Global ETF News Older than One Year
Investors urge widespread adoption of TCFD climate reporting framework
June 29, 2017--Financial institutions responsible for assets of around $25trn (€22trn), including major pension investors, have thrown their weight behind the final recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD).
Source: IP&E
Basel Committee consults on a simplified alternative to the market risk standardised approach
June 29. 2017--The Basel Committee on Banking Supervision today published the consultative document Simplified alternative to the standardised approach to market risk capital requirements.
In January 2016, the Basel Committee issued revised Minimum capital requirements for market risk. This global standard includes a standardised approach which is used by banks other than those that are large and internationally active.
Source: BIS
Sixty-six Countries Struggling with Oil, Gas and Mining Governance-Resource Governance Index
June 28, 2017--New index shows promise in some developing countries, but raises alarms over sovereign wealth funds and citizens' freedom to hold governments to account.
The majority of governments inadequately govern their oil, gas and mining sectors, according to the 2017 Resource Governance Index. Sixty-six countries were found to be weak, poor or failing in their governance of extractive industries. Less than 20 percent of the 81 countries assessed achieved good or satisfactory overall ratings.
view the 2017 Resource Governance Index
Source: Natural Resource Governance Institute (NRGI)
Blockchain: The Next Generation of the Internet
June 28, 2017--Blockchain, or distributed ledger technology, signals the beginning of a new era of the internet that will be defined by value rather than information, according to a World Economic Forum white paper
However, its potential for transforming industries and society will require new kinds of cooperation between stakeholders
Blockchain, or distributed ledger technology, could soon give rise to a new internet era even more disruptive and transformative than the current one, according to a white paper, Realizing the Potential of Blockchain, published by the World Economic Forum today.
Source: WEF (World Economic Forum)
ETF Securities-Investment Insights June 2017-Which Market Shocks Matter for Metals?
June 28, 2017--Summary
Heightened equity volatility historically benefits gold and
platinum, while equity drawdowns favor gold and silver.
Positive oil shocks tend to boost all precious metals while platinum has had the least sensitivity to extreme price drops
Shifts in reserve currencies may drag on precious metals, but shocks from emerging market currencies may be limited.
Source: etfsecurities.com
China's Current Account: External Rebalancing or Capital Flight?
June 28, 2017--Abstract: This paper examines an anomaly in China's current account: its large and rapidly growing travel expenditure. Drawing evidence from counterparty data, Chinese international arrival statistics, and gravity equation models extended to travel trade, I find that a significant amount of China's travel spending in the period 2014-2016 could not be explained by accounting factors or economic fundamentals.
The unexplained travel imports are inversely associated with domestic growth and positively associated with renminbi depreciation expectations against the dollar, suggesting that they are less likely to be consumption of goods and services abroad than domestic residents' acquisition of foreign financial assets.
Source: federalreserve.gov
China's fake travel spending masks capital flight, warns Fed
June 28, 2017--Outflows have also artificially cut country's trade surplus, says discussion paper
Capital flight disguised as overseas tourism spending has artificially cut China's reported trade surplus while masking the extent of investment outflows, according to research by the US Federal Reserve. A significant share of overseas spending classified in official data as travel-related shopping, entertainment and hospitality may over a 12-month period have instead been used for investment in financial assets and real estate, the Fed paper argued.
Source: FT.com
IOSCO Celebrates World Investor Week 2017: Securities Regulators Across the Globe to Promote Investor Education and Protection
June 28, 2017--The International Organization of Securities Commissions (IOSCO) today announced that it will hold a World Investor Week from 2nd through 8th October 2017, to promote greater investor education and protection worldwide.
IOSCO securities regulators across the globe will provide a variety of activities, including launching investor-focused communications and services, promoting contests to increase awareness of investor education initiatives, organizing workshops and conferences, and conducting local/national campaigns in their own jurisdictions.
Source: IOSCO
FSB issues a report on the financial stability implications from FinTech
June 27, 2017--The FSB has been analysing the potential financial stability implications from FinTech with a view to identifying supervisory and regulatory issues that merit authorities' attention.
Ten areas have been identified, of which the following three are seen as priorities for international collaboration:
the need to manage operational risk from third-party service providers;
mitigating cyber risks; and
monitoring macrofinancial risks that could emerge as FinTech activities increase.
Source: Financial Stability Board (FSB)
IMF Staff Discussion Note-Fintech and Financial Services: Initial Considerations
June 27, 2017--EXECUTIVE SUMMARY
From artificial intelligence to cryptography, rapid advances in digital technology are transforming
the financial services landscape, creating opportunities and challenges for consumers, service
providers, and regulators alike.
This paper reviews developments in this new wave of technological innovations, often called "fintech," and assesses their impact on an array of financial services. Given the IMF's mandate to promote the stability of the international monetary system, it focuses on rapidly changing cross-border payments.
Source: IMF
