Global ETF News Older than One Year
IMF Working paper-Exchange-Rate Dark Matter
March 2, 2012--Summary: Dark matter accounts for 83 percent of the matter in the universe and plays a central role in cosmology modeling. This paper argues that an analogous form of dark matter plays a similarly important role in international macroeconomics.
Exchange-rate dark matter is invisible, but its existence can be inferred from observations on real exchange rates and interest rates. I first show that dark matter is the dominant driver of short- and medium-term changes in real exchange rates for the G-7 countries; accounting for more than 90 percent of the variance at the five-year horizon. I then develop a model in which risk shocks account for dark matter's role as a driver of exchange-rate dynamics and other macro variables.
view IMF working paper-Exchange-Rate Dark Matter
Source: IMF
Dow Jones Islamic Market Titans 100 Index Closed Up 4.16% In February
Index Measures Performance Of 100 Of World's Leading Shari'ah-Compliant Stocks-Dow Jones Islamic Market Asia/Pacific Titans 25 Index, Dow Jones Islamic Market Europe Titans 25 Index End February In Positive Territory - Dow Jones Islamic Market U.S. Titans 50 Index Gained 4.23%
March 2, 2012--The Dow Jones Islamic Market Titans 100 Index finished February up 4.16%, according to data compiled by Dow Jones Indexes. The index measures the performance of 100 of the world's leading Shari'ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a February gain of 4.98%.
Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, increased 4.52% in February; the Dow Jones Asian Titans 50 Index advanced 5.08%.
In Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 the leading Shari’ah-compliant stocks in Europe, rose 3.76% in February; the Dow Jones Europe Titans 80 Index, which measures the performance of 80 blue-chip stocks traded in the developed markets of Europe, gained 5.34%.
Source: Mondovisione
Exchange Traded Derivatives Trading Volumes Increase 11% in 2011
March 2, 2012--Exchange Traded Derivatives Trading Volumes Increase 11% in 2011
March 1, 2012-Exchange Traded Derivatives (ETD) worldwide increased in 2011, according to statistics compiled by the World Federation of Exchanges (WFE).
The WFE, which annually conducts a survey on derivative markets, found that in 2011, more than 24 billion derivative contracts (11.9 billion futures and 12.9 billion options) were traded on exchanges worldwide - an increase from the 22 billion traded in 2010. Between 2006 and 2011, the number of traded derivative contracts has more than doubled. While the growth rate (+11%) remains significantly high, it is lower than the one observed in 2010 (+25%). The full WFE report on derivatives markets will be available following the annual IOMA conference held this year in London from 15 to 17 April 2012.
Source: WFE
Gold Holdings in ETPs Overtake Italy, France Reserves, RBS Says
March 2, 2012--Gold holdings in exchange-traded products backed by the metal have topped reserves held by Italy and France, according to the Royal Bank of Scotland Group Plc.
Assets rose 32 metric tons to a record 2,469 metric tons last month, Nick Moore the head of commodity research at RBS in London, said in a report dated today. The U.S. has the biggest reserves, followed by Germany and the International Monetary Fund. As of Sept. 30, Italy’s holdings were 2,451.84 tons, and France had 2,435.41 tons, World Gold Council data showed.
The RBS total for ETPs includes holdings in UBS Index Solutions ETF and the Royal Canadian Mint’s gold-backed securities. Assets excluding those funds were a record 2,404.17 tons as of yesterday, still trailing Italy and France, according to data compiled by Bloomberg.
Source: Bloomberg
IMF Working paper-Operative Principles of Islamic Derivatives - Towards a Coherent Theory
March 1, 2012--Summary: Derivatives are few and far between in countries where the compatibility of financial transactions with Islamic law requires the development of shari'ah-compliant structures.
Islamic finance is governed by the shari’ah, which bans speculation and gambling, and stipulates that income must be derived as profits from the shared generation of goods and services between counterparties rather than interest or a guaranteed return. The paper explains the fundamental legal principles underpinning Islamic finance with a view towards developing a cohesive theory of derivatives subject to shari’ahprinciples. After critically reviewing accepted contracts and the scholastic debate surrounding existing financial innovation in this area, the paper offers an axiomatic perspective on a principle-based permissibility of derivatives under Islamic law.
view the IMF Working paper-Operative Principles of Islamic Derivatives - Towards a Coherent Theory
Source:IMF
iShares introduces interactive tool to simplify investor ETP due diligence
March 1, 2012--iShares, the Exchange Traded Funds (ETF) platform of BlackRock, Inc. (NYSE: BLK), today announced the introduction of a new user-friendly European Due Diligence tool: Know Your ETP. The tool enables professional investors to obtain the key information they need to know about any European Exchange Traded Product (ETP).
“Know Your ETP” is an interactive questionnaire which enables investors to obtain detailed and precise information about a product, regardless of its provider. It is designed to simplify the due diligence process investors currently follow by providing a robust and standardised framework that allows for easy comparison of different products. The “Know Your ETP” tool comprises a four-step process:
1.Investors fill in the name of the fund they wish to analyse
Source: IFI Magazine
IOSCO consults on oil price reporting agency oversight
MArch 1, 2012--The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report, Functioning and Oversight of Oil Price Reporting Agencies, which examines the role played by Oil Price Reporting Agencies (PRAs) in the functioning of oil markets, their methods of operation and governance and potential options for future oversight.
The Consultation Report is aimed at informing IOSCO’s response to the G20 Leaders’ request in November 2011 that “IOSCO, in collaboration with the IEF, the IEA and OPEC, [to] prepare recommendations to improve their functioning and oversight to our Finance Ministers by mid-2012.”
The report builds on the joint report on Oil Reporting Agencies jointly produced by IOSCO, IEA, IEF and OPEC (IOs Report) which was submitted to G20 in advance of the Cannes summit.
view Functioning and Oversight of Oil Price Reporting Agencies
Source: IOSCO
China reduced U.S. Treasury holdings last year
March 1, 2012--China, the largest foreign holder of U.S. government debt, reduced its holdings of federal securities last year, according to revised data released Wednesday by the Treasury Department.
China’s holdings fell to $1.15 trillion at the end of last year from $1.16 trillion at the end of 2010. It reached a high of $1.31 trillion in July.
The drop suggests China could be diversifying its stock of $3.2 trillion in foreign reserves compiled through years of trade surpluses.
Source: Los Angeles Times
"Rare Earth Element ETF Could Make Investing In Rare Earths Lucrative" The Absolute Wealth Newsletter Published Today
To provide information on rare earth metals, the Absolute Wealth newsletter published "Rare Earth Element ETF Could Make Investing In Rare Earths Lucrative" today.
February 29, 2012-To provide rare earth mineral information, the Absolute Wealth newsletter published the "Rare Earth Element ETF Could Make Investing In Rare Earths Lucrative" article today.
The Absolute Wealth newsletter reveals, that investors have been taking a second look at rare earth element ETF for investing in rare earths. The Absolute Wealth newsletter reports that the top 3 rare earth metals currently are Cerium, Neodymium, and Gadolinium.
Cerium is actually the 25th most abundant element in the Earth’s crust, the newsletter explains, having 68 parts per million. The Absolute Wealth newsletter says that it is roughly as abundant as copper and could feasibly find itself traded individually on global commodity exchanges if adequate supply lines were secured. Commercial applications of cerium are numerous, which the Absolute Wealth newsletter says include catalysts, additives to fuel to reduce emissions and to glass and enamels to change their color.
Source: PR Web
Deutsche Bank Chooses Guggenheim for Asset Management Talks
February 29, 2012--Deutsche Bank AG said it is holding exclusive talks to sell its asset-management divisions to the U.S. money manager Guggenheim Partners LLC.
The sale negotiations apply to the four businesses that the Frankfurt-based bank put under review, including DWS mutual funds in the Americas, the advisory units for institutional investors and insurance firms, and its RREEF real-estate and infrastructure division, the firm said in a Business Wire statement today.
Source: SF Gate
