Global ETF News Older than One Year
ETF Securities- Precious Metals Weekly: Gold Hits a 6-Month Low, Prompting Record Chinese Volumes
February 18, 2013--Gold price hits a 6-month low, breaking through technical support at US$1,600oz, prompting record Chinese activity. The resurgence of risk appetite over the past month has seen a general clearing out of net long COMEX gold speculative positions to August 2012 levels, as investors seem positioned for 'the worst is over' scenarios.
As investors look to have been rotating into more cyclical precious metals, like silver, a fall in the gold price has attracted buyers, prompting a gradual rebound in gold positions. Bargain hunters have also begun to emerge, giving some stability to the gold price above US$1600oz., and boosting volumes on the Shanghai Futures Exchange to record levels. While the technical picture has fuelled the liquidation of gold holdings, macro fundamentals suggest a potentially attractive entry level, as global financial markets remain awash with liquidity, global interest rates expected to remain extremely low for the foreseeable future and key macro risks lingering, particularly for the Eurozone economy.
India remained gold's biggest consumer in 2012, World Gold Council (WGC) figures show. Prospects of import duty increases in India from January 2013, prompted advanced buying, pushing demand up 41% qoq. Chinese demand growth was flat year on year, possibly reflecting optimism by Chinese investors that the country managed to avoid a hard landing. While gold demand reached a record US$236.4bn last year, investment demand softened as purchasing managers indices, employment data and measures of business confidence illustrate the global recovery remains on track. Declines from investments were more than compensated by increases in official sector purchases, which reached a 48-year high, and in jewellery consumption. For 2013, the WGC claims the recent weakness in the gold price might persist for as the improved risk appetite prompts investors to rotate to more cyclical assets.
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Source: ETF Securities
Eurex receives permission to offer direct market access in South Korea
Admission to Eurex Exchange for market participants in an additional key Asian market is now possible
February 18, 2013--Eurex Exchange, the international derivatives marketplace, announced today that it has received confirmation from the South Korean Financial Services Commission (FSC) to offer its full suite of products in South Korea without objection.
Eurex has already established a very successful cooperation with the Korea Exchange (KRX), the Eurex/KRX Link. The new possibility of a direct membership will further enhance the Eurex/KRX cooperation and strengthen the ties between Korean and German financial markets.
Source: Eurex
Basel Committee and IOSCO issue near-final proposal on margin requirements for non-centrally-cleared derivatives
February 15, 2013--The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) have today published a second consultative paper which represents a near-final proposal on margin requirements for non-centrally-cleared derivatives.
The paper is available on the websites of the Bank for International Settlements and IOSCO.
Several features of the near-final proposal are intended to manage the liquidity impact of the margin requirements on financial market participants. The proposed requirements would allow for the introduction of a universal initial margin threshold of €50 million. The results of a quantitative impact study (QIS) conducted in 2012 indicate that application of the threshold could reduce the total liquidity costs by 56% relative to a margining framework with a zero initial margin threshold, which was initially proposed in the July 2012 consultative paper on margin requirements for non-centrally-cleared derivatives.
Source: BIS
EPFR Global News Release-Rotation towards Equity Funds stalls but EM Funds continue blistering start to 2013
February 15, 2013--Normal service, 2012 style, was resumed during the second week of February as EPFR Global-tracked Bond Funds outgained Equity Funds for the first time since early December.
Overall Bond Funds, which had a record setting year last year while Equity Funds saw over $60 billion flow out, took in $2.58 billion during the week ending February 13 versus $1.81 billion for Equity Funds. The check in the recent rotation in favor of Equity Funds did not, however, drive Retail investors back to their default position – redemptions – during most of 2012. Instead Retail investors committed fresh money for the sixth straight week, the longest such run since 1Q11.
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Source: EPFR
WGC-2012 sees gold demand hit record value level
Q4 2012 up 4% year-on-year as India, China and central banks drive demand
February 14, 2013--In value terms, gold demand in 2012 was US$236.4bn-an all-time high. Gold demand in value terms for the final quarter of the year was 6% higher year-on-year at US$66.2bn, marking the highest ever Q4 total.
Global gold demand in Q4 2012 was 1,195.9 tonnes(t), up 4% on the same quarter in 2011. In Q4 2012, the average gold price reached a record level of US$1,721.8/oz, up 1% on the previous record average price in Q3 2011. The average price during 2012 was US$1,669.0/oz, up 6% from US$1,571.5/oz in 2011,
The key findings from the report are as follows:
Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year. Both jewellery and investment demand reached their highest levels for six quarters. Demand for jewellery was up 35% year-on-year to reach 153.0t, and strong retail demand led to 108.9t of investment buying. In India the prospect of duty increases, which came in to force in January 2013, may have added to strong buying in the final quarter to beat the anticipated price rises.
Source: World Gold Council (WGC)
First Trust plans ETF push in Europe
February 14, 2013--First Trust, the eleventh-largest US exchange traded funds manager, is planning to enter the European ETF market with an initial launch of three "smart beta" ETFs expected in the first quarter of 2013.
First Trust, a privately owned US asset manager with assets of $67.8bn, will offer three of its AlphaDEX ETF range that uses an alternative weighting scheme based on a range of growth and value scores.
Source: FT.com
First Trust to launch ETFs in Europe
US investment provider to list three ETFs that combine tracking with a stock selection methodology.
February 13, 2013--US investment provider First Trust Advisors is set to launch a range of ETFs in Europe during the first quarter of 2013.
The three AlphaDEX exchange-traded funds will be launched under the Ucits IV directive and will be listed in Ireland and London, subject to regulatory approval.
Source: FT Adviser
Societe Generale - New Phase In The Transformation: Organisation Changes & Appointments
February 13, 2013--After taking a decisive step in its transformation in 2012, with major progress in building up its financial solidity, Societe Generale is entering a new phase of its Ambition SG 2015 programme to reinforce its universal banking model, centred on three pillars of excellence, and continue to adapt to the new economic and regulatory situation and the changing expectations of its clients.
The Group thus plans to reinforce its organisation by further refocusing on its core businesses and simplifying its operating structures and methods.
Organisational project: to improve commercial and operational efficiency
The new organisational structure will stand on the three core businesses on which the Group has solid franchises and a recognised expertise, and on which the Group intends to maximise synergies at the service of its clients:
a French Retail Banking pillar, which covers the current scope (Societe Generale's French Network, Credit du Nord, Boursorama).
Source: Market Watch
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
