Global ETF News Older than One Year
Basel Committee finalises stress-testing principles, reviews ways to stop regulatory arbitrage behaviour, agrees on annual G-SIB list, discusses leverage ratio, crypto-assets, market risk framework and implementation
September 20, 2018--The Basel Committee on Banking Supervision met in Basel on 19-20 September to discuss a range of policy and supervisory issues, and to take stock of its members' implementation of post-crisis reforms.
The Committee discussed:
the results of the annual assessment exercise for global systemically important banks (G-SIBs). These were approved by the Committee and will be submitted to the Financial Stability Board before it publishes the 2018 list of G-SIBs. The Committee also agreed to publish the high-level indicator values of all the banks that are part of the G-SIB assessment exercise;
progress on revising the market risk framework. The Committee expects to finalise these revisions around the end of the year;
Source: BIS
The 'Blue Economy' and its vast potential
September 20, 2018--MANY investors are fascinated by the allure of the Blue Economy which aims to harness-potentially-trillions of dollars of the assets of the oceans, while its spin-off idea of Blue Bonds is making a splashy start.
The global blue economy-which taps the oceans' resources-is expected to grow at twice the rate of the mainstream economy by 2030, says the European Commission.
Source: businesstimes.com
BIS-Frequently asked questions on the liquidity risk treatment of settled-to-market derivatives
September 20, 2018--The Basel Committee today issued responses to Frequently Asked Questions (FAQs) related to the treatment of settled-to-market (STM) derivatives under the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
The Committee has observed that an increasing number of banks are now recording variation margin on cleared derivatives as settlement payments rather than as transfer of collateral. These contracts are said to be "settled to market". This practice, which occurs particularly for cleared swaps, allows these banks to take ownership of the collateral they receive. Under STM, daily payments of mark-to-market variation margin are recorded as settlements of the derivatives transactions rather than transfers of collateral and the market value of the derivatives is reset daily to zero.
Source: BIS
OECD sees global growth moderating as uncertainties intensify
September 20, 2018--The global economic expansion appears to have peaked, with diverging growth prospects worldwide and intensifying risks, according to the OECD's latest Interim Economic Outlook.
Economic growth prospects are now slightly weaker across the board than anticipated in May, when the OECD released its latest Economic Outlook. Escalating trade tensions, tightening financial conditions in emerging markets and political risks could further undermine strong and sustainable medium-term growth worldwide.
Source: OECD
IOSCO issues policy measures to protect investors of OTC leveraged products
September 19, 2018--The Board of the International Organization of Securities Commissions (IOSCO) today issued a final report providing measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors.
Simultaneously, the Board issued a public statement on the risks of binary options and the response of regulators for mitigating the risks and harm to retail investors transacting in these products. The Report on Retail OTC Leveraged Products includes three complementary toolkits containing measures aimed at increasing the protection of retail investors who are offered OTC leveraged products, often on a cross-border basis. The report covers the marketing and sale of rolling-spot forex contracts, contracts for differences (CFDs) and binary options.
Source: IOSCO
IOSCO guidance addresses conflicts of interest and conduct risks in equity capital raising
September 18, 2018--The Board of the International Organization of Securities Commissions (IOSCO) today published guidance to help its members address conflicts of interest and associated misconduct risks that may arise and undermine the equity capital raising process.
Conflicts of interest and associated conduct risks stemming from the role of intermediaries can harm the integrity and efficiency of the equity capital raising process, damage investor confidence and weaken capital markets as an effective vehicle for issuers to raise funding. To help regulators identify and address these risks, IOSCO today published the final report on Conflicts of interest and associated conduct risks during the equity capital raising process, which sets out guidance for regulators to address conflicts of interests that may occur when intermediaries manage an equity securities offering.
Source: IOSCO
Few countries are pricing carbon high enough to meet climate targets
September 18, 2018--Governments need to raise carbon prices much faster if they are to meet their commitments on cutting emissions and slowing the pace of climate change under the Paris Agreement, according to a new OECD report.
Effective Carbon Rates 2018: Pricing Carbon Emissions through Taxes and Emissions Trading presents new data on taxes and tradeable permits for carbon emissions in 42 OECD and G20 countries accounting for around 80% of global emissions.
It finds that today's carbon prices-while slowly rising-are still too low to have a significant impact on curbing climate change.
Source: OECD
OECD-Job automation risks vary widely across different regions within countries
September 18, 2018--The risk of job automation is much higher in some regions than others within countries, meaning governments will need to address any widening of job inequality between one area and another in the coming years, according to a new OECD report.
Job Creation and Local Economic Development 2018: Preparing for the Future of Work finds that the geographic variation in job automation risk is strikingly high in the 21 countries for which data is available.
The share of jobs at high risk nears 40% in some regions (e.g. West Slovakia) and is as low as 4% in others (e.g. the region around the Norwegian capital Oslo).
Previous OECD analysis has estimated that around 14% of jobs across the OECD area as a whole are at risk of automation, while another 32% are likely to see significant changes.
Source: OECD
Markets Committee analyses changes in fast-paced electronic markets
September 17, 2018--Trading in foreign exchange and other fast-paced electronic markets is increasingly spread across a range of platforms, with non-bank intermediaries, most notably principal trading firms, gaining a stronger foothold. In addition, access to data and data-centric technologies increasingly defines competitive and market structure changes, a Markets Committee report shows.
The report, Monitoring of fast-paced electronic markets, analyses major developments in the evolution of market structure and their implications for central banks. Market monitoring is a core part of central bank activities for operational purposes and to help fulfil their financial stability mandates.
view the BIS Monitoring of fastpaced electronic markets report
Source: BIS
OECD-G20 GDP Growth- Second quarter of 2018
September 17, 2018--Growth of real gross domestic product (GDP) in the G20 area picked-up marginally to 1.0% in the second quarter of 2018, compared with 0.9% in the previous quarter, according to provisional estimates.
GDP growth rebounded in Japan, to 0.7% in the second quarter of 2018, following a contraction of 0.2% in the previous quarter. It also picked-up significantly in the United States (to 1.0%, from 0.5% in the previous quarter), Russia (to 0.9%, from 0.4%) and China (to 1.8%, from 1.4%). Real GDP growth also picked-up in Canada (to 0.7%, from 0.4%), and to a lesser extent, in the United Kingdom (to 0.4%, from 0.2%), Germany (to 0.5%, from 0.4%) and Brazil (to 0.2%, from 0.1%).
Source: OECD
