Global ETF News Older than One Year
DTCC Promotes Market Transparency With New CDS Tables
February 29, 2012--DTCC's Across the Pond information series, which provides regular updates on the latest financial reform developments in the U.S. and Europe, has expanded its content to include publication of weekly tables listing credit default swaps (CDS) contracts on the top 15 sovereign and corporate reference entities and top 15 percentage movers.
The addition of the CDS tables in Across the Pond builds on DTCC’s ongoing efforts to promote greater transparency in over-the-counter (OTC) derivatives markets.
Excerpted from public data in DTCC’s Trade Information Warehouse (TIW), the tables are based on net notional values and provide a high-level overview of CDS exposure. The tables are a reliable resource for global market participants, regulators, government officials and journalists who track movements in the OTC derivatives markets.
Source: DTCC
IMF working paper-Systemic Real and Financial Risks: Measurement, Forecasting, and Stress Testing
February 28, 2012--Summary: This paper formulates a novel modeling framework that delivers: (a) forecasts of indicators of systemic real risk and systemic financial risk based on density forecasts of indicators of real activity and financial health; (b) stress-tests as measures of the dynamics of responses of systemic risk indicators to structural shocks identified by standard macroeconomic and banking theory.
Using a large number of quarterly time series of the G-7 economies in 1980Q1-2010Q2, we show that the model exhibits significant out-of sample forecasting power for tail real and financial risk realizations, and that stress testing provides useful early warnings on the build-up of real and financial vulnerabilities.
Source: IMF
IMF Working paper-Does Central Bank Capital Matter for Monetary Policy?
February 28, 2012--Summary: Heavy foreign exchange intervention by central banks of emerging markets have lead to sizeable expansions of their balance sheets in recent years-accumulating foreign assets and non-money domestic liabilities (the latter due to sterilization operations).
With domestic liabilities being mostly of short-term maturity and denominated in local currency, movements in domestic monetary policy interest rates can have sizable effects on central bank's net worth. In this paper we examine empirically whether balance sheet considerations influence the conduct of monetary policy. Our methodology involves the estimation of interest rate rules for a sample of 41 countries and testing whether deviations from the rule can be explained by a measure of central bank financial strength. Our findings, using linear and nonlinear techniques, suggests that central bank financial strength can be a statistically significant factor explaining large negative interest rate deviations from "optimal" levels.
view IMF Working paper-Does Central Bank Capital Matter for Monetary Policy?
Source: IMF
NYSE Liffe U.S. Launches Options on Mini Gold and Mini Silver Futures Contracts
Expands futures product line
Adds depth and liquidity to precious metals market
Enhances client risk management capabilities
February 27, 2012--NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), announced that it successfully launched options on its mini-sized gold and mini-sized silver futures contracts.
These new options contracts are designed to meet growing customer demand to trade and invest in the precious metals market.
The options on NYSE Liffe U.S. 33.2 oz. mini gold and 1,000 oz. mini silver futures contracts provide traders flexibility by offering multiple trading strategies, enhanced risk management capabilities and added depth and liquidity to the underlying mini gold and mini silver futures market.
Source: NYSE Euronext
ETFS US Precious Metals Weekly Silver and gold hit multi-month highs after breaking key technical levels
February 27, 2012--Silver and gold hit multi-month highs after breaking key technical levels. The silver price surged to a five-month high of US$35/oz. last week after moving above its 200-day moving average, a key technical resistance barrier, for the first time since September 2011. It is also interesting to note that silver volatility is at its the lowest level in 16 months, likely aiding the trend.
The bullish mood following the Greek bailout deal also prompted gold to break out of its recent range of US$1700-US$1750. Gold rallied to a 3-month high of US$1780, and should remain well supported by broad macro trends with global central banks remaining biased to providing further stimulus to help sustain the uncertain global recovery.
ECB’s LTRO operations and US growth data key to market mood. The strength of the Euro has added upward momentum to broad commodities and precious metals prices in particular, with silver seeing particularly strong gains. Silver this year has been in a “sweet spot”, with stronger growth indictors but yet still strong demand for “store of value” assets keeping silver in strong demand. The size of the ECB’s long-term liquidity operations (LTRO) will be a key focus this week. While a big number may initially be positive for cyclical assets, it may also raise questions over the health of the Eurozone banking system. A host of manufacturing indicators are also scheduled for release this week, with the US manufacturing ISM key to investor perceptions of the sustainability of the US growth rebound. Europe data will also be watched carefully to see if US growth spillover is occurring, though elevated joblessness and fiscal retrenchment are likely to continue weigh on Eurozone growth prospects.
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Source: ETF Securities
Structural reforms can make the difference as countries rebound from crisis, OECD says
February 24, 2012--Structural reforms can make the difference as countries seek to rebound from the crisis, boost growth and create jobs, according to the OECD's latest Going for Growth report.
"The crisis has acted as a catalyst for reforms. While they are sometimes unpopular, painful or both, they are necessary to make longer term growth stronger, more sustainable and more equitable," said OECD Secretary-General Angel Gurría (read the full speech). "We know that these efforts will pay dividends in the future, which is why governments must keep up the reform momentum," Mr Gurría said.
Mr. Gurría presented the report in Mexico City with Mexico’s finance minister Jose-Antonio Meade, ahead of the 25-26 February meeting of G20 finance ministers. He said the OECD’s country-specific structural reform recommendations are applicable to all G20 countries as they steer their economies out of the crisis.
view Economic Policy Reforms: Going for Growth 2012
Source: OECD
Religion vs finance
February 24, 2012--A controversial plan by Goldman Sachs to issue an Islamic bond has ignited a wider debate on whether conventional banks in the West should be allowed to engage in Islamic finance.
At a major conference of Islamic scholars and bankers in London this week, much of the public and private discussion was devoted to whether growing Western interest in Islamic finance could damage the industry by compromising its religious principles.
Some participants argued investment banks such as Goldman should be banned from issuing Islamic bonds, or sukuk, because the funds they raised could help to finance other parts of their business that did not comply with sharia or Islamic law.
read more
Source: FIN 24
Lower global crop prices to ease food inflation: USDA
After two years of razor thin stocks, world crop supplies, led by wheat, are recovering.
"Certainly the high prices that we saw last year have prompted a global production response for most commodities," USDA Chief Economist Joe Glauber told the agency's annual outlook forum.
Source: Reuters
Canada welcomes delay of EU oil sands decision
"We understand the European Union Fuel Quality Committee today did not approve the implementing measures for their fuel quality directive," Canadian Natural Resources Minister Joe Oliver said in a statement.
"We are pleased to see that many EU countries are opposed to this discriminatory measure."
Source: EUbusiness
UK and Japan warn Volcker rule poses threat to recovery
George Osborne, the British chancellor, has joined forces with Jun Azumi, his Japanese counterpart, in warning in a column in today’s Financial Times that the US banking reforms could make it “more difficult, costlier and riskier for countries to issue and distribute debt”, at a time when many eurozone countries are already under strain.
Source: FT.com
February 23, 2012--Global crop prices will retreat sharply this year as farmers around the world expand production to bring stability back to commodity markets and ease fears of food inflation, the U.S. government forecast on Thursday.
February 23, 2012--Canada's resources minister said Thursday he is "pleased" that a key EU decision on whether to label oil from Canada's tar sands as highly polluting was postponed to June after European talks ended in stalemate.
February 22, 2012--The UK and Japan have urged the US to rewrite its so-called "Volcker rule", claiming that trading restrictions on US banks could hit the international sovereign debt market at a delicate moment in the global recovery.
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