Global ETF News Older than One Year
Key legal framework laid for China-initiated AIIB
June 29, 2015--Delegates of the 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) on June 29 gathered in Beijing for the agreement signing ceremony, which will lay the legal framework for the China-initiated multilateral institution.
The 60-article agreement outlined the financial share of each member, policymaking, business and operational systems, and governance structure. The AIIB is designed to finance infrastructure building in Asia.
Source: www.gov.cn
MSCI says China faces "massive job" to join A-shares index
June 29, 2015--MSCI Inc said on Monday China's securities reglator faces a "massive job" to coordinate the changes needed for domestic shares to be listed in its key emerging markets index.
"It's not a simple issue-they have to coordinate nine ministries...so don't underestimate how difficult this task is," Chris Ryan, head of Asia Pacific at MSCI, told an investor conference in Hong Kong.
Source: Reuters
Nasdaq Launches Index Calculation System for Marketplaces
Offering gives exchanges index producer capabilities, opportunities for new revenue streams
Singapore Exchange to leverage technology to boost index services offering
June 29, 2015--Nasdaq (Nasdaq:NDAQ) announced today the launch of the Nasdaq Index Calculation System, a standalone solution that provides marketplaces with a highly flexible index calculation platform to compute multi-asset, multi-currency indexes.
The system enables exchanges to operate and administer index calculations in-house, which gives them the flexibility to define and create unique products while maintaining operational control and controlling IP ownership over the marketplaces' indexes.
Source: Nasdaq.com
BIS Renews Call for Tougher Fund Rules Amid 'New Risks'
June 28, 2015--Asset managers who pick up the credit business that banks are shunning create new risks to financial stability because they fuel bubbles and may amplify potential stress, the Bank for International Settlements said.
Regulators should consider restricting asset managers' ability to shift investments quickly, capping,leverage and introducing liquidity buffers, as well as limiting rapid redemptions, the BIS said in its annual report published on Sunday.
Source: Bloomberg
The wasteful regime fund managers are loath to dump in the skip
June 28, 2015--Milton Friedman defined the most wasteful form of expenditure as one where an individual spends another person's money on some third party.
The economist wasn't thinking about asset management when he made the observation. But he might have been.
His bon mot pretty much sum up the way fund managers operate: charging clients to manage their money and then dipping into customers' funds freely to buy the services needed to do the job.P>view more
Source: FT.com
Morgan Stanley Weighs New Bond-Trading Push
Firm weighs new effort in fixed-income trading to help hit profit targets after postcrisis retreat
June 28, 2015--After years of ratcheting back trading operations in favor of more stable businesses, Morgan Stanley is quietly plotting a comeback.
The Wall Street firm is pushing for more fixed-income trading business, where it lost billions of dollars during the crisis and historically suffered from bad timing.
Source: Wall Street Journal
Don't let the unthinkable become the new normal, says BIS in 85th Annual Report
June 28, 2015--"There is something deeply troubling when the unthinkable threatens to become routine,"" writes the Bank for International Settlements (BIS) in its 85th Annual Report, released today.
In its main economic review of the year, the BIS calls for a shift to a longer-term focus in policymaking, with the aim of restoring sustainable and balanced growth.
The global economy has been growing not far away from historical average rates. Lower oil prices have provided a welcome boost, and dollar appreciation has shifted growth momentum from stronger to weaker economies. But the global expansion remains unbalanced, debt levels and financial risks are still too high, productivity growth is too low, and the room for manoeuvre in macroeconomic policy has continued to narrow.
view the BIS-85th Annual Report, 2014/15
Source: BIS
Legg Mason Is Poised to Run
June 27, 2015--After seven straight years of outflows, Legg Mason is bringing in money and its share are on the rise.
Legg Mason's share price has doubled in three years, to about $52. Past performance, as asset managers frequently remind, doesn’t guarantee future returns.
Source: Barrons's
That Russelling is the sound of indices being realigned
Annual recasting of listings has traders scrambling to keep up with-and game-the market
June 26, 2015--As I write this, in New York on the morning of Friday June 26, stock market traders are locked in to what they know will be the heaviest trading day of the year.
The headlines as US equity traders reached their desks-horrific terrorist attacks with high death tolls across the world, another cliffhanger in the Greek debt negotiations and a 7 per cent fall for Shanghai stocks bringing China into a bear market-might be enough to force a bad day on the stock market.
Source:FT.com
The BIS on ETFs and bond market liquidity
June 26, 2015--The latest BIS Annual Report,released on Sunday, cites numerous concerns about the unseen damage being caused to financial stability on account of ultra-low interest rates.
Key among those concerns: how liquidity-guaranteeing ETFs in the bond sector may be contributing to a global liquidity illusion, disguising the true state of the ability to trade positions on the bond market...
Source: FT.com
