Global ETF News Older than One Year
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
ETF Securities Precious Metals Weekly-Gold in Focus Ahead of US Debt Debate
September 30, 2013--Gold rallies as US government turmoil roils markets. The gold price rebounded at the end of last week as the risks of a temporary US government shutdown rose sharply on continued lack of progress in negotiations between Congressional Republicans and Democrats.
The gold price and US dollar weakness have been given further impetus due to lack of progress over the weekend. The extreme division between the two groups also raises the risk that policy mistakes lead to a possible US debt default as soon as next month if the parties cannot come to a compromise and raise the US government debt ceiling. In this highly uncertain environment the US dollar is likely to remain under pressure and gold and other perceived safe havens well bid. US payrolls on Friday will be watched carefully, with any signs of weakness likely to cause investors to push out the expected timing of Fed tapering, with bullish implications for the gold price.
Source: ETF Securities
IMF-2013 Low-Income Countries Global Risks and Vulnerabilities Report
September 30, 2013--Summary: An assessment of vulnerabilities and risks in LICs remains important both for LICs themselves and for the international community.
There are currently 74 LICs, eligible for concessional financing from the Fund. This group of countries has a total population of about 1.3 billion, with an average per capita income of around $850. They typically face the steepest challenges in meeting the Millennium Development Goals (MDGs) and are increasingly the focus of global development assistance to assist them in this endeavor.
view the IMF 2013 Low-Income Countries Global Risks and Vulnerabilities Report
Source: IMF
IMF releases the new External Debt Statistics: Guide for Compilers and Users jointly produced by TFFS agencies
September 30, 2013--The 2013 External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide) provides comprehensive guidance for measurement, compilation, analytical use, and presentation of external debt statistics.
The 2013 EDS Guide has been prepared under the joint responsibility of the nine organizations of the Inter-Agency Task Force on Finance Statistics (TFFS). This guide updates the 2003 EDS Guide to address the main changes introduced by BPM6.
view the External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide)-Full text
Source: IMF
Financial Crises Yield More Synchronized Economic Output
Regional and global output see increased correlations during financial crises
Size of output spillovers depends on type of shock and strength of linkages with originating economy
Financial globalization doesn't necessarily induce greater output synchronization across countries-till crisis hits
September 30, 2013-The global panic set in motion by the 2008-09 financial crisis generated an unprecedented output collapse around the world that temporarily had countries moving in close lockstep, according to a new study by the IMF.
The output performance of the world’s economies moved together during the peak of the global financial crisis as never before in the recent history, according to a study published in the IMF's October 2013 World Economic Outlook report. Correlations of various countries’ GDP growth rates had been modest before the crisis but rose dramatically during 2007-09
view the Dancing Together? Spillovers, Common Shocks,and The Role of Financial and Trade Linkages
Source: IMF
50 MSCI Hong Kong MPF Indices now available
New Indices Provide Broader and More Diverse Market Coverage
September 30, 2013--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, has announced the launch of the MSCI Hong Kong Mandatory Provident Fund (MPF) Indices, which reflect the current investment restrictions imposed on MPF funds by the Hong Kong Mandatory Provident Fund Schemes Authority (MPFA)(1),including the minimum 30% Hong Kong Dollar (HKD) exposure requirement.
"Since their inception in 2000, the Hong Kong MPF schemes have grown in size and complexity, so it is not surprising that many participating firms are keen to see more innovation in the provision of relevant MPF indices," said Theodore Niggli, Managing Director and Head of the MSCI Index Business in Asia Pacific. "In addition to providing an extensive family of MPF indices, we are also introducing a novel index construction methodology that eliminates the need for expensive foreign exchange hedging to comply with the 30% minimum HKD exposure. We believe that the MSCI Hong Kong MPF Indices will be adopted not only for benchmarking purposes, but will also help in the creation of lower cost fund structures."
Source: MSCI
Money market investors balk at reforms
September 30, 2013--For years, the leanest manufacturers have relied on "just in time" shipments of supplies from all around the globe, sometimes to the point that parts go straight from the loading dock to the assembly line.
Companies no longer waste money funding expensive stockpiles, but they are vulnerable to supply chain disruptions like the Japanese tsunami in 2011.
Source: FT.com
