Global ETF News Older than One Year
CFTC warns EU rules may force tighter US derivatives regulation
November 20, 2014--The US may be forced into tougher regulation on benchmarks as planned stringent European rules may shut out the region's banks and asset managers from US markets, the head of the US derivatives regulator has warned.
Timothy Massad, chairman of the Commodity Futures Trading Commission, told US policy makers this week that there could be "adverse market consequences" from European Commission plans.
Source: FT.com
London Stock Exchange Derivatives Market to offer stock, depositary receipt and index options to US investors
November 20, 2014--US Securities and Exchange Commission (SEC) class no-action relief allows London Stock Exchange Derivatives Market, and its eligible members, to offer certain US investors a number of option contracts
Complements Group's global derivatives offering
Source: London Stock Exchange Group
Saudi CMA Draft Rules to Open Foreign Investment in Listed Shares
November 20, 2014--The Saudi Capital Market Authority (the CMA) has published for consultation its draft rules for Qualified Foreign Financial Institutions-Investments in Listed Shares (the Draft Rules).
Despite the restrictive eligibility criteria imposed by the Draft Rules, their circulation marks a significant move towards the long-awaited opening up of Saudi Arabia's capital markets to foreign investment.
Source: K&L Gates
Returning to a gold standard-why and how
November 20, 2014--Fraser Murrell delves into the history of the Gold Standard and how a modern day version could be put in place.
In the 1600s, Sir Isaac Newton presided over a (bi-metal) Gold and Silver Standard, with the flaw being the fix of silver to gold.
In the 1900s, John Maynard Keynes "revolutionized" economics, with the result being certain economic collapse.
In both cases there was a logical error in the key definition of "price", which is critical to the stability of the economy. This note examines the problem and then goes on to present a workable Gold Standard, which it is argued, is the most stable frame of reference for our economy.
Source: MineWeb
IMF Working paper-The Transmission of Liquidity Shocks: The Role of Internal Capital Markets and Bank Funding Strategies
November 19, 2014--Summary: We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to non-core deposits and wholesale funding, especially during the global financial crisis.
This translates into a reduction in lending to households and non-financial corporates at home and abroad. The effect on domestic lending, however, is mitigated when banks (i) hold a larger buffer of liquid assets, (ii) diversify away from rating-sensitive sources of funding, and (iii) activate internal liquidity support measures. Foreign lending is significantly reduced during a crisis at home only for subsidiaries with weak funding self-sufficiency.
Source: IMF
Nature-Business culture and dishonesty in the banking industry
November 19, 2014--Trust in others' honesty is a key component of the long-term performance of firms, industries, and even whole countries. However, in recent years, numerous scandals involving fraud have undermined confidence in the financial industry. Contemporary commentators have attributed these scandals to the financial sector's business culture, but no scientific evidence supports this claim.
Here we show that employees of a large, international bank behave, on average, honestly in a control condition. However, when their professional identity as bank employees is rendered salient, a significant proportion of them become dishonest.
This effect is specific to bank employees because control experiments with employees from other industries and with students show that they do not become more dishonest when their professional identity or bank-related items are rendered salient.
Surce: Nature
South Africa: Brics On Track to Set Up Development Bank
November 18, 2014--An interim board of directors has been set up by BRICS to lead the next phase to establish the National Development Bank (NDB), an institution similar to the International Monetary Fund that will support the five emerging national economies.
This was announced by BRICS (Brazil, Russia, India, China and South Africa) during an informal meeting on the first day of the G20 Leaders' Summit held in Brisbane, Australia from 15 to 16 November, according to a statement from the South African Department of International Relations and Cooperation (DIRCO).
Source: allAfrica.com
BOOST Short & Leveraged ETFs/ETPs Global Flows Report for October 2014
November 18, 2014--The BOOST October 2014-Short & Leveraged ETFs/ETPs Global Flows Reportis now available.
Source: BOOST
Deciphering Developing Markets-On Developing Markets and Acronyms
Avoiding a Greek Tragedy| How to Invest in Russia
November 18, 2014--On Developing Markets and Acronyms
For some time I have been advocating two changes in terminology with regard to investing in the developing world.
First, it's not helpful to consider acronyms because, in my opinion, they are arbitrary. I've yet to have someone explain to me what relevance the most famous one BRICS has in today's world. None.
Remember last year when we had the Fragile 5 only to be superseded by the Fabulous 5? India somehow, mysteriously jumped from one to the other in the space of a few months. Silly, isn't it?
Source: DMS Funds
Historic rupee bond issued in London
November 18, 2014--The government has welcomed the International Finance Corporation's (IFC) announcement that it has issued an Indian rupee 10 billion bond in London today (Tuesday 18 November).
It is the largest ever rupee bond to be issued on the London Stock Exchange, and is the longest issue ever for an offshore rupee bond with a maturity of 10 years.
Source: Gov.uk
