Global ETF News Older than One Year
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
Harnessing Artificial Intelligence to Accelerate the Energy Transition
September 1, 2021--Artificial intelligence (AI) has tremendous potential to accelerate and support the global energy transition
It can act as an intelligent layer across many applications to identify patterns, improve system performance, and predict outcomes of complex situations
However, leading energy and technology experts say that there are several key barriers preventing AI from being adopted rapidly or at global scale New report highlights the technologies' potential to support the energy transition and establishes a set of principles for the energy industry to deploy AI in a safe, fair, and trustworthy way.
view the Harnessing Artificial Intelligence to Accelerate the Energy Transition report
Source: IMF
ETFGI reports assets in the Global ETFs industry reach a record US$9.46 trillion at the end of July 2021
August 31, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets in the Global ETFs industry reach a record 9.46 trillion US dollars at the end of July. ETFs and ETPs listed globally gathered net inflows of US$80.45 billion during July, bringing year-to-date net inflows to a record US$739.54 billion which is higher than the US$373.01 billion gathered at this point last year.
Assets invested in the global ETFs/ETPs industry have increased by 1.2% from US$9.35 trillion at the end of June 2021, to US$9.46 trillion at the end of July, according to ETFGI's July 2021 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Record $9.46 trillion invested in ETFs and ETPs listed globally at the end of July 2021.
Record YTD 2021 net inflows of $739.54 Bn beating the prior record of $390.93 Bn gathered in YTD 2017.
$739.54 Bn YTD net inflows are just $22 Bn lower than the full year 2020 record net inflows $490.19 Bn.
$1.13 trillion in net inflows gathered in the past 12 months.
Assets have increased 18.4% YTD in 2021, going from $7.99 trillion at end of 2020, to $9.46 trillion.
26th month of consecutive net inflows
Source: ETFGI
Hydrogen development strategies: a global perspective
August 30, 2021--Despite different strategies, the European Union, the United Kingdom, the United States, China and Japan all expect hydrogen to play a significant role in the decarbonisation of their economies by expanding its use in energy and transport systems.
Nearly all global decarbonisation scenarios agree: the future is electric. There are two basic reasons why electrification is the primary and most cost-effective pathway to decarbonisation. First, after decades of subsidy-driven technological innovation, solar and wind have now become the cheapest electricity generation sources in most of the world. Second, rapid technological advances enabling cheaper batteries, heat pumps, electric motors and similar technologies are now allowing electricity to enter sectors traditionally dominated by fossil fuels such as transport, heating and industry.
Source: bruegel.org
How much investment do we need to reach net zero?
August 25, 2021--To become climate neutral by mid-century, the European Union and other major economies must substantially reduce their greenhouse gas (GHG) emissions during this decade. The EU aims to reduce its emissions by 55 percent by 2030 compared to 1990 levels with a wide range of policies recently proposed in the 'Fit for 55' package. Meanwhile, the United States (US) aims to reduce its emissions by 50-52 percent by 2030 compared to 2005 levels, and China wants it’s its CO2 emissions to peak before 2030. To achieve this, serious investments will be needed.
Below, we review the multiple estimates of the investment required to reach climate goals and discuss the macroeconomic relevance of investment on top of what will already be spent to replace existing infrastructure.
Global energy investment trends
Global energy investments currently stand at around $2 trillion per year or 2.5 percent of global GDP, according to the International Energy Agency (IEA). In an illustrative pathway they recently developed, this will have to rise to $5 trillion or 4.5 percent of GDP by 2030 and stay there until at least 2050 to reach net zero CO2 emissions by 2050 (Figure 1). Much of this will be spent on electricity generation and infrastructure to electrify new economic sectors and to make the electricity system more suitable for much higher volumes and variability of renewable energy.
Source: bruegel.org
