Global ETF News Older than One Year
Energy Position Limits May Cause More Price Volatility, IEA Says
January 18, 2013--The implementation of stricter regulations on global swaps markets, such as position limits and higher margin requirements, may cause energy prices to become more volatile, the International Energy Agency said.
“The new rules are intended to bring transparency to the swaps markets and lower their risks,” the Paris-based energy adviser said in its monthly oil market report today. “Regulatory uncertainties and inconsistencies within and across jurisdictions might in fact lead to less transparent and more risky global financial markets.”
Source: Bloomberg
State Street 4th-qtr profit up 26 pct, beats estimates
January 18, 2013--State Street Corp said on Friday fourth-quarter profit beat Wall Street estimates, rising 26 percent on a big boost from investment management fees.
Net income was $468 million, or $1.00 a share, compared with $371 million, or 76 cents a share, in the year-ago period.
On an operating basis, State Street earned $521 million, or $1.11 a share.
Source: Reuters
SSgA's AUM climbs 13% in 2012; ETFs up 38%
January 18, 2013--State Street Global Advisors had $2.089 trillion in assets under management as of Dec. 31, up 1.2% from three months earlier
and 13.2% higher than the end of 2011, according to parent company State Street Corp. (STT)'s earnings statement Friday.
Source: Pensions & Investments
ETF Securities To Strengthen Its Retail Strategy With Senior Sales Hire
January 17, 2013--ETF Securities (UK) Limited, part of the ETF Securities group which is one of the world's leading independent providers of exchange-traded investment products and a pioneer in Exchange Traded Commodities (ETCs), has hired former Trader and Salesman, Frank Spiteri, as Head of Retail Distribution.
The hire has been made in response to a growing demand from retail investors for highly liquid, cost-effective and transparent investment solutions. He will report into Matt Johnson, Head of Distribution for Europe, Middle East and Africa (EMEA).
Source: Mondovisione
NASDAQ OMX to Combine Market Technology and Corporate Solutions Businesses
Industry Leading Provider of Business, Trading and Exchange Technology Solutions to Align Businesses to Improve Client Offering and Advance Technology Leadership Position
Company Appoints Bradley Peterson as Global Chief Information Officer
January 17, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced the company will combine its Market Technology and Corporate Solutions businesses. The combination will enable increased focus and drive growth across the company's technology businesses, create a dedicated software and technology management structure and advance NASDAQ OMX's market position by leveraging global distribution and scaling our products and services.
The new business unit will be led by Anna Ewing, executive vice president, Global Technology Solutions, NASDAQ OMX.
Global Technology Solutions includes Market Technology and Corporate Solutions. The Market Technology business provides technology and advisory services to over 70 marketplaces, clearing organizations and central securities depositories in over 50 countries as well as risk management and surveillance solutions to financial services firms. Corporate Solutions provides public and private companies with a portfolio of products and services that deliver critical market intelligence and communications solutions which help identify, target and communicate with stakeholders.
NASDAQ OMX intends to treat the combined Market Technology and Corporate Solutions businesses as a separate reporting segment effective January 1, 2013.
Source: NASDAQ OMX
Newly-launched Dynamic VSTOXX Indices licensed to Barclays
January 16, 2013--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced that the newly launched Dynamic VSTOXX and Dynamic VSTOXX Net Of Costs indices have been licensed to the Investment Bank of Barclays.
The new indices provide an enhanced exposure to European volatility through the VSTOXX futures by applying a dynamic allocation strategy aimed at identifying the most rewarding – and yet at the same time less risk-prone– combination of short- and mid-term futures.
The Dynamic VSTOXX and Dynamic VSTOXX Net Of Costs indices follow an “index of indices” concept, meaning their value is calculated based on the value of the underlying indices, the EURO STOXX 50 Volatility Short-Term Futures (VSTOXX Short-Term Futures) and EURO STOXX 50 Mid-Term Futures (VSTOXX Mid-Term Futures) indices. The weights of the underlying indices are rebalanced dynamically in the Dynamic VSTOXX and Dynamic VSTOXX Net Of Costs indices. Both indices follow the exact same index concept, however, the Dynamic VSTOXX Net of Costs Index additionally accounts for average market costs which are typically associated with the replication of an index for a financial product. All costs are clearly identified in the index formulae, ensuring transparency for market participants.
“The newly launched Dynamic VSTOXX and Dynamic VSTOXX Net Of Costs indices offer market participants the possibility to diversify their portfolio by adding exposure to VSTOXX futures,” said Hartmut Graf, chief executive officer, STOXX Limited. “Through the dynamic weight allocation between the two underlying VSTOXX Short- and Mid-Term Futures indices, which ranges from short to long positions, the index adapts to high and low volatility regimes in the European market.”
Source: STOXX
EU and Brazilian regulators to co-operate on cross-border supervision of alternative investment funds
January 16, 2013--The European Securities and Markets Authority (ESMA) has approved the co-operation arrangements between the Brazilian Comissão de Valores Mobiliários (CVM) and the EU securities regulators for the supervision of alternative investment funds, including hedge funds, private equity and real estate funds.
ESMA has negotiated the agreement with the CVM on behalf of all 27 EU national competent authorities for securities markets regulation.
The co-operation arrangements include the exchange of information, cross-border on-site visits and mutual assistance in the enforcement of the respective supervisory laws. This co-operation will apply to Brazilian alternative investment fund managers (AIFMs) that manage or market alternative investment funds (AIFs) in the EU and to EU AIFMs that manage or market AIFs in Brazil.
Source: ESMA
Macro Matters-Local News Dominate Market
January 16, 2013--China-Higher than expected CPI hinders market.
At week-beginning, Chinese shares gained on better-than-expected exports data for December.
Exports jumped 14.1% from the same month previous year, the fastest pace in seven months. However, gains were limited as data also showed that Chinese inflation accelerated to a 7-month high.
China's CPI rose 2.5 percent year on year in December, up from November's 2 percent. Consumer prices climbed at the fastest pace since June 2012, above the estimated rate of 2.3 percent, due to surging food prices which were 4.2 percent more than a year earlier.
India-Earnings reporting season begin.
Earnings reporting season begin Oil companies extended gains on expectation that the government will gradually raise diesel price while motorcycle companies dropped as the industry cut sales estimates.
Software companies which remained sideline throughout the week received a boost on Friday as Infosys, India’s second largest software exporter, earnings beat estimates.
Brazil-Energy related issue exacerbated.
Equities gave back part of their recent gains in the week ending January 10th. Brazilian utilities stocks once again fell as the possibility of energy rationing rises.
Hydroelectric reservoirs are at levels not seen since 2001 following low rainfall, and with hydroelectric plants accounting for more than 70% of the domestic energy generation matrix, implications for electricity output are potentially significant.
Due to the near-term reliance on more costly thermal generation plants, spot electricity prices have spiked, and are expected to remain elevated and volatile throughout at least Q1.
Russia-Russia outperformed within emerging markets in Dec.
The Federal Reserve’s explicit announcement of maintaining close to zero interest rates until unemployment falls below 6.5% was well-received by the market.
At the same time optimism that Chinese economic growth would accelerate in 2013, further lifted emerging markets, which outperformed developed markets in December.
Within Emerging Markets, Russia outperformed due to positive company-specific news, despite economic data pointing to a slowdown in the economy.
Source: Mirae Asset Financial Group
Russell Indexes and NYSE Euronext Announce Global Alliance and RussellTick Distribution Agreement
RussellTick(TM) to be Hosted in NYSE Euronext's U.S. Liquidity Center & Global Index Feed
Alliance Highlights Complementary Strategic Direction & Enhances Capital Markets Community
Commitment to Introduce Additional Products in the U.S. & Europe Including Index Options
Russell Index Leaders and CEO Ron Bundy Will Ring The Opening Bell(R) on Wednesday, January 16th to Celebrate The Global Alliance
January 15, 2013--Russell Indexes, a leading global index provider and NYSE Euronext, one of the world's premier exchange operators and technology innovators, today announced a global alliance which will span three distinct NYSE Euronext business lines and multiple geographies, as well as several facets of Russell's global index business.
The agreement includes the transition of RussellTick, an index feed for real-time, intra-day values for the Russell family of indexes in the U.S. and globally, to NYSE Technologies’ Global Index Feed (GIF) protocol and extensive global distribution. Approximately $3.9 trillion in assets are currently benchmarked to the Russell Indexes globally. The alliance also includes a commitment to develop additional joint global services and products, such as new index-based options.
Source: Russell Investments
Liquidity Alliance launched to address global collateral crunch
The initial members of the Liquidity Alliance are ASX (Australia), Cetip (Brazil), Clearstream,(Frankfurt/Luxembourg), Iberclear (Spain) and Strate (South Africa)
The goal of the Liquidity Alliance is to exchange information, identify common needs and to extend global collateral solution
* Liquidity Alliance will be a dynamic forum and open to additional participants from all regions
January 16, 2013--The financial crisis in 2007/2008 prompted regulators to make risk avoidance their top priority which they then backed with a portfolio of new legislation.
The consequence of the Dodd-Frank Act, EMIR, CRD IV and other regulations will be to leave the financial services industry short of liquidity and collateral at a time when new capital rules make banks unwilling to lend.
According to April 2012 estimates by the Basel Committee on Banking Supervision, banks in Europe alone are facing an aggregate shortfall of stable funding of EUR 2.78 trillion in fulfilling the additional liquidity requirements of Basel III.
Additionally, the IMF reported in April 2012 that sovereign downgrades would reduce the supply of general collateral by USD 9 trillion by 2016. Sourcing collateral is therefore a truly global issue for the industry now and for the years to come.
Source: Clearstream
