Global ETF News Older than One Year
FSB report assesses FinTech developments and potential financial stability implications
February 14, 2019--The Financial Stability Board (FSB) published a report today on FinTech and market structure in financial services. The publication is part of the FSB's ongoing work to monitor FinTech market developments and their potential implications for financial stability.
The FSB defines FinTech as technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services.
Technological innovation holds great promise for the provision of financial services, with the potential to increase market access, the range of product offerings, and convenience while also lowering costs to clients. At the same time, new entrants into the financial services space, including FinTech firms and large, established technology companies ('BigTech'), could materially alter the universe of financial services providers. Greater competition and diversity in lending, payments, insurance, trading, and other areas of financial services can create a more efficient and resilient financial system.
Source: FSB
Equity Trading Costs Rise To Three-Year High
February 14, 2019--Increased equity volatility in the final quarter of last year led to the highest global trading costs in the previous three years according to research from broker ITG.
Trading in all regions became more expensive, with the exceptions of emerging Europe and Middle East & Africa. ITG said in a report that commissions per share decreased slightly in the US and remained flat for the global traded universe over the same time period.
Source: marketsmedia.com
World Gold Council-Gold Investor-February 2019
February 12, 2019--In this edition of Gold Investor, we look back to the financial crisis; we consider the effect on the gold market since then and we look to the future.
In this edition:
The curse of cash and the allure of gold
Ken Rogoff suggests that excessive reliance on paper money is responsible for ills ranging from tax evasion to terrorism. Monetary policy would be more effective in a largely cashless society. Cryptocurrencies are not an effective replacement for paper money, but gold's role is likely to increase as cash fades from view.
view the World Gold Council-Gold Investor-February 2019
Source: World Gold Council
Global blockchain market to reach nearly half a trillion dollars by 2030, IHS Markit
February 12, 2019--IHS Markit expects revenues could reach $462 billion from using blockchain technology across global financial services.
The value of blockchain in the global financial services market could reach nearly half a trillion dollars within 2030, according to IHS Markit.
The information provider believes given the number of blockchain projects expected to launch and become commercially developed in the coming years, revenues could likely reach $462 billion.
Source: globalcustodian.com
The World Federation of Exchanges publishes 2018 Full Year Market Highlights
February 12, 2019--The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has today published its 2018 Full Year Market Highlights report.
Global stock markets had a turbulent year in 2018. Volatility made a come-back, breaking the spell of stable markets in 2017.
The return of volatility was against the backdrop of a global economic slowdown, geopolitical and trade tensions, concerns about tightening monetary policy, and increased scrutiny of the technology sector.
While the year began on a high note, with domestic market capitalisation scaling record levels in markets across the globe, by the end of the year, there were significant declines in market valuations when compared to the beginning of 2018. In the presence of such high volatility, trading activity was up on 2017; however, overall primary market activity saw a slowdown, with a decline in overall IPO listings and investment flows.
view the World Federation of Exchanges-2018 Full Year Market Highlights report
Source: World Federation of Exchanges (WFE)
BofA: Investors remain bearish on economy despite stocks rallying
February 12, 2019--Most investors remain bearish on the economy despite the recent rally in equity markets, as shown by cash allocations being the most overweight since the global financial crisis, said Bank of America Merrill Lynch's monthly fund manager survey released Tuesday.
A net 46% of surveyed investors this month expect global growth to weaken over the next 12 months, down from 60% the previous month. Meanwhile, 55% of investors are saying they expect secular stagnation over the next year, up from 14% in January.
Source: Pensions & Investments
Eurex clears first swap transaction for U.S. end clients
February 11, 2019--Eurex Clearing, one of the world's leading central counterparties (CCP), has cleared its first swap transaction for end clients domiciled in the U.S.
Citi is the first futures commission merchant (FCM) offering client swap clearing through Eurex Clearing. Eight fund companies have already joined Citi to take advantage of this service. The transaction is the next important milestone in Eurex's strategy to expand its U.S. distribution. As recently as December 2018, the CCP received approval from the Commodity Futures Trading Commission (CFTC) to offer customer swap clearing in addition to the clearing services for futures already provided.
Source: Eurex
Institutional investors looking more closely into companies, boards-Morrow Sodali
February 11, 2019--Asset owners and managers continue to "dig deeper" into how their portfolio companies are dealing with issues such as ESG, executive pay and activism, and away from compliance checklists, according to Morrow Sodali's Institutional Investor Survey released Monday.
"Shareholders are increasingly interested in looking at companies on the merits rather than just doing a compliance exercise," said John Wilcox, chairman of Morrow Sodali, a global corporate governance firm, in an interview.
Source: Pensions & Investments
Global ETF Investors Rank Historical Performance as Top Criteria for Choosing an ETF
February 11, 2019--Defying industry assumptions that cost is everything, Brown Brothers Harriman's ETF survey finds additional criteria are increasingly being considered
The survey, which measured the expectations and preferences of 300 institutional investors, financial advisers, and fund managers from around the world, also found that investors are placing greater importance on ETF issuer than they have in years past. This year, BBH combined what was previously a regional breakdown into a single global survey of ETF investors in the United States, Europe, and Greater China.
view the Brown Brothers Harriman 2019 Global ETF Investor Survey Results
Source: Brown Brother Harriman
Sovereign borrowing outlook for OECD countries, 2007 to 2019-Gross borrowings of OECD governments from the market are set to reach a new record level in 2019 by exceeding USD 11 trillion
February 8, 2019--This report examines net and gross sovereign borrowing in OECD countries from 2007 to 2019. It first looks at net and gross borrowing needs of OECD governments in the context of fiscal developments. It then considers recent trends in central government marketable debt in the OECD area and central government debt ratios for groups of selected OECD countries. Finally, the report examines funding strategies and growing issuance of debt with 30 or more years of maturities.
Key findings
Gross borrowings of OECD governments from the markets, which peaked at USD 10.9 trillion in 2010 in the wake of the financial crisis, are set to reach a new record level in 2019 by exceeding USD 11 trillion. While government funding needs in the wake of the financial crisis increased in most OECD countries, the recent further increase is confined to a few countries, particularly the United States.
In 2017, the new debt issuance of OECD governments to the markets registered the lowest level since 2008, but increased by USD 600 billion to USD 1.9 trillion in 2018 and is projected to exceed USD 2 trillion in 2019.
Source: OECD
