Global ETF News Older than One Year
Average daily volume of 11 million contracts at Eurex Group in June
July 1, 2015--In June, the international derivatives exchanges of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 11.0 million contracts (June 2014: 8.0 million). Of those, 8.6 million were Eurex Exchange contracts (June 2014: 6.0 million), and 2.4 million contracts (June 2014: 2.0 million) were traded at the U.S.-based International Securities Exchange (ISE), part of Eurex Group.
In total, 189.8 million contracts were traded at Eurex Exchange and 52.7 million at the ISE in June.
Source: Deutsche Börse
S&P: All That Bond Market Illiquidity is Bad for Bond Funds, But Not Banks
What would a dry spell in the bond market mean for the financial sector?
July 1, 2015--Standard & Poor's,the credit rater, has just published new research on the changing structure of the corporate bond market and its effect on on a wide variety of financial entities.
Bankers, regulators and investors have long been complaining that the ability to buy and sell in the bond market without impacting the prices of securities has deteriorated in the aftermath of the financial crisis.
Source: Bloomberg
Basel Committee issues consultative document on its review of the Credit Valuation Adjustment risk framework
July 1, 2015--A Review of the Credit Valuation Adjustment Risk Framework is being undertaken by the Basel Committee.
The objectives of the review are to (i) ensure that all important drivers of credit valuation adjustment (CVA) risk and CVA hedges are covered in the Basel regulatory capital standard; (ii) align the capital standard with the fair value measurement of CVA employed under various accounting regimes; and (iii) ensure consistency with the proposed revisions to the market risk framework under the Basel Committee's Fundamental review of the trading book.
view the Review of the Credit Valuation Adjustment Risk Frameworkreport
Source: BIS
WisdomTree Announces Plans for Japan Office and Hires Market Veteran Jesper Koll
July 1, 2015--WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, today announced the planned opening of a new office in Tokyo and the appointment of Jesper Koll as Chief Executive Officer of WisdomTree subsidiary WisdomTree Japan K.K.,
to lead the development of WisdomTree's business in Japan.
Source: WisdomTree
REFILE-Flow Traders says seeking to raise at least 472 mln euros from IPO
June 30, 2015--Flow Traders, a Dutch high frequency trading firm, said on Tuesday it was seeking to raise between 472 million euros and 603 million euros ($530 million to $675 million) in its initial public offering, excluding an overallotment option.
It set an indicative price range of 29 euros to 37 euros per share for its initial public offering in which its owners are selling 40 percent of the company.
Source: Reuters
Banks and exchanges turn to blockchain
Wall St lured by efficiency promise of the technology behind bitcoin
June 30, 2015--The blockchain-the technology that underpins bitcoin-has been called "the future for financial services infrastructure".
Now banks, clearing houses and exchanges are becoming increasingly excited at the prospect of blockchain fundamentally transforming their business models.
Source: FT.com
IMF Survey-Strong and Equitable Growth: Fiscal Policy Can Make a Difference
June 30, 2015--Fiscal policies can help boost countries' long-term growth prospects
Complementary structural reforms magnify growth dividends
Social dialogue and attention to equity key to building public support for reform
Amid a recovery from the financial crisis that continues to disappoint and growing fear that the global economy is entering a prolonged period of mediocre growth, a new IMF study says that fiscal policy can actually lift potential growth.
view the policy paper-Fiscal policy and long-term growth
Source: IMF
IMF Working paper-Systemic Risk: New Trade-off for Monetary Policy?
June 30, 2015--Summary: We introduce time-varying systemic risk in an otherwise standard New-Keynesian model to study whether a simple leaning-against-the-wind policy can reduce systemic risk and improve welfare. We find that an unexpected increase in policy rates reduces output, inflation, and asset prices without fundamentally mitigating financial risks.
We also find that while a systematic monetary policy reaction can improve welfare, it is too simplistic: (1) it is highly sensitive to parameters of the model and (2) is detrimental in the presence of falling asset prices. Macroprudential policy, similar to a countercyclical capital requirement, is more robust and leads to higher welfare gains.
view the IMF Working paper-Systemic Risk: New Trade-off for Monetary Policy?
Source: IMF
IMF Working paper-How Does Post-Crisis Bank Capital Adequacy Affect Firm Investment?
June 30, 2015--Summary: We examine the effect of bank capital levels on firm investment drawing on a sample of 11,106 non-financial firms from 2007 to 2013 in 16 advanced economies. We examine two measures of bank capital adequacy, the Tier 1 ratio and a simple leverage ratio, and find that firms with larger external financial needs invest relatively more when domestic financial systems have relatively high leverage ratios.
This pattern is more pronounced for those firms that have sound fundamentals, suggesting that bank balance sheets and their willingness to extend credit can be an important factor in determining aggregate investment and growth outcomes. The empirical findings are robust to a range of specifications. Bank Tier 1 capital ratio does not appear to have a significant effect on corporate investment, possibly because a higher Tier 1 ratio also captures a high share of assets with low risk weights.
view the IMF Working paper-How Does Post-Crisis Bank Capital Adequacy Affect Firm Investment?
Source: IMF
Flow Traders seeks 1.7bn euro valuation from upcoming IPO
June 30, 2015--Flow Traders, the Netherlands-based proprietary trading company, has set a target of up to €1.7bn from its Amsterdam flotation as investors show signs of warming to high-frequency trading.
Source: FT.com
