Global ETF News Older than One Year
FSB and standard-setting bodies consult on effects of reforms on incentives to centrally clear over-the-counter derivatives
August 7, 2018--The Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published today a consultative document on Incentives to centrally clear over-the-counter (OTC) derivatives.
Centrally clearing standardised OTC derivatives is a pillar of the G20 Leaders' commitment to reform OTC derivatives markets in response to the global financial crisis. A number of post-crisis reforms are, directly or indirectly, relevant to incentives to centrally clear. The consultative document evaluates how these reforms interact and how they could affect incentives.
Source: BIS
Gold-backed ETFs outflows decelerated in July
August 7, 2018--Holdings in global gold-backed ETFs and similar products fell by 39t to 2,394t in July, pushing assets under management (AUM) in US dollars down by 4% to US$94bn from US$98bn in June. Gold price performance was a large contributor to outflows as it fell over 2% in US dollar terms.
All regions experienced outflows in July. ETF outflows were dominated by North American funds, losing US$984mn. Asia experienced the largest outflows on a percentage basis (6.2%), while Europe reversed the recent trend of inflows, losing 8.0t (US$302mn).
COMEX net long futures are the lowest in three years highlighting bearish sentiment in the market. A very low net long level, however, has historically preceded rallies in the price of gold.
Source: World Gold Council (WGC)
STOXX Research Monthly Index News July: Economic Data Helps Risk Appetite
August 7, 2018--Global equity indices rose by the most in six months in July, as buoyant economic and corporate data helped turn investors' focus away from fears of a trade war.
As risk appetite improved, it was a case of a rising tide lifting all boats, with most regions, styles and strategies posting positive returns over the month. This was particularly true for benchmark indices.
The STOXX(R) Global 1800 Index rose 3.1% in dollar terms, its best monthly showing since January, as European and US markets advanced. The STOXX(R) Asia/Pacific 600 Index underperformed as the value of Japanese holdings fell in line with the yen.
Source: STOXX
The World Federation of Exchanges publishes H1 2018 Market Highlights report
August 7, 2018--The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has today published its H1 2018 Market Highlights report.
The first half of 2018 was eventful for stock markets worldwide. While the year started on a high note with domestic market capitalisation and benchmark indices scaling record levels in markets across the globe, February 2018 was marked by a global stock market correction and a return of volatility after a remarkably calm period over 2017. Overall market valuation declined in the months that followed, with market capitalisation at the end of H1 2018 down 1.6% on the end of H2 2017 (though still up on the same period in the previous year). Trading activity (value and volumes of trades in equity shares) was up on H1 2017; however, primary market activity was mixed, with IPO listings down and investment flows slightly up on H1 2017.
Source: World Federation of Exchanges ("WFE")
IMF Working Papers-Predicting Fiscal Crises
Previous literature on early warning sistems (EWS) for fiscal crises is scarce and based on small samples of advanced and emerging markets, raising doubts about the robustness of the results. Using a larger sample, our analysis shows that both nonfiscal (external and internal imbalances) and fiscal variables help predict crises among advanced and emerging economies. Our models performed well in out-of-sample forecasting and in predicting the most recent crises, a weakness of EWS in general. We also build EWS for low income countries, which had been overlooked in the literature. view the IMF Working Papers-Predicting Fiscal Crises
Source: IMF
WGC-Gold Demand Trends-Second Quarter 2018
Smaller inflows into gold-backed ETFs drove the decline.
Bar and coin investment was virtually static at 247.6t. Q2 jewellery demand down 2%; H1 stable.
Weakness in India and Middle East offset by growth in China and the US.
The technology sector saw further growth, up 2% to 83.3t.
Source: World Gold Council (WGC)
IMF Working Papers-A Behavioral Approach to Financial Supervision, Regulation, and Central Banking
It stresses that financial supervisors, regulators, and central banks have not yet realized the full potential that these behavioral elements hold. To do so, they need to devise a behavioral approach that includes aspects relating to individual and group behavior. The paper provides case examples of experiments with such an approach, including behavioral supervision. Finally, it highlights areas for further research.
Source: IMF
Free Fidelity Funds Stoke Price War in Bid to Catch Index Giants
Fidelity Investments, having lost billions of dollars in assets to rivals, pulled out some new ammunition to use against them--dropping fees to zer
The move is part of an ongoing reckoning at Fidelity.
Source: Bloomberg
IOSCO issues recommendations to help trading venues manage extreme volatility
Following recent extreme volatility events, regulatory authorities and trading venues have been reviewing their approaches to managing extreme volatility, particularly through the use of volatility control mechanisms. Volatility control mechanisms seek to minimize market disruption triggered by events such as erroneous orders, by halting or temporarily constraining trading. IOSCO believes that these mechanisms support the goal of ensuring that markets are fair, efficient and transparent, thereby increasing market integrity and investor confidence.
Source: IOSCO
ETFGI reports that active ETFs and ETPs listed globally gathered net inflows of US$2.59 billion during June 2018
Highlights
Source: ETFGI
August 3, 2018--Summary:
This paper identifies leading indicators of fiscal crises based on a large sample of countries at different stages of development over 1970-2015. Our results are robust to different methodologies and sample periods.
August 2, 2018--The gold market stayed soft in Q2; global demand was fell 4% y-o-y to 964.3t.
Total H1 demand of 1,959.9t is the lowest since H1 2009.
Q2 inflows were 46% lower y-o-y; US-listed funds saw net outflows.
Gains in China and Iran were offset by falls in Turkey, India and Europe.
Thriving smartphone market has helped boost gold used in electronics.
August 2, 2018--Summary:
This paper describes how behavioral elements are relevant to financial supervision, regulation, and central banking. It focuses on (1) behavioral effects of norms (social, legal, and market); (2) behavior of others (internalization, identification, and compliance); and (3) psychological biases.
August 1, 2018--Firm will also reduce prices on existing index mutual funds
BlackRock, T. Rowe Price shares decline on Fidelity news
August 1, 2018--The Board of the International Organization of Securities Commissions (IOSCO) today published eight recommendations to assist trading venues and regulatory authorities in the implementation of mechanisms to manage extreme volatility and preserve orderly trading.
July 31, 2018-- ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that active ETFs and ETPs listed globally gathered net new assets of US$2.59 billion during June 2018, the lowest monthly net inflow since December 2017. (All dollar values in USD unless otherwise noted.)
Active ETFs and ETPs listed globally gathered net new assets of $2.59 Bn during June 2018, the lowest net inflows gathered since December 2017.
Fixed income products gathered the largest net inflows during June, while inverse ETFs/ETPs experienced the largest net outflows.
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