Global ETF News Older than One Year
IMF Working paper-Collateral and Monetary Policy
August 28, 2013-Summary: Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of money and collateral matter.
Some central banks are now a major player in the collateral markets. Analogous to a coiled spring, the larger the quantitative easing (QE) efforts, the longer the central banks will impact the collateral market and associated repo rate. This may have monetary policy and financial stability implications since the repo rates map the financial landscape that straddles the bank/nonbank nexus.
view the IMF Working paper-Collateral and Monetary Policy
Source: IMF
STOXX Changes Composition Of Benchmark Indices
Results of the Third Regular Quarterly Review to be Effective on September 23, 2013
August 27, 2013--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced the new composition of the STOXX Benchmark and their sub- and sector indices, among them the STOXX Europe 600 Index, STOXX North America 600 Index and STOXX Asia/Pacific 600 Index.
As announced previously, the index universe for the STOXX Global 1800 Index and all related sub and sector indices will be changed to cover those countries which are classified as developed markets as defined by the STOXX Emerging and Developed Markets Country Classification. As a result companies listed in the Czech Republic will become eligible for inclusion in these indices, while Chinese Red Chips and companies listed in Iceland will be excluded from the universe from this review on. Furthermore, Croatia is being added to the index universe of the STOXX EU Enlarged Index, since the country joined the European Union on July 1, 2013.
Source: STOXX
STOXX Changes Composition Of Benchmark Indices
Regular Annual Review To Be Effective On September 23, 2013
August 27, 2013--STOXX Limited,
the market-moving provider of innovative, tradable and global index concepts, today announced
the new composition of the STOXX Benchmark and their sub-and sector indices, among them the STOXX Europe 600 Index, STOXX North America 600 Index
and STOXX Asia/Pacific 600 Index.
As announced previously, the index universe for the STOXX Global 1800 Index and all related sub and sector indices will be changed to cover those countries which are classified as developed markets as defined by the STOXX Emerging and Developed Markets Country Classification. As a result companies listed in the Czech Republic will become eligible for inclusion in these indices, while Chinese Red Chips and companies listed in Iceland will be excluded from the universe from this review on. Furthermore, Croatia is being added to the index universe of the STOXX EU Enlarged Index, since the country joined the European Union on July 1, 2013.
Source: STOXX
FIA Releases Futures Volatility Study
FIA Releases Futures Volatility Study
Study Examines Impact of Structural Changes over Time
Study Finds Limited Impact on Intraday Price Volatility
Study Based on Price Data for 15 Futures Contracts
August 27, 2013--The Futures Industry Association today released an empirical study on changes in the level of volatility in the futures markets. The study
focused on 15 futures contracts listed on four leading futures exchanges-CME Group, Eurex, IntercontinentalExchange and NYSE Liffe.
The study found that prices in these 15 markets moved through cycles of high and low volatility as well as numerous price spikes attributable to macro-economic events. The study found, however, that volatility attributable to structural factors did not change in most of these contracts. In other words, innovations such as algorithmic and high-frequency trading do not appear to have affect ed the volatility of prices.
view Futures Market Volatility: What Has Changed? report
Source: Futures Industry Association (FIA)
Report to G20 Leaders on monitoring implementation of Basel III regulatory reforms issued by the Basel Committee
August 27, 2013--The Basel Committee on Banking Supervision has today published its fourth Report to G20 Leaders on progress made in the implementation of Basel III regulatory reforms. The report has been prepared for the G20 Leaders' Summit in St Petersburg on 5-6 September.
Full, timely and consistent implementation of Basel III has been accorded high priority by the G20 Leaders. This latest report notes substantial progress with respect to: the adoption of the Basel standards by Basel Committee member jurisdictions; the harmonisation of capital regulations across member jurisdictions; and the finalisation of remaining post-crisis reforms that form part of the Basel regulatory framework.
view the Report to G20 Leaders on monitoring implementation of Basel III regulatory reforms
Source: BIS
Macroeconomic impact assessment of OTC derivatives regulatory reforms report issued by the Macroeconomic Assessment Group on Derivatives (MAGD)
August 26, 2013--The Macroeconomic Assessment Group on Derivatives (MAGD) today published a report on the macroeconomic effects of OTC derivatives regulatory reforms.
In this report, the MAGD focuses on the effects of (i) mandatory central clearing of standardised OTC derivatives, (ii) margin requirements for non-centrally cleared OTC derivatives and (iii) bank capital requirements for derivatives-related exposures. In its preferred scenario, the Group found economic benefits worth 0.16% of GDP per year from avoiding financial crises. It also found economic costs of 0.04% of GDP per year from institutions passing on the expense of holding more capital and collateral to the broader economy. This results in net benefits of 0.12% of GDP per year. These are estimates of the long-run consequences of the reforms, which are expected to apply once they have been fully implemented and had their full economic effects.
view the Macroeconomic impact assessment of OTC derivatives regulatory reforms
Source: BIS
Exchange-Traded Funds Lose Faith in Emerging Markets
August 26, 2013--Investors' messy breakup with emerging markets continued last week as year-to-date outflows from dedicated emerging market funds swelled to $5.9 billion, according to data provider EPFR Global.
Exchange-traded funds have emerged as a key driver of outflows from the sector this year.
Source: Wall Street Journal
BATS Global Markets And Direct Edge Agree To Merge
Innovative Companies To Join Forces To Enhance Global Exchange Competition
August 26, 2013--BATS Global Markets, Inc. (BATS) and Direct Edge, LLC (Direct Edge) today announced a definitive merger agreement, which will bring together two customer-focused securities exchange operators under the BATS Global Markets enterprise to drive further innovation and better serve investors.
Financial terms will not be disclosed for the transaction, which is expected to close in the first half of 2014, subject to regulatory approvals. Current BATS CEO Joe Ratterman will remain in the same role and current Direct Edge CEO William O'Brien will be President. Bryan Harkins of Direct Edge will join the combined company as an integral member of the senior executive team.
Source: BATS Global Markets, Inc.
Nasdaq error shows need for unified rules
Markets deal well with outages but unified response is needed
August 23, 2013--It has not been a good week to be a computer.
First, a computer error at Everbright Securities was blamed for a $3.8bn flood of orders on the Shanghai market. Then Goldman Sachs unleashed a rogue algorithm that caused chaos through the options market. And the coup de grâce came when a technical glitch caused Nasdaq to shut for more than three hours.
Source: FT.com
SSgA-US ETF Snapshot:July 2013
August 23, 2013--STATE STREET GLOBAL ADVISORS HIGHLIGHTS, JULY 2013
After The Dust Settles: What's Next for Fixed Income?
o With abnormally low yields over the last few years, investors have been on high alert to the potential impact that an unpleasant end to a 30-plus year bull-run in bonds could have on their portfolios. With US 10-Year Treasury yields rising over 80bps since the end of April, many investors are now feeling the pain. While other asset classes may offer greater potential for risk-adjusted returns in today's market, fixed income can and should remain core to investment portfolios due to its potential for income generation, diversification and capital preservation.
Fortunately, there are opportunities available for savvy investors to create resilient portfolios regardless of how far and fast rates may rise over the rest of the year.
GLOBAL ETF LISTING REGION
The United States had over $42.3BN of inflows in the month of July, increasing its year to date inflows to $114.0BN. Europe experienced inflows of $3.2BN in July, increasing its year to date inflows to $7.1BN. APAC and Canada had minor outflows.
GLOBAL PERFORMANCE BY ASSET CLASS
MSCI AC World IMI increased 4.9%, while MSCI EAFE gained 5.3%. Emerging markets returned 1.0%, while,Emerging Markets Small Cap gained 0.3%. US Large Cap, Mid Cap and Small Cap markets were all positive, returning 5.1%, 6.2% and 6.8%, respectively. The Global Aggregate increased 1.3% and the Global Treasury Ex US added 1.9%. The US High Yield, the US Aggregate and the US Corporate Bond markets were all positive in July. The US REIT market was up 0.8%. Commodities were positive, with the Dow Jones-UBS Commodity Index gaining 1.4% and Gold jumping 10.3%
GLOBAL ETF FLOWS BY ASSET CLASS
Global ETF flows topped $45BN in July. Equity had a leading $41.3BN of inflows. The equity inflows were driven by the developed large cap equity category, which had $18.8BN in inflows. The Commodity asset class had outflows of $2.8BN, most of which came from Precious Metals. Precious Metals has $30.7BN in outflows YTD.
ETF Manager & Fund Detail
The top three families in the Global ETF marketplace were: BlackRock, State Street Global Advisors and Vanguard. Collectively, they account for approximately 71% of the Global ETF market.
visit www.spdrs.com for complete report
Source: SSgA
