Global ETF News Older than One Year
FTSE Launches GDP Index Series
New series directly links country weights to the IMF's individual country five-year forecast GDP
Underlying constituents members of the FTSE All-World Index Series
Adds to FTSE's growing number of innovative alternatively weighted indices
October 2, 2013--FTSE Group ("FTSE"), the global index provider, today announced the launch of the FTSE GDP Weighted Index Series.
Calculated on an end-of-day basis, the indices are designed to reflect the performance of indices where country weightings are proportionate to the IMF's five year purchasing power parity forecast GDP for each country.
The FTSE GDP Weighted Index Series is reviewed annually in March and comprises the constituents of the corresponding underlying FTSE All-World Index Series in March.
Source: FTSE
The Options Industry Council Announces September Options Volume Down 4 Percent
October 1, 2013--The Options Industry Council (OIC) announced today that 315,911,302 total options contracts traded in September, which is 4.16 percent less than last September when 329,627,631 contracts were traded.
Year-to-date volume stood at 3,074,874,727 contracts, 1.43 percent more than September of last year when 3,031,485,451 contracts were traded. Average daily volume for the month was 15,795,565 contracts, 8.95 percent less than last September's 17,348,823 contracts.
Source: Options Industry Council (OIC)
CBOE Introduces Short-Term Volatility Index-VXST Measures Short-Term Volatility, Complements VIX-VXST Weeklys Futures And Options To Follow
CBOE Introduces Short-Term Volatility Index
VXST Measures Short-Term Volatility, Complements VIX
VXST Weeklys Futures and Options to Follow
October 1, 2013--Chicago Board Options Exchange, Incorporated(R) (CBOE(R)) today announced at the CBOE Risk Management Conference Europe in Sintra, Portugal that it has created a new benchmark volatility index -the CBOE S&P 500 Short-Term Volatility Index (ticker symbol: VXSTSM).
CBOE began disseminating values for the new Short-Term Volatility Index today.
Like CBOE's flagship VIX(R) Index, VXST reflects investors' consensus view of expected stock market volatility. Whereas VIX has a 30-day horizon, VXST looks out just nine days, making it particularly responsive to changes in short-term volatility triggered by market events, such as earnings, government reports and Fed announcements.
Source: CBOE
Commodity Supercycle Slows Down in 2012
New Worldwatch Institute study examines the slowdown in the global commodities market
October 1, 2013--Global commodity prices dropped by 6 percent in 2012, a marked change from the dizzying growth during the "commodities supercycle" of 2002-12, when prices surged an average of 9.5 percent a year, or 150 percent over the 10--year period.
This change of pace is largely attributed to China's shift to less commodity-intensive growth. Yet while prices declined overall in 2012, some commodity categories-energy, food, and precious metals-continued their decade-long trend of price increases
The commodities market consists of various raw materials and agricultural products with fluctuating value that are bought and sold in global exchanges. This includes agricultural products, such as corn, wheat, soybeans, and cotton; energy sources, such as crude oil and natural gas; metals used in construction, such as copper and aluminum; and precious metals that are often used for financial security, such as gold, silver, and platinum.
Source: World Watch Institute
EM Suffer on Worries over QE Tapering
October 1, 2013--China
Macro indicators were better than expected.
The Chinese market was very volatile in August, but managed to sustain its upward trend.
While the Chinese market outperformed emerging markets overall, China still posted net outflows from global investors.
Most sectors recorded positive returns, led by materials. On the other hand, underperformers included utilities and health care.
India
India's economy sees a slowing growth.
The MSCI India Index fell sharply in August. Since talk of QE tapering in the US began, chronic problems in the Indian macro economy, including the depreciating rupee, widening current account and fiscal deficits, and rising inflation, have led to increased concern.
The Indian rupee has been among the worst performing currencies of late, depreciating nearly 20% in the last three months; however, losses were pared toward the end of August as the RBI announced a separate foreign exchange window for state-owned oil companies, its latest measure to reduce volatility in the currency market.
ASEAN
Philippines remain the most favorable.
Indonesia's economy continues to suffer from a widening current account deficit and depreciating currency. In the second quarter, the current account deficit expanded to 4.4% of GDP, the highest level since the Asian crisis in 1997.
In Thailand, GDP growth declined to 2.8% year-over-year in the second quarter on the back of flat export growth, slowing consumer spending, and waning government stimulus. Meanwhile, the consumer confidence index declined to 80.3 in July, indicating that consumers are worried about political uncertainty.
In Singapore, inflation continues to inch up on the back of higher food, housing and transportation costs. In Malaysia, inflation also continues on an upward trend, rising to 2.0% year-over-year in July. Meanwhile, second quarter GDP growth came in at 4.3%, up slightly from 4.1% in the first quarter.
Brazil
Brazil's notable growth led to revise its 2013 output upward.
In August, while the local Bovespa index rose 3.7% in local currency terms, the MSCI Brazil Index fell 2.1% in US currency terms as the Brazilian real depreciated sharply against the US dollar.
Profit-taking in anticipation of the US QE tapering has resulted in significant pressure on emerging market currencies, including the real, with the unwinding of cross-border carry trades playing a significant role.
EMEA
Russia outperformed EM overall.
The Russian market outperformed emerging markets overall, due to spiking oil prices caused by rising tensions in the Middle East. Additionally, as Russia remains at a nearly record dis-count to emerging market equities, investors sold off other markets trading at more expensive multiples.
Eastern Europe overall performed in line with emerging markets; however, performance in the region varied.
Poland and the Czech Republic posted positive performance as greater optimism for a European economic recovery lifted both markets.
Source: Mirae Asset Financial Group
IMF's 2013 Annual Report: Promoting a More Secure and Stable Global Economy
October 1, 2013--The global economy is in better shape, but the road to a robust and comprehensive recovery remains bumpy, says IMF Managing Director Christine Lagarde in an introduction to the institution's Annual Report, published today.
The report highlights the IMF's work between May 1, 2012, and April 30, 2013-financial year 2013 for the institution—with an emphasis on the core areas of IMF responsibility: providing IMF member countries with financing for demonstrated needs, assessing their economic and financial policies, and developing their technical capacities.
view the IMF Annual Report 2013: Promoting a More Secure and Stable Global Economy
Source: IMF
FTSE China A-Shares and Global Indices: Adapting the benchmark for international market participants
FTSE is the leading provider of equity indices focused on the Chinese market
Growing investor demand to access one of the world's largest and fastest expanding economies
FTSE to provide a range of transition indices to help managers prepare for the possible inclusion of A-Shares
China 'A' Share remain on watch list for possible inclusion as Secondary Emerging in global benchmark indices
October 1, 2013--FTSE ("FTSE"), the global index provider, today published a research white paper exploring the possibilities for the Chinese investment landscape and how opportunities will change as restrictions on foreign access are relaxed.
Currently, the mainly Hong-Kong listed elements of the Chinese equity market make it the 9th largest represented country in the FTSE All-World Index. Foreign access in China is limited to Qualified Foreign Institutional Investors (QFII) with total investment capped at $150 billion annually. FTSE calculates that the inclusion of China A Shares and the lifting the QFII investment barrier to $500 billion would see the market rise from 9th to 5th largest in the world.
Source: FTSE
New Index Identifies Countries' Ability to Develop and Nurture Human Capital
Switzerland, Finland and Singapore are best at unlocking the economic potential of their people, new Index finds
World's largest economies present mixed picture, with Germany (6) followed by Japan (15), United States (16) and China (43)
Index aims to help countries make the right decisions on investing in the economic potential of their people
October 1, 2013--The World Economic Forum's first Human Capital Index has identified the most successful countries in the world when it comes to maximizing the long-term economic potential of their respective labour forces.
The Index, which measures countries on their ability to develop and deploy healthy, educated and able workers through four distinct pillars:
Education; Health and Wellness; Workforce and Employment; and Enabling Environment, finds Switzerland ranked number one overall, followed by Finland (2) and Singapore (3). Six of the remaining seven countries in the top 10 are in northern Europe, including Germany (6) and the United Kingdom (8).
The Index's 122-country ranking, which forms the basis of the Human Capital report, also finds strong performances from countries in North America, Asia and the Middle East. Canada enters the Index in tenth position, while Japan (15) and the United States (16) are solidly established in the top 20. Qatar, at 18, is the strongest performing economy in the Middle East and North Africa.
view the The World Economic Forum Human Capital Report
Source: The World Economic Forum (WEF)
Average daily volume of 9.1 million contracts at Eurex Group in September
Dividend derivatives with new all-time high in monthly traded volume
October 1, 2013--In September 2013, the international derivatives markets of Eurex Group recorded an average daily volume of 9.1 million contracts (September 2012: 10.2 million). Of those, 6.7 million were Eurex Exchange contracts (September 2012: 7.5 million), and 2.4 million contracts (September 2012: 2.7 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 140.4 million contracts were traded at Eurex Exchange and 48.1 million at ISE.
At Eurex Exchange, the equity index derivatives segment totaled 61.8 million contracts (September 2012: 68.9 million). The future on the EURO STOXX 50® Index recorded 28.1 million contracts. The options on this blue chip index totaled 20.3 million contracts. Futures on the DAX index recorded 2.4 million contracts while the DAX options reached another 3.6 million contracts. Similar to the same month last year, the Eurex KOSPI Product recorded 1.7 million contracts. Futures on the RDX Index set a new monthly record with around 113,000 contracts; the options totaled 113,000 contracts, its second best monthly volume.
Source: Eurex
IOSCO Review Shows Progress on Implementation of Principles to Identify Risk
September 30, 2013--The International Organization of Securities Commissions (IOSCO) today published the final report on the Thematic Review on the Implementation of Principles 6 and 7 of the IOSCO Objectives and Principles of Securities Regulation (the Review).
IOSCO included Principles 6 and 7 in the IOSCO Principles in 2010 as part of its response to the global financial crisis. The new Principles were intended to address particular concerns that regulatory requirements and frameworks did not adequately address risks posed to securities markets and the need for securities regulators to play a role in addressing systemic risks and maintaining financial stability.
Source: IOSCO
