Global ETF News Older than One Year
China seeks world role for 'people's money'
November 6, 2013--With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar.
The most attention-grabbing reform planned for Shanghai's new free trade zone is free convertibility of the yuan-also known as the renminbi, or "people's money"- an unprecedented change which would allow greater use of the currency.
Source: FIN24
Market Vectors China ETF (PEK) Seeks Direct A-Share Exposure Through RQFII Subadvisor
First-of-its-kind ETF has longest track record in its investment category and expects to incorporate physical-based exposure to Chinese equities
November 6, 2013--Van Eck Associates Corporation is currently negotiating with a China-headquartered asset manager to serve as sub-advisor for the Market Vectors(R) China ETF (NYSE Arca:PEK(R)), it was announced today.
The sub-advisor expects to receive its Renminbi Qualified Foreign Institutional Investor (“RQFII”) quota soon which, pending approval by the Board of Trustees of Market Vectors ETF Trust, would allow PEK to have direct access to physical A-Shares and provide enhanced access to the Chinese equity markets.
Source: Market Vectors ETF
Turkish lira, Russian rouble bonds to join Barclays Global Index
November 6, 2013--Russian and Turkish local currency bonds may receive billions of dollars in capital inflows after their inclusion into a flagship global index, a vote of confidence for markets that are just recovering from a bruising summer selloff.
Being part of a widely-used index tends to bring in cash because investment funds tracking the index will have to make room in their portfolios for the bond or stock in question.
Source: Todays Zaman
ESMA publishes the list of non-EEA CCPs that applied for recognition
November 5, 2013--ESMA has published the list of central counterparties (CCPs) established in non-EEA countries which have applied for recognition under Article 25 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, CCPs and trade repositories (TRs) (EMIR).
Source: ESMA
OECD report measures human cost of crisis; underlines need to invest in well-being
November 5, 2013--The global economic crisis has had a profound impact on people's well-being, reaching far beyond the loss of jobs and income, and affecting citizens' satisfaction with their lives and their trust in governments, according to a new OECD report.
How's Life? finds that subjective well-being deteriorated in countries most affected by the crisis. Between 2007 and 2012, reported average life satisfaction declined by more than 20% in Greece, 12% in Spain, and 10% in Italy. However, moderate increases were recorded in Germany, Israel, Russia, Mexico and Sweden.
view the How's Life? 2013 -Measuring Well-being
Source: OECD
IMF Working paper-The International Monetary System: Where Are We and Where Do We Need to Go?
November 5, 2013-- Summary: The North Atlantic financial crisis of 2008-2009 has spurred renewed interest in reforming the international monetary system, which has been malfunctioning in many aspects. Large and volatile capital flows have promoted greater volatility in financial markets, leading to recurrent financial crises. The renewed focus on the broader role of the central banks, away from narrow price stability monetary policy frameworks, is necessary to ensure domestic macroeconomic and financial stability.
Since international monetary cooperation might be difficult, though desirable, central banks in major advanced economies, going forward, need to internalize the implications of their monetary policies for the rest of the global economy to reduce the incidence of financial crises.
Source: IMF
Carbon taxes and emissions trading are cheapest ways of reducing CO2, OECD says
October 4, 2013--Carbon taxes and emission trading systems are the most cost-effective means of reducing CO2 emissions, and should be at the centre of government efforts to tackle climate change, according to a new OECD study.
Effective Carbon Prices shows that taxes and trading systems are preferable to other policies, such as feed-in tariffs, subsidies and other regulatory instruments. For example, the average cost of reducing a tonne of carbon emissions in the road transport sector can be up to eight times higher when instruments other than fuel taxes are used, according to the report.
view the OECD Effective Carbon Prices report
Source: OECD
ECB-High frequency trading and price discovery paper
November 4, 2013--ABSTRACT
We examine empirically the role of high-frequency traders (HFTs) in price discovery and price
efficiency. Based on our methodology, we find overall that HFTs facilitate price efficiency by
trading in the direction of permanent price changes and in the opposite direction of transitory
pricing errors, both on average and on the highest volatility days.
This is done through their liquidity demanding orders. In contrast, HFTs' liquidity supplying orders are adversely selected.
The direction of buying and selling by HFTs predicts price changes over short horizons measured in seconds. The direction of HFTs' trading is correlated with public information, such as macro news announcements, market-wide price movements, and limit order book imbalances.
view the ECB working paper-High Frequency Trading and Price Discovery
Source: ECB
ETFS Precious Metals Weekly-Platinum and Palladium Benefiting From Improving Global Growth Prospects
November 4, 2013--Gold and silver lose ground as USD strengthens. A less dovish than expected statement from the FOMC last week and weak Eurozone inflation data pushed the
US dollar up, putting downward pressure on the prices of gold and silver.
Gold took the brunt of the selling in the precious metals sector as the US dollar rallied in line with rising bond yields. Strong US PMI and auto sales data also assisted the positive cyclical growth mood. Despite silver's fall last week, it has been one of the best performing metals over the past 3-months with a gain of 11% over the period, benefiting from a rebound in industrial demand. In the longer-term, we remain constructive gold, but in the shorter-term it appears likely to remain in a relatively tight trading range; supported by solid physical demand below US$1,300 and constrained by investor selling on rallies near US$1,400.
Source: ETF Securities
BATS Global Markets Announces October Highlights
November 4, 2013--BATS Global Markets (BATS) today reports October market share and activity, which includes U.S. Department of Justice clearance for the BATS-Direct Edge merger, and the launch of BATS Chi-X Europe's pan-European listings business and BXTR pan-European Trade Reporting Service.
BATS' European equities exchange, BATS Chi-X Europe, posted overall market share of 22.9% in October, with a new monthly market share record of 9.6% set in Depositary Receipts (FTSE ROIB), surpassing the previous record of 9.0% set in July 2013.
Source: BATS
