Global ETF News Older than One Year
BRICS Exchanges To Cross-list Benchmark Equity Index Derivatives
March 16, 2012--Bombay Stock Exchange said the five of the world's leading emerging market indices would commence cross list their derivative indices on each other's trading platforms from March 30.
The cross-listing of benchmark equity index derivatives is likely to facilitate liquidity growth in the BRICS markets and will considerably strengthen their international position.
The derivatives to be cross-listed and offered in the local currency and local trading hours of each of the exchanges will include Brazil's IBOVESPA futures, Russia's MICEX Index futures, India's Sensex Index futures, Hong Kong's Hang Seng Index futures and Hang Seng China Enterprises Index futures, and South Africa's FTSE/JSE Top40 futures.
Further, JSE will also list options on the benchmark futures of the other four member exchanges.
Source: NASDAQ OMX
MAS signs MOU with European financial authority
March 16, 2012--The Monetary Authority of Singapore (MAS) has signed a Memorandum of Understanding (MOU) with the European Securities and Markets Authority (ESMA) on the supervision of credit rating agencies (CRAs).
The new partnership will pave the way for the enhanced sharing of supervisory information between the two authorities for more effective supervision of cross-border CRAs operating in Singapore and within the European Union (EU), MAS said in a statement released Friday.
It also provides a formal basis for supervisory cooperation between MAS and ESMA.
The CRAs play an important role in the global financial markets and have significant impact on market operations and investors confidence, MAS said.
Source: Channel News Asia
London Stock Exchange Group PLC is in talks with Singapore and Australia's exchanges
March 16, 2012--London Stock Exchange Group PLC (LSE.LN) is in talks with Singapore and Australia's exchanges about trading each other's blue-chip stocks, the Financial Times reported Thursday on its website, citing three unnamed sources.
Under the proposed arrangement, LCH.Clearnet Group Ltd.--the Anglo--French clearinghouse operator that LSE is finalizing the acquisition of--would act as clearinghouse for Singapore stocks traded in London, the report quoted the sources as saying.It would also clear U.K. stocks offered on Singapore Exchange Ltd. (S68.SG), the report said.
Source: Fox Business News
ESMA allows EU-registered CRAs to endorse credit ratings issued in the US,
March 15, 2012--ESMA today announces that it considers the regulatory frameworks for credit rating agencies (CRAs) of the United States of America, Canada, Hong Kong and Singapore to be in line with European rules.
The EU Regulation (EC) No 1060/2009 on Credit Rating Agencies1 requires ESMA to assess whether the requirements of third-country CRA regimes are “as stringent as” the European ones. Today’s announcement allows European financial institutions to continue using for regulatory purposes credit ratings issued in these countries after 30 April 2012.
ESMA’s assessment of third-country CRA regimes is an important tool for enhancing internationally consistent supervision of CRAs in the interests of protecting financial markets and investors in the EU.
For the endorsement by EU CRAs of credit ratings issued in non-EU countries, the ratings must be issued by CRAs that are registered or licensed and are subject to supervision in those countries. This is already the case for the USA and Hong Kong. In Canada2 and Singapore the registration of CRAs is at an advanced stage and we understand should be completed before 30 April 2012.
In order to facilitate regulatory information exchange and as a precondition to endorsement, ESMA has also entered into co-operation agreements for the supervision of CRAs with the national competent authorities of the USA, Canada, Hong Kong and Singapore.
Source: ESMA
US and European Corporate Bond Issuance is Set to Become Prohibitively Expensive for SMEs as Liquidity Concentrates in Major Names
Although $386Bn in Investment-Grade Bonds Were Issued in the US in the First 10 Weeks of 2012, Dealer Bond Holdings are at Their Lowest in 10 years, According to New TABB Group Research
March 15, 2012--Corporate bond coupons are set to be driven higher and issuance will become prohibitively expensive for SMEs (small and medium enterprises) as US and European regulatory change forces a liquidity crisis in secondary trading and activity concentrates
in only the largest, shortest bonds issued by the most trusted names, according to new research published today by TABB Group.
Regulators on both sides of the Atlantic are challenging the traditional principal-based, market-making model for corporate bonds, forcing an end-game where bonds will trade like stocks in a transparent, equity-like, exchange framework. “Short term, the effects of such wholesale change will be negative with secondary market liquidity damaged and more fragmented than it already is,” says Will Rhode, a London-based TABB senior analyst and author of “Corporate Bond Trading: Building Networks, Realising Liquidity.”
Source: TABB Group
Environment: Act now or face costly consequences, warns OECD
March 15, 2012--As countries struggle with the immediate challenges of stretched public finances and high unemployment, they must not neglect the longer term. Action needs to be taken now to prevent irreversible damage to the environment.
“Greener sources of growth can help governments today as they tackle these pressing challenges. Greening agriculture, water and energy supply and manufacturing will be critical by 2050 to meet the needs of over 9 billion people.” said OECD Secretary-General Angel Gurría.
The OECD Environmental Outlook to 2050: The Consequences of Inaction presents the latest projections of socio-economic trends over the next four decades, and their implications for four key areas of concern: climate change, biodiversity, water and the health impacts of environmental pollution. Despite the recent recession, the global economy is projected to nearly quadruple to 2050. Rising living standards will be accompanied by ever growing demands for energy, food and natural resources - and more pollution.
vew the OECD Environmental Outlook to 2050: The Consequences of Inaction report
Source: OECD
Platinum overtakes gold for first time in six months
March 15, 2012--The price of platinum has risen above that of gold for the first time in six months on the back of divergent investor sentiment towards the two precious metals.
Investors are turning towards equities and other riskier assets amid stronger economic data from the US and Europe. That shift has pushed gold to its lowest level in two months as economic data damp hopes of a third round of “quantitative easing” in the US.
Source: FT.com
FIA Issues Order Handling Recommendations for Executing Brokers
March 14, 2012—The Futures Industry Association today issued order handling risk management recommendations for executing brokers.
The report documents both current practice and emerging technologies in order to respond to regulatory concerns about algorithmic trading. The recommendations were developed by experts from executing firms and represent the latest in a series of recommendations developed by FIA members for trading firms, brokers and exchanges.
"The executing broker has an important role to play in monitoring and controlling market access," said FIA President John Damgard. "The recommendations are designed to clearly differentiate the role of the execution-only broker and set an industry standard for handling orders generated by automated execution tools."
view report-Order Handling Risk Management Recommendations for Executing Brokers
Source: FIA
SGX links global liquidity pools to Asian economies, enables access to international markets
March 14, 2012--Singapore Exchange (SGX) today brings Asian markets closer to global investors with the launch of hubs in Chicago and London.
The hubs are the first by an Asian exchange and will provide customers with convenient and cost-effective local connections to SGX markets.
SGX expects to begin operating the hubs once pre-trade risk controls at the exchange level in the derivatives market are made available to participants in April. The pre-trade risk controls are in line with the Futures Industry Association’s recommendation for exchange-hosted risk controls.
By connecting to SGX’s hubs, global investors can access the world’s biggest offshore market for Asian equity futures. These include the China A50 futures, the only offshore futures for China’s domestic A-share market.
Source: SGX
Mirae BRICS Weekly-Weakness afflicts markets after strong start to the year
March 14, 2012--China
The government's GDP growth target lowered for the first time in 8 years.
The GDP growth target of 7.5% set by the National People's Congress has disappointed the market as it is the first time in 8 years that the Chinese government has set the target below 8%.
However, a lower target also provides more room for economic transformation. Expansionary fiscal policy is being seen, with budget deficit at around 2.4% of GDP after adjustment to widely accepted fiscal accounting methodology.
India
Markets fall as election dashes reform hopes.
The Indian market ended lower last week. The five state poll results was not what the market was looking for – the regional Samajwadi Party (SP) has won a majority in the Uttar Pradesh (UP) election, while the BJP, the primary opposition party, won in three out of four other states. The market reacted negatively to the result as the Congress’s support on reforms is now a question.
Brazil
Central bank cuts surprises market with 75-basis point rate cut.
The BCB cut the Selic rate by 75 bps during its March’s Copom Meeting to 9.75%. This decision was not expected by the market, which anticipated another 50-basis point cut.
Russia
Rising oil prices and easing political risk benefit Russia.
Emerging markets outperformed developed markets as China eased monetary policy and a spike in the oil price sent Russia higher. With the exception of Thailand and Egypt, Russia was the best performing emerging market.
Source: Mirae Asset Securities
