Global ETF News Older than One Year
Analysis: Investors fret over MSCI outlook as ETF price war bites
October 5, 2012--Just four weeks ago, an MSCI executive was crowing about his company's near-monopoly on providing critical benchmark stock market indexes which are licensed by fund companies around the world.
"It's the only part of our business in which we have a committed strategy of trying to utilize a little bit of pricing power and raise prices a little bit every year," Edings Thibault, MSCI's head of investor relations, told investors at UBS's Best of Americas conference in London on September 7.
Source: Reuters
IOSCO Publishes Principles for Oil Price Reporting Agencies
October 5, 2012--The Board of the International Organization of Securities Commissions has published today its final report on Principles for Oil Price Reporting Agencies (PRAs), which sets out principles intended to enhance the reliability of oil price assessments that are referenced in derivative contracts subject to regulation by IOSCO members.
These principles were prepared in response to the G20 Leaders’ request in November 2011 that “IOSCO, in collaboration with the IEF, the IEA and OPEC, [to] prepare recommendations to improve their functioning and oversight to our Finance Ministers by mid-2012” and followed by the G20 Leaders’ Los Cabos Declaration.[1] This report builds upon issues that were identified in Oil Price Reporting Agencies, the joint report of the International Energy Forum (IEF), International Energy Agency (IEA), Organization of Petroleum Exporting Countries (OPEC) and IOSCO, published in October 2011. It also has been informed by the comments received in response to IOSCO’s March 2012 ConsultationPaper Functioning and Oversight of Oil Price Reporting Agencies, as well as discussions and comment by the international organizations at key points.
The PRA principles detail a set of recommended practices for PRAs aimed at promoting the quality and integrity of oil price assessments that will enhance the reliability of oil derivatives contracts that reference such assessments. This in turn will enhance the price discovery and risk management function of the oil derivatives markets and help minimize the susceptibility of contracts to manipulation or price distortion.
view the report- Principles for Oil Price Reporting Agencies
Source: IOSCO
2013 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity
October 4, 2012--The Bank for International Settlements (BIS) announced today that in 2013 it will coordinate the ninth Triennial Central Bank Survey on Foreign Exchange and Derivatives Market Activity.
The Triennial Central Bank Survey is the most comprehensive source of information on the size and structure of global foreign exchange and derivatives markets. By increasing market transparency, the Survey aims to help monetary authorities and market participants to better monitor patterns of activity and exposures in the global financial system.
Fifty-three central banks will participate in the 2013 Survey. 1 Participating central banks will survey financial institutions in their jurisdiction and submit national aggregates to the BIS, which will calculate and publish global totals. More than 5,000 financial institutions worldwide are expected to contribute.
Source: BIS
FAO Food Price Index up 1.4 percent in September
Global cereal harvest down, but record expected in LIFDCs
October 4, 2012-- Following two months of stability, the FAO Food Price Index rose slightly in September 2012, up 1.4 percent, or 3 points, from its level in August.
The Index, based on the prices of a basket of internationally traded food commodities, climbed to 216 points in September from 213 points in August. The rise reflected strengthening dairy and meat prices and more contained increases for cereals. Prices of sugar and oils, on the other hand, fell.
The FAO Index currently stands 22 points below its peak of 238 points in February 2011, and 9 points below its level of 225 points in September 2011.
Source: FAO
Dow Jones Islamic Market Titans 100 Index Closed Up 2.76% In September
Index Measures Performance Of 100 Of World's Leading Shari'ah-Compliant Stocks-Dow Jones Islamic Market Asia/Pacific Titans 25 Index, Dow Jones Islamic Market Europe Titans 25 Index End September In Positive Territory-Dow Jones Islamic Market U.S. Titans 50 Index Gained 2.38%
October 3, 2012--The Dow Jones Islamic Market Titans 100 Index finished September up 2.76%, according to data compiled by S&P Dow Jones Indices.
The index measures the performance of 100 of the world’s leading Shari’ah-compliant stocks.
In Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 the leading Shari’ah-compliant stocks in Europe, increased 3.16% in September; the Dow Jones Europe Titans 80 Index, which measures the performance of 80 blue-chip stocks traded in the developed markets of Europe, gained 2.51%.
In the U.S., the Dow Jones Islamic Market U.S. Titans 50 Index, which measures 50 of the largest Shari’ahcompliant U.S. stocks, increased 2.38% in September; the U.S. blue-chip Dow Jones Industrial Average increased 2.65%.
Source: Mondovisione
World economic crisis to last 10 years: IMF chief economist
October 3, 2012-- The International Monetary Fund's chief economist says the world economic crisis will take at least 10 years to emerge from its 2008 disaster mark.
“It will surely take at least a decade from the beginning of the crisis for the world economy to get back to decent shape," the IMF Chief Economist Olivier Blanchard said in an interview published on Wednesday with the news site Portfolio.hu.
The economist stressed that EU-powerhouse Germany would have to accept a higher inflation rate and focus its purchasing power in order to help speed recovery.
Source: Press TV
October 3, 2012--The Dow Jones-UBS Commodity Index was up 1.70% for the month of September.
The Dow Jones-UBS Single Commodity Indexes for lead, nickel and zinc had the strongest gains with month-end returns of 16.06%, 15.74% and 13.51%, respectively. The three most significant downside performing single commodity indexes were soybean, soybean meal and cotton, which ended the month down 8.85%, 8.72%, and 8.56% respectively.
Year to date, the Dow Jones-UBS Commodity Index is up 5.56% with the Dow Jones-UBS Soybean Meal Subindex posting the highest gain of 69.43% so far in 2012. Dow Jones-UBS Orange Juice Subindex has the most significant downside YTD performance, down 28.44%.
Source: Mondovisione
ETFGI-Global ETFs and ETPs gather record inflows of US$188 billion year-to-date through end of Q3 2012
October 3, 2012--Global ETFs and ETPs gathered US$188 billion of net new assets year-to-date through the end of Q3 2012, setting a new record high and surpassing the prior record of US$170 billion gathered in 2011, according to findings in the upcoming 'ETFGI Global Industry Insight, Q3 2012' report by ETFGI LLP, an independent research and consulting firm covering the global ETF and ETP industry.
Assets in global ETFs and ETPs also reached a new record high of US$1.86 trillion at the end of Q3, surpassing the prior record of US$1.76 trillion set at the end of August 2012.
ETFGI announced today that net new asset inflows into global Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) hit an all-time high of US$188 billion year-to-date through end of Q3 2012, which is US$18 billion more than the prior record of US$170 billion gathered in 2011.
Assets in global ETFs and ETPs reached a new record high of US$1.86 trillion at the end of Q3, surpassing the prior record of US$1.76 trillion set at the end of August 2012. Year-to-date through end of Q3 assets have increased by 21.7% from US$1.53 trillion to US$1.86 trillion in the 4,690 ETFs and ETPs, with 9,626 listings, from 204 providers on 56 exchanges.
Although the global ETF and ETP market continues to grow on many measures it remains very competitive; the top three providers consistently capture over 60% of assets, net new assets and trading volumes. Assets invested in ETFs and ETPs have grown at 26.5% CAGR over the past 10 years. The United States accounts for 70.1% of the US$1.86 trillion in global assets, Europe represents 18.8% and Asia Pacific (ex-Japan) 3.9%, leaving 7.2% for the rest of the world.
The top three providers collectively hold 68.7% of global assets. iShares ranks first with 38.3%, SPDR ETFs is second with 18.0% and Vanguard third with 12.4%. There is a 9.1% gap between third place and DB/x-trackers in fourth with 3.4% of global assets. The remaining 200 providers hold just slightly more than a quarter of global assets. The top 3 firms have held between 68-71% of global assets for many years. It will be very difficult for a new entrant or an existing firm to grow organically into the top 3.
The top three firms based on assets are also winning the net new asset (NNA) race accounting for 65.0% of all of NNAs, with iShares accounting for 26.7%, Vanguard 22.8% and SPDR ETFs 15.5%. The top three providers also captured a high proportion of trading volume with 75.2% collectively of September’s average daily trading volume. SPDR ETFs has the largest share with 42.4%, iShares is second with 28.3%, followed by ProShares with 4.5%.
“ETF competition is about getting the product mix and the ETF Eco System right and not just low costs. We will see some movement in the relative size of the industry heavyweights and while benchmark, performance, trading, liquidity and product structure will continue to be key considerations, costs as we see from the US will be an increasingly important component,” said Deborah Fuhr, Managing Partner at ETFGI.
Benchmarks are an important factor in the selection process when comparing ETFs and ETPs to implement exposure to a desired market segment or asset class. The top 3 index providers account for 54.5% of global assets. S&P Dow Jones has the largest number of ETFs/ETPs tracking their benchmarks with 1,028 products and 25.5% of assets, MSCI with 569 products and 19.7% of assets, followed by Barclays Capital with 178 products and 9.3% of assets. Over 100 other index providers split the remaining 45.5% of assets.
Year-to-date through Q3 2012 Equity ETFs and ETPs have gathered the largest net inflows accounting for US$111 billion, followed by fixed income ETFs and ETPs with US$50 billion and commodity ETFs and ETPs capturing US$17 billion.
Equity focused ETFs and ETPs have gathered US$111 billion YTD, which is US$20 billion more than the NNA flows they received in all of 2011. Products providing exposure to the United States/North American equities have gathered US$63 billion, followed by emerging market equity with US$28 billion and Asia Pacific equity with US$7 billion.
Fixed Income ETFs and ETPs have also proven to be very popular this year with US$50 billion in NNAs, which is US$4 billion more than the total new assets they received last year. Within the Fixed Income universe corporate bond products have gathered the largest net inflows with US$20 billion, followed by high yield products with US$14 billion. Emerging market and broad/aggregate bond exposures each captured just over US$5 billion.
Commodity flows at US$17 billion are nearly US$2 billion more than full year 2011 NNAs. Precious metals have gathered the largest net inflows with US$15 billion, followed by broad commodity products with US$2 billion.
Source: ETFGI
BATS Global Markets Posts U.S. Equities Market Share Of 12.4%; CXE Dark Book Is Largest MTF Dark Book In Europe
U.S. Options Market Share at 3.5%
PR Newswire
October 2, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported September U.S. equities market share of 12.4%, the second-best monthly market share performance in the company's seven-year history.
"September's U.S. equities market share was our third straight month exceeding 12% as we continue to show exceptional strength at our flagship business despite lower market volumes overall," said President and Chief Executive Joe Ratterman. "In Europe, we set another monthly record in Copenhagen's OMXC20 Index and our CXE dark order book was the largest MTF dark book in Europe for the first time since the creation of BATS Chi-X Europe."
Source: BATS
CFTC reveals key rule-making milestones
October 2, 2012--The margin required for uncleared swaps in the US will be revealed early next year, according to a new Dodd-Frank Act implementation timeline released by the Commodity Futures Trading Commission (CFTC).
In a speech to the Financial Markets Law Committee Seminar at the Bank of England, CFTC chairman Gary Gensler said the agency was collaborating with European and other international regulators to coordinate a global approach for uncleared swaps margin.
Source: The Trade
