High-Speed Traders Savor Volatility as Rest of Market Is Crushed
February 9, 2018--Virtu, Flow's shares soar after being stuck in the doldrums
Heavy volume and volatile markets are ideal for trading firms
Happy days are here again for high-frequency traders.
In a week where scores of companies around the world saw their stocks buried in red, two of the major middlemen in modern, high-speed electronic trading are basking in the sun of volatility. Virtu Financial Inc. and Flow Traders NV both surged more than 40 percent since last Friday.
Source: Bloomberg
Solactive No. 1 Index Provider for ETF Launches in January
February 9, 2018--Close to 50% of ETF launches in the first month of 2018 rely on Solactive services
This year has started strong for Solactive and the ETF industry. The German index engineer has achieved a record number of index-linked launches, making it the number one provider of indices for ETFs in January 2018.
With 55 ETF launches globally, 25 have involved Solactive as either creator, calculator, or administrator of the underlying index. ETF launches have covered both the equity and fixed-income spaces, and have involved a wide array of strategies including broad-based benchmark solutions and more niche strategies, such as smart beta or thematic indices.
Source: Solactive
ETFGI reports that assets invested in ETFs and ETPs listed globally broke through the US$5 trillion milestone at the end of January 2018
February 9, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed globally broke through the US$5 trillion milestone at the end of January 2018 (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in ETFs/ETPs listed globally broke through the US$5 trillion milestone at the end of January 2018
Assets invested in ETFs/ETPs listed globally increased by a record 6.47%, or $313 billion, during January, to reach a new high of $5.15 trillion, beating the prior record of $4.84 trillion set in December 2017
In January 2018, ETFs and ETPs listed globally gathered net inflows of $106 billion, beating the prior record of $68.3 billion set in February 2017
Assets in Equity ETFs/ETPs increased by 7.49% in January, which is significantly more than the 1.73% increase in Fixed Income ETFs/ETPs
Central banks added 371.4t to global official gold reserves, 5% down on 2016's net purchases. Bar and coin demand fell 2% on a sharp drop in US retail investment. India and China led a 4% recovery in jewellery, although demand remains below historical averages. Increased use of gold in smartphones and vehicles sparked the first year of growth in technology demand since 2010.
Source: World Gold Council (WGC)
Infographic-Summing Up 5 Key Predictions For Global Markets in 2018
As investors re-evaluate their portfolios and exposure, it's worth exploring some of the major themes and trends that are expected to drive markets in 2018.
Predictions for 2018
Source: visualcapitalist.com
ETF Securities-Precious Metals Monitor--January 2018
Yet the perception that rising rates spell doom and gloom for metals is not as clear cut as many presume. Over the last 40 years, there have been 10 major rate tightening cycles by the Fed with mixed results for gold returns. Certain periods saw pullbacks like that of 1981-1984, yet just as many periods exhibited a strong positive return, most notably 1977-1980 and 2004-2006. The true driver for gold is real interest rates, which is why even though current US yields approach 3%, gold investors should not panic. Inflationary pressures and inflation expectations continue to rise commensurately keeping real interest rates low and range bound (between 0.4% and 0.7% on a 10 year basis).
Source: etfsecurities.com
Stock lending by ETF operators worries investors
Source: FT.com
Strong ESG policies are no protection against scandal
This surprising conclusion follows a study into whether companies signed up to 18 common ESG policies are less likely to ...
Source: FT.com
IOSCO issues recommendations and good practices to improve liquidity risk management for investment funds
IOSCO has also simultaneously published a final report that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations.
Source: IOSCO
February 5, 2018--Despite being roughly nine years into the second-longest bull market in history, recent headwinds have cropped up to make the start of 2018 an interesting one for markets.
Today's infographic was done in collaboration with Swissquote, a Swiss banking group, and it highlights their five most important predictions for the rest of the year ahead.
February 5, 2018--Key Highlights
Gold: Don't Fret Just Yet About Rising US Bond Yields
Gold has risen 26% since the start of the current Federal Reserve ("Fed") tightening cycle in December 2015. To many this came as a surprise, since the rule of thumb is that rising rates are bad for gold prices.
February 4, 2018--Using a process known as securities lending,,the ETF will loan stock in a company to a hedge fund (for a fee or other benefit) and receive collateral in return, usually in the form of either stocks or cash.
February 3, 2018--Companies that aim to do good for society by adhering to environmental, social and governance policies are more likely to encounter lawsuits and regulatory actions, says BlackRock.
February 2, 2018--The Board of the International Organization of Securities Commissions (IOSCO) has issued today final recommendations that seek to improve liquidity risk management practices of open-ended collective investment schemes (CIS) as part of its mission to protect investors, ensure fair and efficient financial markets and reduce systemic risk.
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