Global ETF News Older than One Year
ESMA tells firms to improve their selling practices for complex financial products
February 7, 2014-The European Securities and Markets Authority (ESMA) has published an Opinion on practices to be observed by investment firms when selling complex financial products to investors. ESMA is issuing this opinion to remind national supervisors and investment firms about the importance of requirements governing selling practices under MiFID (Markets in Financial Instruments Directive).
ESMA is issuing this Opinion as it is concerned that firms' compliance with the MiFID selling practices when selling complex products may have fallen short of expected standards. The concerns relate mainly to the suitability and appropriateness of complex products that are increasingly within the grasp of retail investors. The Opinion sets out ESMA’s minimum expectations with respect to the conduct of firms when selling complex products to retail investors.
Source: ESMA
Food prices fall for first time in three months-UN agency
February 6, 2014--Global food prices declined for the first time in three months as lower prices for cereals, sugars, oils and meat outstripped gains in dairy values, the United Nations Food and Agriculture Organization (FAO) reported today.
The Rome-based agency said its Food Price Index averaged 203.4 points in January, which is 1.3 per cent below December and 4.4 per cent below January 2013.
The Index measures monthly changes in international prices of a basket of meat, dairy, cereals, oils and fats, and sugar.
Source: UN
DECPG Weekly Brief -February 6, 2014
February 6, 2014--Notwithstanding improving growth prospects for the Euro Area and the United States, a sell-off that started in developing country equity markets spread to high income markets in late January. The equity market sell-off does not
appear to have been caused by the taper itself (globally yields are broadly stable), although taper-related uncertainty may have exacerbated declines.
Currency pressures in mid-2013 and again in early 2014 prompted monetary policy tightening in several large middle-income countries, but real interest rates remain low. The World Bank's latest Commodity Markets Outlook forecasts most non-energy commodity prices to decline for the second year in 2014.
Global equity markets experienced a generalized correction in recent weeks, with high income and developing markets each falling 6 percent since January 22. While the weakness began in developing countries (down 5.8% since January 22), high-income countries’ market losses since January 22 are broadly similar (-5.1% for the U.S. S&P index, -7.7% for the Japanese Topix, and -5.8% for Euro Area stocks). The declines came despite signs of a strengthening in high-income economies, which saw Japan’s manufacturing Purchasing Managers’ index reach a 7-year high in January, and Euro Area PMIs strengthen further. U.S. data is somewhat more mixed with signs of some easing in the pace of activity in January. Notwithstanding recent declines, high-income country markets are 9 percent higher than a year earlier, following extended gains during 2013, while developing markets weakened, bringing total declines since January 2013 to 15 percent. US long-term bond yields have declined by about 30 basis points since the start of the year, and developing country spreads have increased by about 40 basis points-suggesting some flight to quality. However, the two effects mostly cancel one another out, leaving developing-country longterm yields and borrowing costs broadly stable.
Source: World Bank
NASDAQ OMX Reports Record Fourth Quarter 2013 Results
February 5, 2014--Fourth quarter 2013 net revenues1 were a record $520 million, up 23% from the prior year quarter.
On an organic basis, assuming constant currency and excluding acquisitions, net revenues increased 5% year-over-year.
Achieved record fourth quarter non-GAAP diluted EPS of $0.69, which was 8% higher year-over-year. Fourth quarter 2013 GAAP diluted EPS was $0.81.
Achieved organic revenue growth year-over-year in all three non-trading business segments, Information Services, Technology Solutions, and Listing Services.
Non-transaction based revenues were 73% of our total fourth quarter 2013 net revenues, and increased 27% from the prior year quarter.
Both recent acquisitions of eSpeed and the IR, PR, and Multimedia businesses of Thomson Reuters are contributing earnings accretion and progress continues on delivering the synergy potential of both transactions.
Source: NASDAQ OMX
IOSCO Issues Report on Risks and Benefits of Financial Return Crowd-Funding
February 5, 2014--The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled Crowd-funding: An Infant Industry Growing Fast.
The report provides a global overview of the crowd-funding industry along with a mapping exercise of the global regulatory landscape. It seeks to identify investor protection issues and to determine whether crowd-funding poses a systemic risk to the global financial sector. 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.
view the Crowd-funding: An Infant Industry Growing Fast report
Source: IOSCO
MOVES-Credit Suisse, Federated Investors, BNY Mellon
February 5, 2014--The following financial services industry appointments were announced on Wednesday.
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CREDIT SUISSE GROUP AG
The Swiss bank appointed Helene von Roeder as managing director and chief executive for Germany, Austria and Central Europe from Sept. 1. Von Roeder, who was an executive board member at Morgan Stanley's German business, will be based in Frankfurt
Source: Reuters
JPMorgan Said to Pick Mercuria for Commodities Unit Sale
February 5, 2014--JPMorgan Chase & Co. (JPM) entered exclusive talks to sell its physical commodities unit to Mercuria Energy Group Ltd. as the bank seeks to end a five-year foray into owning and storing materials such as metals and oil, according to two people briefed on the matter.
The bid from Geneva-based Mercuria beat offers from Macquarie Group Ltd. (MQG) and Blackstone Group LP (BX), said one person, who asked not to be identified because the discussions are private.
Source: Bloomberg
NASDAQ OMX Reports Record Fourth Quarter 2013 Results
Fourth quarter 2013 net revenues1 were a record $520 million, up 23% from the prior year quarter. On an organic basis,assuming constant currency and excluding acquisitions, net revenues increased 5% year-over-year.
Achieved record fourth quarter non-GAAP diluted EPS of $0.69, which was 8% higher year-over-year. Fourth quarter 2013 GAAP diluted EPS was $0.81.
Achieved organic revenue growth year-ove-year in all three non-trading business segments, Information Services, Technology Solutions, and Listing Services.
Non-transaction based revenues were 73% of our total fourth quarter 2013 net revenues, and increased 27% from the prior year quarter.
Both recent acquisitions of eSpeed and the IR, PR, and Multimedia businesses of Thomson Reuters are contributing earnings accretion and progress continues on delivering the synergy potential of both transactions.
The company paid down $98 million in debt in the period, and the deleveraging plan is on schedule to return NASDAQ OMX to its long-term leverage target by the end of the second quarter of 2014.
February 5, 2014--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the fourth quarter of 2013. Fourth quarter net revenues were $520 million, up from $422 million in the prior year period, driven by both acquisitions and organic growth in Technology Solutions, Information Services, and Listing Services. On an organic basis fourth quarter net revenues increased 5% year-over-year.
Source: NASDAQ OMX
European banks have $3 trillion of exposure to emerging markets
February 4, 2014--European bankshave loaned in excess of $3 trillion to emerging markets, more than four times US lenders and putting them at greater risk if financial market turmoil in countries such as Turkey, Brazil, India and South Africa intensifies.The risk is most acute for six European banks--BBVA, Erste Bank, HSBC, Santander, Standard Chartered, and UniCredit-- according to analysts.
But the exposure could be a headache for the industry as a whole, just as it faces a rigorous health-check by the European Central Bank, aiming to expose weak points and restore investor confidence in the wake of the 2008 financial crisis."We think EM (emerging markets) shocks are a real concern for 2014," said Matt Spick, analyst at Deutsche Bank. "When currency (volatility) combines with revenue slowdowns and rising bad debts, we see compounding threats to the exposed banks."The Deutsche Bank analysts said the six most exposed European banks -which they did not name-had more than $1.7 trillion of exposure to developing markets.In recent weeks, emerging market currencies have come under fire as China's growth slows and the US Federal Reserve winds down its stimulus program, with investors selling developing market assets in anticipation of higher US interest rates.
Source: Todays Zaman
SSGA wins in ETFs despite big gold losses in 2013
February 4, 2014--The old adage win some, lose some takes on a whole new meaning for State Street Global Advisors (SSGA), the asset management unit of the State Street Corporation, for its exchange traded fund (ETF) business in 2013.
The SPDR Gold Shares (GLD), one of SSGA’s flagship products and also the largest gold ETF in the world, declined by 28% during the year, closing at US$116.17 per ounce at yearend. GLD tracks the price of gold and global demand for gold has dropped dramatically with the spot price plummeting to US$1,206 an ounce at yearend from US$1,675 at the beginning of 2013. This is its biggest loss in 33 years.
Source: The Asset
