Global ETF News Older than One Year
ICAP Seeks CFTC Oversight of London Swap-Trading Amid U.S. Suit
January 31, 2014--ICAP Plc (IAP) is seeking U.S. oversight of an overseas swap-trading platform a month after Wall Street lobbying groups sued the Commodity Futures Trading Commission trying to curb the agency's international reach.
ICAP, the world's largest broker of transactions between banks, wants to register a London-based platform with the CFTC to follow Dodd-Frank Act rules for swap-execution facilities and provide access to U.S. traders, according to an application submitted this month. The brokerage is the first large Sef platform to seek U.S. approval for an overseas-based entity.
Source: Bloomberg
Rules and regulations dog ETF managers
January 31, 2014--The reforms of regulation standards needed after the financial crisis have placed a heavy burden on the exchange traded funds industry.
Although ETFs performed well throughout the crisis, with none of the problems associated with more complex financial products such as credit default swaps, ETF providers have found their operations and business models subjected to much greater scrutiny.
Source: FT.com
EU meets with CFTC to contest Gensler cross-border derivatives measures
January 301, 2014--IN BRIEF
A European delegation planned to meet Thursday with US derivative
regulators to try to get them to reverse some of the final cross-border
trading measures approved by Gary Gensler, former US Commodity Futures
Trading Commission chairman.
The planned Washington meeting with CFTC staff followed higher-level discussions in Brussels last week between Acting CFTC Chairman Mark Wetjen and Jonathan Faull, the European Commission's top civil servant for financial services policy
Source: MLex
ESMA delivers second set of advice on EMIR equivalence
January 30, 2014--Following its technical advice published on 9 September 2013, the European Securities and Market Authority (ESMA) has published a supplement to its advice to the European Commission on the equivalence of the regulatory regime for central counterparties (CCPs) of Japan with the European Markets Infrastructure Regulation (EMIR).
This supplement to the September 2013 Final report sets out ESMA's advice to the European Commission is in respect of the equivalence between the Japanese regulatory regime for commodity CCPs and the regulatory regime for CCPs under EMIR.
Source: ESMA
Economic danger lurks in China's shadow banks
The rescue puts off the immediate threat but raises the stakes, writes Simon Rabinovitch
January 31, 2014--Of all the economic dangers to flare up over the past week, the most unsettling was at first glance also the most esoteric: the near default of a high-yield loan product held by a few hundred small-time Chinese investors.
Set against the turmoil in other emerging markets -steep currency falls in Turkey and South Africa that prompted their central banks to raise interest rates, stubbornly high inflation in India and a collapsing currency in Argentina...
Source: FT.com
SPDR gold ETF sees more purchases but still too early to see trend
For the second time in the last fortnight, the SPDR gold ETF saw an increase in gold purchases. We need evidence of move from sales to purchases for a while, before it can be confirmed as a trend change.
January 30, 2014--In the markets, the New York gold price rose yesterday to $1, 269.80 from $1, 254.10 at the close on Wednesday. Asia took it back down to $1, 259.00 ahead of the opening in London. London took it down to $1, 258.20 ahead of the Fix.
The dollar traded stronger at $1.3600 down 0.64 of a cent. It Fixed at $1, 254.00 down $0.75 on Wednesday. In the euro, it Fixed at &euro922.194 up &euro4.308 reflecting a stronger dollar which stood at $1.3598. Ahead of the opening in New York gold stood at $1, 254.40 and in the euro at &euro921.84.
Source: MineWeb
S&P Emerging Markets Domestic Demand Index Launched by S&P Dow Jones Indices
January 30, 2014--S&P Dow Jones Indices today announced the launch of the S&P Emerging Markets Domestic Demand Index which is designed to measure the performance of companies that capture a major engine of growth within the emerging markets- domestic demand.
To qualify for membership in the S&P Emerging Markets Domestic Demand Index, a stock must be a publicly traded company domiciled and incorporated in the following emerging market countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Thailand, or Turkey, and be listed on the primary stock exchange of its respective country.
Source: S&P Dow Jones Indices
NASDAQ OMX Launches Integrated Pre- and Post-Trade Risk System
January 29, 2014-Nasdaq now has integrated its pre- and post-trade risk management into a single platform.
The platform, dubbed TradeGuard, has bundled the multiple risk management services into a single system making it easier for the buyside to use.
TradeGuard is a full-service risk management suite that allows customers to pick and choose from a broad product suite for a range of trade support, from building a custom risk solution to simply filling in gaps in a current solution. In addition to the current enterprise and Nasdaq OMX exchange risk tools available, the new suite also features monitoring for new markets and asset classes, improved gateways, and supplemental risk monitoring systems.
Source: Securities Technology Monitor
IOSCO Publishes Recommendations Regarding the Protection of Client Assets
January 29, 2014--The International Organization of Securities Commissions (IOSCO) today published the final report on Recommendations Regarding the Protection of Client Assets, which seeks to help regulators improve the supervision of intermediaries holding client assets.
Events such as the Lehman Brothers and MF Global insolvencies have placed client asset protection regimes in the spotlight. This is the result of investors trying to better understand the potential implications of placing their assets with particular intermediaries and in certain jurisdictions. Regulators also have been seeking to address risks to client assets and how to transfer or return client assets in default, resolution or insolvency scenarios.
Source: IOSCO
BMO Financial Group to Acquire F&C Asset Management plc
Excellent strategic, financial and cultural fit
January 28, 2014--F&C is a diversified U.K.-based investment manager with a strong brand and almost 150-year history
Consistent with BMO's stated intention of growing its wealth management business and demonstrates BMO's commitment to the asset management business
BMO Global Asset Management's scale, product set and distribution capabilities will be enhanced; pro forma combined AUM of F&C and BMO Global Asset Management is approximately US$2691 billion (£162 billion)
Complementary distribution and limited product overlap expected to drive future revenue growth
The acquisition, valued at C$1.3 billion (£708 million), is modestly accretive2 to earnings per share in the first year, and has an internal rate of return of approximately 15%
Source: BMO Financial Group
