firms and households continue to hold back on long--range spending. Accordingly, global trade, which is intensive in machinery and consumer durables, remains sluggish. The projected growth pickup in 2020 is precarious, presuming stabilization in currently stressed emerging market and developing economies and progress toward resolving trade policy differences.
Source: IMF
G7 says Facebook's Libra poses 'serious risks'
July 18, 2019--G7 ministers listed on Thursday (18 July) the requirements Facebook's new 'coin' Libra should meet, as regulators are increasingly wary of the "serious risks" posed by the new digital currency.
The outstanding work needed for Facebook to meet the regulators' demands suggests that Libra, unveiled in June, would not start functioning anytime soon.
Libra was part of the discussions held by the finance ministers of the Group of 7 (G7) on Wednesday and Thursday near Paris. view more
Source: euractiv.com
Rebalancing the Global Economy: Some Progress but Challenges Ahead
July 17, 2019--Following the global financial crisis, overall current account surpluses and deficits fell sharply from about 6 percent of global GDP in 2007 to about 3.5 percent in 2013. Since then, as shown in our new External Sector Report, global current account imbalances have declined only slightly to 3 percent of world GDP in 2018, while rotating toward advanced economies and away from emerging economies, including China whose current account is now broadly in line with fundamentals.
Trade actions and tensions have so far not significantly affected global current account imbalances, as trade has been diverted to other countries with lower or no tariffs. Instead, as highlighted in an earlier blog, these trade tensions and related uncertainties are weighing on global investment and growth, especially in sectors most integrated into global supply chains (where production is carried out across multiple countries).
view the IMF 2019 External Sector Report: The Dynamics of External Adjustment July 2019
Source: IMF
IMF Working paper-The Rise of Digital Money
July 15, 2019--Summary:
This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy.
The Rise of Digital Money analyses how technology companies are stepping up competition to large banks and credit card companies. Digital forms of money are increasingly in the wallets of consumers as well as in the minds of policymakers. Cash and bank deposits are battling with so-called e-money, electronically stored monetary value denominated in, and pegged to, a currency like the euro or the dollar. This paper identifies the benefits and risks and highlights regulatory issues that are likely to emerge with a broader adoption of stablecoins. The paper also highlights the risks associated with e-money: potential creation of new monopolies; threats to weaker currencies; concerns about consumer protection and financial stability; and the risk of fostering illegal activities, among others.
view the IMF Working paper-The Rise of Digital Money
Source: IMF
ESG money market funds grow 15% in first half of 2019
July 14, 2019--Big asset managers are launching more socially responsible options to meet investor demand
Money market funds that incorporate environmental, social and governance metrics are growing rapidly, with a spurt of activity by big asset managers such as State Street Global Advisors, BlackRock and DWS.
Assets in the sector rose 15 per cent to $52bn during the first half of 2019, after growing 1 per cent through all of 2018, according to research from Fitch Ratings. view more
Source: FT.com
Investors flee active funds at highest rate in 3 years
July 7, 2019--Investors in the US and Europe have fled active mutual funds at the highest rate in at least three years, pulling more than $30bn so far in 2019 as stockpicking comes under intense scrutiny.
Source: FT.com
