Global ETF News Older than One Year
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
Mirae Asset Global Investments Appoints Global Head of ETF Sales & Marketing
July 24, 2012-- Mirae Asset Global Investments ("MAGI") has appointed Howard J. Atkinson as the Global Head of ETF Sales and Marketing for MAGI's rapidly growing international ETF business.
Mr. Atkinson is currently the President of Horizons ETFs Management (Canada) Inc. ("Horizons Canada"), which is headquartered in Toronto, Canada and is a subsidiary of MAGI. Mr. Atkinson will remain President of Horizons Canada, but in addition to that role, he will formally oversee the sales and marketing initiatives of MAGI's global ETF business, which operates from offices in Australia, Canada, Hong Kong, Korea and most recently, the United States, where regulatory filings have been made with the U.S. Securities and Exchange Commission to launch ETFs. Mr. Atkinson will be responsible for overseeing global marketing projects and rebranding efforts across all ETF product suites.
Source: Mirae Asset Global Investments
IMF Working paper-Riding Global Financial Waves: The Economic Impact of Global Financial Shocks on Emerging Market Economies
July 24, 2012--Summary: Over the past two decades, most emerging market economies witnessed two key developments. A marked process of financial integration with the rest of the world, arguably turning these economies more vulnerable to global financial shocks; and an improvement of macroeconomic fundamentals, helping to increase their resiliency to these shocks.
Against a backdrop of these opposing forces, are these economies more vulnerable to global financial shocks today than in the past? Have better fundamentals offset increasing financial integration? If so, what fundamentals matter most? We address these questions by examining the role of these two forces over the past two decades in amplifying or buffering the economic impact of these shocks. Our findings show that EMEs, with the exception of Emerging Europe, have become less vulnerable. Exchange rate flexibility and external sustainability are key determinants of the impact of these shocks, while the extent to which deeper financial integration is a source of vulnerability depends on the exchange rate regime.
Source: IMF
WFE Publishes First Half 2012 Market Highlights
July 24, 2012--The total market capitalization of WFE exchanges increased by 5.3% in the first half of 2012 while global trading volumes continued their decline.
The rise in market capitalization was mainly attributed to markets in the Americas and Asia-Pacific regions, according to figures released today by the World Federation of Exchanges (WFE).
Specific 2012 first half highlights from WFE are as follows:
Equity Markets
In the first half of 2012, global equity market capitalization rebounded 5.3% from year end 2011, but still remain below the level from one year ago. The market capitalization in the Europe-Africa-Middle East region was flat during the sovereign debt crisis in Europe and appreciation of USD. The Americas and Asia-Pacific regions increased 9.1% and 4.8% respectively.
Despite the higher market capitalization, the total value of share trading[1] of WFE member exchanges continued to decrease significantly falling 14% in the first half of 2012 after an earlier drop of 4% in second half-year of 2011.
Source: World Federation of Exchanges
