Global ETF News Older than One Year
Institutional investors won't provide long-term financing without adequate instruments
July 4, 2013--Institutional investors will not provide long-term financing to the real economy, such as investments into infrastructure projects and SMEs, in the absence of "genuinely long-term instruments", according to financial research institute EDHEC-Risk.
If European governments’ desire for pension funds and insurance companies to fund infrastructure is to be realised, there must be “policy and regulatory focus on the type of instruments” they need, rather than which sectors of the economy qualify as "long-term", said EDHEC. Its intervention in the debate about alternative sources of long-term capital following the banking crisis came in the form of written responses to two ongoing consultations.
Source: EDHEC-Risk
ETF Securities: Gold Sparks Decline In Global Commodity ETP Assets During 2Q
July 4, 2013--Assets under management for global commodity exchange-traded products posted a record quarterly decline in second quarter mainly due to a fall in both prices and holdings for one specific market-gold, ETF Securities said Thursday.
Total TOT +0.33% commodity ETP assets fell to $127 billion in the last three months, down from $186 billion at the end of the first quarter, said the provider of exchange-traded funds.
Source: Forbes
Dow Jones-UBS Commodity Index June 2013
July 4, 2013--KEY HIGHLIGHTS
DJ-UBS Natural Gas, the largest commodity in the index, lost 11.2% for the month and 1% for the year, essentially giving back all the gains it had accrued YTD.
DJ-UBS Agriculture was adversely affected by the warming weather, down 4.2% MTD and 7.5% YTD.
DJ-UBS Livestock was up 3.1% for the month, but down 4.4% YTD as lean hogs gained.
DJ-UBS Nickel declined 7.7% MTD and 20.1% YTD largely due to a decrease in demand from China.
DJ-UBS Precious Metals was the worst-performing sector, down 12.3% MTD and 29.6% YTD.
MARKET SNAPSHOT
On June 20th, after the Federal Reserve said it might slow bond purchases this year, all 22 commodities in the DJ-UBS Commodity Index crashed, bringing a 3% decline in the index for the day and a 2% decline MTD. Gold, silver, coffee and nickel entered bear markets. DJ-UBS Agriculture was adversely affected by the warming weather; the index was down 4.2% MTD and 7.5% YTD—more than twice the loss in May.
The declines were driven by the “risk off” environment, with a strengthening dollar making USD-priced commodities expensive to other currencies. Fundamentals like weather, pipeline capacity and uncertainty about Chinese demand also contributed to commodities’ poor performance in June.
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Source: S&P Dow Jones Indices
End to warehouse war threatens metals prices
The buzz among metals traders this week was not about Chinese growth or US monetary policy, but a proposed change in warehousing rules by the London Metal Exchange.
Source: FT.com
Basel Committee updates its assessment methodology for global systemically important banks and issues disclosure requirements
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
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
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
Approved domestic funds: 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
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
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. view more
Source: FT.com
July 4, 2013--Warehousing sounds dull. But investors should pay attention: it may be about to reshape the global metals markets.
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.
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.
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.
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.
Fondo Mutuo Itaú Latam Pacific
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.
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.
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