Global ETF News Older than One Year
IOSCO consults on recommendations and good practices in liquidity risk management for funds
July 6, 2017--The International Organization of Securities Commissions (IOSCO) published today the consultation paper titled Recommendations of Liquidity Risk Management for Collective Investment Schemes, which seeks to address structural vulnerabilities arising from asset management activities, as part of its mission to protect investors and mitigate systemic risk in global financial markets.
IOSCO also published today another consultation paper that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations.
view the Consultation on CIS Liquidity Risk Management Recommendations paper
Source: IOSCO
New World Economic Forum Investment Model Set to Transform Digital Adoption
July 6, 2017--Policy levers can transform an unsustainable business case into a financially sound investment, as demonstrated in East Africa's Northern Corridor
By deploying targeted policy levers, the cost of bringing 25 million new users online in Africa's Northern Corridor can be reduced by 23% or $400 million
New tool allows users to calculate core metrics associated with closing the digital gap in any country, including the total amount of investment required
The World Economic Forum today announced the launch of a second White Paper on "An Investment Framework for Digital Adoption". Published in collaboration with the Boston Consulting Group, it illustrates an investment model that can be used to quantify the costs to achieve universal internet access and adoption.
Source: WEF (World Economic Forum)
Criteria for identifying simple, transparent and comparable short-term securitisations proposed by BCBS and IOSCO
July 6, 2017--The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) today released the consultative document Criteria for identifying simple, transparent and comparable short-term securitisations (the short-term STC criteria), which is available on the BCBS and IOSCO websites.
The short-term STC criteria maintain and build on the principles in the Criteria for identifying simple, transparent and comparable securitisations issued by BCBS-IOSCO in July 2015.
Source: BIS
BIS-Capital treatment for simple, transparent and comparable short-term securitisations proposed by the Basel Committee
July 6, 2017--The Basel Committee on Banking Supervision today released the consultative document Capital treatment for simple, transparent and comparable short-term securitisations.
The Committee's proposed capital treatment supplements the consultative document Criteria for identifying simple, transparent and comparable short-term securitisations issued jointly with the International Organization of Securities Commissions (IOSCO).
The consultative document sets out additional guidance and requirements for the purpose of applying preferential regulatory capital treatment for banks acting as investors in or as sponsors of simple, transparent and comparable (STC) short-term securitisations, typically in asset-backed commercial paper (ABCP) structures. The additional guidance and requirements include that:
investors have access to key monthly information on the performance and key characteristics of the ABCP structure;
the redemption risk of the underlying assets is addressed from the sponsor's perspective; and...
Source: BIS
Explosion in money flowing into ETFs may lead to a market liquidity problem, Bank of America says
July 6, 2017--Bank of America Merrill Lynch warns of liquidity problems caused by ETFs.
There is now $4 trillion invested in ETFs.
"ETF fads can drive massive PE distortions," says the report.
Source: CNBC.com
ETF revolution is not without cost
July 6, 2017--Rise of index-tracking equity funds risks market distortion and fuels governance concerns month using the gift article service.
The US equity market is undergoing a dramatic yet under-appreciated evolution with the relentless rise of passive investing reshaping its inner workings. This is a trend that many investors need to get a better handle on.
Source: FT.com
ETF Securities-Precious Metals Monitor--June 2017
July 6, 2017--Key Highlights
Mid-Year Outlook: Complacency May Drive Volatility on the Road to Normalization
Signs of a continued broad-based global economic recovery have spurred investors to embrace risk taking in the first half of 2017.
Developed and emerging market equities have both risen by double digits year to date, commodities remain broadly stable with improving fundamentals, while global bond markets have risen on continued demand for yield. As markets set higher records, many participants are beginning to question whether this momentum can continue or if it is time to pull on the reigns and position defensively.
Chief among these growing concerns is the risk of complacency among investors. Equity markets have risen unabatedly since March 2009 against a backdrop of easy monetary policies and low interest rates.
Source: etfsecurities.com
How Commodities Performed in H1 2017, and Why They’re Very Cheap
July 5, 2017--If you’re looking for action, the commodities sector has traditionally been a good place to find it.
With wild price swings, massive up-cycles, exciting resource discoveries, and extreme weather events all playing into things, there's usually never a dull day in the sector. That being said, it's hard to remember a more lackluster period for commodities than in the last couple of years.
Source: visualcapitalist.com
IMF-Increasing Resilience to Large and Volatile Capital Flows-The Role of Macroprudential Policies
July 5, 2017--Summary:
Capital flows can deliver substantial benefits for countries, but also have the potential to contribute to a buildup of systemic financial risk.
Benefits such as enhanced investment and consumption smoothing, tend to be greater for countries whose financial and institutional development enables them to intermediate capital flows safely.
Source: IMF
Wisdom Tree-Post the OPEC meeting: What now?
July 5, 2017--The recent OPEC meeting revealed no new news with respect to production cuts or the ability of OPEC to stabilise the oil price.
Whilst there was a commitment for a longer period of production adjustments for a further nine months with effect from 1 July 2017 the meeting concluded with a lack of discussion of deeper cuts. What was revealed was just how dependent the oil price is on other factors and data points, something that we previously highlighted in our blog Five things you need to know about trading oil.
