Global ETF News Older than One Year
Japan Banks Hedge Bets Over New US Swap Rules
Japanese banks may reduce trading of derivatives with U.S. banks to skirt new Dodd-Frank rules, bank officials say
Officials add that banks will consider registering U.S. subsidiaries with U.S. regulators
Japanese banks remain cautious about taking clear stance until rules finalized
October 25, 2012--Japanese banks appear to be hedging their bets in response to new U.S. rules tied to the Dodd-Frank market overhaul,
with officials saying they may cut back on trading financial derivatives with their U.S. counterparts while stopping short of not registering with U.S. regulators at all.
Banks outside the U.S. have criticized the new proposals requiring them to register with U.S. regulators if they trade a certain amount of swaps with U.S. banks or for U.S. clients.
Banks in other parts of Asia are already pulling back on trading derivatives with U.S. counterparts while two large banks in Asia and Europe--Singapore's DBS Group Holdings Ltd. and Sweden's Nordea Bank AB--recently declared they wouldn't register under the rules.
Source: The Wall Street Journal
Progress note on the Global LEI Initiative
October 24, 2012--This is the third of a series of notes on the implementation of the legal entity identifier (LEI) initiative. The first progress note is available here and the second note here
Following endorsement of the FSB report and recommendations by the G-20, the FSB LEI Implementation Group (IG) has been tasked with taking forward the planning and development work to launch the global LEI system by March 2013.
The IG is collaborating closely with private sector experts through a Private Sector Preparatory Group (PSPG) of some 300 members from 25 jurisdictions across the globe. Charter for the Regulatory Oversight Committee (ROC): The IG has prepared a draft Charter for the Regulatory Oversight Committee for review and endorsement by the FSB and G20. The draft was supported by the FSB at its recent meeting in Tokyo for submission to the early November G20 Finance Ministers and Central Bank Governors meeting for final endorsement. Approval of the Charter will initiate the process for the ROC to be formed. ROC membership will be open to public authorities from across the globe that assent to the Charter. Authorities will also be able to apply for Observer status. The objective is to launch the ROC as the permanent governance body for the global LEI system in January 2013.
Source: FSB
The Future of Computer Trading in Financial Markets
October 23, 2012--Advances in technology continue to transform how our financial markets operate. The volume of financial products traded through computer automated trading taking place at high speed and with little human involvement has increased dramatically in the past few years.
For example, today, over one third of United Kingdom equity trading volume is generated through high frequency automated computer trading while in the US this figure is closer to three-quarters.
A new two-year Foresight study The Future of Computer Trading in Financial Markets - An International Perspective, sheds new light on technological advances which have transformed market structures in recent years.
view the The Future of Computer Trading in Financial MarketsAn International Perspective
Source: BIS
World Bank Online: World Bank & IFC Report Finds Developing Countries Made Significant Progress in Improving Business Regulations
October 23, 2012—Local entrepreneurs in developing countries are finding it easier to do business than at any time in the last 10 years, highlighting the significant progress that has been made in improving business regulatory practices across the globe, according to a new report released today by the World Bank and IFC.
The report, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises, marks the 10th edition of the Doing Business series. Over the past decade, these reports have recorded nearly 2,000 regulatory reforms implemented by 180 economies. The reforms have yielded major benefits for local entrepreneurs across the globe. For example:
Since 2005, the average time to start a business has fallen from 50 days to 30—and in low-income economies the average has been reduced by half.
view the Doing Business Report 2012
Source: World Bank
IMF Working paper-The Differential Effects of Oil Demand and Supply Shocks on the Global Economy
October 23, 2012--Summary: We employ a set of sign restrictions on the generalized impulse responses of a Global VAR model, estimated for 38 countries/regions over the period 1979Q2-2011Q2, to discriminate between supply-driven and demand-driven oil-price shocks and to study the time profile of their macroeconomic effects for different countries.
The results indicate that the economic consequences of a supply-driven oil-price shock are very different from those of an oil-demand shock driven by global economic activity, and vary for oil-importing countries compared to energy exporters. While oil importers typically face a long-lived fall in economic activity in response to a supply-driven surge in oil prices, the impact is positive for energy-exporting countries that possess large proven oil/gas reserves. However, in response to an oil-demand disturbance, almost all countries in our sample experience long-run inflationary pressures and a short-run increase in real output.
Source: IMF
Barclays launches RDR share classes as it courts advisers
October 23, 2012--Barclays is to launch retail distribution review (RDR)ready share classes across its fund ranges, alongside its discretionary offering available on platforms, as the bank seeks to gain traction with advisers.
Barclays will offer RDR share classes to the intermediary market across its GlobalAccess range, which includes single asset funds accessing third-party managers, alongside its GlobalMarkets range.
Source: CityWire
BlackRock Has Edge for Credit Suisse Unit, Citigroup Says
October 23, 2012--BlackRock Inc. (BLK), the world's largest exchange-traded fund provider, has an "edge" over State Street Corp. in buying Credit Suisse Group AG (CSGN)'s ETF business, according to Citigroup Inc. analysts.
An acquisition would allow BlackRock to bolster the presence of its iShares ETF unit in Europe, Citigroup analysts led by William Katz wrote in a note today to clients. BlackRock has a history of integrating smaller asset managers and it has stronger financial flexibility, while State Street is more focused on returning capital to shareholders and could be restricted as a result of activist investors, according to the note.
Source: Bloomberg
CME Group looks toward an Asia expansion
October 23, 2012--CME Group doesn't plan to stop at Europe with its new exchange there.
"We have spent a lot of time building talent, regional expertise and infrastructure in Europe and bringing an exchange to the region is a natural extension of those efforts. We see an opportunity to leverage that infrastructure in other regimes and Asia is one of those. Clearing and execution located in London will serve a number of regions, including Asia-Pacific," CME's Bryan Durkin says.
Source: Smartbrief
NASDAQ OMX Reports Third Quarter 2012 Results
Third quarter non-GAAP diluted EPS of $0.62, compared to $0.67 in the prior year quarter; Third quarter 2012 GAAP diluted EPS of $0.52
Third quarter net exchange revenues1 were $409 million, down six percent year-over-year, both on a reported and on an organic basis (constant currency and excluding acquisitions)
2012 operating expense guidance lowered to $922 to $935 million, previously $935 to $965 million
October 24, 2012--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the third quarter of 2012.
Third quarter net exchange revenues were $409 million, down six percent compared to the third quarter of 2011. Excluding the impact of foreign currency, third quarter 2012 net exchange revenues declined four percent year-over-year.
Operating expenses were $239 million, compared to $241 million in the third quarter of 2011. On a non-GAAP basis, third quarter 2012 operating expenses were $228 million, down $4 million year-over-year.
Third quarter 2012 non-GAAP diluted earnings per share was $0.62, down $0.05 compared to the prior year quarter. Non-GAAP earnings per share in the third quarter of 2012 excludes a loss on the sale of IDCG of $14 million, restructuring charges of $10 million, merger and strategic initiatives net gain of $3 million, and special legal expenses of $4 million. On a GAAP basis, net income attributable to NASDAQ OMX for the third quarter of 2012 was $89 million, or $0.52 per diluted share, compared with $110 million, or $0.61 per diluted share, in the prior year quarter.
Source: NASDAQ OMX
Swaps Exchanges Couldn’t Rival NYSE-Deutsche Boerse, EU Ruled
October 22, 2012--Derivatives exchanges would have been unable to quell the combined market power of Deutsche Boerse AG (DB1) and NYSE Euronext (NYX), European Union regulators said in disclosing their reasons for blocking the duo's plans to join forces to create a global leader.
Regulators rejected the companies’ arguments that derivatives traded over the counter competed with those traded on exchanges, according to the 447-page filing made public last week. The two products are separate “rather than substitutable” for exchange customers, according to the document, which may set the tone for how the EU’s antitrust agency will view future exchange deals.
Source: BusinessWeek
