Global ETF News Older than One Year
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
EPFR Global News Release-EM and Municipal Bond Funds break water but US fiscal battles casting a longer shadow
September 27, 2013--With 'tapering' on ice, diplomatic initiatives dominating headlines about the Middle East and macroeconomic data from China, Europe and the US tending towards the positive, investor risk appetite climbed several notches during the fourth week of September.
Emerging Markets Bond Funds posted inflows for the first time since mid-May, commitments to High Yield Bond Funds jumped to nine week high and net flows into Emerging Market Equity Funds since Sept. 6 pushed past the $6 billion mark.
As the week progressed, however, the rebound in risk appetite lost momentum as investors focused on the latest stand-off over the US federal budget and debt ceiling. Flows into US Money Market Funds hit their highest level since late December while over $7 billion flowed out of US Equity Funds.
Visit www.epfr.com for more info
Source: EPFR
Over 3,300 institutional investors in 50countries reported holding ETFs/ETPs in 2012, according to ETFGI
September 27, 2013--A new research report from ETFGI, the London based independent ETF and ETP research and consulting firm, finds that 3,367 institutional investors in 50 countries reported holding Exchange Traded Funds (ETFs) and/or Exchange Traded Products (ETPs) in 2012.
ETFGI's Institutional Users of ETFs and ETPs 2012 report* examines and profiles the number and types of ETFs and ETPs being used by institutional investors globally from 2005 through 2012.
"We have seen a significant increase in the use of ETFs/ETPs by institutional investors. From 2005 to 2012 there was a 92% increase in the number of institutions that reported using ETFs/ETPs, going from 1,752 institutions globally in 2005 to 3,367 in 2012" according to Deborah Fuhr, Managing Partner at ETFGI.
Source: ETFGI
