Global ETF News Older than One Year
Global regulators agree framework for exchange-traded funds rules
June 24, 2013--Global securities regulators published a framework for further regulation of the $1.9 trillion Exchange Traded Funds (ETFs) market on Monday, seeking to make ETFs more consumer friendly as their index-based investment strategies grow in popularity.
The Madrid-based umbrella group International Organisation of Securities Commissions (IOSCO) wants national regulators to encourage more disclosure to help investors differentiate between the growing range of exchange-traded products and the specific risks of each ETF type.
Source: Reuters
EU clears ICE, NYSE Euronext stock market tie-up
June 24, 2013--The European Commission approved Monday the acquisition of NYSE Euronext, which operates the New York stock exchange and several bourses in Europe, by InterContinental Exchange.
The deal did "not raise competition concerns as (the two) are not direct competitors in the markets concerned and would continue to face competition from a number of other competitors," the Commission said in a statement.
Source: EUbusiness
IOSCO Publishes Principles for the Regulation of Exchange Traded Funds
June 24, 2013--The Board of the International Organization of Securities Commissions today published the final report on Principles for the Regulation of Exchange Traded Funds (ETFs), containing nine important principles intended to guide the regulation of ETFs and foster industry best practices in relation to these products.
Investor interest in ETFs has increased worldwide as evidenced by the sharp increase in funds invested in these types of products. Assets managed under ETF structures totaled almost USD 1.9 trillion at end January 2013, representing roughly 7% of the global mutual fund market. This dynamic growth in ETFs has gradually attracted the attention of regulators, concerned about the potential impact of ETFs on investors and on the broader marketplace, as the industry has continued to evolve through diversification and the launch of new innovative products.
view the Principles for the Regulation of Exchange Traded Funds Final Report
Source: IOSCO
Making the most of borrowed time: repair and reform the only way to growth, says BIS in 83rd Annual Report
June 23, 2013--Only a forceful programme of repair and reform will return economies to strong and sustainable real growth, writes the Bank for International Settlements (BIS) in its 83rd Annual Report, released today.
In its main economic review for the year, the BIS points out that although six years have passed since the eruption of the global financial crisis, robust, self-sustaining growth still eludes the global economy. During this time, central banks in advanced economies have been forced to look for ways to increase their degree of accommodation. But central banks cannot solve the structural problems that are preventing a return to strong and sustainable growth.
Source: BIS
Regulatory glut hampers fund market growth
June 23, 2013--Scores of asset managers are being blocked from easily selling investment products into new markets after being hit by a wave of "complex and often contradictory" regulations, a survey by KPMG, the financial services firm, suggests.
The governments around the world are imposing rigid rules on the asset management sector. These regulations vary widely from Europe and Asia to the US. And this throws a wrench into plans by fund houses to expand into Africa, the Middle East and other potentially lucrative regions, according to the report.
Source: FT.com
BlackRock to cull 250 funds
Focus switches to products that account for higher proportion of revenues
June 23, 2013--BlackRock plans to cut 250 funds from its range to focus on products that account for a higher proportion of revenues.
The cull is meant to help remedy the fact that the top 50 per cent of BlackRock’s funds currently account for 99 per cent of fund revenues, Rich Kushel, the deputy chief operating officer, told attendees at the fund manager’s annual investor day last week.
Source: Gulf News
Bond market sell-off causes stress in $2tn ETF industry
June 21, 2013--A wave of selling caused many exchange traded funds to tumble below the value of their underlying assets as a bond market sell-off caused stress in the $2tn ETF industry.
ETFs track baskets of underlying assets, such as emerging-market stocks or municipal bonds, but discounts widened sharply on Thursday as dealers struggled to keep up with the sell orders.
Source: FT.com
ETF providers reject 'stress' reports
June 21, 2013--BlackRock and State Street Global Advisors have rejected reports that recent asset market volatility caused "stress" in their exchange traded funds operations.
ETFs have seen significant outflows during June with investors pulling money from funds linked to emerging markets.
Source: FT.com
Bond sell-off causes stress in ETF industry
June 21, 2013--A wave of selling caused many exchange traded funds to tumble below the value of their underlying assets as a bond market sell-off caused stress in the $2tn ETF industry.
ETFs track baskets of underlying assets, such as emerging-market stocks or municipal bonds, but discounts widened sharply on Thursday as dealers struggled to keep up with the sell orders.
Source: FT.com
Golden ratings era ending for emerging markets
June 21, 2013-A decade of improvement in emerging market credit ratings is coming to an end as higher borrowing costs and commodity price falls threaten to lay bare many countries' failure to reform during the good times.
Between 2007 and 2012 emerging economies earned almost 200 rating upgrades from the three main agencies, nearly half of them promotions to the top 'investment grade' category.
Given the weight investors still assign to credit ratings, that was a huge driver for much of the $8 trillion or so that has flowed to emerging stock and bond markets since 2004.
Source: Reuters
