Global ETF News Older than One Year
Eurex: Trading statistics September 2015
Eurex Exchange: ADV 7.5 million contracts, 16 percent growth year-on-year/ISE: ADV 2.4 million contracts
October 1, 2015--In September 2015, the international derivatives markets of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 9.9 million contracts (September 2014: 9.1 million).
Of those, 7.5 million were Eurex Exchange contracts (September 2014: 6.5 million), and 2.4 million contracts (September 2014: 2.6 million) were traded at the New York based International Securities Exchange (ISE).
The volume traded on the spot and derivatives power markets of the European Energy Exchange (EEX) amounted to 268.8 terawatt hours (September 2014: 184.2 TWh). Eurex Repo recorded in all markets in September 2015 an average outstanding volume of 147.0 billion euros.
Source: Eurex
IMF Working paper-Capital Controls or Macroprudential Regulation?
October 1, 2015--Summary: International capital flows can create significant financial instability in emerging economies because of pecuniary externalities associated with exchange rate movements. Does this make it optimal to impose capital controls or should policymakers rely on domestic macroprudential regulation?
This paper presents a tractable model to show that it is desirable to employ both types of instruments:
Macroprudential regulation reduces overborrowing, while capital controls increase the aggregate net worth of the economy as a whole by also stimulating savings. The two policy measures should be set higher the greater an economy's debt burden and the higher domestic inequality. In our baseline calibration based on the East Asian crisis countries, we find optimal capital controls and macroprudential regulation in the magnitude of 2 percent. In advanced countries where the risk of sharp exchange rate depreciations is more limited, the role for capital controls subsides. However, macroprudential regulation remains essential to mitigate booms and busts in asset prices.
view IMF Working paper-Capital Controls or Macroprudential Regulation?
Source: IMF
A record number of new ETF/ETP providers have entered the US ETF industry in 2015 according to ETFGI
October 1, 2015--A record number of new ETF/ETP providers have entered the US ETF industry in 2015 according to ETFGI
2015 has been a busy time for the ETF industry.
Nineteen new ETF/ETP providers have entered the ETF industry in the United States during the first 9 months of 2015, beating the prior full year records of 15 new providers entering the ETF industry in both 2014 and 2009, according to new analysis from ETFGI.
Collectively the 19 new providers have launched a total of 37 products, accounting for $1.1 billion in assets as of the Sept 29th. The majority, or 21, of these new launches follow Smart Beta strategies,...
Source: ETFGI
IMF Global Financial Stability Report Analytical Chapters-Vulnerabilities, Legacies, and Policy Challenges
September 30, 2015--Chapters 2 and 3 of the October 2015 Global Financial Stability Report respectively examine the determinants and resilience of market liquidity and the growing level of corporate debt in emerging markets.
In terms of market liquidity, the current levels are being sustained by benign cyclical conditions and accommodative monetary policy. At the same time, some structural developments may be eroding its resilience.
Source: IMF
WEF-'New Normal' Productivity Spells Uncertainty for Global Economy
September 30, 2015--The Global Competitiveness Report 2015-2016 finds countries need higher productivity to address sluggish global growth and persistent high unemployment
Failure to boost competitiveness is compromising resilience to recession and other shocks, report finds
Switzerland, Singapore and the US have been nurturing innovation and talent; this has kept them at the top of the Global Competitiveness Index, which profiles 140 economies.
view the The Global Competitiveness Report 2015-2016
Source: WEF (World Economic Forum)
Traders Flee Emerging Markets at Fastest Pace Since 2008
Investors have sold $40 billion of assets in the third quarter
Biggest outflow since fourth quarter of 2008, IIF data show
September 29, 2015--Investors have pulled $40 billion out of developing economies in the third quarter, fleeing emerging markets at the fastest pace since the height of the global financial crisis.
The quarterly outflow was the first since 2009 and the biggest since the final three months of 2008, when traders sold $105 billion of assets, according to the Institute of International Finance. The retreat came as data signaled faltering Chinese economic growth, commodity prices slumped and the Federal Reserve moved closer to an increase in the near-zero U.S. interest rates that have supported demand for riskier assets in developing nations.
Source: Bloomberg
IMF-Rise in Emerging Market Corporate Debt Driven by Global Factors
September 29, 2015--Firm borrowing has quadrupled in past decade
Low interest rates, investor search for higher returns play role
Emerging markets must prepare for higher interest rates
Debt levels of firms in emerging market economies have risen, particularly in construction, and oil and gas, due to low interest rates in advanced economies, as well as other global factors, according to new research from the International Monetary Fund.
Low interest rates in advanced economies such as the United States, Europe, and Japan have encouraged this borrowing. The increase in firms' debt-to-asset ratio, commonly known as leverage, has often included a higher share of foreign-currency liabilities.
Incurring leverage can be beneficial, since it can facilitate investment and thereby faster growth-but it also entails risks.
view the CORPORATE LEVERAGE IN EMERGING MARKETS-A CONCERN?"
Source: IMF
IMF Working Paper-The Impact of Global Liquidity on Financial Landscapes and Risks in the ASEAN-5 Countries
September 29, 2015--Summary: This paper analyzes the transmission of global liquidity to the ASEAN-5 countries (ASEAN-5), including the impact on financial landscapes and risks to financial stability.
It finds that global liquidity transmission and changing financial landscapes have contributed to increases in risks to financial stability in ASEAN-5. Therefore, policymakers in ASEAN-5 should prepare for possible liquidity tightening, strengthen regulation of nonbanks, and establish a comprehensive financial stability framework. A number of couontries are well-advanced in this process.
Source: IMF
S&P: Turkey among most susceptible to emerging market risks
September 29, 2015--Turkey has been grouped among the countries most vulnerable to the global economic trends facing developing markets in recent years, the rating agency Standard & Poor's (S&P) noted on Tuesday.
In a recent report titled "Who's At Risk? Emerging Market Sovereigns Are Facing Adverse Global Trends," the agency said emerging economies are encountering the risk of contraction in the global economy as a result of expectations of a rate hike by the US Federal Reserve, a slowdown in Chinese economic growth and shrinkage in the volume of domestic loans.
Source: Today's Zaman
Market Liquidity Not in Decline, but Prone to Evaporate
September 29, 2015--Low interest rates have supported market liquidity
Changes in market structure make liquidity prone to evaporate in case of shocks
Policymakers need to monitor risks, prepare for normalization of monetary policy
The level of liquidity in financial markets-the ability to buy or sell a large quantity of a financial asset at a low cost in a short time-has not shown a marked decline in most asset classes; however, low interest rates may be masking an erosion of its underlying resilience, according to new research from the International Monetary Fund.
view MARKET LIQUIDITY-RESILIENT OR FLEETING?
Source: IMF
