Global ETF News Older than One Year
IOSCO Statement on Credit Sensitive Rates
September 8, 2021--The Board of the International Organisation of Securities Commissions (IOSCO) reiterates the importance of continued transition to robust alternative financial benchmarks, i.e., Risk-Free Rates, to mitigate potential risks arising from the cessation of LIBOR, including USD LIBOR.
IOSCO wishes to highlight those alternative financial benchmarks will need to be compliant with the IOSCO Principles on Financial Benchmarks (IOSCO Principles).
Benchmark administrators should be mindful that demonstrating compliance with the IOSCO Principles is not a one-time exercise and alternative benchmarks should be IOSCO compliant at all times.
In light of some alternatives being suggested, notably credit sensitive rates, IOSCO calls for greater attention to Principles 6 and 7. Principle 6 asks administrators to take into account the 'relative size of the underlying market in relation to the volume of trading'. Principle 7 emphasises 'data sufficiency in a benchmark's design to accurately and reliably represent the underlying market' measured by the benchmark. Therefore, in line with Principles 6 and 7, IOSCO calls on administrators to assess whether the systemic benchmarks that are used extensively are based on active markets with high volumes of transactions, representing the underlying interest they intend to measure and whether such benchmarks are resilient during times of stress.
Source: iosco.org
How to build smart, zero carbon buildings -and why it matters
September 8,2021-Buildings represent 39% of global greenhouse gas emissions;
Reducing carbon emissions in buildings will be critical to achieving net zero emissions by 2050;
Efficient, zero carbon buildings take advantage of available, cost-effective technology to reduce emissions while increasing health, equity and economic prosperity in local communities.
Reducing carbon emissions in buildings will be critical to achieving the Paris climate goals and achieving net zero emissions by 2050.
Buildings represent 39% of global greenhouse gas emissions, including 28% in operational emissions and 11% in building materials and construction.
Global building floorspace is projected to double by 2060 and only 3% of investment in new construction is green and efficient, locking in high emissions for decades. The renovation rate for existing buildings is barely 1%, less than a third of the rate needed to meet the Paris climate goals.
Source: World Economic Forum
IOSCO publishes guidance for intermediaries and asset managers using Artificial Intelligence and Machine Learning
September 7, 2021--The Board of the International Organization of Securities Commissions (IOSCO) today published guidance to help its members regulate and supervise the use of Artificial Intelligence (AI) and Machine Learning (ML) by market intermediaries and asset managers, following its consultation report published in June.
The use of AI and ML may benefit market intermediaries, asset managers and investors by increasing the efficiency of existing processes, reducing the cost of investment services and freeing up resources for other activities. However, it may also create or amplify risks, potentially undermining financial market efficiency and harming consumers and other market participants.
Source: IOSCO
Climate risks to add $183bn to property insurance costs by 2040, Swiss Re predicts
September 6, 2021--Wildfires, winter storms and floods have already made 2021 costly for the industry.
Source: FT.com
Five Things to Know about Carbon Pricing
September 6, 2021--Carbon pricing shows serious promise as a tool in the fight against climate change
Deterring the use of fossil fuels, such as coal, fuel oil, and gasoline, is crucial to reducing the buildup of heat-trapping greenhouse gases in the atmosphere. Carbon pricing provides across-the-board incentives to reduce energy use and shift to cleaner fuels and is an essential price signal for redirecting new investment to clean technologies.
Here are five things to know about carbon pricing.
1. Carbon pricing can be readily implemented. Carbon pricing, implemented through a tax on the carbon content of fossil fuels or on their carbon dioxide (CO2) emissions, is straightforward to administer as an extension of existing fuel taxes. Carbon taxes can provide certainty about future emissions prices, which makes a difference when it comes to mobilizing clean technology investment. Revenue from carbon taxes can be used to lower burdensome taxes on workers and businesses or to fund investment in climate technology.
Source: IMF.org
Bitcoin futures volume climbed to $1.73 trillion in August
September 3, 2021--Volumes across major markets for bitcoin futures hit $1.73 trillion in August, representing an increase from July, according to data collected by The Block Research.
The August figure represents a 17 percent increase from July's $1.47 trillion in futures volume. The futures market's peak occurred in May, when volumes reached $2.56 trillion. As shown in the chart, Binance once again took the most market share for bitcoin futures during August.
Source: theblockcrypto.com
Global asymmetries strike back
September 2, 2021--Asymmetries in the global economy arising from economic concentration, global value chains, financial centres, digital networks and the enduring supremacy of the dominant currency are becoming harder to ignore.
This essay provides a cross-cutting economic perspective on the analysis of global asymmetries at a time of growing emphasis on polarisation and power relations.
Source: bruegel.org
Asset Managers Face Surging Costs Under New Derivatives Rules
September 2, 2021--Asset managers are about to see trading costs surge under new rules meant to reduce risk in the $15.8 trillion derivatives market.
Hedge funds, money managers and insurers with more than 50 billion euros ($59 billion) of uncleared derivatives will have to post more collateral under the penultimate phase of post-crisis regulations that took effect this week.
Group-of-20 leaders decided after the financial crisis to push trading of over-the-counter derivatives through clearinghouses where possible to reduce systemic risk in case of default. The risks from uncleared derivatives were underscored again this year by the implosion of Archegos Capital Management, which accumulated leverage through contracts that are traded off exchanges.
Source: bnnbloomberg.ca
Harnessing Artificial Intelligence to Accelerate the Energy Transition
September 1, 2021--Artificial intelligence (AI) has tremendous potential to accelerate and support the global energy transition
It can act as an intelligent layer across many applications to identify patterns, improve system performance, and predict outcomes of complex situations
However, leading energy and technology experts say that there are several key barriers preventing AI from being adopted rapidly or at global scale New report highlights the technologies' potential to support the energy transition and establishes a set of principles for the energy industry to deploy AI in a safe, fair, and trustworthy way.
view the Harnessing Artificial Intelligence to Accelerate the Energy Transition report
Source: IMF
ETFGI reports assets in the Global ETFs industry reach a record US$9.46 trillion at the end of July 2021
August 31, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets in the Global ETFs industry reach a record 9.46 trillion US dollars at the end of July. ETFs and ETPs listed globally gathered net inflows of US$80.45 billion during July, bringing year-to-date net inflows to a record US$739.54 billion which is higher than the US$373.01 billion gathered at this point last year.
Assets invested in the global ETFs/ETPs industry have increased by 1.2% from US$9.35 trillion at the end of June 2021, to US$9.46 trillion at the end of July, according to ETFGI's July 2021 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Record $9.46 trillion invested in ETFs and ETPs listed globally at the end of July 2021.
Record YTD 2021 net inflows of $739.54 Bn beating the prior record of $390.93 Bn gathered in YTD 2017.
$739.54 Bn YTD net inflows are just $22 Bn lower than the full year 2020 record net inflows $490.19 Bn.
$1.13 trillion in net inflows gathered in the past 12 months.
Assets have increased 18.4% YTD in 2021, going from $7.99 trillion at end of 2020, to $9.46 trillion.
26th month of consecutive net inflows
Source: ETFGI
