Global ETF News Older than One Year
IMF Working paper-Tracking Global Demand for Advanced Economy Sovereign Debt
December 3, 2012--Summary: Recent events have shown that sovereigns, just like banks, can be subject to runs, highlighting the importance of the investor base for their liabilities. This paper proposes a methodology for compiling internationally comparable estimates of investor holdings of sovereign debt.
Based on this methodology, it introduces a dataset for 24 major advanced economies that can be used to track US$42 trillion of sovereign debt holdings on a quarterly basis over 2004-11. While recent outflows from euro periphery countries have received wide attention, most sovereign borrowers have continued to increase reliance on foreign investors. This may have helped reduce borrowing costs, but it can imply higher refinancing risks going forward. Meanwhile, advanced economy banks’ exposure to their own government debt has begun to increase across the board after the global financial crisis, strengthening sovereign-bank linkages. In light of these risks, the paper proposes a framework—sovereign funding shock scenarios (FSS)—to conduct forward-looking analysis to assess sovereigns’ vulnerability to sudden investor outflows, which can be used along with standard debt sustainability analyses (DSA). It also introduces two risk indices—investor base risk index (IRI) and foreign investor position index (FIPI)—to assess sovereigns’ vulnerability to shifts in investor behavior.
view the IMF Working paper-Tracking Global Demand for Advanced Economy Sovereign Debt
Source: IMF
IMF Policy paper-The Liberalization and Management of Capital Flows-An Institutional View
December 3, 2012--Summary:Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with respect to capital flows and policies related to them.
In 2011, the International Monetary and Financial Committee (IMFC) called for ―further work on a comprehensive, flexible, and balanced approach for the management of capital flows.‖ This paper proposes an institutional view to underpin this approach, drawing on earlier Fund policy papers, analytical work, and Board discussions on capital flows.
Source: IMF
STOXX Monthly Index Report -November 2012 In Review
December 3, 2012--As of November 30, 2012 stock market indices in Europe, Asia, the U.S. and globally were up in November, according to global index provider STOXX Limited.
For the month of November, the European, Asian and global markets were up 2.03%%, 2.01% and 0.72%%, respectively, while U.S. the markets were down -0.16%. The full performance report is below.
Source: Mondovisione
BATS Global Markets Reports November Volume; Record Fifth Consecutive Month Above 12% Market Share in U.S. Equities
BATS Chi-X Europe Reports 25.3%; U.S. Options Reports 3.6%
December 3, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, reported November data, including the third best U.S. equities market share in its history (12.7%), a record fifth consecutive month above 12%.
BATS Chi-X Europe reported market share of 25.3%, maintaining its position as the largest equity market in Europe during 2012. BATS Options reported 3.6% market share, up from 3.1% one year ago.
Greece inches closer to receiving its much-needed tranche of aid. As the uncertainty around Greece's near-term solvency starts to lift, the euro rose against the US dollar, helping to boost precious metals prices. After a third attempt, the Troika finally came to an agreement on Greece's bailout terms. The new compromise involves a commitment to cut Greece's debt to 124% of GDP by 2012 (rather than 120%) and to 110% of GDP only two years later. Greece's borrowing rate was cut by 1%, maturities doubled to 30 years and interest payments were deferred by ten years. Under the terms laid out by the IMF, Greece must buy back some of its debt at distressed prices to reduce its overall debt burden. The deal was approved by German Bundestag on Friday, but it still needs the approval of other Euro-nation parliaments. While the agreement falls short of the debt write-offs (or "hair-cuts") the IMF favoured, the fact that some countries are lending to Greece more cheaply than they can borrow, has imposed losses on Greece's creditors.
Platinum supported by a US shift into clean diesel cars. Sales of clean diesel vehicles in the US have increased by 25.6% this year. Clean diesel cars only account for 3% of US sales (compared to over 50% in Europe). A shift toward clean diesel cars in the US will likely boost the demand for platinum that is used in diesel auto-catalysts. Palladium prices are also benefiting from the belief that US and China recovery will boost palladium sales destined for the gasoline auto-catalysts that dominate the Chinese and US auto markets.
Key events to watch this week: US fiscal cliff negotiations. US politicians continue to bicker, with Republican House leader Boehner dismissing a Democrat proposal outright, saying 'the White House has to get serious'. Time is running out and markets are becoming increasingly anxious. US jobs numbers late this week will also be watched carefully, though Hurricane Sandy is expected to disrupt the relevance of the month's numbers. Visit www.etfsecurities.com for more info.
Source: ETF Securities
NASDAQ OMX Launches Global Index Family 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
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
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
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
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
Provides Investors a Broad Representation of the Global Investable Marketplace
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.
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.
November 30, 2012--The Inter-Agency Task Force of Finance Statistics (TFFS) presents the draft of updated chapters and appendices of the EDS Guide.
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).
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