Global ETF News Older than One Year
Global ETF variety breaks through the 3000 mark
July 26, 2012--By the end of June this year, data from the research consultancy showed there were 3309 ETFs and 7353 listings across 171 providers on 50 exchanges, representing assets of $1.5bn (£950m).
Deborah Fuhr, founder of ETFGI, said: “More people are using ETFs as they want to gain exposure to different segments of the market.
“It is also hard at the moment to find active managers who are consistently dealing alpha.”
The figures showed ETFs saw net inflows of $18.5m (£11.8m) in the year up to the end of June.
According to ETFGI, 322 ETFs have been launched by 65 providers on 24 exchanges, while 42 ETFs have de-listed in the year up to the end of June 2012.
Source: Canadian ETF Watch
ETF Securities: New Release: Global Commodity ETP Quarterly -Q2 2012 Edition
July 25, 2012--Highlights
Commodity ETP Q2 Overview: Precious Metals in Demand as
Macro Uncertainty Soars
Commodity ETP Returns, Flows and AUM Comparative Analysis
Commodity Fundamentals Analysis
Overview and Comparison of Commodity Index Methodologies
Comprehensive Guide to Global Commodity ETPs
Precious Metals in Demand as Macro Uncertainty Soars
Gold ETP holdings hit an all-time high of 77 million ounces in Q2 as ETP investors took advantage of the gold price decline and slowing US economic growth raised expectations of a potential third round of quantitative easing by the US Fed. Silver also saw strong demand for similar reasons. While precious metals were in strong demand, deteriorating economic and financial conditions in Europe combined with signs of slowing growth in the US and China hit more cyclical commodities and other assets in Q2 2012, reversing most of the gains of the first quarter of the year. Although outflows from commodity ETPs were a relatively small $1.1bn, price declines across the commodity sector caused the value of assets in commodity ETPs to fall by $13.5bn to $175bn, a 7.1% decline from the previous quarter.
visit www.etfsecurities.com for more info
Source: ETF Securities
Islamic index products struggle in Gulf investment culture
July 25, 2012--Islamic exchange-traded funds (ETFs) are struggling to attract fresh investors, in contrast to a move by Western investors into conventional ETFs -a difference due to the Gulf's plain-vanilla investment culture and the way in which institutions choose financial products.
ETFs are funds which track indexes of shares, bonds or commodities and are traded like stocks. Their sharia-compliant versions follow religious principles such as bans on interest and gambling.
Source: Reuters
Five things you need to know about Esma's new ETF rules
July 25, 2012--The biggest shock in the long-awaited guidelines on exchange-traded and other Ucits funds from the European Securities and Markets Authority is the decision not to impose a cap on securities lending.
Esma has published the new rules following a consultation paper in January, which invited the industry to respond to issues under consideration.
Source: Financial News
Basel III FAQs on counterparty credit risk rules
July 25, 2012--The Basel Committee on Banking Supervision today issued frequently asked questions (FAQs) on Basel III's counterparty credit risk rules.
To promote consistent global implementation of Basel III, the Committee has agreed to periodically review frequently asked questions and publish answers along with any technical elaboration of the rules text and interpretative guidance that may be necessary.
view the BIS Basel III counterparty credit risk-Frequently asked questions
Source: BIS
Regulatory treatment of valuation adjustments to derivative liabilities: final rule issued by the Basel Committee
July 25, 2012--The Basel Committee on Banking Supervision today revised paragraph 75 of Basel III as regards its application to derivatives.
The Basel III rule in paragraph 75 is designed to ensure that an increase in the credit risk of a bank does not, via a reduction in the value of its liabilities, lead to an increase in its common equity.
Paragraph 75 required banks to "derecognise in the calculation of Common Equity Tier 1, all unrealised gains and losses that have resulted from changes in the fair value of liabilities that are due to changes in the bank's own credit risk." While this rule was originally developed in the context of debt instruments issued by banks, the principle extends also to fair valued OTC derivatives. However, the application of paragraph 75 to derivatives was not straightforward.
Source: BIS
Capitalisation of bank exposures to central counterparties
July 25, 2012--The Basel Committee issued today interim rules for the capitalisation of bank exposures to central counterparties (CCPs).
Since 2009, the Basel Committee has been working to give effect to the G20 Leaders' goal of creating incentives for banks to increase their use of central counterparties (CCPs), while at the same time ensuring that banks' exposures to CCPs are adequately capitalised. After two rounds of public consultation, and discussions with the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO), the Basel Committee has issued today, as part of Basel III, interim rules for capitalising exposures to CCPs that are intended to come into effect as of January 2013.
view the Capital requirements for bank exposures to central counterparties report
Source: BIS
NASDAQ OMX Reports Second Quarter 2012 Results
July 25, 2012--Q212 non-GAAP diluted EPS of $0.64, up $0.02 compared to prior year quarter; Q212 GAAP diluted EPS of $0.53
Q212 non-GAAP net exchange revenues1 were $413 million, down 0.5% year-over-year, but up 3% year-over-year on an organic basis (constant currency and excluding acquisitions); Q212 net exchange revenues were $424 million
Performance driven by growth in Global Market Data Products (revenues up 8% year-over-year to $90 million) and Access Services (revenues up 11% year-over-year to $61 million) NEW YORK, July 25, 2012 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the second quarter of 2012. Second quarter non-GAAP net exchange revenues were $413 million, down 0.5% compared to the second quarter of 2011. Excluding the impact of foreign currency, non-GAAP second quarter 2012 net exchange revenues increased 3% compared to the second quarter of 2011.
Operating expenses were $249 million, compared to $257 million in the second quarter of 2011. On a non-GAAP basis, excluding $17 million of restructuring charges, $1 million of merger and strategic initiative expenses, and $2 million of other charges, second quarter 2012 non-GAAP operating expenses were $229 million. Non-GAAP operating expenses were up $1 million year-over-year.
Source: NASDAQ OMX
HKEx: London Metal Exchange Shareholders Vote In Favour Of Acquisition By HKEx
July 25, 2012--Hong Kong Exchanges and Clearing Limited (HKEx) announced Wednesday that the ordinary shareholders of The London Metal Exchange Limited (LME) approved all the resolutions required to implement the acquisition of LME by HKEx.
HKEx said in June that it intended to buy the LME for 16.673 billion HK dollars ($2.1 billion). In a filing to the stock exchange, HKEx said it offered to buy the LME's 12.9 million shares at 1,292.55 HK dollars per share.
HKEx said it was "pleased" about the approval at a court meeting and an extraordinary general meeting of LME on Wednesday.
Source: Global Times
BNY Mellon scoops up $1 billion Taiwanese custody mandate
Demand for global custody and administration services expected to rise as Taiwanese investors continue to seek increased exposure to international markets
July 24, 2012--BNY Mellon, the global leader in investment management and investment services, has been appointed by Taiwanese Government Pension Fund, Bureau of Labor Insurance, to provide custody and investment administration solutions for its National Pension Insurance Fund.
BNY Mellon has been selected to provide global custody, fund accounting, performance & risk analytics and compliance services for the Fund, which has assets totalling approximately US$1 billion.
"Taiwan continues to be a dynamic market as its funds industry becomes increasingly globalised," observes Chong Jin Leow, head of Asia, BNY Mellon Asset Servicing. "As Taiwanese asset managers diversify their portfolios through increased investment overseas, demand for global custody and related services from institutions like BNY Mellon, is on the rise."
Source: BNY Mellon
