Global ETF News Older than One Year
Work on the Liquidity Coverage Ratio finalised by the Basel Committee
January 12, 2013--In January 2013, the Basel Committee's oversight body, the Group of Governors and Heads of Supervision (GHOS), agreed the final form of Basel III's Liquidity Coverage Ratio (LCR).
At that time, the GHOS asked the Committee to undertake some additional work on liquidity disclosure, the use of market-based indicators of liquidity within the regulatory framework, and the interaction between the LCR and the provision of central bank facilities. The Committee has completed this work, and has today published a package of material that responds to these requests.
view the Liquidity coverage ratio disclosure standards
Source: BIS
Revisions to the Net Stable Funding Ratio proposed by the Basel Committee
January 12, 2014--The Basel Committee has today issued proposed revisions to the Basel framework's Net Stable Funding Ratio (NSFR), following endorsement by the Committee's governing body, the Group of Central Bank Governors and Heads of Supervision (GHOS).
The NSFR is a key component of the Basel III reforms to promote a more resilient banking sector. It will require that banks maintain a stable funding profile in relation to their on-and off-balance sheet activities. A robust funding structure makes it less likely that disruptions to a bank's regular funding sources will erode its liquidity position in a way that would increase the risk of its failure and, potentially, lead to broader systemic stress. In particular, the NSFR limits over-reliance on short-term wholesale funding, encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability.
view the Consultative Document Basel III: The Net Stable Funding Ratio
Source: BIS
Important steps towards completion of post-crisis regulatory reforms endorsed by Group of Governors and Heads of Supervision
January 12, 2014--At its meeting in Basel today, the Basel Committee's oversight body, the Group of Governors and Heads of Supervision (GHOS), endorsed a number of important steps in the completion of the post-crisis reform agenda.
The GHOS today endorsed proposals from the Basel Committee on a common definition of the leverage ratio, which has been formulated to overcome differences in national accounting frameworks that have previously prevented ready comparison of bank leverage ratios across borders. The fully specified standard will be published by the Committee later today.
Source: BIS
Deutsche Borse deepens push into Asia commodities
January 12, 2014--Deutsche Börse is deepening its push into commodities trading in Asia by taking a majority stake in Cleartrade Exchange, the Singapore-based commodity derivatives bourse.
The German exchange operator has bought a 52 per cent stake in Cleartrade via its European Energy Exchange (EEX) subsidiary. EEX paid cash for the controlling stake but further details of the transaction, which closed at the end of December, were not disclosed. Regulators in Singapore and Europe have approved the purchase.
Source: FT.com
SPDR Weekly Report
January 10, 2014--Weekly Market Report
ECONOMIES: Employment disappoints in both the US and Canada. The Bank of England leaves policy unchanged. The European Central Bank also remains on hold but strikes a decidedly dovish tone. Retail sales rise solidly in Australia.
MARKETS: Federal spending authority runs out next week in the US but investors don't appear worried. Equities are mixed. Government bonds have caught a bid. CAD is notably weaker. Oil prices change little.
NEXT WEEK PREVIEWED
SPOTLIGHT: Retail sales and industrial production will likely rise moderately in the US, while housing starts will probably fall.
Inflation likely remains benign in the US and UK and extremely low in France. Job creation probably remains sluggish in Australia.
THE WEEK IN REVIEW
US
The MINUTES OF THE DECEMBER FED POLICY MEETING reveal a
Committee that is now sufficiently confident about the
economy's prospects to begin tapering, but remains keenly
aware of the downside risks, and especially eager to prevent
any premature tightening from the bond market by stressing a
gradual and data dependent approach:
"[Participants] generally indicated that the broad contours
of their outlook for real activity, the labor market, and
inflation had not changed materially since their October
meeting, but most expressed greater confidence in the
outlook and saw the risks associated with their forecasts
of real GDP growth and the unemployment rate as more
nearly balanced than earlier in the year."
Moreover:
"... most members agreed that the cumulative
improvement in labor market conditions and the likelihood
that the improvement would be sustained indicated that
the Committee could appropriately begin to slow the pace
of its asset purchases at this meeting."
However:
"...members also weighed a number of considerations
regarding such an action, including their degree of
confidence in prospects for sustained above-potential
economic growth, continued improvement in labor
market conditions, and a return of inflation to its...
For more information, including product fact sheets and related whitepapers, visit spdrs.com.
Source: SSgA
EPFR Global News Release- Pendulum swings towards Bond Funds during the first week of the New Year
January 10, 2014--In contrast to the first full week of 2013, when record setting flows into Funds EPFR Global-tracked Emerging Market and Global Equity kicked the 'Great Rotation' narrative into high gear, the New Year kicked off with Bond Funds posting their biggest weekly inflow since early May while Equity Funds recorded modest net redemptions.
Among the fund groups that carried on where they left off in 2013 were Japan and Europe Equity Funds, with flows into the former hitting levels last seen in mid-2Q13 and the latter extending their current inflow streak to 28 consecutive weeks, and Europe Bond Funds which recorded their biggest inflow in over eight months. Emerging Markets Equity Funds, Commodities Sector Funds and Municipal, Mortgage Backed and Inflation Protected Bond Funds, meanwhile, remain out of favor with investors.
Visit www.epfr.com for more info
Source: EPFR
BlackRock ETP Landscape: 2013 Equity Flows All-Time High
January 10, 2014--Robust ETP flows in December mark strong 2013 with Equity ETPs reaching all-time record.
Global ETP flows accelerated in December to $24.7bn, following the Fed's decision to begin trimming its
$85bn monthly bond-buying program. This removed market uncertainty and Equity ETPs responded, bringing in the bulk of the inflows for the month at $28.9bn-entirely from Developed Markets.
Full-year Equity ETP flows set an all-time record at $247.3bn, overtaking 2008 which was the only other year they had exceeded $200bn.
Total 2013 flows of $235.5bn surpassed $200bn for the second consecutive year, underscoring the industry's continued secular growth.
Source: BlackRock ETP Landscape Research
Nomura appoints Todd Sandoz as Global Head of Execution Services and Equity Trading
January 10, 2014--Nomura, Asia's global investment bank, today announced the appointment of Todd Sandoz as Global Head of Execution Services and Equity Trading.
Based in London, Mr. Sandoz will report to Steve Ashley, Head of Global Markets, and Naoki Matsuba, co-Head of Global Markets. The global Execution Services business comprises Equity Execution Services including Instinet, Prime Services, Electronic Trading, Futures and Options and OTC Clearing
Source: Nomura
Funds With $100 Billion May Be Too Big to Fail, FSB Says
January 9, 2014--Investment funds that manage more than $100 billion in assets may be labeled too big to fail, global regulators said, as they seek to expand financial safeguards beyond banks and insurers.
Hedge funds with trading activities exceeding a set value of $400 billion to $600 billion would also be assessed by national authorities to gauge whether they need extra rules because their collapse could spark a crisis, the Financial Stability Board said in a statement yesterday.
Source: Bloomberg
Euronext bolsters senior management ahead of summer listing
January 9, 2014--European exchange operator Euronext, now owned by U.S. group IntercontinentalExchange (ICE.N), made several senior appointments on Thursday to strengthen its leadership ahead of a stock market listing later this year.
Euronext, which operates exchanges in Paris, Amsterdam, Brussels, London and Lisbon, named Anthony Attia, formerly senior vice president and chief of staff to Euronext Chief Executive Dominique Cerutti, as chief executive of Euronext Paris.
Source: Reuters
