Global ETF News Older than One Year
IMF Working paper-Impact of Fed Tapering Announcements on Emerging Markets
June 17, 2014--Summary: This paper analyzes market reactions to the 2013-14 Fed announcements relating to tapering of asset purchases and their relationship to macroeconomic fundamentals and country economic and financial structures. The study uses daily data on exchange rates, government bond yields, and stock prices for 21 emerging markets.
It finds evidence of markets differentiating across countries around volatile episodes. Countries with stronger macroeconomic fundamentals, deeper financial markets, and a tighter macroprudential policy stance in the run-up to the tapering announcements experienced smaller currency depreciations and smaller increases in government bond yields. At the same time, there was less differentiation in the behavior of stock prices based on fundamentals.
view the IMF Working paper-Impact of Fed Tapering Announcements on Emerging Markets
Source: IMF
IOSCO Research Department Publishes Securities Markets Risk Survey
June 17, 2014--The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled A Survey of Securities Markets Risk Trends 2014: Methodology and Detailed Results, which provides a detailed analysis of responses to its annual survey on market trends and emerging risks.
The views expressed in this Staff Working Paper are solely those of the IOSCO Research Department and do not necessarily reflect the views of IOSCO or its members.
The survey is an annual exercise formulated to collect the views of financial market regulators and experts globally on emerging trends that are or could be of concern. This edition of the survey was conducted in March 2014 and is based on some 200 responses.
Source: IOSCO
ETF strategy waits to gain in currency
June 17, 2014--While investors have been ploughing money into exchange-traded products over the past few years, niche exchange-traded funds that specialise in currency strategies have proved an exception to the rule.
Net inflows into global ETPs over the past two calendar years amounted to $507.8 billion. However, currency ETPs suffered more than $3.1 billion in outflows over the same period, and a further $918 million had been withdrawn this year by May, according to consultancy ETFGI.
Source: Financial News
Smart beta: A deeper look at asset owner usage and perceptions-findings from Russell's global survey
June 16, 2014--Overview:
Smart beta poses an interesting opportunity and challenge for assert owners, managers and consultants as the industry discussion continues to evolve. In January 2014, Russell's index business conducted a survey of approximately 200 institutional asset owners with at least $200 million in assets under management(AUM) in North America and Europe.
The goal was to better understand perceptions and adoption of smart beta within this important investor population. The survey intentionally recruited equity investment decision-makers across a broad spectrum of AUM and at different stages in their evaluation of smart beta.
So what did Russell learn? Smart beta is here to stay.
Source: www.financiallibrary.co.uk
Nomura Hires Etf Securities Emea Distribution Head
June 13, 2014--The Japanese bank has also hired a new head of equity sales and a global head of execution services and equity trading in London this year.
Source: Financial News
OECD G20 GDP growth, first quarter of 2014
G20 GDP growth steady at 0.8% in first quarter of 2014
June 12, 2014--Quarterly Gross Domestic Product (GDP) in the G20 area grew by 0.8% in the first quarter of 2014, the same rate as in the previous quarter, according to preliminary estimates.
Among G20 economies, India recorded the strongest growth at 2.1%, compared with 1.1% in the previous quarter. GDP growth slowed in China and Indonesia but remained strong at 1.4% and 1.2%, compared with 1.7% and 1.3% respectively in the previous quarter. In other BRIICS countries growth remained relatively weak.
In Brazil, GDP grew by 0.2% in the first quarter, a deceleration after a growth of 0.4% in the previous quarter. In South-Africa, GDP slowed significantly, contracting by (minus) 0.2% compared with an expansion of 0.9% in the fourth quarter.
Among the OECD-countries, Turkey (1.7%) and Japan (1.6%) experienced the highest growth rates in the first quarter, although in the case of Japan this is partly due to advance expenditure prior to the April increase in the consumption tax. In Australia, Germany and the United Kingdom, GDP growth accelerated to 1.1%, 0.8% and 0.8% respectively, compared with 0.8%, 0.4% and 0.7% in the fourth quarter of 2013, while growth remained unchanged at 0.9% in Korea.
Source: OECD
Emerging Markets Face Tough Climb Back to Past Growth Levels
June 12, 2014--Structural factors weigh on emerging market growth
External environment less supportive, but impact varies by country
Countries need to rethink growth engines, focus on structural reforms
As the global environment turns less supportive and productivity gains of the last decade fade, growth in emerging markets will have to come from new engines, supported by a new wave of structural reforms, a new IMF study says.
Emerging Markets in Transition: Growth Prospects and Challenges sheds light on the factors behind last decade's strong performance in emerging economies and how the ongoing global transitions will affect their prospects going forward. It builds on the April 2014 World Economic Outlook that looked at the role of external and domestic drivers of growth in emerging economies and the discussions that took place during last fall’s conference on the same topic.
view the Emerging Markets in Transition: Growth Prospects and Challenges report
Source: IMF
IOSCO Intensifies work on Market-Based Finance
June 12, 2014--The Board of the International Organization of Securities Commissions (IOSCO) met in Madrid this week to drive forward IOSCO's work on market-based finance.
Chairman Greg Medcraft said 'Capital markets are emerging as a key source of the finance needed across the globe to drive economic growth. Through a work agenda focused on fostering markets as a trusted source of capital, IOSCO is playing an important role in supporting that growth.'
During the week the Board, comprising 32 members from both developed and growth and emerging markets, discussed progress on a number of key initiatives.
On initiatives to support the G20-FSB efforts to restore stability in the global financial system and build economic growth, the Board progressed:
Methodologies for identifying non-bank global systemically important financial institutions or activities in the areas of asset management and market intermediaries.
he role capital markets and securities regulators can play in supporting long-term finance, including infrastructure investment and SME financing.
The implementation of IOSCO Principles on Financial Benchmarks, the IOSCO Principles for Oil Price Reporting Agencies and the IOSCO Principles for the Regulation and Supervision of Commodity Derivatives Markets.
Source: IOSCO
MSCI leaves Chinese stocks out of indices
June 11, 2014--MSCI has chosen not to press ahead with a controversial plan to add mainland Chinese equities to its global benchmark indices, while South Korea and Taiwan will no longer be considered for a developed markets ranking.
The inclusion of mainland Chinese equities in global benchmarks would have been a major milestone in the opening up of China's financial markets.
Source: FT.com
Euronext stock market set for ICE spin-off
June 11, 2014--US stock market operator ICE began spinning off the pan-European market Euronext on Tuesday in an operation which could raise 1.75 billion euros and will leave three main operators fighting for business in Europe.
ICE said on Tuesday that shares in the newly floated entity would be issued at 19-25 euros, valuing Euronext at 1.33-1.75 billion euros ($1.8-2.37 billion).
Source: Daily Times
