Global ETF News Older than One Year
IOSCO Consults on Regulation of Retail Structured Products
April 18, 2013--The International Organization of Securities Commissions (IOSCO) published today a consultation report on Regulation of Retail Structured Products, which analyses trends in the retail structured product market, and proposes a regulatory Toolkit for IOSCO members.
The retail structured products work responds to concern among IOSCO members about the regulatory challenges these products pose, particularly in the area of investor protection. In February 2012, IOSCO agreed to work on retail structured products:
to understand and analyse the market, and related regulatory issues; and
to develop guidance, if appropriate, on regulatory responses.
view the IOSCO Regulation of Retail Structured Products Consultation Report
Source: IOSCO
Regulators Call to Tie Benchmarks to Data
April 17, 2013--Interbank lending rates and other benchmarks should be tied to real transactions with codes of conduct used to make these indices as free of conflicts of interest as possible, global securities watchdogs have said.
Spurred by the Libor rate fixing scandal, a task force led by top US and UK regulators on Tuesday called on their peers to make sure benchmarks in their jurisdictions conform to a set of principles aimed at preventing manipulation.
Source: FT.com
Report to the G-20 Meeting of Finance Ministers and Central Bank Governors of 18-19 April 2013
April 16, 2018--Today, the principals of the authorities with responsibility for the regulation of the over-the-counter (OTC) derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland and the United States, have held four meetings to discuss reform of the OTC derivatives market.
The principals recognise that the OTC derivatives market is a global market and firmly support the adoption and enforcement of robust and consistent standards in and across jurisdictions. This will help further the G-20 regulatory reform agenda for OTC derivatives markets to mitigate risk, improve transparency and protect against market abuse, and to prevent regulatory gaps, reduce the potential for arbitrage opportunities, and foster a level playing field for market participants, intermediaries and infrastructures. They also recognise the need to reduce regulatory uncertainty and provide market participants, intermediaries and infrastructures with sufficient clarity on laws and regulations by avoiding, to the extent possible, the application of conflicting rules to the same entities and transactions. They also acknowledge the need to take into account, among other factors, minimizing the application of inconsistent and duplicative rules.
Source: CFTC.gov
IOSCO Consults on Principles for Financial Benchmarks
April 16, 2013--The International Organization of Securities Commissions (IOSCO) published today a consultation paper on Principles for Financial Benchmarks. which seeks public comments on a set of high-level principles for benchmarks used in global financial markets.
Because of the wide diversity of benchmarks, IOSCO also is asking for public comment on a subset of more detailed principles for benchmarks having specific risks arising from their reliance on submissions and/or their ownership structure.
The principles form part of IOSCO´s efforts to enhance the integrity, the reliability and the oversight of benchmarks by establishing guidelines for benchmark administrators and other relevant bodies on governance, benchmark quality, quality of the methodology, and accountability mechanisms.
view the IOSCO Principles for Financial Benchmarks Consultation Report
Source: IOSCO
Global Experts Poll: Economic Confidence Up Significantly in Second Quarter
Economic Confidence Index rises to 0.48 from 0.43 last quarter, closer to optimistic territory above 0.5
Indices tracking confidence in global governance and global cooperation make similar gains
Eighth quarterly Global Confidence Index polled 304 experts from business, government, international organizations and academia who are members of the Forum's Network of Global Agenda Councils
April 15, 2013--Confidence in the world economy has increased significantly over the past three months, according to experts polled by the World Economic Forum.
The Economic Confidence Index rose to 0.48 from 0.43 on a scale of 0 to 1 during the first three months of the year, amid an easing of the Eurozone crisis and belief that the world economy may had avoided a double-dip recession. The score puts the index back in neutral territory for the first time since it fell into low-confidence territory in the third quarter of 2012; it marks a return to its most recent peak during the second quarter of 2012. However, the index did not break into positive territory above 0.5.
“It looks as though the worst is over and experts are not too worried about a double-dip recession of the world economy, as a whole,” said Martina Gmür, Senior Director of the Forum’s Global Agenda Council, of the poll of 304 global experts. “But, while the economic index has seen an improvement over three consecutive quarters and is now back at its peak from one year ago, it is worth remembering that, back then, the Eurozone crisis was already in full swing; and the index has so far not crossed over into positive territory.”
Source: WEF (World Economic Forum)
IEA Cuts Oil-Demand Forecast Because of European Demand
April 11, 2013--The International Energy Agency reduced its forecasts for global oil demand in 2013 for a third consecutive month, predicting the weakest consumption in Europe in almost three decades.
The IEA cut its estimate by 45,000 barrels a day, predicting that world consumption will increase by a “subdued” 795,000 barrels a day, or 0.9 percent, to 90.58 million barrels a day this year. European demand will slump by 330,000 barrels a day. Still, an imminent recovery in refinery operations after maintenance and political threats to supply mean “it may be too early to call a bear market,” the IEA said.
Source: Bloomberg
Framework on monitoring tools for intraday liquidity management issued by the Basel Committee
April 11, 2013--The Basel Committee on Banking Supervision, in consultation with the Committee on Payment and Settlement Systems, today issued its final version of the document Monitoring tools for intraday liquidity management.
Today's publication introduces a new reporting framework that will enable banking supervisors to better monitor a bank's management of intraday liquidity risk and its ability to meet payment and settlement obligations on a timely basis. Over time, the tools will also provide supervisors with a better understanding of banks' payment and settlement behaviour.
The framework includes:
the detailed design of the monitoring tools for a bank's intraday liquidity risk;
stress scenarios;
view the Monitoring tools for intraday liquidity management document
Source: BIS
Trade to remain subdued in 2013 after sluggish growth in 2012 as European economies continue to struggle
April 10, 2013--World trade growth fell to 2.0% in 2012-down from 5.2% in 2011- and is expected to remain sluggish in 2013 at around 3.3% as the economic slowdown in Europe continues to suppress global import demand, WTO economists reported on 10 April 2013.
“The events of 2012 should serve as a reminder that the structural flaws in economies that were revealed by the economic crisis have not been fully addressed, despite important progress in some areas. Repairing these fissures needs to be the priority for 2013,” Director-General Pascal Lamy said.
Source: WTO
FCA publishes occasional papers on behavioural economics exploring how people make financial decisions
April 10, 2013--The FCA is interested in behavioural economics as it can help the regulator understand the mistakes consumers make, how firms respond to these mistakes, how this affects competition, and what interventions the FCA might consider.
The first paper focusses on how consumers choose and use financial products, and how behavioural biases can lead to firms competing in ways that are not in the interests of consumers. The second explores how best to encourage consumers to respond to customer contact letters. The papers are the first in the FCA’s occasional paper series.
view the Occasional Paper No.1-Applying behavioural economics at the Financial Conduct Authority
Source: FCA.org.uk
OPEC joins U.S. in lowering 2013 oil demand growth view
Lowers 2013 forecast oil demand growth by 40,000 bpd
Saudi Arabia tells OPEC its output in March was flat
OPEC pumping just 190,000 bpd above official target
IEA's oil report due on Thursday
April 10, 2013--OPEC on Wednesday trimmed its forecast for global growth in oil demand in 2013, becoming the second of the world's closely watched oil forecasters this week to predict weaker consumption.
The move by the Organization of the Petroleum Exporting Countries in a monthly report follows a similar downward revision to oil demand growth in 2013 by the U.S. Energy Information Administration on Tuesday.
Source: Reuters
