Global ETF News Older than One Year
CPMI-IOSCO Begins Review of Stress Testing by Central Counterparties
March 11, 2015--The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) announced today that they are undertaking a review of stress testing by central counterparties (CCPs).
Stress testing is an essential component of risk management by CCPs. The Principles for Financial Market Infrastructures (PFMI), published by the CPMI and IOSCO in 2012, require CCPs to carry out rigorous stress testing to determine the financial resources they need to manage both credit and liquidity risk, including a wide range of stress scenarios covering a variety of extreme but plausible market conditions.
Source:IOSCO
Deutsche Boerse and BSE extend cooperation
March 10, 2015--Eurex and Bombay Stock Exchange (BSE) have further extended their strategic cooperation offering connectivity services of Deutsche Börse to certain overseas market participants.
As of Q2 2015, participants of BSE will be able to use Deutsche Börse's resilient and low latency N7 network services to connect to BSE back-ends in India via the respective Deutsche Börse Access Points (data centers) in the two major financial centers Hong Kong and Singapore.
Source: Deutsche Börse
Global ETF assets approach $3 trillion as industry turns 25
March 10, 2015--Assets invested in ETFs/ETPs globally are just shy of the $3 trillion mark, having reached a new record high of $2.92 trillion at the end of February 2015, according to data from ETFGI.
There were $50.7 billion in net new asset inflows in February, the second largest month on record.
Source: etfstrategy.co.uk
ETF Securities Research-Precious Metals WeeklyPunchbowl Takeaway Risk Deflates Most Assets-
March 9, 2015--Precious metals (PMs) decline with most asset classes on increased fed tightening fears. Good news for Main Street was bad news for investors as better than expected US
unemployment data bucked the weaker than expected data trend, increasing fed tightening expectations. Only palladium gained on the week, as gold declined 3.9%, giving back its
2015 gain.
Fed funds futures 12-months out, dropped to the lowest level since April 2010, increasing FOMC tightening expectations to about 70bps by the end of March 2016 (chart below). Before Friday's unemployment number, the Citi US Economic Surprise Index reached the lowest level since July of 2012, despite a widely expected boost from lower oil prices. Adding to PM pressure was strength in the US dollar, which reached the highest level since Sept. 2003 (US Dollar Index). Accentuating increasing currency volatility, in Euro currency terms, gold declined only 0.7% last week as ECB QE will commence this week. US QE supported the stock market rally which now appears rather vulnerable. Although gold and silver remain under pressure, they should be primary beneficiaries if stock market volatility continues to normalize, notably if fed rate hike expectations turn out to be a misfire.
Source: ETF Securities Research
UPDATE 1-EU court upholds blocking of Deutsche Boerse/NYSE Euronext merger
March 9, 2015--A European Union court upheld on Monday the European Commission's decision in 2012 to block a planned merger of Deutsche B€erse and NYSE Euronext.
The Commission blocked the deal to create the world's biggest stock exchange because it said it would have created a "near monopoly" in European financial derivatives.
Source: Reuters
NYSE, LSE seen as possible targets for China's Stock Connect
March 9, 2015--Industry experts expect that exchanges in London, New York and elsewhere have been in talks with China about establishing Stock Connect-type trading links.
"I would find it amazing if the [New York Stock Exchange] and [London Stock Exchange] are not way down the line with conversations with China in terms of Connect..
Source: SmartBrief
BlackRock ETP Landscape: February flows surged to $50bn
March 9, 2015--2015 ETP FLOWS OFF TO BEST START EVER AFTER ACCELERATING IN FEBRUARY
Global ETP flows of $50.0bn represented the fourth best month on record and lifted the year-to-date total to $62.3bn, with investors increasingly favoring non-U.S. equity and corporate bonds over relatively safer categories
Pan-European equity exposures brought in a new monthly high of $8.9bn and year-to-date flows have already exceeded the peak from last year, helped by the ECB bond purchase announcement and a weakening euro
Fixed income flows strengthened to $17.8bn led by a new monthly record of $5.2bn for high yield corporate bonds as the search for yield intensified
Source: BlackRock- ETP Research
ETFs: crowd funding
March 9, 2015--If you can't beat them, join them. Exchange traded funds are a growing business and more fund managers want in.
According to ETFGI, a consultancy, ETFs had $2.8tn in assets at the end of January, up by over $1bn since 2010. Worldwide mutual fund assets, by contrast, were $31tn last September; far larger, but up a mere third since the start of the decade...
Source: euro2day.gr
Assets in ETFs/ETPs globally reached a new record high of 2.919 trillion US dollars at the end of February 2015 according to ETFGI
March 9, 2015--Assets invested in ETFs/ETPs globally reached a new record high of US$2.919 trillion at the end of February 2015, according to ETFGI's preliminary monthly ETF and ETP global insight report for February.
March 9th marked the 25th anniversary of the listing of the first ETF in Canada.
ETFs/ETPs listed globally: The global ETF/ETP industry had 5,632 ETFs/ETPs, with 10,902 listings, from 245 providers listed on 63 exchanges in 51 countries. We expect the assets to break through the US$3 trillion milestone in the first half of 2015. There were US$50.7 billion in net new asset (NNA) inflows in February-the second largest NNA month on record.
Source: ETFGI
DECPG Global Weekly-March 6, 2015
March 6, 2015--ECB to begin QE on March 9th as outlook brightens. In line with its quantitative easing (QE) program announced in January, the European Central Bank (ECB) will begin purchasing euro-denominated public sector securities on March 9th,
while continuing the purchase of asset-backed securities and covered bonds that was initiated last year. The combined monthly purchases will amount to &euro60 billion and continue until the end of September 2016, or when there is a sustained
lift in inflation.
Meanwhile, the ECB left interest rates unchanged for a fifth consecutive month and raised the Eurozone growth forecast to 1.5 percent from 1 percent for this year, while that for 2016 was increased to 1.9 percent from 1.5 percent. The harmonized index of consumer prices fell 0.3 percent (y/y) in February, less than the expected fall of 0.5 percent and less than January's 0.6 percent decline.
Gross capital flows to emerging markets have remained robust thus far this year. At US$84 billion, gross capital flows (international bond issuance, equity placements, cross-border syndicated bank loans) to developing countries in the first two months of 2015 were up 12 percent from last year. Bond issuance and equity flows remained strong especially in Asia, reflecting sustained demand for higher-yield debt, relatively low borrowing costs for bonds, and a number of public offerings in China and other East Asian countries.
Source: World Bank
