Global ETF News Older than One Year


Research Announcement: Moody's-ETFs ability to weather liquidity risk governed by its underlying market

May 9, 2019--ETFs have experienced rapid expansion in a calm environment
Extended bursts of volatility could reveal that ETF liquidity mirrors underlying market liquidity
The liquidity of exchange traded funds (ETFs) differ owing to the varying characteristics determined by their underlying markets and indexes.

Liquidity providers of ETFs are rewarded through arbitrage but are also exposed to market, liquidity and operational risks.

These risks, when coupled with an exogenous systemwide shock, could in turn amplify systemic risk, a credit negative for market participants, Moody's Investors Service says in a new report. This includes unexpected market liquidity shortfalls which would be further pronounced within ETFs tracking inherently illiquid markets, such as high-yield credit.

"In the event of a liquidity drought in underlying markets, market makers would likely reflect this risk in their ETF quotes. So in effect, ETFs track not only the performance of their underlying assets, but also the liquidity of these assets," according to Fadi Abdel Massih, a Moody's Assistant Vice President-Analyst.

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Source: Moody's Investors Service


Above $6,000: Bitcoin's Price Spikes to 6-Month High

May 9, 2019--Bitcoin's price rose above $6,000 on most cryptocurrency exchanges for the first time today in nearly six months.

At 00:57 UTC on Thursday, the world's largest cryptocurrency by market capitalization, which accounts for more than half of all other cryptocurrencies combined, picked up a bid and saw its price reach as high as $6,076 – its highest price since Nov. 14, 2018.

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Source: coindesk.com


Can emerging markets be a source of global troubles again?

May 9, 2019--According to popular perception, emerging-market economies have not experienced serious macroeconomic and financial turbulence since the beginning of this century. This perception was not entirely correct because it disregarded spill-over effects of the global financial crises of 2008–2009, the consequences of the decline of oil and other commodity prices in 2014–2016, economic and financial troubles caused by violent conflicts and regional political instability.

After two turbulent decades (1980s and 1990s) when emerging-market economies were frequent victims of financial crises, in the first two decades of the 21st century their macroeconomic performance improved. Nevertheless, there were three crisis episodes that hit some of these countries: (i) the spill-over effects of the global financial crisis in 2008–2009; (ii) the consequences of the decline in commodity prices in 2014–2016 for their exporters; (iii) the turbulence in Argentina and Turkey in 2018.

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Source: Bruegel


Tradeweb Reports April 2019 Trade Volume

May 9, 2019--CONTINUED STRONG TRADING ACTIVITY YEAR TO DATE
Average daily volume (ADV) across rates, credit, money markets and equities for Tradeweb Markets in April 2019 was the second highest monthly total ever at Tradeweb. ADV for April 2019 of $665.5 billion (bn) rose 34.2 percent (%) year over year (YoY) while average daily trades totaled 49,423.

During the month, activity in interest rate swaps and swaptions rose significantly YoY to ADV of $169.9 bn. U.S. high-grade credit ADV was $2.9 bn; Tradeweb volumes accounted for a record 12.7% of TRACE due in part to the continued growth of portfolio trading. Mortgage trading of $169.0 bn per day included a marked increase in forward trading of uniform mortgage-backed securities (UMBS) month over month (MoM). Activity in U.S. and European government bonds rose 19.1% and 12.3% YoY, respectively. ADV in European ETFs rose 42.1% YoY. Equity convertibles, swaps and options set a new record as ADV rose 164.8% YoY to $1.8 bn. ADV in repurchase agreements of $186.8 bn exceeded $180 bn for the first time since the crisis.

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Source: Tradeweb


Algo Trading Market to Surpass $18.8 Billion in Five Years

May 9, 2019--Among algorithmic market applications, the stock markets segment is expected to exhibit the highest growth rate. According to MarketsandMarketsTM, the global algorithmic trading market will be valued at $11.1 billion in 2019, and is projected to grow by a compound annual growth rate (CAGR) of 11.1 percent over the next five years. The research firm expects this figure to hit $18.8 billion by 2024.

Algo trading involves the use of automated programs to follow a set of instructions to perform trades, taking into account factors such as time, price and volume. Such platforms take advantage of artificial intelligence and human intelligence in order to reduce trading costs and help money managers control their business procedures.

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Source: financemagnates.com


How the fund industry can flush out the closet trackers

Disclosure of the true cost of active management will help both investors and society. ‎May 8, 2019--At the same time, critics of active managers claim there are too many closet trackers-funds that charge active fees (typically five to 10 times...

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Source: FT.com


IMF Working Paper-Taming Financial Development to Reduce Crises

May 8, 2019--Summary:
This paper assesses whether and how financial development triggers the occurrence of banking crises. It builds on a database that includes financial development as well as financial access, depth and efficiency for almost 100 countries.

Through estimation of a dynamic logit panel model, it appears that financial development, from an institutional dimension and to a lesser extent from a market dimension, triggers financial instability within a one- to two-year horizon. Additionally, whereas financial access is destabilizing for advanced countries, it is stabilizing for emerging and low income ones. Both results have important implications for macroprudential policies and financial regulations.

view the IMF Working Paper-Taming Financial Development to Reduce Crises

Source: IMF


Basel Committee reports on Basel III implementation progress

May 7, 2019--The Basel Committee on Banking Supervision today issued the Sixteenth progress report on adoption of the Basel regulatory framework. As noted by the Group of Central Bank Governors and Heads of Supervision (GHOS), the Committee's oversight body, its members expect full, timely and consistent implementation of the finalised Basel III reforms by member jurisdictions.

The progess report sets out the adoption status of Basel III standards for each Committee member jurisdiction as of end-March 2019. It includes the Basel III post-crisis reforms published by the Committee in December 2017 and the finalised market risk framework published in January 2019. These reforms will take effect from 1 January 2022.

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view the BIS Sixteenth progress report on adoption of the Basel regulatory framework report

Source: BIS


IMF Working Paper-Discriminatory Pricing of Over-the-Counter Derivatives

May 7, 2019--Summary:
New regulatory data reveal extensive price discrimination against non-financial clients in the FX derivatives market. The client at the 90th percentile pays an effective spread of 0.5%, while the bottom quarter incur transaction costs of less than 0.02%.

Consistent with models of search frictions in over-the-counter markets, dealers charge higher spreads to less sophisticated clients. However, price discrimination is eliminated when clients trade through multi-dealer request-for-quote platforms. We also document that dealers extract rents from captive clients and market opacity, but only for contracts negotiated bilaterally with unsophisticated clients.

view IMF Working Paper-Discriminatory Pricing of Over-the-Counter Derivatives

Source: IMF


Growth and economic well-being: fourth quarter 2018, OECD

May 7, 2019--OECD household income growth picks up in the fourth quarter of 2018, outpacing GDP growth
Growth in real household income per capita, which provides a better picture of changes in households' economic well-being than real GDP growth per capita, picked up to 0.5% in the OECD area in the fourth quarter of 2018, compared with 0.1% in the third quarter of 2018, outpacing real GDP growth per capita, which stood at 0.2% in the fourth quarter.

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Source: OECD


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Americas


June 30, 2025 Allspring Exchange-Traded Funds Trust files with the SEC
June 30, 2025 Northern Lights Fund Trust files with the SEC-Toews Agility Shares Hedged Equal Weight ETF and Toews Agility Shares Hedged-Qs ETF
June 30, 2025 Lazard Active ETF Trust files with the SEC-Lazard US Systematic Small Cap Equity ETF
June 30, 2025 WisdomTree Trust files with the SEC-WisdomTree Japan Opportunities Fund
June 30, 2025 J.P. Morgan Exchange-Traded Fund Trust files with the SEC-JPMorgan 100% U.S. Treasury Securities Money Market ETF

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Europe ETF News


June 16, 2025 ESMA's activities in 2024 focused on strengthening the EU capital markets and putting citizens and businesses at the heart of it
June 12, 2025 Janus Henderson launches active fixed income ETF
June 12, 2025 ifo Institute Raises Growth Forecast for Germany
June 10, 2025 ESMA publishes latest edition of its newsletter
June 06, 2025 Active ETF fever grips selectors-is the end in sight for mutual funds?

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Asia ETF News


June 25, 2025 QFIIs Gain Access to Onshore ETF Options As A-share Market Opening Deepens
June 18, 2025 Mirae Asset Global Investments Launches MIRAE ASSET TIGER CHINA GLOBAL LEADERS TOP3 PLUS ETF, Tracking Solactive-KEDI China Global Leaders TOP3Plus Index
June 13, 2025 Post-Adjustment ChiNext Index Attracts Global Assets with Low Valuation and High Growth Potential
June 13, 2025 Unlocking Consumption to Sustain Growth in China -World Bank Economic Update
June 13, 2025 US trading firm Virtu weighs foray into China market-making business

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Middle East ETP News


June 19, 2025 GCC: Growth on the Rise, but Smart Spending Will Shape a Thriving Future
June 16, 2025 Saudi Exchange leads market losses across the GCC

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Africa ETF News


June 24, 2025 East Africa's regional 20 share index
June 16, 2025 African Credit Rating Agency to Launch September 2025
May 27, 2025 African Economic Outlook 2025-Africa's short-term outlook resilient despite global economic and political headwinds

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ESG and Of Interest News


June 18, 2025 Global Energy Transition Gains Ground, but Security and Capital Challenges Persist
June 17, 2025 Pacific Economic Update: Slowing Growth Highlights Need for More Inclusive Workforce
June 10, 2025 Global Carbon Pricing Mobilizes Over $100 Billion for Public Budgets
June 07, 2025 Accelerating Blue Finance: Instruments, Case Studies, and Pathways to Scale
June 03, 2025 The Longevity Dividend

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White Papers


May 30, 2025 IMF Working Paper-Interest Rate Sensitivity Scenarios to Guide Monetary Policy

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