Global ETF News Older than One Year
OCC Announces Average Daily Cleared Contract Volume Fell 6% In September
Futures And Securities Lending Activity Jumped Higher
October 1, 2012--OCC announced average daily cleared contract volume in September was 17,570,113 contracts, a 6 percent decline from September 2011.
Total cleared contract volume reached 333,832,141 contracts for the month, representing a 15 percent decline from the September 2011 volume of 394,148,808 contracts. OCC's year-to-date total contract volume is down 14 percent with 3,058,201,355 contracts in 2012.
Options: Average daily options trading volume in September was 17,348,823 contracts, 7 percent lower than September 2011. Total options trading volume for the month reached 329,627,631 contracts, a 16 percent decline from September 2011, which had 2 more trading days. Year-to-date options trading volume is down 14 percent with 3,031,485,451 contracts.
Source: OCC
World Bank Online: Jobs are a cornerstone of development, says World Development Report 2013
October 1, 2012--In developing countries, jobs are a cornerstone of development, with a pay off far beyond income alone. They are critical for reducing poverty, making cities work, and providing youth with alternatives to violence, says a new World Bank report.
The World Development Report 2013: Jobs stresses the role of strong private sector led growth in creating jobs and outlines how jobs that do the most for development can spur a virtuous cycle. The report finds that poverty falls as people work their way out of hardship and as jobs empower women to invest more in their children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and as less productive ones disappear. Societies flourish as jobs foster diversity and provide alternatives to conflict.
view the World Development Report 2013: Jobs
Source: World Bank
ETF assets rising, but some find the going tough
Market a revolving door for managers despite big inflows
October 1, 2012--The ETF market is a confusing place at the moment.
ETF net inflows are on a pace to shatter the all-time inflow record set four years ago.
At the same time, however, more money managers are exiting, and entering, the arena.
Net inflows into U.S. exchange-traded funds totaled $130.9 billion in 2012 through Sept. 24, according to BlackRock (BLK) Inc. (BLK)
Source: Pensions & Investments
ETFS Precious Metals Weekly: Gold Price Hits All-Time High in Euros as Spain Paves Way for Bailout
October 1, 2012--The gold price hit an all-time high of €1381/oz as Spain lays the ground for ECB bond buying
South Africa mine strikes continue to spread, affecting precious metals supply outlook
Key events to watch this week: focus on the central banks
What Will Drive the Next Leg of the Gold Bull Market?
Since mid-July the gold price has rallied strongly, but remains 11% below the peak of USD$1900/oz. achieved in September 2011. European financial and economic turmoil continues to plague financial markets, yet officials have so far failed to find a comprehensive plan to solve the root causes of the crisis. Europe remains mired in deep recession, the US economy appears to have stalled, while Asian emerging market growth has slowed. In this environment most "safe haven" assets have performed well, with G-3 bond yields falling to all-time lows earlier this year. Prior to August, the stand-out exception was gold, which had performed relatively poorly in 2012. Gold's modest performance in an environment of high sovereign risk caused some investors to question its historic "store of value" credentials. In this note we look at some of the key factors that traditionally drive gold price performance, explain what has been behind the performance of the gold price so far this year, and assess the outlook and likely key catalysts for gold price performance for the rest of 2012 and into 2013.
visit www.etfsecurities.com for more info
Source: ETF Securities
Global ETF sector in line for record year
September 30, 2012-- Investors are on course to put a record amount of money into exchange-traded funds this year after the investment vehicles attracted their third-highest monthly inflows on record in September.
Net new global inflows into ETFs and associated products reached $43.3bn in September, the highest since December 2008, according to data from BlackRock, the world’s largest money manager.
Source: FT.com
EPFR Global Fund Data News-Investor optimism and equity fund flows dampened by Europe
September 28, 2012--It took Europe's political elite less than two weeks to prove that, in the context of the four-year old Eurozone crisis, every silver lining hides several clouds.
Heading into the final days of September Spain’s bond yields were climbing and its citizens were rioting -- along with Greece’s -- as its government balked at the likely conditions attached to a full bailout and Germany, the Netherlands and Finland cast doubt over an earlier agreement to share the cost of stabilizing Spain’s banking sector.
Against this backdrop flows into EPFR Global-tracked Equity Funds stalled during the week ending September 26 while Bond Funds recorded their biggest inflow since early May. Equity Funds collectively took in $1.8 billion for the week, a ninth of the previous week’s inflows, as Bond Funds absorbed a net $7.6 billion. Money Market Funds posted a net outflow of $2.8 billion as flows into US and Global Money Market Funds were more than offset by redemptions of over $12 billion from their European counterparts.
Visit http://www.epfr.com for more info
Source: EPFR
SSgA Report Highlights Continued Concerns About Tail Risk Events Among Institutional Investors Report Explores Investor Views on Potential Causes and Protection Strategies
Sep 27, 2012--New research commissioned by State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), and written by the Economist Intelligence Unit (EIU), reveals that 71 percent of institutional investors believe it is "highly likely" or "likely" that significant tail risk event will occur in the next 12 months.
Many investors, hit hard by the substantial drawdowns of recent tail events, are much more wary about the course of the next tail risk event. The research shows that the crisis in the Eurozone, the prospect of global or European recession and the slow-down in China among the concerns.
SSgA commissioned the EIU to survey 310 institutional investors from across Western Europe and the US in June and July of this year. The findings are incorporated into a new report entitled “Managing Investments in Volatile Markets: How Institutional Investors are Guarding Against Tail Risk Events,” which reveals that although tail risk events are by definition unpredictable, investors have become far more sensitive to them, and are taking more proactive steps to reduce the impact they have on their investments.
Source: State Street Global Advisors (SSgA)
"Stifling of Swaps Markets Before Dodd-Frank Rules Take Effect"
Remarks by CFTC Commissioner Scott D. O’Malia, European Federation of Energy Traders Deutschland, Parlimentary Evening: Market Transparency and Supervision
September 27, 2012--Before I begin, I would like to thank Jan Haizmann for his kind introduction and for inviting me to speak at the European Federation of Energy Traders Parliamentary Evening. I am very pleased to be able to speak to a conference and share with you some of my observations regarding the U.S. efforts to regulate derivatives markets.
While U.S. regulators are working aggressively to implement the Dodd-Frank Act, I understand that European energy markets are also undergoing substantial reforms as well. This evening, I would like to provide you with my perspective on the U.S. efforts and the possible impacts these reforms may have on energy market.
Source: CFTC.gov
Stimulus Packages and Policy Reforms Boost EM
September 26, 2012--China plunge on geopolitical tensions and concerns over slowing economy
China stock market retreated last week, while Hong Kong marginally gained.
Stock markets were dragged down by growing tensions over the disputed island between China and Japan as well as concerns over slowing economic growth.
Protests rose in dozens of cities across China, objecting to Japan’s control of a group of islands in the East China Sea. Accordingly, Japanese-related businesses, from factories to restaurants, in mainland China were closed while Japan-related stocks plunged.
Economic news released also weighed down on investor sentiment; according to the Ministry of Finance, profits of China’s central government-owned enterprises dropped by 13% for the combined period of January through August.
The preliminary HSBC China Manufacturing Purchasing Managers Index rose slightly to 47.8 in September compared with a final reading of 47.6 in August. Despite the rise, markets reacted negatively as the index remained below the expansionary threshold of 50.
Losses for Hong Kong market were offset by: 1) additional easing package by Bank of Japan; and 2) gains in raw material producers after oil and metals prices rebounded.
India
Policy reforms push market up.
Indian stock markets rose last week as the government pushed through policy reforms. The Indian government formally opened its supermarket sector to foreign chains and eased foreign investment rules in airlines and broadcasters.
The government also announced changes in tax rules on overseas loans. Indian government reduced the withholding tax on overseas borrowings by domestic companies and included mutual funds in a plan aimed at luring individual investors to stocks.
Brazil
Macro indicators show gradual improvement in Brazil economy.
Brazilian equities trimmed recent gains in the week ending September 20th. Near-term equity performance will be influenced by developments within the Eurozone, with the Spanish Government reportedly close to finalizing a formal request for aid from the EC / ECB.
The Economic Activity Index (IBC-Br) posted a positive print of 0.42% in July compared to June on a seasonally adjusted basis. This result coupled with other recent indicators confirms the gradual improvement in economic activity in Brazil.
Russia
Russia outperformed peers on increase for risk appetite
Global markets have been buoyed by the Fed’s recent announcement of further liquidity provision via its QE3 asset purchase program, and the ECB’s OMT proposal, which has helped lower key stressed Eurozone sovereign debt yields.
Assuming Eurozone stability, the positive momentum created by the QE3 and OTM programs is likely to put a floor under equities in the near term, though further gains for the global asset class will increasingly depend upon the growth outlook for the US as it approaches the Presidential elections and the threat of the 2013 fiscal cliff of ~$600bn in expiring tax credits and spending cuts, and macro data from China, where the growth slowdown has been sharper than most expectations.
Source: Mirae Asset Financial Group
Swaps trading seen shifting to exchange-traded products
September 26, 2012--High margin requirements for more exotic products in the over-the-counter derivatives market are likely to shift market participants toward exchange-traded products as they seek to manage risk, according to a study commissioned by the World Federation of Exchanges.
"A war is being waged between forces of the status quo and forces of transformation of the global risk transfer market. It has the potential to shift product selection for hedging and trading purposes, from exotic and bespoke trade structures, to standardized and clearable swaps, futures and new futurized/hybrid swaps," said Paul Rowady, senior analyst at TABB Group and author of the study.
Source: SmartBrief
