BNY Mellon-Consultant 360-Volume I, 2013
January 9, 2013--The BNY Mellon Consultant 360: Global Edition-Volume I, 2013 is now available.
Source: BNY Mellon
Risk-on investors turn to emerging markets ETFs
January 9, 2013--Investors poured $54.3bn into emerging market equity exchange-traded funds in 2012, an exponential increase from the net new money invested in the products last year, as risk appetite increased and new products emerged.
Those net inflows to emerging market equity ETFs compare to just $3.7bn in net inflows to the products in 2011, according to data published on Monday by consultancy ETFGI.
Source: Financial News
Deutsche Boerse has lost appetite for Euronext takeover-sources
Euronext, operator of Paris, Brussels exchange on the block
Boerse gives up plans for pan-European stock exchange
Margin pressure on stocks diminish prospects of a deal
January 9, 2013--Germany's Deutsche Boerse has lost its appetite for buying Euronext, the operator of the Paris stock exchang, which is back on the block, three people familiar with the Frankfurt-based company's thinking told Reuters.
Deutsche Boerse is giving up on its decades-long dream of consolidating European stock exchanges because regulatory and technological changes have made it harder to earn big profits from stock trading, the sources said.
Source: Reuters
Basel Committee issues "Principles for effective risk data aggregation and risk reporting-final document"
January 9, 2013--The Basel Committee on Banking Supervision today issued Principles for effective risk data aggregation and risk reporting.
The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole.
The principles published today are intended to strengthen banks' risk data aggregation capabilities and internal risk reporting practices. They complement other international initiatives underway and will allow banks to comply effectively with them. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress and crisis situations. In this regard, Stefan Ingves, Chairman of the Basel Committee on Banking Supervision and Governor of the Sveriges Riksbank, said "these principles are a significant step towards improving banks' risk management capabilities and they will also contribute to G-SIBs' resolvability, hence reducing the potential recourse to tax-payers".
view the BIS Principles for effective risk data aggregation and risk reporting
Source: BIS
NYSE Euronext Monthly ETF Activity Report -December 2012
January 9, 2013--Listings
December 2012 saw a total of three new ETF listings from Lyxor:
ETF Symbol:BOT
Listing date: 19/12/2012
ETF Trading name:LYXOR ETF BOT IT
Underlying index:MTS Italy-Treasury BOT 6M
ETF Symbol:GLDM
Listing date:19/12/2012
ETF Trading name: Lyxor ETF GOLD EUR
Underlying index: MSCI ACWI GOLD-EM DR-18%Capped
ETF Symbol:GLDU
Listing date: 19/12/2012
ETF Trading name: Lyxor ETF GOLD USD
Underlying index: MSCI ACWI GOLD-EM DR-18%Capped
At end of December, NYSE Euronext European markets had 680 listings of 578 ETFs from 16 issuers.
Trading activity
Average daily value traded on-book in December of €193.1 million, a decrease of 28.13% vs December 2011, and down 8.22% MoM.
Total value traded on-book amounted to €4.06 billion, a decrease of 28.13% vs December and down 12.40% MoM.
Average of 5,250 on-book trades (single-counted) executed daily last month, a decrease of 32.10% vs December 2011, and down 19.35% MoM.
Total of €1.2 billion exchanged in block trades in December, up 82.95% from the €663.01 mllion in November.
Overall, block trade volume represented 29.91% of total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of December 2012, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €136.3 billion, down 4.71% YTD (decrease due to limited number of delistings).
Market Quality
2 LPs took on liquidity responsibilities for 10 additional LP contracts on 10 different ETFs:
SUSQUEHANNA expanded their current activity by adding 7 HSBC ETFs to their list.
SG SECURITIES took the lead on the 3 new Lyxor ETFs listed in December.
Median spread for all listed ETFs of 31.6 bps.
21 Liquidity Providers currently active on ETFs.
view the EU ETP Monthly Activity Report
view US ETP Monthly Flash report
Source: NYSE Euronext
World More at Risk from Markets and Mother Nature-Global Risks 2013 report
January 8, 2013--Persistent economic malaise coupled with frequent extreme weather events an increasingly dangerous mix
National resilience is crucial to tackle unpredictable global threats; new country rating system launched
Health and hubris, digital wildfires and environmental/economic stress are the three risk cases for 2013
The report analyses 50 global risks, with breakdowns for China, Middle East/North Africa and Latin America
January 8, 2013--The world is more at risk as persistent economic weakness saps our ability to tackle environmental challenges, according to the World Economic Forum's Global Risks 2013 report.
The report highlights wealth gaps (severe income disparity) followed by unsustainable government debt (chronic fiscal imbalances) as the top two most prevalent risks, in a survey of over 1,000 experts and industry leaders, which reflects a slightly more pessimistic outlook overall for the coming 10 years.
Following a year scarred by extreme weather, from Hurricane Sandy to flooding in China, respondents rated rising greenhouse gas emissions as the third most likely global risk overall, while the failure of climate change adaptation is seen as the environmental risk with the most knock-on effects for the next decade.
view the WEF report-Global Risks 2013 Eighth Edition
Source: World Economic Forum
Equities lead fund sales for third month in a row-IMA
January 8, 2013--Equities were the best-selling asset class for the third month running in November, according to the latest IMA sales figures.
Investment Management Association figures for November show net retail sales of £720m for equities. This is the highest figure since April 2011, when the asset class attracted £1.25bn.
Source: Investment Week
Dow Jones Islamic Market Titans 100 Index Closed Up 10.74% In 2012-Index Measures Performance Of 100 Of World's Leading Shari'ah-Compliant Stocks
Dow Jones Islamic Market Asia/Pacific Titans 25 Index, Dow Jones Islamic Market Europe Titans 25 Index, Dow Jones Islamic Market U.S. Titans 50 Index, End 2012 In Positive Territory
January 8, 2013--The Dow Jones Islamic Market Titans 100 Index finished 2012 up 10.74%, according to data compiled by S&P Dow Jones Indices.
The index, which rose 0.55% in December, measures the performance of 100 of the world’s leading Shari’ah-compliant stocks. In comparison, the Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a 2012 gain of 11.75%; it registered a gain of 0.70% in December. Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, surged 15.21% in 2012; the Dow Jones Asian Titans 50 Index posted a 2012 increase of 17.45%. For December, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index increased 2.95% while the Dow Jones Asian Titans 50 Index rose 4.72%.
Source: S&P Dow Jones Indices
BlackRock Investment Institute- Industry Highlights December 2012
January 8, 2013--The global ETP industry attracted record-breaking annual flows of $262.7bn in 2012, eclipsing the previous annual record of $259.7bn set in 2008.
Fixed Income and Emerging Markets Equity ETPs were key differentiators in 2012 with both categories setting new annual flows records at $70.0bn and $54.8bn, respectively.
Assets ended the year at $1.9 billion, 27 percent higher than a year earlier.
Notwithstanding angst over the US Fiscal Cliff, ETP investors followed a traditional risk-on pattern in December favoring US Large Cap and Emerging Market Equities while withdrawing funds from US Treasury ETPs.
Source: BlackRock Investment Institute
Commodity ETP Assets Increase 17% to $199.8 Billion in 2012
January 7, 2013--Assets in global exchange-traded products tracking commodities rose 17 percent to $199.8 billion at the end of 2012, driven by an increase in gold investments, according to ETF Securities Ltd.
The assets rose by $29.1 billion from $170.7 billion a year earlier, ETF Securities said today in an e-mailed report. Assets in gold ETPs rose to $146.6 billion from $122.5 billion, the report said.
The rise in assets was “primarily driven by strong investor demand for gold and silver ETPs to hedge against currency debasement,” Nicholas Brooks, the head of research and investment strategy at ETF Securities, said in the report. “Broad commodity, oil and industrial-metal ETPs, particularly copper, also saw a pick-up in demand as central-bank policies and improved U.S. and China data helped boost interest in more cyclical assets in the latter part of the year.”
Source: Bloomberg BusinessWeek