Global ETF News Older than One Year
Structural reforms more important than ever for a strong and balanced economic recovery
February 13, 2013--Structural reforms offer governments a powerful tool to boost economic growth, create jobs and bring about a strong and balanced economic recovery, according to the OECD's latest Going for Growth report.
This year's report assesses and compares progress that countries have made on structural reforms since 2011 and takes a fresh look at reform priorities to revive growth sustainably and boost employment. It shows that the pace of reform has accelerated where it is most needed – in the European countries hardest hit by sovereign debt duress, including Greece, Ireland, Italy, Portugal and Spain.
The report draws attention to the more moderate pace of reform in other euro area countries, notably those with current account surpluses, like Germany or the Netherlands. The highest-income OECD countries, like Norway, Switzerland and the United States, and key emerging-market economies are also shown to have made more limited progress on key reforms.
view the Going for Growth 2013
Source: OECD
FSB-Progress of Financial Regulatory Reforms To G20 Ministers and Central Bank Governors
February 12, 2013--Financial market conditions have improved over recent months. Nonetheless, medium-term downside risks remain, given weak growth prospects and high levels of public and private sector debt in many economies.
The recent improvement in financial market conditions owes much to central bank actions, in particular, the accommodative monetary policy aimed at stimulating the economic recovery. As a consequence, market participants’ appetite for risk has increased, but this has not yet translated into a robust recovery in real investment.
The beginning of the return of risk appetite to financial markets – while intended and welcome – raises a number of issues. First, market participants and authorities need to be on guard against mispricing of risk and valuations of assets. Second, the importance of timely completion of the reforms to over-the-counter (OTC) derivatives markets and the shadow banking system has increased. Third, historically low interest rates in many countries pose challenges for institutional investors with long-dated liabilities and may leave market participants more vulnerable to unanticipated movements in the yield curve. Financial institutions and supervisors should continue to assess the resilience of the financial system through regular stress testing, notably of credit and interest rate risk, and complete the process of balance-sheet repair.
Source: FSB
FSB completes thematic peer review on risk governance
February 12, 2013--The Financial Stability Board (FSB) published today a thematic peer review on risk governance.
The report takes stock of risk governance practices at both national authorities and firms, notes progress made since the financial crisis, identifies sound practices and offers recommendations to support further improvements. The recent global financial crisis exposed a number of risk governance weaknesses in major financial institutions, relating to the roles and responsibilities of corporate boards of directors (the “board”), the firm-wide risk management function, and the independent assessment of risk governance. Without the appropriate checks and balances provided by the board and these functions, a culture of excessive risk-taking and leverage was allowed to permeate in many of these firms
view the Thematic Review on Risk Governance-Peer Review Report
Source: Financial Stability Board (FSB)
Barclays announces the outcome of its strategic review and sets out commitments for 2015
Fbruary 12, 2013--Antony Jenkins, Barclays PLC ("Barclays"), Group Chief Executive said today: "Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured. Our goal is to make Barclays the 'Go-To' bank for all our stakeholders.
The plan that we set out today is critical to delivering that goal.
Our plan is built on a rigorous review of 75 distinct business units to determine not only their ability to generate an appropriate and sustainable return on equity, but also their strategic attractiveness, including their impact on Barclays reputation. We expect to make good progress towards our financial commitments by 2014 and deliver them fully during 2015.
Source: Barclays
ETF Securities- Precious Metals Weekly: China Car Sales Hit Record Driving Platinum and Palladium Prices to 17-Month Highs
February 11, 2013--Platinum group metals (PGMs) prices hit 17-month highs as Chinese car sales jump 46% in January. Multiple factors combined to drive PGM prices to multi-year highs last week. On-going signs of strength from the China's economy, together with persistent supply shortages, are providing strong price support for PGM prices, with platinum rising 2.9% and palladium 2.6% mid-last week, before easing at the end of the week.
More than two million vehicles were sold in China in January, a record monthly high, according to the China Association of Automobile Manufacturers. Chinese auto-catalyst demand alone accounts for 13% of global palladium demand. Declines in South African production, resulting from both infrastructure and labour constraints, could exacerbate the current 2013 deficit if they persist. While the fundamental picture remains strongly constructive for the sector, a sharp build-up in net long futures positions (see page 4) remains a tactical price risk in the near-term.
Russian palladium exports to Switzerland in 2012 drop 72% to lowest level in 22 years, exacerbating shortage. Swiss imports of palladium from Russia, a key barometer of Russian state sales, appear to be confirming a long-held industry suspicion that Russian state stockpiles are nearing exhaustion. Russian stockpiles have contributed around 13% of global supply on average over the past 10 years. Current market expectations centre on a looming 10% palladium supply shortfall in 2013, but this could widen if Russian state supply is withdrawn from the market altogether.
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Source: ETF Securities
BlackRock 'too big', bemoan its rivals
February 10, 2013--BlackRock's leading position in Europe’'s rapidly growing exchange traded funds market has prompted some observers to ask if its iShares ETF business has become too big.
BlackRock strengthened its position further by acquiring the ETF arm of Credit Suisse in January even though it already commanded a formidable presence in Europe.
Source: FT.com
US Treasury To Designate Eurex Exchange As Qualified Board Or Exchange --Designation Enables U.S. Persons To Receive 60/40 Tax Treatment
The international derivatives marketplace Eurex Exchange announced today that the U.S. Treasury will publish a revenue ruling in which it designates Eurex as a "Qualified Board or Exchange" for purposes of section 1256 of the U.S. Internal Revenue code.
This ruling, effective for all contracts entered on or after 1 March 2013, means that U.S. persons that trade on Eurex Exchange may receive ‘60/40 tax treatment’ in the same way when trading at other U.S. futures exchanges.
This treatment applies only to U.S. persons, and allows them to claim 60 percent of their gains or losses on eligible Eurex contracts as long-term capital gains/losses and 40 percent as short-term capital gains/losses.
“We are very pleased about the U.S. Treasury’s ruling as it will provide significant savings to U.S. persons trading at Eurex and will attract additional liquidity to our markets,” said Michael Peters, member of the Eurex Executive Board.
Source: Eurex
IOSCO Publishes Recommendations Regarding the Protection of Client Assets
February 8, 2013--The International Organization of Securities Commissions (IOSCO) today published a consultation report on Recommendations Regarding the Protection of Client Assets, which seeks to help regulators improve the supervision of intermediaries holding client assets.
Recent events such as the Lehman Brothers and MF Global insolvencies have highlighted the importance of client asset protection regimes. In this context, investors are trying to better understand the potential implications of placing their assets with particular intermediaries and in certain jurisdictions. Regulators are seeking to address risks to client assets and determine how to transfer or return client assets in default, resolution or insolvency scenarios.
View the consultation report on Recommendations Regarding the Protection of Client Assets
Source: IOSCO
EPFR Global News Release-EM, Japan and Real Estate Funds among those escaping chilly start to February
February 8, 2013--After roaring through January a number of fund groups found themselves whispering in early February as investors took a step back and kicked the tires on some of the rosier assessments for the Eurozone.
Although EPFR Global-tracked Equity Funds maintained their recent pattern by outgaining Bond Funds by margins of 3-to-1 or better -- again with the help of retail investors -- overall flows in both cases were a third of the previous week’s total. Europe Equity and Bond Funds, meanwhile, both posted outflows in the same week for the first time since late August.
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Source: EPFR
BlackRock-ETP Research-Record-breaking ETP flows in January
Global asset flows for exchange traded products (ETPs) recorded the best January on record with $40.2bn in flows.
February 7, 2014--Following a record-breaking year for global ETP flows in 2012 with $262.7bn in net new assets, momentum continued in January. Investors favored riskier assets as equities accounted for 94% of flows.
Emerging Markets were a dominant trend. Emerging Markets Equity ETPs gathered $13.2bn in January. Single Country ETPs also saw strong inflows of $5.8bn with investors favoring China, South Korea and Mexico exposures.
Fixed Income inflows moderated, with $2.1bn for the month, as investors moved out of Treasuries and into other higher yielding areas of the fixed income universe. High Yield ETPs were the one of best asset-gathering category with $0.8bn of inflows.
Source: BlackRock - ETP Research
