Global ETF News Older than One Year
IMF Working paper-Why Complementarity Matters for Stability-Hong Kong SAR and Singapore as Asian Financial Centers
July 8, 2014-- Summary: There is much speculation regarding a "race for dominance" among financial centers in Asia, arising from the anticipated financial opening up of China. This frame of reference is, to an extent, a predilection that results from a traditional understanding of financial centers as possessing historical, geographic, and scale economy advantages.
This paper, however, suggests that there is an alternative prism through which the evolution of financial centers in Asia needs to be viewed. It underscores the importance of "complementarity" rather than "dominance" to better serve regional and global financial stability. We posit that such complementarity is vital, through network analysis of the roles of Hong Kong SAR and Singapore as the current leading financial centers in the region. This analysis suggests that a competition for dominance can result in de-stabilizing levels of interconnectivity that render the global "network" as a whole more susceptible to rapid propagation of shocks. We then examine the regulatory and policy challenges that may be encountered in furthering such complementary coexistence.
Source: IMF
Fund managers hold the potential for systemic risk
If they amplify market cycles they contribute to broad-based risk
July 8, 2014--Could fund managers pose a systemic risk? Regulators round the world started to ask the question, and answered "perhaps".
Fund managers' response was: "Cherchez la leverage." Downturns turn into crises when companies have too much leverage, and a small loss can render them incapable of paying their debts. Lehman Brothers would not have gone bankrupt if it had not had so much leverage-and its demise would not have been so damaging had it not inflicted credit losses on others
Source: FT.com
Good returns bring investors back to commodity ETFs
July 8, 2014--The best commodities performance in years has rekindled interest in exchange traded funds that allow investors to trade the price of energy, metals and grains on stock markets.
At one time, some ETFs were so large that critics contended they distorted wholesale markets for food and energy, Assets held in many of the biggest funds have shrunk from their peaks.
Source: FT.com
State Street Global Advisors Appoints Chief Operating Officer of US Intermediary
July 8, 2014--State Street Global Advisors (SSgA), the asset management business of State Street Corporation, has announced the appointment of Nick Good to senior managing director and chief operating officer of the US intermediary business. Good joins from BlackRock, where he served as head of strategy and business development for the Asia-Pacific region.
In this newly created position, Good will be responsible for overseeing sales and business strategy, as well as driving intermediary business growth through new and existing channels.
Source: State Street Global Advisors
Germany Gets 80 Billion-Yuan Investor Quota for China
July 7, 2014--China awarded Germany a quota of 80 billion yuan ($12.9 billion) that will allow domestic investors to buy securities in China under the Renminbi Qualified Foreign Institutional Investor program.
The quota was announced during a visit by Chancellor Angela Merkel to China to meet Premier Li Keqiang and President Xi Jinping, according to a Chinese government website statement today.
Bloomberg
State Street moving ETF range from France to Ireland
July 7, 2014--State Street Global Advisors is set to redomicile 13 of its exchange traded funds from France to Ireland, according to a person familiar with the situation.
The US giant registered 15 ETFs in Ireland in May, which include 13 funds already authorised in France, Ignites Europe has learnt.
Source: FT.com
BlackRock ETP Landscape: Strong June caps best quarter in 5 years
GLOBAL ETPS GATHER $36.3BN IN JUNE TO PROPEL YEAR-TO-DATE FLOWS AHEAD OF 2013 PACE
July 7, 2014--Year-to-date global ETP flows of $123.9bn were up 25% vs. the first half of last year following a Q2 total of $90.6bn that exceeded any quarter in the past 5 years
Fixed income, European equity, Japanese equity and broad-based global/global ex-US equity have been strong contributors so far this year
US equity and EM equity flows have improved after a slow start to the year
June inflows of $36.3bn included the best month of the year for equities with $36.8bn, driven by US, European and emerging markets equity funds
Source: BlackRock ETP Landscape Research
ETFs And ETPs Listed Globally Reached Record 2.64 Trillion U.S. Dollars In Assets At End Q2 2014
According to ETFGI: ETFs and ETPs listed globally reached US$2.64 trillion in assets, a new record high, at the end of Q2 2014
July 7, 2014--ETFs and ETPs listed globally gathered U.S. $34.8 billion in net new assets in June and U.S. $126.6 billion YTD, which outpaces the previous high of U.S. $106.4 billion at this point set in 2012.
Net flows combined with positive market performance during H1 2014 pushed assets in the global ETF/ETP industry to a new record high of U.S. $2.64 Tn invested in 5,359 ETFs/ETPs, with 10,401 listings, from 219 providers listed on 59 exchanges, according to preliminary data from ETFGI's end H1 2014 Global ETF and ETP industry insights report.
Source: NASDAQ OMX
BATS Global Markets June Highlights: Market Share Remains Strong Globally; Company Plans New York, Chicago Expansion
BATS Chi-X Europe Reports 20.3% Market Share
July 7, 2014--BATS Global Markets (BATS) today reported June volume, market share, and monthly highlights:
In the U.S., BATS earned 19.2% U.S. equities market share in June, up from 10.4% a year ago. BATS Options recorded 3.9% market share vs. 3.8% one year ago.
In Europe, BATS Chi-X Europe finished with overall market share of 20.3%. Over the course of the month €308bn was reported to BATS’ trade reporting facility, BXTR. In addition, a further four participants are now reporting to BXTR with Deutsche Bank, Instinet, KCG and Liquidnet now using the service.
On June 9, BATS Chi-X Europe, in partnership with Euroclear Bank, announced the first exchange-traded fund (ETF) listing on BATS- iShares MSCI USA Divident IQ UCITS ETF-with an international securities structure.
On June 26, BATS announced the signing of a 10-year lease renewal at its Kansas City-area global headquarters, as well as plans to open a Chicago office and expand its New York City presence due to the Direct Edge Holdings merger.
Source: BATS Global Markets, Inc
ETF Securities-Precious Metals Weekly-Platinum Breaches US $1,500/oz on Strong Auto Sales and Supply Constraints
July 7, 2014--Platinum and palladium prices hit new 2014 highs. Strong global vehicle sales, coupled
with news of a new strike in South Africa and continued tensions in the Ukraine supported
1.6% and 1.9% gains in platinum and palladium (PGMs) last week.
Gold and silver shrugged off better than expected US unemployment data to settle the week essentially unchanged. The precious metals ended the first half (H1) of the year with solid gains on the back of declining real yields, increasing political tensions, supply constraints and improving industrial demand as global economic recovery has accelerated. Palladium remained the stalwart, with an H1 increase of 18%. Gold and platinum were neck and neck with gains of 9.3% and 9.1% respectively, followed by a 7.0% H1 increase in silver, which roughly matched the 7.1% total return for the S&P 500. Looking forward to H2, more of the same is expected, with the potential risk of a long overdue equity market stumble, notorious for occurring near the end of Q3 or beginning of Q4. Supply demand imbalances should favour further appreciation in silver, platinum and palladium. Gold may fall to the wayside if all attention remains focused on a continued rise in risky assets, but more recent ETP flows indicate some investors are diversifying into gold as a risk hedge as equity volatility levels dip near historic lows.
Source: ETF Securities
