Global ETF News Older than One Year
IMF paper-Policies for Macrofinancial Stability: How to Deal with the Credit Booms
June 7, 2012--EXECUTIVE SUMMARY
Credit booms buttress investment and consumption and can contribute to long-term financial deepening. But they often end up in costly balance sheet dislocations, and, more often than
acceptable, in devastating financial crises whose cost can exceed the benefits associated with
the boom. These risks have long been recognized.
But, until the global financial crisis in 2008, policy paid limited attention to the problem. The crisis—preceded by booms in many of the hardest-hit countries—has led to a more activist stance. Yet, there is little consensus about how and when policy should intervene. This note explores past credit booms with the objective of assessing the effectiveness of macroeconomic and macroprudential policies in reducing the risk of a crisis or, at least, limiting its consequences.
view the IMF paper-Policies for Macrofinancial Stability: How to Deal with the Credit Booms
Source: IMF
IMF Staff paper-Externalities and Macro-Prudential Policy
June 7, 2012--EXECUTIVE SUMMARY
The recent financial crisis has led to a reexamination of policies for macroeconomic and financial stability. Part of the current debate involves the adoption of a macroprudential
approach to financial regulation, with an aim toward mitigating boom-bust patterns and systemic risks in financial markets.
The fundamental rationale behind macroprudential policies, however, is not always clearly articulated. The contribution of this paper is to lay out the key sources of market failures that can justify macroprudential regulation. It explains how externalities associated with the activity of financial intermediaries can lead to systemic risk, and thus require specific policies to mitigate such risk.
The paper classifies externalities that can lead to systemic risk as: 1. Externalities related to strategic complementarities, that arise from the strategic interaction of banks (and other financial institutions) and cause the build-up of vulnerabilities during the expansionary phase of a financial cycle;
view the Externalities and Macro-Prudential Policy paper
Source: IMF
IMF Working paper-Inflation and Income Inequality: Is Food Inflation Different?
June 7, 2012--Summary: There is an extensive literature noting that high inflation can add to income inequality, and a parallel literature assessing the effect of rising food prices on the poor. This paper attempts to combine these strands by dividing inflation into food and nonfood inflation and assessing whether food inflation affects income inequality differently from nonfood inflation.
In an international sample and a sample of Chinese provinces, nonfood inflation exacerbates income inequality while the role of food inflation is more mixed. In a sample of Indian states broken down into urban and rural areas, we find that nonfood inflation adds to income inequality in both areas, while food inflation has a neutral to positive effect on income inequality in rural areas, providing support for the theory that rural wages may respond elastically to food prices.
Source: IMF
Component Change Made In STOXX Global Select Dividend 100 Index
June 7, 2012--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced component changes in the STOXX Global Select Dividend 100 Index due to the fast exit rule. Component changes will become effective with the open of markets on June 18th, 2012.
Addition
NWS HOLDINGS (Hong Kong, Construction & Materials, 0659.HK)
KEPPEL LAND LTD. (Singapore, Real Estate, KLAN.SI)
Deletion
XINYI GLASS HOLDINGS (Hong Kong, Automobiles & Parts, 0868.HK)
SINGAPORE AIRLINES LTD. (Singapore, Travel & Leisure, SIAL.SI)
Component changes in STOXX Global Select Dividend 100 are based on the fast exit rule, which states that if a company lowers its dividend, it will remain in the index until the next selection list is available. If the company falls below the lower buffer, it is removed and replaced by the highest-ranked non-component on the selection list. The changes are then implemented together with the review implementation date.
For further information on the STOXX indices, please visit www.stoxx.com.
Source: STOXX
IOSCO Consults on Global Developments in Securitization Regulation
June 7, 2012--The International Organization of Securities Commissions (IOSCO) has published a Consultation Report on Global Developments in Securitization Regulation, which seeks public comment on policy issues arising from the work of its Task Force on Unregulated Markets and Products (TFUMP).
The Consultation Paper is in response to a request from the Financial Stability Board (FSB) as part of its work to strengthen oversight and regulation of the shadow banking system. The FSB asked IOSCO, in coordination with the Basel Committee on Banking Supervision, to conduct a stock-taking exercise on the requirements for risk retention and measures enhancing transparency and standardization of securitization products, and to develop policy recommendations as necessary. The FSB's request followed earlier IOSCO and Joint Forum work aimed at regulatory initiatives to support recovery of securitization markets.
The Consultation Paper is based on a survey of member jurisdictions and builds on earlier work undertaken by staff of the US Securities Exchange Commission and the European Commission on developments in the US and the EU.
view the Global Developments in Securitization Regulation-Consultation Report
Source: IOSCO
Thomson Reuters Global Equities Monthly Market Share Data Reports- May 2012
June 7, 2012--Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in the summarised monthly reports.
Source: Thomson Reuters
Global food prices down sharply
June 7, 2012--A U.N. agency says world food prices dropped sharply in May, reaching their lowest level in eight months due to favorable supplies and currency fluctuations.
The U.N. Food and Agriculture Organization said in its monthly report Friday that global prices of a basket of food commodities fell by 4 percent in May.
Source: Business Week
China has cut holdings of European assets: report
June 7, 2012-- China's sovereign wealth fund has cut its European assets amid rising risk of a eurozone collapse, the fund's chief told the Wall Street Journal in an interview published Thursday.
Lou Jiwei, chairman of the China Investment Corp. (CIC) which manages the nation's $410-billion sovereign fund, told the newspaper that there was growing risk of a break up of the eurozone.
"There is a risk that the eurozone may fall apart and that risk is rising," he said.
Source: EUbusiness
Component Changes Made To Dow Jones Islamic Market Indexes
Changes Follow Regular Annual Review
June 7, 2012--Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual review of the Dow Jones Islamic Market Titans 100 Index and its three subindexes, Dow Jones Islamic Market U.S. Titans 50 Index,
Dow Jones Islamic Market Asia/Pacific Titans 25 Index and Dow Jones Islamic Market Europe Titans 25 Index as well as the Dow Jones Islamic Market Malaysia Titans 25 Index. All changes will be effective after the close of trading on Friday, June 15, 2012.
In the Dow Jones Islamic Market Titans 100 Index and subindex Dow Jones Islamic Market U.S. Titans 50 Index, Baker Hughes Inc., Corning Inc. and Marathon Oil Corp. will be replaced by eBay Inc., Express Scripts Holding Co. and Nike Inc. Cl B.
Source: Dow Jones Indexes
Nasdaq plans $40m Facebook IPO rebates
June 7, 2012--Nasdaq OMX Group Inc. has said it will offer $40m in cash and rebates to compensate clients affected by the problems with Facebook Inc.'s initial public offering, an amount well short of the losses claimed by top market makers for the IPO, Reuters has reported.
After approval by regulators, Nasdaq said that $13.7m would be paid to its affected member firms and the balance would be credited to members to reduce trading costs, with all benefits expected to be awarded within six months.
Source: AME Info
