NASDAQ OMX Launches Global Index Family
Provides Investors a Broad Representation of the Global Investable Marketplace
December 3, 2012--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), parent of the world's first electronic stock market, today announced the launch of the NASDAQ Global Index Family-an extension of NASDAQ OMX's growth as an innovative global index provider.
The NASDAQ Global Index Family represents more than 98% of the global equity investable marketplace and will result in the development of 24,000 indexes. The family consists of global securities broken down by market segment, region, country, size and sector. The NASDAQ Global Index Family covers 9,000 securities with a combined float-adjusted market capitalization of over $32 trillion.
Today marks the first phase of the launch of the NASDAQ Global Index Family, with the introduction of approximately 4,000 indexes that are calculated in US dollars. The remaining indexes will be unveiled in subsequent phases in other currencies.
Source: NASDAQ OMX
NCB Capital becomes first Saudi firm to launch Dublin Ucits funds
December 3, 2012--Wealth manager NCB Capital has become the first Saudi Arabia institution to establish a non-Saudi registered range of Ucits funds in Ireland.
NCB Capital, which claims to run the world’s largest Shariah compliant fund at US$3.93bn, is starting its Ucits range with the NCB Capital Saudi Arabian Equity Fund and the NCB Capital GCC Equity Fund.
The objective of the two funds is to generate long-term capital growth by investing in listed companies in the Saudi Arabian and Gulf Co-operation Council markets in line with Shariah guidelines.
Source: International Adviser
CFA and Eurex to cooperate and jointly enhance futures market structure in China
Cooperation agreement signed on 2 December 2012
December 2, 2012--The China Futures Association (CFA) and Eurex Group signed today a comprehensive cooperation agreement in Shenzhen at the 8th International Derivatives Forum in Shenzhen.
Both partners foresee an extensive dialogue in order to facilitate the further development of both derivatives markets.
Eurex is the first international and globally operating derivatives market which has entered into a cooperation agreement with the leading Chinese futures association. Both partners have already started to work together and hosted joint training sessions over the last months in the People’s Republic of China. Today’s signing will transform and enhance the cooperation further.
Source: Eurex
IMF-External Debt Statistics: Guide for Compilers and Users
November 30, 2012--The Inter-Agency Task Force of Finance Statistics (TFFS) presents the draft of updated chapters and appendices of the EDS Guide.
The update is the result of a cooperative effort of TFFS agencies, as was the case for the 2003 EDS Guide. The TFFS invites external debt statistics compilers and users to provide comments.
view the External Debt Statistics: Guide for Compilers and Users
Source: IMF
HKEx places new shares for LME deal
November 30, 2012--Hong Kong Exchanges and Clearing Limited (HKEx) announced the placing of new shares to independent professional and institutional investors to raise about 7.753 billion HK dollars ( 1 billion U.S. dollars).
According to the announcement released on Friday, a total of 65. 7 million new HKEx shares will be issued under the placing, representing about 5.71 percent of the issued share capital of the company as enlarged by the placing.
Source: NZ Week
IMF Working paper-Finance and Development: Catalysts for Change
November 29, 2012--Summary:Financial network analysis is used to provide firm level bottom-up holistic visualizations of interconnections of financial obligations in global OTC derivatives markets.
This helps to identify Systemically Important Financial Intermediaries (SIFIs), analyse the nature of contagion propagation, and also monitor and design ways of increasing robustness in the network. Based on 2009 FDIC and individually collected firm level data covering gross notional, gross positive (negative) fair value and the netted derivatives assets and liabilities for 202 financial firms which includes 20 SIFIs, the bilateral flows are empirically calibrated to reflect data-based constraints. This produces a tiered network with a distinct highly clustered central core of 12 SIFIs that account for 78 percent of all bilateral exposures and a large number of financial intermediaries (FIs) on the periphery. The topology of the network results in the “Too- Interconnected-To-Fail” (TITF) phenomenon in that the failure of any member of the central tier will bring down other members with the contagion coming to an abrupt end when the ‘super-spreaders’ have demised. As these SIFIs account for the bulk of capital in the system, ipso facto no bank among the top tier can be allowed to fail, highlighting the untenable implicit socialized guarantees needed for these markets to operate at their current levels. Systemic risk costs of highly connected SIFIs nodes are not priced into their holding of capital or collateral. An eigenvector centrality based ‘super-spreader’ tax has been designed and tested for its capacity to reduce the potential socialized losses from failure of SIFIs.
view the IMF Working paper-Finance and Development: Catalysts for Change
Source: IMF
ABN AMRO Clearing Implements NASDAQ OMX's SMARTS Broker
November 29, 2012--ABN AMRO Clearing, a business line of ABN AMRO, has implemented NASDAQ OMX's SMARTS Broker solution for surveillance and compliance monitoring across multiple equity, derivative and commodity markets in Europe, Asia Pacific and the United States.
ABN AMRO Clearing will utilize the automated trade monitoring solution to facilitate quick identification of suspicious trading behavior and intuitive detection of potential market abuse. SMARTS Broker will provide the bank's multi-regional compliance professionals with actionable insight and sophisticated alerts for various forms of market abuse, including insider trading, market manipulation, violations of order handling rules and irregular trading patterns by automated and high frequency trading platforms. The ABN AMRO users of SMARTS Broker are then able to utilize the integrated SMARTS data analysis tools, including Spread Graph and Market Replay, which enables them to quickly and efficiently evaluate the alerted trading, against the background of full historical market data.
Source: NASDAQ OMX
BIS, ECB and IMF Publish Third Part of Handbook on Securities Statistics
November 28, 2012--The Bank for International Settlements (BIS), the European Central Bank (ECB) and the International Monetary Fund (IMF) today jointly released the third and final part of the Handbook on Securities Statistics, which covers equity securities issues and holdings.
The aim of the Handbook is to assist national and international agencies in the production of relevant, coherent and internationally comparable securities statistics for use in monetary policy formulation and financial stability analysis.
The Handbook is the first publication of its kind dealing exclusively with the conceptual framework for the compilation and presentation of securities statistics. As such, it directly addresses one of the recommendations endorsed by the Ministers of Finance and Central Bank Governors of the Group of Twenty Economies (G20) concerning the need to fill data gaps and to strengthen data collection. Recommendation 7 of the report The Financial Crisis and Information Gaps, prepared by the Financial Stability Board Secretariat and IMF staff, called on central banks and, where relevant, statistical offices, particularly those of the G20 economies, to participate in the BIS data collection on securities and to contribute to the further development of the Handbook.
view the Third Part of Handbook on Securities Statistics
Source: IMF
UK regulator approves metal exchange takeover by HK bourse
November 28, 2012--The London Metal Exchange on Thursday said that British regulators had approved its takeover by the Hong Kong Stock Exchange, clearing a key hurdle in a deal worth $2.15 billion (1.65 billion euros).
"The board of directors of LME Holdings are pleased to announce that the Financial Services Authority has given notice in writing... of its approval in respect of HKEx acquiring control over LME Limited through its indirect subsidiary, HKEx Investment," the LME said in a statement.
Source: AFP
Macro Matters-Market volatile on mixed economic signals
November 28, 2012--China
Both Hong Kong and China markets ended higher last week due to: 1) speculation the government will lower reserve-requirement ratio; and 2) news that CSRC (China Securities Regulatory Commission) had eased capital requirements for overseas and local investment.
China local market was highly volatile on mixed economic data. Markets once dropped on news that FDI inflow to China had decreased by 3.5% during the past 10-month of the year.
India-Investors remained cautious as Winter Parliament commenced. India market remained volatile last week as investors were cautious amid the start of winter session of the parliament on Thursday.
Indian stocks were boosted throughout the week by: 1) rating upgrades by brokerage firms; 2) hopes of increased sales during the holiday seasons; and 3) expectations of insurance, pension and banking sector liberalization.
Brazil-Policy measures in support of nation’s demand.
October’s unemployment rate was 5.3%, according to IBGE, decreasing from 5.4% in September. The unemployment rate is at historical low as the labor force remained tight. Meanwhile, the Brazilian average real income continued to be at its highest level which is expected to continue over the midterm.
Russia-Global uncertainties continued to persist.
According to the OECD CLI (Composite Leading Indicators), it seems the slowdown trend of OECD economies have subdued.
Recent US economic indicators have posted positive surprises to the markets. The better prints came widespread from consumer confidence to labor data, whilst the housing sector has finally delivered a consistent recovery since 2008.
Source: Mirae Asset Financial Group