Global ETF News Older than One Year
Dow Jones-UBS Commodity Index Market Attributes Report: Commodities Market Performance In December 2013 And Year-End
January 6, 2014--Key Highlights
The DJ-UBS Commodity Index returned 1.2% in December, with YTD returns down 9.5%.
Energy and industrial metals were the best-performing sectors in the index MTD, up 5% and 4.9%.
Grains and precious metals were the worst-performing sectors in the index MTD, down 3.9% and 3.7%.
Market Snapshot
The DJ-UBS Commodity Index was up 1.2% MTD but closed the year down 9.5%, marking its third annual decline. Soybeans, soybean meal, cotton, and crude (Brent and WTI) were positive YTD but only eight commodities closed the year on a positive note out of the 22 commodities that compose the index.
In 2013, commodities in general and gold specifically were pressured by a government shutdown, a strengthening economy, lower-than-expected inflation and concerns over the growth in the Chinese economy.
Source: Dow Jones S&P Indices
EPFR Global Fund 2013 Review
January 3, 2014--China Fund flows surge as record setting year for Developed Markets Equity Funds winds down
A year that saw most EPFR Global-tracked Emerging Markets Equity and Bond Funds struggle despite rising risk appetite ended with China Equity Funds absorbing over $1.5 billion during the 10 days ending Dec. 30 while Developed Markets Equity Funds added to their already record setting inflow totals and Bond Funds overall recorded modest outflows.
"Bar the possibility of another fight over the US debt ceiling and the impact of the hike in Japan's sales tax in 2Q14, there isn’t too much on the immediate horizon that is likely to shake fund flows out of their current pattern," observed EPFR Global Research Director Cameron Brandt. "Investors have had plenty of time to prepare for the tapering of QE3, there's a two-year budget deal in place in the US, monetary policy in Japan and the Eurozone is expected to remain largely unchanged, tensions in the Middle East have eased and China is expected to maintain a growth rate around 7.5%.
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Source: EPFR
Eurex acquires stake in Taiwanese futures exchange TAIFEX
Existing strategic partnership strengthened by acquisition
January 3, 2013--Eurex Zürich AG, a subsidiary of Deutsche Börse AG, is becoming a minority shareholder of the Taiwanese futures exchange TAIFEX.
Subject to regulatory approval by the Taiwanese authorities (Investment Commission, Ministry of Economic Affairs), Eurex will acquire a 5-percent stake in TAIFEX from Yuanta Financial Holdings. The agreed purchase price is 47 million US dollars. The Yuanta Group will remain a shareholder in TAIFEX after the planned sale of the 5-percent stake.
"With this acquisition we are strengthening our strategic partnership with TAIFEX. Jointly, we want to contribute to the internationalization of the Taiwanese financial market. For us, this step is a further milestone in implementing Deutsche Börse Group's Asia strategy. TAIFEX is excellently positioned, especially in Greater China, for the future internationalization of the derivatives markets," explained Andreas Preuss, Eurex CEO and Deputy CEO of Deutsche Börse AG.
Source: Eurex
Total trading volume at Eurex Group at 2.2 billion contracts in 2013
Total trading volume at Eurex Group at 2.2 billion contracts in 2013
Average daily volume approximately 8.6 million contracts
January 2, 2014--
The international derivatives markets of Eurex Group ended 2013 with a turnover of approximately 2.2 billion contracts (2012: 2.3 billion contracts).
The total volume for 2013 splits into 1.6 billion contracts traded at Eurex Exchange (2012: 1.7 billion) and 639 million contracts traded at the International Securities Exchange (ISE) (2012: 63,2 million). This corresponds to a daily average trading volume of 8.6 million contracts, thereof 6.1 million contracts at Eurex Exchange and 2.5 million contracts at ISE.
At Eurex Exchange, the equity index derivatives segment was the largest in 2013 with a total yearly volume of 644.8 million contracts (2012: 765.6 million). Derivatives on the EURO STOXX 50® index were the largest single product with 268.5 million futures and 225.1 million options. The equity derivatives segment (options and single stock futures) saw 382.2 million contracts (2012: 411.0 million). In 2013, the interest rate derivatives segment reached a total of 509.6 million contracts (2012: 470.4 million).
Source: Eurex
ETF assets could overtake hedge funds this year
January 2, 2014--Exchange traded funds are poised to overtake hedge funds in 2014, according to S&P Dow Jones Indices.
S&P Dow Jones Indices director of index investment strategy Tim Edwards argues that assets held in ETFs could come to outweigh hedge funds later this year if current trends continue.
Source: FundWeb
NASDAQ OMX and Borsa Istanbul Sign Landmark Deal
NASDAQ OMX to deliver its most advanced suite of technologies and advisory services
Borsa Istanbul, in partnership with NASDAQ OMX, to build world-class capital markets hub for Eurasia region, to have regional reselling rights and to develop multiple new platforms
NASDAQ OMX to take equity stake in Borsa Istanbul
December 31, 2013--NASDAQ OMX Group (Nasdaq:NDAQ) and Borsa Istanbul A.S. have today concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul.
Key aspects of the agreement include the provision of NASDAQ OMX's most advanced and complete selection of market technology solutions and advisory services, based on the globally market-leading Genium INET suite and all associated platforms and applications, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul.
Source: NASDAQ OMX
Gold miners braced for cuts in reserves after plunge in prices
December 29, 2013--The gold mining sector is braced for asset writedowns and a fall in the amount of reserves in the ground after the precipitous drop in the price of the metal this year.
Some of the world's largest gold miners face having to tell investors that their growth has gone into reverse because the falling price has made it uneconomic to mine some of the areas previously classed as reserves.
Source: FT.com
Russian, Chinese and Gulf state firms enter commodity trading to control pricing
December 30, 2013--As US and European banks dropout of commodity trading, Russian, Chinese and Gulf state firms are filling the gap in an attempt to exert greater control over the pricing of the raw materials on which their economies so heavily depend.
Last week, the Kremlin oil champion Rosneft bought the oil trading unit of Morgan Stanley, one of the largest and oldest trading desks on Wall Street, as banks reduce exposure to trading.
Source: Economic Times
Little glitter for gold in 2014
December 27, 2013--At the end of each year since 2001 anyone with gold in their investment portfolio would have had reason to smile.
The price of the metal rose every 12 months, from $271 a troy ounce to $1,670 an ounce by the end of 2012, a spectacular bull run.
Source: FT.com
Islamic Banks, Stuffed With Cash, Explore Partnerships in West
December 25, 2013--A noted Muslim law scholar, Yusuf DeLorenzo, recently pored through the books of Continental Rail, a business that runs freight trains up and down the East Coast.
Along with examining the company's financial health, Mr. DeLorenzo sought to make sure that the rail cars didn't transport pork, tobacco, or alcohol. He was brought in by American investment bankers who want to take rail cars bought by Continental Rail and package their leases into a security.
Source: New York Times
