Global ETF News Older than One Year
HSBC's Islamic closures highlight dilemma
October 10, 2012--Last week HSBC decided to close down its Islamic retail banking operations in six markets so that it will be present only in Malaysia, Saudi Arabia and, in shrunken form, Indonesia.
This event underlined the contradictions of the broader sector. On one hand, Islamic banking is continuously reported to be growing at e very high rate - more than 20% a year. On the other hand, there is a huge difference between asset growth and revenues and profit. Poor performance in retail banking markets is the reason for HSBC's withdrawal as well as for the decrease of Barclays' and Deutsche Bank's Islamic banking teams in Dubai.
Source: IslamicFinance.de
IMF Sees Heightened Risks Sapping Slower Global Recovery
IMF revises forecast down, global growth projected at 3.3 percent this year
World trade slumps, hurting emerging markets, developing countries
Prospects could improve if clouds over euro area, U.S. "fiscal cliff" are lifted
October 9, 2012--
The International Monetary Fund (IMF) presented a gloomier picture of the global economy than a few months ago, saying prospects have deteriorated further and risks increased. Overall, the IMF's forecast for global growth was marked down to 3.3 percent this year and a still sluggish 3.6 percent in 2013.
In its latest World Economic Outlook, unveiled in Tokyo ahead of the IMF-World Bank 2012 Annual Meetings, the IMF said advanced economies are projected to grow by 1.3 percent this year, compared with 1.6 percent last year and 3.0 percent in 2010, with public spending cutbacks and the still-weak financial system weighing on prospects.
Source: IMF
IOSCO Publishes Policy Recommendations for Money Market Funds
October 9, 2012--The International Organization of Securities Commission (IOSCO) has published today a final report on Policy Recommendations for Money Market Funds, which proposes recommendations to be the basis for common standards for the regulation and management of money market funds across jurisdictions.
These are articulated around key principles for valuation, liquidity management, use of ratings, disclosure to investors, and repos.
IOSCO’s work on MMFs is an important part of the efforts by the G20 and Financial Stability Board to strengthen the oversight and regulation of the shadow banking system. It follows the endorsement by the G20 Leaders of the FSB’s initial recommendations and work plan regarding shadow banking submitted at the November 2011 Cannes Summit. The FSB requested that IOSCO undertake a review of potential regulatory reforms of MMFs, following the September 2008 run on some money market funds that alerted regulators to the systemic relevance of MMFs.
view the report-Policy Recommendations for Money Market Funds
Source: IOSCO
Mirae BRICs weekly-Investors Focus on Government's Measures to Boost Economy
October 9, 2012--China
HK market rose, offsetting recent losses.
China's domestic markets were closed all week ending Oct 5.
Hong Kong market, opened from Wed to Fri, rose to end the holiday-shortened week higher.
India
Continued economic reforms boost markets.
Indian markets edged higher on continued government reforms. However, gains were limited on Friday due to erroneous trades that caused a sharp decline in the index.
India's Cabinet pushed ahead with a second wave of economic reform proposals, endorsing higher levels of foreign investment in insurance and pension funds as well as amendments to laws governing competition. The Cabinet agreed to support raising the limit on foreign investment in insurance and pension funds from 26 to 49%.
Brazil
Investors focus on government intervention in the economy.
With no major newsflow either on the corporate or macro level, investors continued to focus on government and regulatory intervention in specific sectors such as generation, transmission, ports and banks.
Banks continue were under pressure to lower lending spreads and cut fees, resulting in a structural downwards shift in returns, expected to be reflected in Q3 results.
Rising commodity prices lifted the market.
The optimism, which was aroused by QE3 and actions of the ECB, faded as weaker economic data and resurgent concerns over the Euro zone debt crisis cooled equity markets.
Nonetheless, equity markets ended the month of September higher. Emerging markets outperformed developed markets, rising 5.8% assisted by China’s pledge to stimulate its economy.
Source: Mirae Asset Financial Group
Basel III implementation progress report published by the Basel Committee
October 8, 2012--The Basel Committee on Banking Supervision has today published its third Progress report on Basel III implementation.
It is the Committee's last report ahead of the globally agreed start date of 1 January 2013 for implementing Basel III although the Committee will continue to provide updates through next year and beyond.
Commenting on the report, Stefan Ingves, Chairman of the Basel Committee and Governor of Sveriges Riksbank, Sweden's central bank, said "it is clear that not all jurisdictions will be ready in time. Still, we see continuing signs of progress." He added "The Committee recently published three Level 2 assessment reports, which showed that further work is needed by some jurisdictions to close the gaps identified in their draft regulations.
It is essential that all jurisdictions continue to press ahead and finalise regulations by the deadline or as soon as possible thereafter."
view the Progress report on Basel III implementation
Source: BIS
The FTSE Curex FX Index Series Expands to a Total of Eight Executable Offshore Renminbi FIX Benchmarks
October 8, 2012--FTSE, the award winning global index provider, and Cürex Group, a leading developer of intellectual property and technologies that link institutional foreign exchange liquidity with global exchange traded products, today announced the expansion of the FTSE Cürex FX Index Series with the addition of seven new streaming benchmark currency pairs, enabling investors to trade Offshore Renminbi (CNH) against seven major currencies at an independently calculated benchmark rate.
The new indices increase the number of executable currency pair benchmarks included in the index series from 192 pairs to 199 pairs. In addition to the FTSE Cürex FX Benchmark USD/CNH FIX published June 12, 2012, the new Offshore Renminbi FIX rates are:
FTSE Cürex FX Benchmark EUR/CNH FIX
FTSE Cürex FX Benchmark GBP/CNH FIX
FTSE Cürex FX Benchmark SGD/CNH FIX
Source: FTSE
FTSE Launches Website for Vanguard Customers
October 6, 2012--To support Vanguard's customers, FTSE has set up a website featuring the FTSE indices that will be benchmarks for Vanguard's funds,
at www.ftse.com/vanguard.
This site contains a wealth of useful information including index descriptions, factsheets and ground rules, together with more general background information on FTSE and our approach to index design and management.
Source: FTSE
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
