Global ETF News Older than One Year
Basel Committee updates its assessment methodology for global systemically important banks and issues disclosure requirements
July 3, 2013--The Basel Committee on Banking Supervision has today issued Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement.
When the initial assessment methodology for global systemically important banks (G-SIBs) was issued in November 2011, the Basel Committee noted that certain elements would be developed further before implementation. In particular, it was highlighted that outstanding data issues would be addressed by re-running the assessment framework using updated data and that reporting guidance would be issued to ensure the transparency of the methodology.
Source: BIS
IMF Working paper-Country Transparency and the Global Transmission of Financial Shocks
July 3, 2013-Summary: This paper considers the role of country-level opacity (the lack of availability of information) in amplifying shocks emanating from financial centers.
We provide a simple model where, in the presence of ambiguity (uncertainty about the probability distribution of returns), prices in emerging markets react more strongly to signals from the developed market, the more opaque the emerging market is. The second contribution is empirical evidence for bond and equity markets in line with this prediction. Increasing the availability of information about public policies, improving accounting standards, and enhancing legal frameworks can help reduce the unpleasant side effects of financial globalization.
Getco Newly Public in Knight Cuts High-Frequency Focus, CEO Says
July 2, 2013--Getco LLC, publicly traded for the first time as KCG Holdings Inc. after acquiring Knight Capital Group Inc. (KCG), will see its focus on high-frequency trading reduced by the merger, according to the chief executive officer.
The Chicago-based firm is evolving into a technology provider focused on cutting execution costs for 650 broker-dealer and 2,000 institutional clients, rather than proprietary trading, Daniel Coleman said in an interview with Erik Schatzker and Scarlet Fu on Bloomberg Television’s “Market Makers.”
Source: Bloomberg
Funds by Itau, Lyxor, Rothschild, Oaktree and Pictet are Approved by the Chilean CCR
July 2, 2013--The Classificatory Comission of Risk of Chile (CCR) announced this Monday, July 1st, the list of approved and disapproved funds by the commission. A total of 10 products received the approval and whereas six were disapproved.
Approved domestic funds:
Fondo Mutuo Itaú Latam Pacific
Approved foreign mutual funds and ETFs:
Lyxor ETF MSCI EMU--France
Baron Select Funds-Baron Real Estate Fund -USA
Edmond de Rothschild Emerging Bonds -France
Oaktree Global Convertible Bond Fund-Luxemburg
Oaktree Global High Yield Bond Fund - Luxemburg
Source: Funds Society
ICE Clear Europe Completes Clearing Transition of NYSE Liffe Derivatives Contracts
July 2, 2013-- ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange, and NYSE Liffe, the derivatives division of NYSE Euronext, today announced the completion of the clearing transition for the London-based derivatives market of NYSE Liffe to ICE Clear Europe.
The clearing transition involved 43 member firms with 75 million contract sides being transferred to ICE Clear Europe and US $11.17 billion margin held at the clearing house on the morning of July 1, 2013. The combined guaranty fund for ICE Energy and NYSE Liffe Futures and Options is set at U.S. $1.2 billion from July 1, 2013. In addition, the migration covered over 1,300 products across bond, commodity, equity, index and interest rate derivatives and ten new settlement currencies for ICE Clear Europe.
Source: Intercontinental Exchange (ICE)
Investors pull $8.2bn from ETFs in June
July 2, 2013--Investors withdrew $8.2bn from exchange trade funds and products in June, interrupting the ETF industry's record-breaking run this year, after the Federal Reserve signalled that it was preparing to scale back its bond-buying programme.
Russ Koesterich, chief investment strategist at BlackRock, the world's largest fund manager, said the Federal Reserve’s comments had acted as a catalyst for a change in investor sentiment, leading to withdrawals from ETFs linked to gold, emerging market equities and fixed income.
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Source: FT.com
Boost-China credit crunch could cripple copper
The wind-down of copper stocks may have further to go. The directional downturn in copper is led by weakening fundamentals. Without policy stimulus, increasing speculative short positions may feed negative sentiment on copper. view more
Source: Boost
SPDR gold ETF sales not enough to restrain the gold price
Ahead of New York's opening gold stood at $1'255.40 and in the euro at €965.77.
Silver Today – Silver closed at $19.60 down 2 cents in New York yesterday. Ahead of New York’s opening silver stood higher at $19.63.
Source: MineWeb
ETFS Research Update-Precious Metals Return to Attractive Value
We believe the reaction of bond markets to Fed comments has been overdone, and ultimately real rates will fall from current levels, driving a rally in the gold price. On our estimates, gold, silver and platinum (with implications for palladium) are now trading around 20%, 10% and 25% below their respective average marginal costs of production. Prices will have to move above these levels to support long-term supply growth. Short gold futures positioning on COMEX is at an all-time high and silver shorts are now at over 10-year highs, indicating scope for powerful short covering rallies once fundamentals improve. Physical gold buyers, notably in China, have increased purchases as the price has dropped. While precious metals prices will be driven primarily by macro and technical factors in the near-term, we believe that at current levels they provide attractive value for long-term investors.
Source: ETF Securities
IOSCO Board focuses on behavioral economics and social media
The two day meeting on 18 – 19 June highlighted IOSCO’s commitment to identifying emerging risks and new market trends in a proactive and forward-looking way. The meeting was the first chaired by new Board Chairman Greg Medcraft of the Australian Securities and Investments Commission.
Source: IOSCO
July 2, 2013--The end of cheap credit in China may focus over leveraged base metal producers on cutting costs.
Gold sales from the SPDR gold ETF remains the main influence on the gold and silver price currently
July 2, 2013--Gold Today-New York closed at $1,252.70 up $20.50 on yesterday. Asian demand came in and continued to lift gold to $1,264.4. It was Fixed in London at $1,260.75 and in the euro at €967.946 up €15, while the dollar against the euro was at €1: $1.3025.
July 2, 2013--Key points
The recent correction of the gold price to below $1,200/oz. has been driven by a sharp rise in US real interest rates on back of fears the Fed will reduce its bond buying program sooner than anticipated.
And continues its forward-looking and proactive work on global financial regulatory reform
July 1, 2013--The Board of the International Organization of Securities Commissions (IOSCO) met in Montreal to advance its work on regulatory reform and seek new ways to enhance market integrity and efficiency, identify and reduce systemic risk, and strengthen investor protection.
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