Global ETF News Older than One Year
EBA, ESMA and EIOPA consult on supervisory practices for financial conglomerates
March 12, 2014--The Joint Committee of the three European Supervisory Authorities (ESAs- EBA, ESMA and EIOPA) launched today a public consultation on its draft Guidelines on the convergence of practices aimed at ensuring consistency of supervisory coordination arrangements for financial conglomerates. This public consultation will run until 12 June 2014.
These Guidelines will enhance the level playing field in the financial market and reduce administrative burdens for firms and supervisory authorities. Their objective is to clarify and enhance cooperation between national competent authorities on cross-border groups that have been identified as financial conglomerates.
The document focuses on how authorities should cooperate in order to achieve a supplementary level of supervision of financial conglomerates. This will serve the purpose of addressing loopholes in present legislation, as prescribed by the FICOD (Financial Conglomerates Directive).
Source: ESMA
Recovery continuing in G7 countries, but emerging economies are mixed, OECD says
March 11, 2014--Recovery is under way in the world's advanced economies, underpinned by supportive financial conditions and reduced drag from budgetary tightening, but activity in the major emerging markets is mixed, according to the OECD's latest Interim Economic Assessment.
The recovery is advancing well in the United States and the United Kingdom, but proceeding more unevenly in Japan and still lagging behind in the euro area. A series of one-off factors- severe winter weather in North America and anticipation of an April 1st rise in Japanese consumption tax- have led to an uneven pace of growth.
Source: OECD
Platinum ETF holdings hit record high
March 11, 2014--Platinum holdings in physically backed exchange-traded funds have hit a record high after fresh inflows into funds listed in London and Johannesburg, and are set to rise further as a strike in major producer South Africa grinds on.
The world's largest platinum-backed ETF, NewPlat ETF reported an inflow of around 4,000 ounces on Monday, taking its holdings to a near seven-week high at 908,811 ounces.
Source: Reuters
CME gets UK approval for London exchange
March 11, 2014--Exchange operator CME Group said on Tuesday it has received regulatory approval for the derivatives exchange it plans open in London.
With the approval of Britain's Financial Conduct Authority, the Recognised Investment Exchange will launch on April 27 and will list commodity products, the company said in a statement. The launch of the exchangevdesigned to provide a one-stop market offering services from trading to clearing has been postponed twice.
Source: Chicago Tribune
Small shine returns to gold ETFs in India
An expected price correction would see a spurt in ETF demand in the first half of 2014, say analysts.
March 11, 2014--Inflows into gold exchange traded funds (ETF) in the global market were positive for the first time since 2012, in January, although in a modest way, and the glitter appears to have returned to gold funds in India which have gained 7.9% on an average in 2014.
In February, the category's assets grew 3.7%, to $153 million (Rs 9.3 billion)' helped by a consistent rise in gold price. Over the first two months of 2014' gold prices have advanced 5.5%.
Source: MineWeb
IOSCO Report Compares, Analyses Prudential Standards in the Securities Sector
March 10, 2014--The International Organization of Securities Commissions (IOSCO) published today the consultation report A Comparison and Analysis of Prudential Standards in the Securities Sector, which undertakes a high level comparative analysis of the key prudential/capital frameworks for securities firms.
The report seeks to highlight similarities, differences and gaps among the different frameworks. IOSCO's objective is to update its 1989 Report on Capital Adequacy Standards for Securities Firms (Capital Standards Report), based on the issues identified in the consultation report published today.
view the IOSCO A Comparison and Analysis of Prudential Standards in the Securities Sector
Source: IOSCO
Pimco: 'urgent' need to build equity arm
March 9, 2014--Pimco's newly appointed chief executive has admitted there is an "urgency" for the world's largest bond house to diversify its business into equities after a year of painful outflows from its fixed income funds.
The bond specialist, which is being battered in the media over what has now become a very public spat between Bill Gross, Pimco's founder, and its departing chief executive, Mohamed El-Erian, haemorrhaged €35.6bn of net cash in the fourth quarter of last year.
Source: FT.com
BIS March 2014 Quarterly Review: Emerging economies respond to market pressure
March 9, 2014--The recent performance of emerging market currencies has reflected the success of central banks in defending exchange rates as well as the political uncertainty in a number of countries. External imbalances, inflation and domestic credit growth have played a much smaller role than during the depreciations in May and June last year.
Cross-border interbank lending fell at an even faster rate in the third quarter of 2013. Banks headquartered in the euro area account for most of the decline after the financial crisis of 2007-09, and Swiss banks for much of the remainder.
The stock of debt securities reached an estimated $100 trillion in mid-2013 on heavy post-crisis issuance by governments and non-financial corporations. Foreign investors hold a smaller share of debt securities than previously, suggesting that the globalisation of portfolios may have gone partially into reverse post-crisis. But the retreat could be temporary.
view the BIS Quarterly Review March 2014-International banking and financial market developments
Source: BIS
Vanguard climbs ETF league table
March 7, 2014--Vanguard has overtaken State Street Global Advisors' SPDR exchange-traded fund unit as the second largest ETF provider in the US for the first time.
The Pennsylvania-based fund manager edged out SPDR with $345.5 billion in ETF assets at the end of February, according to consultancy ETFGI, compared with the Boston-based firm's $344.6 billion
Source: Financial News
DECPG Weekly Brief
March 7, 2014--Gross capital flows to developing countries declined sharply in February 2014 to a five-year low, reflecting the recent
bout of market volatility and a downward correction from exceptionally high volumes of international bond issuances in
January. Mirroring tighter global financing conditions and weaker domestic demand in some cases, real domestic credit
growth decelerated in most developing regions towards the end of 2013.
The reaction of global commodity markets to escalating tensions between Ukraine and Russia has been relatively muted, given the importance of these two countries in wheat, oil and gas markets.
Capital flows to developing countries tumbled in February, with all segments of the market posting sharp declines. Gross capital flows (international bond issuance, cross-border syndicated bank loans, and equity placements) amounted to only $13.9 billion in February, the lowest monthly level since April 2009. After a record $40 billion issuance in January, bond flows dropped sharply to $7.7 billion in February amid increased financial market volatility and on the back of some seasonal effects. Equity issuance remained weak at $2.1 billion as the Chinese IPO rally that started in December faded out. Syndicated bank lending stood at $8.8 billion since January 1, its lowest level since 2005, and down 69% from a year earlier. The decline in global syndicated loan activity is relatively broadly-based, but more marked in Emerging Europe and Sub-Saharan Africa.
Both regions failed to post a single syndicated loan deal this year. Combining January and February data, gross capital flows to developing countries are 30 percent lower than the same period last year-their weakest level since 2010.
Source: World Bank
