Global ETF News Older than One Year
Crypto ETF assets treble as investors take risks
September 13, 2021--Regulators and advisers are divided on digital currency and 'inverse' funds
The bulk of the $9tn exchange traded funds industry consists of plain vanilla index trackers focused on mainstream assets. But a couple of much higher risk variants are now growing rapidly-albeit from a low base.
Source: ft.com
ETF inflows shoot past 2020's full-year record total
September 10, 2021--Worldwide net investor inflows reaches $834.2bn at the end of August
Inflows into exchange traded funds have surged past 2020's record total globally as enthusiasm for the low-cost vehicles accelerates, prompting growing numbers of traditional fund managers to launch their own ETFs.
Worldwide net investor inflows reached $834.2bn at the end of August, already surpassing the last year's total of $762.8bn. Rising markets and investments helped global assets held in ETFs to balloon to $9.7tn, more than double the $4.8tn managed in the funds and products at the end of 2018, according to the data provider ETFGI.
Source: ft.com
IOSCO Statement on Credit Sensitive Rates
September 8, 2021--The Board of the International Organisation of Securities Commissions (IOSCO) reiterates the importance of continued transition to robust alternative financial benchmarks, i.e., Risk-Free Rates, to mitigate potential risks arising from the cessation of LIBOR, including USD LIBOR.
IOSCO wishes to highlight those alternative financial benchmarks will need to be compliant with the IOSCO Principles on Financial Benchmarks (IOSCO Principles).
Benchmark administrators should be mindful that demonstrating compliance with the IOSCO Principles is not a one-time exercise and alternative benchmarks should be IOSCO compliant at all times.
In light of some alternatives being suggested, notably credit sensitive rates, IOSCO calls for greater attention to Principles 6 and 7. Principle 6 asks administrators to take into account the 'relative size of the underlying market in relation to the volume of trading'. Principle 7 emphasises 'data sufficiency in a benchmark's design to accurately and reliably represent the underlying market' measured by the benchmark. Therefore, in line with Principles 6 and 7, IOSCO calls on administrators to assess whether the systemic benchmarks that are used extensively are based on active markets with high volumes of transactions, representing the underlying interest they intend to measure and whether such benchmarks are resilient during times of stress.
Source: iosco.org
How to build smart, zero carbon buildings -and why it matters
September 8,2021-Buildings represent 39% of global greenhouse gas emissions;
Reducing carbon emissions in buildings will be critical to achieving net zero emissions by 2050;
Efficient, zero carbon buildings take advantage of available, cost-effective technology to reduce emissions while increasing health, equity and economic prosperity in local communities.
Reducing carbon emissions in buildings will be critical to achieving the Paris climate goals and achieving net zero emissions by 2050.
Buildings represent 39% of global greenhouse gas emissions, including 28% in operational emissions and 11% in building materials and construction.
Global building floorspace is projected to double by 2060 and only 3% of investment in new construction is green and efficient, locking in high emissions for decades. The renovation rate for existing buildings is barely 1%, less than a third of the rate needed to meet the Paris climate goals.
Source: World Economic Forum
IOSCO publishes guidance for intermediaries and asset managers using Artificial Intelligence and Machine Learning
September 7, 2021--The Board of the International Organization of Securities Commissions (IOSCO) today published guidance to help its members regulate and supervise the use of Artificial Intelligence (AI) and Machine Learning (ML) by market intermediaries and asset managers, following its consultation report published in June.
The use of AI and ML may benefit market intermediaries, asset managers and investors by increasing the efficiency of existing processes, reducing the cost of investment services and freeing up resources for other activities. However, it may also create or amplify risks, potentially undermining financial market efficiency and harming consumers and other market participants.
Source: IOSCO
Climate risks to add $183bn to property insurance costs by 2040, Swiss Re predicts
September 6, 2021--Wildfires, winter storms and floods have already made 2021 costly for the industry.
Source: FT.com
Five Things to Know about Carbon Pricing
September 6, 2021--Carbon pricing shows serious promise as a tool in the fight against climate change
Deterring the use of fossil fuels, such as coal, fuel oil, and gasoline, is crucial to reducing the buildup of heat-trapping greenhouse gases in the atmosphere. Carbon pricing provides across-the-board incentives to reduce energy use and shift to cleaner fuels and is an essential price signal for redirecting new investment to clean technologies.
Here are five things to know about carbon pricing.
1. Carbon pricing can be readily implemented. Carbon pricing, implemented through a tax on the carbon content of fossil fuels or on their carbon dioxide (CO2) emissions, is straightforward to administer as an extension of existing fuel taxes. Carbon taxes can provide certainty about future emissions prices, which makes a difference when it comes to mobilizing clean technology investment. Revenue from carbon taxes can be used to lower burdensome taxes on workers and businesses or to fund investment in climate technology.
Source: IMF.org
Bitcoin futures volume climbed to $1.73 trillion in August
September 3, 2021--Volumes across major markets for bitcoin futures hit $1.73 trillion in August, representing an increase from July, according to data collected by The Block Research.
The August figure represents a 17 percent increase from July's $1.47 trillion in futures volume. The futures market's peak occurred in May, when volumes reached $2.56 trillion. As shown in the chart, Binance once again took the most market share for bitcoin futures during August.
Source: theblockcrypto.com
Global asymmetries strike back
September 2, 2021--Asymmetries in the global economy arising from economic concentration, global value chains, financial centres, digital networks and the enduring supremacy of the dominant currency are becoming harder to ignore.
This essay provides a cross-cutting economic perspective on the analysis of global asymmetries at a time of growing emphasis on polarisation and power relations.
Source: bruegel.org
Asset Managers Face Surging Costs Under New Derivatives Rules
September 2, 2021--Asset managers are about to see trading costs surge under new rules meant to reduce risk in the $15.8 trillion derivatives market.
Hedge funds, money managers and insurers with more than 50 billion euros ($59 billion) of uncleared derivatives will have to post more collateral under the penultimate phase of post-crisis regulations that took effect this week.
Group-of-20 leaders decided after the financial crisis to push trading of over-the-counter derivatives through clearinghouses where possible to reduce systemic risk in case of default. The risks from uncleared derivatives were underscored again this year by the implosion of Archegos Capital Management, which accumulated leverage through contracts that are traded off exchanges.
Source: bnnbloomberg.ca
