Global ETF News Older than One Year
Regulators give markets leeway on financial benchmarks
July 17, 2013--Global regulators will give markets some leeway in compiling financial benchmarks, stopping short of U.S. calls for more radical action to stamp out price-rigging.
The guidance from the International Organisation of Securities Commissions (IOSCO) on Wednesday, which will cover all benchmarks from interest rates to oil and gold, is the first attempt to forge a global approach and avoid conflicting national rules.
Source: Reuters
IMF Working paper-Systemic Risk Monitoring ("SysMo") Toolkit-A User Guide
July 17, 2013--Summary: There has recently been a proliferation of new quantitative tools as part of various initiatives to improve the monitoring of systemic risk. The "SysMo" project takes stock of the current toolkit used at the IMF for this purpose.
It offers detailed and practical guidance on the use of current systemic risk monitoring tools on the basis of six key questions policymakers are likely to ask. It provides "how-to" guidance to select and interpret monitoring tools; a continuously updated inventory of key categories of tools ("Tools Binder"); and suggestions on how to operationalize systemic risk monitoring, including through a systemic risk "Dashboard." In doing so, the project cuts across various country-specific circumstances and makes a preliminary assessment of the adequacy and limitations of the current toolkit.
view the IMF Working paper-Systemic Risk Monitoring ("SysMo") Toolkit-A User Guide
Source: IMF
IMF Working paper-Evaluating the Net Benefits of Macroprudential Policy: A Cookbook
July 17, 2013--Summary: The paper proposes a simple, new, analytical framework for assessing the cost and benefits of macroprudential policies. It proposes a measure of net benefits in terms of parameters that can be estimated: the probability of crisis, the loss in output given crisis, policy effectiveness in bringing down both the probability and damage during crisis, and the output-cost of a policy decision.
It discusses three types of policy leakages and identifies instruments that could best minimize the leakages. Some rules of thumb for policymakers are provided.
view the IMF Working paper-Evaluating the Net Benefits of Macroprudential Policy: A Cookbook
Source: IMF
FSB Releases Consultative Document on Principles for an Effective Risk Appetite Framework
July 17, 2013--The Financial Stability Board (FSB) is today launching a public consultation on its draft Principles for an Effective Risk Appetite Framework.
The Principles will enhance supervisory oversight of firms, in particular of systemically important financial institutions (SIFIs), by establishing minimum expectations for the key elements contained in an effective risk appetite framework, such as: an actionable risk appetite statement; quantitative risk limits; and clearly defined roles and responsibilities of the board of directors, senior management and business lines. The Principles also aim to establish a common nomenclature for terms used in the risk appetite framework, which will help to facilitate a common understanding between supervisors and firms and to narrow any gaps between supervisory expectations and firms’ practices.
view the Principles for An Effective Risk Appetite Framework-Consultative Document
Source: Financial Stability Board (FSB)
AltaVista Research-2Q13 Reporting Monitor: Half of Sectors to Post Profit Decline
July 17, 2013--HIGHLIGHTS:
At the outset of reporting season, S&P earnings are poised to gain 3.7% YoY, with the biggest contributions coming from the Financials (XLF) and Consumer Discretionary (XLY) sectors. Five sectors are forecast to post annual declines in earnings...
Sales may only post a gain of about 1% due to a $31 billion drag from lower Energy (XLE) revenues. Excluding Energy, revenue growth would be about 2.5%. Margins look to be mixed with Financials showing the only real improvement vs. Q2 2012, while Utilities (XLU), Tech (XLK) and Materials (XLB) could have significant declines...
Although still early, Tech firms have fallen short of expectations so far, while Financials continue to surprise on the upside...
Source: AltaVista Research
IOSCO publishes Principles for Financial Benchmarks
July 17, 2013--IOSCO publishes Principles for Financial Benchmarks
The International Organization of Securities Commissions (IOSCO) published today the final report on Principles for Financial Benchmarks, which provides an overarching framework of principles for benchmarks used in financial markets.
The principles form an integral part of IOSCO´s work in leading efforts to enhance the integrity, the reliability and the oversight of benchmarks by establishing guidelines for benchmark administrators and other relevant bodies in the following areas:
Governance: to protect the integrity of the Benchmark determination process and to address conflicts of interest;
Benchmark quality: to promote the quality and integrity of Benchmark determinations through the application of design factors;
view the IOSCO Principles for Financial Benchmarks-Final Report
Source: IOSCO
IOSCO publishes paper on cyber-crime, systemic risk and global securities markets
July 16,2013--The Research Department of the International Organization of Securities Commissions (IOSCO) today published a joint Staff Working Paper, with the World Federation of Exchanges (WFE),entitled Cyber-crime, securities markets and systemic risk.
The report explores the evolving nature of cyber-crime in securities markets and the threat it poses to the fair and efficient functioning of markets. Importantly, it highlights the urgent need to consider cyber threats to securities markets as a potential systemic risk.
view the Cyber-crime, securities markets and systemic risk report
Source: IOSCO
Twenty-One Thousand New Indexes Provide Investors a Broad Representation of the Global Investable Marketplace
July 15, 2013--The NASDAQ OMX Group, Inc. today announced the introduction of the second suite of the NASDAQ Global Index Family-resulting in the launch of more than 21,000 new NASDAQ Global indexes.
The NASDAQ Global Index Family represents more than 98% of the global equity investable marketplace and is now comprised of over 25,000 indexes. The family consists of global securities broken down by market segment, region, country, size and sector. The NASDAQ Global Index Family covers 9,000 securities with a combined float-adjusted market capitalization of over $37 trillion.
Source: NASDAQ OMX
ETF Securities-Precious Metal Prices Surge on Dovish Fed Comments, Strong China Data
July 15, 2013--Key points
Gold and silver price rebound accelerates as Fed highlights dovish position.
Platinum and palladium prices back in focus on South African strikes.
Gold Forward Offered Rates (GOFO) rates turn negative for the first time since the Lehman crisis.
Bernanke’s dovish comments sent precious metals higher last week as bond yields and the US dollar fell, and a short covering rally added to the rebound. Strong,loan data from China also helped reduce fears of a broad credit crunch, improving sentiment towards the more industrially-oriented precious metals. The Chairman of the Fed emphasised the need for highly accommodative policy for the foreseeable future, even if the Fed does start to taper its enormous programme. The minutes of the Fed’s last meeting also appeared dovish, with emphasis on the downside risks to growth.
Source: ETF Securities
EDHEC-Risk Institute study shows that investors should embrace construction risk in properly structured infrastructure debt portfolios
July 15, 2013--This paper produced as part of the NATIXIS research chair on "Investment and Governance Characteristics of Infrastructure Debt Instruments," is the first of a series discussing the opportunity for long-term institutional investors such as pension funds, insurance companies or sovereign wealth funds, to invest in large portfolios of infrastructure debt, both to manage their liabilities and to enhance yield.
In "Who is afraid of Construction Risk," the authors focus on the question of credit risk in infrastructure investment but also address a public policy question that has come to the fore since the financial crisis of 2007-9: should pension funds and insurance companies invest significantly in new infrastructure projects?
visit www.edhec-risk.com for more info
view the Who is afraid of Construction Risk paper
Source: EDHEC
