Global ETF News Older than One Year
Commodity hedge funds lose 20% of assets
February 6, 2013--Commodities hedge funds surrendered at least 20 per cent of their assets last year after investors pulled out large sums following the sector's worst annual performance in more than a decade, according to fund managers and investors.
The average commodity hedge fund lost 3.7 per cent in 2012, according to a closely watched index compiled by Newedge, the biggest decline since the yardstick was created more than a decade ago and substantially worse than the 1.4 per cent loss of 2011.
Source: FT.com
TAIFEX and Eurex agree on strategic alliance to cooperate in derivatives trading
Eurex to launch contracts based on Taiwan's main index TAIEX in Taiwanese after hours/ TAIFEX to extend global reach of its main index options and index futures contracts
February 6, 2013--TAIFEX, the Taiwan Futures Exchange, and Eurex Exchange, the international derivatives marketplace, announced an extensive product cooperation to trade and clear derivatives based on the TAIEX index, one of the most heavily traded Asian equity indexes.
A Letter of Intent (LoI) was signed today by Dr. Tony Fan, Chairman TAIFEX, and Andreas Preuss, CEO Eurex, in Taipei, Taiwan. The LoI foresees to establish a link between both marketplaces. As a first step, the partners plan to list TAIEX options and TAIEX futures as daily expiring futures on Eurex Exchange in Q4 2013.
The TAIFEX/EUREX project is the first substantial case of cooperation with an international market operator in Taiwan’s capital market according to Taiwan’s regulator FSB (Securities and Futures Bureau), part of the FSC (Financial Supervisory Commission). They say that they encourage the development of mutually beneficial endeavors of this kind.
Source: Eurex
ETFs and ETPs reach a new all-time high of $2.05 trillion at the end of January 2013 driven by significant net inflows into equities and strong equity market gains
February 6, 2013--Assets invested globally in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) broke through the $2 trillion milestone at the end of January 2013 to reach a new all-time high of $2.05 trillion.
ETF and ETP assets have increased by 5.2% from $1.95 trillion to $2.05 trillion during January, according to figures from ETFGI’s monthly Global ETF and ETP industry insights.
Market performance contributed to the increase in the value of assets held in ETFs and ETPs as 18 of the top 20 markets globally showed gains in January. Two of the markets with strong gains were the US and the UK where history has shown that a strong January tends to be a good predictor for the rest of the year. A review of history in both markets shows that strong January performance is typically followed by positive returns in the subsequent 11 months.
Source: ETFGI
Boost Weekly Performance Update-Boost FTSE 100 3x Leverage Daily ETP (3UKL) Up 24.1% In The Past Month
February 5, 2013--Boost Copper 3x Leverage Daily ETP (3HCL) was up 11.1% last week. With Copper prices (HG COMEX) pressing near 380c/lb. resistance, there is potential for further rises while the macro outlook depends on the outlook for China
Boost Natural Gas 3x Short Daily ETP (3NGS) returned 13.4% on the week due to warmer than expected weather. For this week a correction higher in Natural Gas is favoured as range trading dominates
US Q4 GDP fell at a -0.1% pace, but durable goods orders and the revisions to previous US employment data bolstered investor sentiment
Source: Boost
ETF Securities- Precious Metals Weekly: Strong growth data, tightening supplies boosting the "industrial" precious metals
February 4, 2013--Underlying US and China growth supportive of PGMs and silver. Although the headline US 4Q GDP number was disappointing, there was considerable strength in consumption and business investment growth, while most of the drag came from a temporary slowing in government spending and net exports.
Indeed, more forward looking data such as the January US payrolls, manufacturing ISM and December durable goods orders indicate that the US recovery remains on track. 157K new jobs were added in January and there were sizeable upward revisions to the previous two months of US payrolls data. Manufacturing activity expanded for the second consecutive month according the ISM report. Durable goods orders surged 4.6% in December. Chinese manufacturing PMIs were a touch lower in January than December, but remain in expansionary territory according to the Chinese National Bureau of Statistics.
Palladium and Platinum prices squeezed higher by rising costs, falling supply and rising demand. Eskom announced that it will raise electricity prices by 16% per annum over the next five years, which will considerably increase costs for the energy-intensive mining sector in South Africa. The additional cost burden comes on top of escalating labour costs and miner strikes that have forced many South African miners to cut back on production. Platinum and palladium markets are already forecast to be in deficit this year. Demand for these metals for use in auto-catalysts may rise even further in China where emission control standards are going to be raised in line with European standards. Platinum ended the week 0.5% higher. Palladium, which faces tighter supplies due to Russian state inventories being drawn down, rose 2.8% and is at the highest level since September 2011. Flows into palladium ETPs rose by 1% last week and holdings remain at the highest level since August 2011.
Visit www.etfsecurities.com for more info.
Source: ETF Securities
NYSE Euronext Monthly ETF Activity Report -January 2013
February 4, 2013--Listings
January 2013 saw a new listing of one new Amundi ETF:
January ETF Listings
ETF Symbol: EUXF
Listing date: 29/01/2012
ETF Trading name:AMUNDI MS EUR X FI
Underlying index: AMUNDI MS EUR X FI MSCI Europe ex Financials
At end of January, NYSE Euronext European markets had 669 listings of 579 ETFs from 16 issuers.
Trading activity
Average daily value traded on-book in January of €228.0 million, an increase of 18.07% vs December 2012, and down 13.98% vs January 2012.
Total value traded on-book amounted to €5.24 billion, an increase of 29.31% vs December 2012 and down 10.07% vs January 2012.
Average of 6,167 on-book trades (single-counted) executed daily last month, an increase of 28.67% vs December 2012, and down 16.34% vs January 2012.
Total of €0.84 billion exchanged in block trades in January, down 30.71% from the €1.2 billion in December.
Overall, block trade volume represented 16.03% of total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of January 2013, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €145.5 billion.
Market Quality
3 LPs took on liquidity responsibilities for 32 additional LP contracts on 32 different ETFs:
SUSQUEHANNA started 2013 on a strong note by adding an impressive 27 ETFs to their list: 1 Amundi ETF, 5 EasyETFs, 18 Lyxor ETFs, and 3 SPDR ETFs.
OPTIVER continued expanding their current activity by taking on responsibilities for an additional 4 ETFs: 2 Amundi ETFs, 1 CS ETF, and 1 EasyETF.
BNP PARIBAS ARBITRAGE took the lead on the new Amundi ETF listed in January.
Median spread for all listed ETFs of 25.1 bps, an improvement of -21% vs December 2012 and of -37% vs January 2012.
20 Liquidity Providers currently active on ETFs.
view the NYSE Euronext ETF Activity Report-EU Monthly
view the NYSE Euronext ETF Activity Report-US Monthly
Source: NYSE Euronext
CEO cites S&P Dow Jones Indices' openness to deals
February 3, 2013--CEO Alex Matturri says S&P Dow Jones Indices' structure offers the "flexibility to take on new partners" and that regulations will
lead to more index-market consolidation.
Source: SmartBrief
IMF Working paper-Competition among Exchanges and Enforcement Policy
February 1, 2013--Summary: In this paper, we explore how competition among stock exchanges, operated as self-regulatory organizations (SROs), affects the design of their members' surveillance.
We develop a model where two for-profit SROs compete for trading volume, while brokers execute transactions on behalf of the investors and may misreport the true cash flow. The SROs can deter a fraud by announcing an investigation and imposing a monetary penalty.The success of the investigation depends upon both the amount of resources devoted to monitoring and the efficiency of monitoring technologies. We show that when contracts are incomplete and investors do not have perfect information about the monitoring efficiency, competition among exchanges induces a race to the bottom in enforcement policy and a reduction in total welfare, compared to the case of a monopolist SRO.
view the IMF Working paper-Competition among Exchanges and Enforcement Policy
Source: IMF
EPFR Global News Release-'Great rotation' takes another turn towards Equity Funds in late January
February 1, 2013--EPFR Global-tracked Equity Funds attracted another $18.7 billion during the final week of January, closing the books on a month when they outgained Bond Funds by a nearly 3-to-1 margin and fueled talk of a "great rotation" from fixed income assets to equity.
Equity to bonds is not the only rotation underway.Retail flows into Equity Funds were positive for the fourth week running, keeping them on course for the strongest start to a year since 1Q06.
Visit http://www.epfr.com for more info
Source: EPFR
Credit Suisse deal may be first of many
February 1, 2013--Just when you thought BlackRock, the world's largest asset manager, could not get any bigger, it did.
The announcement last month that it is to acquire the exchange traded funds (ETF) arm of Credit Suisse, Switzerland’s second-largest bank, will see the US fund giant add a further $18bn of fund assets to an already impressive $3.67tn.
Source: FT.com
