Global ETF News Older than One Year
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
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
