Global ETF News Older than One Year
BATS Chi-X Europe to Make Available Real-Time Trade Data to Value Indices
Largest European Equities Exchange(1) to Offer Data Licence for Use in Index Valuation
October 22, 2012--BATS Chi-X Europe, the largest pan-European equities market operator by market share and notional value traded [1], today announced the availability of BATS Chi-X Europe market data for use in real-time index calculations.
The licence allows BATS Chi-X Europe's trade data to be used exclusively, or combined with data from other trading venues for consolidated prices, for the purposes of valuing indices in real time.
In the past 12 months, BATS Chi-X Europe's daily market share of notional value traded has averaged 24.8% on a pan-European basis, 35.4% of the FTSE 100 and more than 27% of the EURO STOXX 50 Index.
Source: BATS Global Markets, Inc.
ETFS Precious Metals Weekly-Spain continues to drive market direction
October 22, 2012--Disappointment over EU leaders' summit drives precious metals down.
Precious metals rallied early last week as investors hoped for some indications at the Thursday-Friday EU leaders' summit that Spain would soon be taking some form of sovereign
bailout. Unfortunately no new material information was revealed, driving the Euro down (US dollar up), with gold and other precious metals following swiftly behind as investors cut their extended net long futures positions. The Spanish Government appears to be waiting for regional elections to successfully pass before requesting what they appear to view as a politically damaging bailout. The incumbent Popular party strengthened its majority in Galicia in weekend elections, while the government lost further ground in the Basque region. With Spanish bond yields near their lowest point for six months and Italy able to launch an €18bn bond sale (its largest ever) last week, at the moment there is little external pressure on Spain’s Prime Minister Rajoy to ask for a bailout. As Catalonian elections are not scheduled to take place until 25 November, unless external events force Spain’s hand, the markets may have a while to wait before a bailout triggering potential ECB bond buying takes place. One potential positive for gold is that the gold price in Indian rupee terms is now at its lowest level since June. With the Diwali festival fast approaching, Indian jewellery and investment demand may start to pick up.
Contrasting demand outlook for platinum and palladium. South African labour unrest resumed last week, with Lonmin platinum miners starting striking again despite the 11%-22% pay rise agreed by the company earlier in the month. The return of strikes at Marikana revived the threat of contagion to the whole South African mining industry, indicating that disorder is far from over.
While the on-going supply issues in South Africa may provide longer-term platinum price support, European passenger car sales were down 11% year on year in September, on track to hit their lowest level in 17 years, with negative implications for demand for the platinum used in diesel autocatalysts. By contrast, US auto sales rose 25% year-on-year in September, highlighting the stronger potential demand for the palladium used in gasoline autocatalysts.
< Visit http://www.etfsecurities.com for more info.
Source: ETF Securities
S&P SMIT 40 Index launched by S&P Dow Jones Indices
October 22, 2012--S&P Dow Jones Indices today announced the launch of the S&P SMIT 40 Index, designed to measure the performance of 40 leading companies from four emerging markets: South Korea, Mexico, Indonesia and Turkey ("SMITs").
The index has been licensed by UniCredit to serve as the basis for structured products, to be issued in Germany and Austria. Marketed under the brand names "HypoVereinsbank onemarkets" in Germany and "UniCredit onemarkets" in Austria, the structured products will be listed on the Frankfurt and Stuttgart Stock Exchanges.
The S&P SMIT 40 Index represents the four largest markets of the Next Eleven (N-11). The N-11, a concept developed by Goldman Sachs Asset Management (GSAM), are the eleven countries (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam) recognized by GSAM as having the potential for strong long-term growth (in addition to the BRIC countries). The Index is designed to be representative of these four equity markets yet be efficient to replicate in order to support financial products.
Source: S&P Dow Jones Indices
Banks Opt Out in Swap Row
October 22, 2012--Two large banks in Asia and Europe said they won't register with U.S. regulators to trade complex derivatives with U.S.-based financial companies, amid controversy over a proposed rule tied to the Dodd-Frank financial overhaul.
Non-U.S. banks have been complaining for months about regulations that would force banks to register with U.S. regulators if they trade a set amount of swaps, a type of privately negotiated derivative, with U.S. banks or for U.S. clients.
Source: Wall Street Journal
EPFR Global Fund Data News-EM Funds sustain momentum as investors step up pursuit of yield
October 19, 2012-Some better US data and expectations that Spain will seek a bailout sooner rather than later encouraged investors to put more emphasis on returns during the week ending October 17.
EPFR Global-tracked Emerging Market Bond and Emerging Market Equity Funds both took in over $1 billion during the week, as did High Yield Bond and Dividend Equity Funds, while Gold Funds posted outflows for the first time since late July and another "safe haven" fund group -- US Equity Funds -- recorded their fourth consecutive week of net redemptions.
"Our daily data shows that flows on the equity side did not pick up until later in the week, when the US retail numbers were out, and the fact flows into Money Market Funds hit a 45 week high suggests that investors are still very cautious," noted EPFR Global Research Director Cameron Brandt.
Overall, EPFR Global-tracked Bond Funds took in another $8.4 billion which took year-to-date inflows into record setting territory. All Equity Funds posted a net outflow of $1.2 billion while Money Market Funds attracted $23.1 billion.
Visit http://www.epfr.com/overview.aspx for more info.
Source: EPFR
Global Farming Index feeds hungry and generates returns
Listed farming companies undercapitalised
Poor harvests signal need for higher production
Index returns over 10% in 12 months
October 16, 2012--
Investment into global farm production has not only generated high returns for investors over the past year, but will be increasingly necessary in the fight to avert global food shortages.
Extreme weather has led to a fall in food production this year, leading to dramatic increases in food prices1, and the UN has called for increased sustainable food production to avert a global crisis. The GAIA Farming Index calculated by Indxis, a leading independent provider of bespoke indices, allows investors to support agricultural production through a great long-term investment
Source: Indxis
ESMA publishes two lists of links to national websites relating to the notification and disclosure of net short position
October 19, 2012--According to Article 9(4) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps, ESMA has to post on its website the addresses of the central websites operated or supervised by each competent authority where the net short position in shares should be publicly disclosed.
In addition, as announced in ESMA's Q&A on the Short Selling Regulation, ESMA publishes the list of the links the websites in the different Member States where the information on the national process for submitting notifications and disclosure of net short positions is specified.
Source: ESMA
'Flash crash' reforms will fail to make markets safer, study claims
Finance academics call for "liquidity safety valves" to prevent stock market turmoil
October 18, 2012--
US 'flash crash' reforms will fail to avert another market meltdown unless they are coupled with new "liquidity-based circuit breakers"' researchers claim.
Academics studying the May 2010 crash, which saw stock prices plummet and recover in the space of minutes, have called for the introduction of liquidity safety valves to go alongside standard price-based circuit breakers.
The findings come from a new paper ‘Illiquidity Contagion and Liquidity Crashes’ by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
The findings come from a new paper 'Illiquidity Contagion and Liquidity Crashes' by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
view the Illiquidity Contagion and Liquidity Crashes paper
Source: Cass Business School
Advanced Automation Will Bring Greater Efficiency to the Commission-Recapture Process, Says TABB Group
October 18, 2012--In new research published today, TABB Group says that recent advancements in automating low-touch trading are helping to ease institutional investors' traditionally manual, often burdensome commission-recapture process.
According to Cheyenne Morgan, research analyst and author of “Automated Trading Decisions: Unifying the Goals of Asset Managers and Asset Owners,” as the buy-side’s trading desk becomes more efficient, their sales traders are able to focus greater time to and attention on high-touch trading, adding the most value for their customers.
The new research note focuses on how developments in automation technology will allow asset managers to streamline low-touch, labor-intensive responsibilities, such as satisfying commission-recapture programs and focus on more nuanced tasks, ultimately generating alpha. The report also covers automation solutions available today, including various software platforms that help implement low-touch and no-touch trading strategies.
Source: TABB Group
ETF Securities-Global Commodity ETP Quarterly 3Q 2012
October 17, 2012--We are pleased to present the Q3 2012 edition of the Global Commodity ETP Quarterly
Our goal is to provide you with the most comprehensive one-stop-shop reference guide for investors interested in accessing commodities market returns through exchange traded products (ETPs).
A comprehensive and fully up-to-date reference guide to global commodity ETPs and indexes - no ETP type or geographic area is excluded. The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of what has been driving trends so far in 2012 and the outlook for the rest of the year and 2013.
Roll yield analysis (contango/backwardation) broken down by individual commodity and commodity sectors.
Useful fundamental commodity data and information. An updated and revised inventory trends section, positioning data, futures curve developments, commodity index compositions and weights.
Source: ETF Securities
