Global ETF News Older than One Year
FTSE Russell-Uncovering fixed income factors. The concept of 'carry'
June 7, 2019-The concept of "carry" is not new and has been leveraged in the currency markets for decades. More recently, however, academic publications have further explored this concept cross-markets and showcased evidence of the carry premium across other asset classes.
Our latest research paper, "The Carry Concept"-the second in our latest series of fixed income factor research-provides an in-depth analysis of the carry concept in bond markets.
In the paper we explore;
The 'carry' concept
Targeting 'carry' in sovereign markets
Extending 'carry' to corporate bonds
Real world utilization
As a well-known concept to practitioners and academics, carry has been leveraged in the currency markets for decades. With the understanding of such FX carry trades becoming established, recent academic publications have explored this concept cross-markets and showcased evidence of the carry premium across other asset classes.
Source: FTSE Russell
Nasdaq Commodities postpones launch of new trading system
June 7, 2019--Nasdaq Commodities will postpone the introduction of a new planned trading system, which was set to go live for its members on June 10, the exchange said in a statement on Friday.
The new trading system is called Request for Quote Trading System, or RFQ, and it offers a platform where price quotes will be provided on request.
Source: Reuters
FSB report considers implications of decentralised financial technologies
June 6, 2019--The Financial Stability Board (FSB) today published a report on Decentralised financial technologies. This report considers the financial stability, regulatory and governance implications of the use of decentralised financial technologies such as those involving distributed ledgers and online peer-to-peer, or user-matching, platforms.
The report has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June, which includes a High-Level Seminar on Financial Innovation.
The report focuses on technologies that may reduce or eliminate the need for intermediaries or centralised processes that have traditionally been involved in the provision of financial services. Such decentralisation generally takes one of three broad forms: the decentralisation of decision-making, risk-taking or record-keeping. There are already examples emerging of decentralisation in payments and settlement, capital markets, trade finance and lending.
Source: FSB
Emerging Market regulators issue recommendations related to sustainable finance
June 5, 2019--Securities regulators from growth and emerging markets today published a report that sets forth recommendations related to the development of sustainable finance in emerging markets and the role of securities regulators in this area.
IOSCO's Growth and Emerging Market Committee (GEMC) today published the report Sustainable finance in emerging markets and the role of securities regulators, which provides 10 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments.
Among other things, the recommendations include requirements for reporting and disclosure of material Environmental, Social and Governance (ESG) specific risks, aimed at enhancing transparency.
Source: IOSCO
Solactive releases innovative Global Equity Index with Research Company CIMalgo AB
June 5, 2019--Solactive is pleased to announce the release of its latest innovation in complex Index development. The Solactive CIMalgo Wedge R100 Index uses sophisticated algorithms that reduce the portfolio's beta and volatility while keeping exposure to the global equity market.
After the release of a series of thematic indices with various asset managers, Frankfurt's multi-asset index shop, Solactive, releases a novum in complex indexing: The Solactive CIMalgo Wedge R100 Index contains a scientific approach that intends to track the price movements of a portfolio of 100 equally weighted stocks, selected from a universe of the 2000 largest corporations globally.
Source: Solactive AG
World Gold Council Gold-backed ETFs experienced small outflows in May
June 5, 2019--Holdings in global gold-backed ETFs and similar products fell marginally in May by 2.2 tonnes (t) to 2,421t, equivalent to US$141mn in outflows as consistent European fund growth was offset by outflows in North America-early in the month-and in Asia. Global assets under management (AUM) in US dollars rose 1% to US$101bn as the price of gold rallied 1.7% during May
Year to date, global gold-backed ETFs have lost 0.5% in assets (19t, US$535mn), mostly due to heavy outflows in February, April and early May. However, higher uncertainty and market volatility have supported flight-to-quality flows into gold-backed ETFs in recent weeks.
Source: World Gold Council
Tradeweb Reports May 2019 Trade Volume
June 5, 2019--Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported average daily volume (ADV) of $741.8 billion (bn) in aggregate for the month of May 2019.
Activity on Tradeweb trading platforms in May included:
ADV of $83.6 bn in U.S. government bonds and $21.1 bn in European government bonds
$157.7 bn ADV in mortgages
$228.1 bn ADV in rates derivatives
ADV of $2.7 bn in U.S. credit and $1.2 bn in European credit
Source: TradeWeb
Global Growth to Weaken to 2.6% in 2019, Substantial Risks Seen
June 4, 2019--Emerging, developing economies' growth to pick up to 4.6% in 2020 from 4% in 2019; expansion vulnerable to trade, financial disruptions
Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020.
Growth in emerging market and developing economies is expected to stabilize next year as some countries move past periods of financial strain, but economic momentum remains weak.
Emerging and developing economy growth is constrained by sluggish investment, and risks are tilted to the downside. These risks include rising trade barriers, renewed financial stress, and sharper-than-expected slowdowns in several major economies, the World Bank says in its June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment. Structural problems that misallocate or discourage investment also weigh on the outlook.
view the World Bank report-Global Economic Prospects Heightened Tensions, Subdued Investment
Source: World Bank
The Global Economy: Heightened Tensions, Subdued Growth
June 4, 2019--The global economy has slowed to its lowest pace in three years. It is on track to stabilize, but its momentum is fragile and subject to substantial risks.
International trade and investment have been weaker than expected at the start of the year, and economic activity in major advanced economies, particularly the Euro Area, and some large emerging market and developing economies has been softer than previously anticipated.
Growth in the emerging and developing world is expected to pick up next year as the turbulence and uncertainty that afflicted a number of countries late last year and this year recedes, the World Bank's June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment reports. view more
Source: World Bank
Global Economic Prospects: Europe and Central Asia
April 4, 2019--Recent Developments
Growth in Europe and Central Asia is estimated to have slowed to 1.6% in 2019, a four-year low, partly reflecting a sharp weakening of activity in Turkey. Trade continues to weaken across the region, as goods trade volumes have slowed in parallel with sluggish activity in the Euro Area, the region's largest export destination.
Monetary policy tightening has paused in the region and fiscal policy has loosened in 2019. Inflation has been trending up in some of the larger economies in the region since the start of the year, notably in Hungary, Poland, and Russia, driven in part by rising oil prices.
Source: World Bank
