Global ETF News Older than One Year
Big asset managers eye new trading venue
April 11, 2014--Several of the world's largest asset managers are discussing the creation of a joint equity trading venue, in an attempt to end the technological arms race sparked by high-frequency trading firms.
Fidelity, the Boston-based manager with $1.9tn under management, has sounded out rivals about routing their share trades through a central venue that would rival traditional stock exchanges and so-called "dark pools" of liquidity.
Source: FT.com
ETF Securities expands into the Index Business
ETFS Indices LLC Unveils Four Composite Strategy Indices
April 10, 2014--The ETF Securities Group today announced the launch of ETF Securities' Index unit, ETFS Indices LLC. Led by Dan Raab, Head of Indices and Managed Futures, ETFS Indices will design and publish new futures-based indices.
The suite of Commodity Indices launched by ETFS Indices includes four composite strategy indices based on commodity futures prices. Current composite index types include Commodity Carry, Commodity Long-Short, and Commodity Long-Only. ETFS Indices' composite strategies are designed to be liquid and replicable, and useful as tools for portfolio diversification.
Source: ETF Securities
Infographic: Shared Prosperity in Emerging Europe and Central Asia
April 10, 2014--The first decade of the new millennium saw sustained growth of the incomes of the bottom 40% in Emerging Europe and Central Asia, above average GDP growth.
In some countries, however, poorer people have experienced contraction in their incomes, while in others they enjoyed yearly rates above 7%. Going forward, sustained growth of the bottom 40 percent will require structural policies that facilitate access to assets and reconcile equity and growth for all.
Source: World Bank
Capital standard for bank exposures to central counterparties finalised by the Basel Committee
April 10, 2014--The Basel Committee has today published a final standard for calculating regulatory capital for banks' exposures to central counterparties (CCPs).
The final standard will replace the interim capital requirements that were published in July 2012. When developing the final standard- in close cooperation with the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO)- the Basel Committee sought to simplify the underlying policy framework and to complement relevant initiatives undertaken by other supervisory bodies, including the CPSS-IOSCO Principles for financial market infrastructures. The Committee also aimed to support broader policy efforts advanced by the G20 leaders and the Financial Stability Board, particularly those relating to central clearing of standardised OTC derivative contracts.
view the Capital requirements for bank exposures to central counterparties
Source: BIS
IMF Report-The Caucasus and Central Asia: Transitioning to Emerging Markets
April 10, 2014--Summary: The countries in the Caucasus and Central Asia (CCA) have recorded significant macroeconomic achievements since independence. These countries have grown more rapidly-on average by 7 percent over 1996-2011-than those in many other regions of the world and poverty has declined.
Inflation has come down sharply from high rates in the 1990s and interest rates have fallen. Financial sectors have deepened somewhat, as evidenced by higher deposits and lending. Fiscal policies were broadly successful in building buffers prior to the global crisis and those buffers were used effectively by many CCA countries to support growth and protect the most vulnerable as the crisis washed across the region. CCA oil and gas exporters have achieved significant improvements in living standards with the use of their energy wealth.
view the IMF Report-The Caucasus and Central Asia: Transitioning to Emerging Markets
Source: IMF
UBS inks Bloomberg index pact
April 9, 2014--UBS is shifting the management of its commodity indices to data giant Bloomberg, the latest example that large investment banks are reassessing their involvement in an area that has suffered a string of reputational blows.
Bloomberg has formed a strategic partnership with the Swiss bank that will see its index unit become responsible for the calculation, distribution, licensing and governance of the commodity indices, which UBS will continue to own.
Source: Financial News
IMF World Economic Outlook (WEO) - Recovery Strengthens, Remains Uneven, April 2014
April 9, 2014--Global activity has broadly strengthened and is expected to improve further in 2014-15, according to the April 2014 WEO, with much of the impetus for growth coming from advanced economies. Although downside risks have diminished overall, lower-than-expected inflation poses risks for advanced economies, there is increased financial volatility in emerging market economies, and increases in the cost of capital will likely dampen investment and weigh on growth.
Advanced economy policymakers need to avoid a premature withdrawal of monetary accommodation. Emerging market economy policymakers must adopt measures to changing fundamentals, facilitate external adjustment, further monetary policy tightening, and carry out structural reforms.
view the WORLD ECONOMIC OUTLOOK April 2014 Recovery Strengthens, Remains Uneven
Source: IMF
BNY Mellon rejects call to split off asset management arm
April 8, 2014--Bank of New York Mellon faced down shareholder angst over costs, profitability and executive pay at its annual meeting, with Gerald Hassell, its chairman and chief executive, rejecting calls to spin off the company's asset management business
Mr Hassell told investors that such a spin-off had been considered. "We've done the math, we've done it several times, we continue to look at it," he said. "We're not afraid to take action.
Source: FT.com
US warns China over currency depreciation
April 8, 2014--The United States warned Beijing on Monday that the recent depreciation of the Chinese currency could raise "serious concerns" if it signaled a policy shift away from allowing market-determined exchange rates.
Washington has been pressing China for years to allow its currency to trade at stronger values. Last month, US Treasury Secretary Jack Lew welcomed a decision by China to allow its currency to vary more against the dollar in daily trading. Monday's comments by a senior official from the Treasury Department suggested the United States was not completely sold on China's intention to reduce authorities' interventions in exchange markets.
Source: Today's Zaman
STOXX updates rules on country classification
April 7, 2014--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today announced
an update of its country classification rules. The announcement follows a meeting of the STOXX Advisory Board.
The updated rulebook is introduced with immediate effect.
The STOXX country classification model relies on a rules-based methodology, and is the first such concept to exclude any subjective decisions from the process. The five criteria for the classification of a country as a developed or emerging marked include macroeconomic data, market capitalization, market liquidity, free currency convertibility on onshore and offshore markets, and restrictions on capital flows
Source: STOXX
