Global ETF News Older than One Year
Economic and Social Turmoil Risk Reversing the Gains of Globalization, Report Warns
Economic imbalances and social inequality risk reversing the gains of globalization
A dystopian world, unsafe safeguards and the dark side of connectivity are this year’s major risk cases
Report analyses top 10 risks in economic, environmental, geopolitical, societal and technological categories
Key crisis management lessons from Japan’s earthquake, tsunami and nuclear disasters are highlighted
January 11, 2012--The world’s vulnerability to further economic shocks and social upheaval risk undermining the progress that globalization has brought, warns the World Economic Forum in its Global Risks 2012 report, the seventh edition, published today.
Chronic fiscal imbalances and severe income disparity are the risks seen as most prevalent over the next 10 years. These risks in tandem threaten global growth as they are drivers of nationalism, populism and protectionism at a time when the world remains vulnerable to systemic financial shocks, as well as possible food and water crises. These are the findings of a survey of 469 experts and industry leaders, indicating a shift of concern from environmental risks to socioeconomic risks compared to a year ago.
“For the first time in generations, many people no longer believe that their children will grow up to enjoy a higher standard of living than theirs,” said Lee Howell, the World Economic Forum Managing Director responsible for the report. “This new malaise is particularly acute in the industrialized countries that historically have been a source of great confidence and bold ideas.” Global Risks 2012 analyses three major risk cases of concern globally:
view the WEF Report-Global Risks 2012
Source: WEF (World Economic Forum)
Deutsche Boerse's NYSE deal seen heading for the rocks
EU regulators seen blocking NYSE DB deal
Lobbying efforts likely to fail -analysts
EU commission declines to comment
January 11, 2012--Deutsche Boerse AG's last-ditch lobbying efforts in support of its proposed takeover of NYSE Euronext look set to fail, leaving the deal heading for the rocks with European antitrust regulators expected to block the deal
Deutsche Boerse's Reto Francioni and NYSE Euronext Chief Executive Duncan Niederauer hope to salvage the deal by pressing the case for the merger with commissioners ahead of a February deadline in Brussels.
In a transcript of a video message to employees published on the Web site of the Securities and Exchange Commission on Wednesday, Niederauer said: "Over the next few weeks we're going to continue to press our case directly with various Commissioners in the European Union, both to highlight the serious flaws in the case team's core argument, and to ensure that there is a clear understanding of the strong benefits that our combination will bring to a broad set of stakeholders in Europe."
Source: Rueters
DOW JONES ISLAMIC MARKET TITANS 100 INDEX CLOSED DOWN 0.83% IN 2011
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
Also End 2011 in Negative Territory
Dow Jones Islamic Market U.S. Titans 50 Index Gained 3.98% in 2011
January 10, 2012-- Despite posting a gain in the final month of the year, the Dow Jones Islamic Market Titans 100 Index finished 2011 down 0.83%, according to data compiled by Dow Jones
Indexes. The index, which rose 0.53% in December and 5.79% in 2010, measures the performance of 100 of the world’s leading Shari’ah-compliant stocks.
In comparison, the Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a 2011 loss of 1.49%; it registered gains of 1.88% in December 2011 and 1.99% in 2010.
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, plunged 12.13% in 2011 after posting an 18.20% rise in 2010; the Dow Jones Asian Titans 50 Index posted a 2011 loss of 18.13%. For December, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index increased 0.28% while the Dow Jones Asian Titans 50 Index rose 0.98%.
Source: Dow Jones Indexes
December 2011 FIF Market Share and Market Dynamics Reports – Executive Summary
January 10, 2012--U.S. Equities Market Share
Share volumes traded across Tape A, B, and C
decreased 13% monthly and 4% annually to
134 billion shares (see chart).
In December 2011, off-exchange trading accounted for 32% of the shares traded in NMS Equity Securities.
Share volume in NYSE-listed securities decreased 11% monthly and 9% annually to 75 billion shares.
NASDAQ-listed securities share volume decreased 13% monthly and 3% annually to 34 billion shares.
European Equity Market Share
The notional value of the European Equities Market decreased 22% monthly to €771 Billion, in comparison to €989 Billion in November 2011. The December 2011 notional value also represents an 8% annual decrease.
BATS Chi-X Europe has the greatest market share of 19% (€146 billion) followed by LSE Group and MICEX; which have a market share of 18% (€140 billion) and 12% (€93 billion) respectively.
The highest annual volume increases were seen with Turquoise, up 42% (€31 billion) followed by MICEX up 23% (€93 billion).
Source: Financial Information Forum (FIF)
Thomson Reuters Global Equities Monthly Market Share Data Reports-December 2011
January 10, 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
Morningstar Quarterly Commentary: US Market Finishes the Year Flat
January 10, 2012--Global markets posted disappointing returns in 2011 as investors wrestled with uncertainty stemming from European debt crisis, lackluster economic recovery and monetary tightening in key emerging markets like China. Markets were characterized by sharp volatility and investors gravitated towards safer asset
like long term treasury, high quality dividend stocks and gold.
Thanks to a sharp rally in the fourth quarter, the U.S. equity markets managed to eke out small gains for the year. The Morningstar US Market Index ended the year up 1.6%. However, the Developed Ex-US Index and the Emerging Markets Index fared much worse— losing 11.4% and 17.9% in 2011.
Source: Morningstar
Too-Big-to-Fail Bank Definition May Be Expanded by Regulators
January 10, 2012--Global regulators may expand the definition of a too-big-to-fail financial firm, signing up domestic lenders, clearing houses and insurers to capital rules designed for the world’s biggest banks.
The “framework should be in place for domestically systemically important banks by the end of the year,” Mark Carney, chairman of the Financial Stability Board, said yesterday after a meeting of the group in Basel, Switzerland.
Deutsche Bank AG (DBK), BNP Paribas SA (BNP) and Goldman Sachs Group Inc. (GS) were among 29 banks subject to the so-called capital surcharge on globally systemic financial institutions drawn up by the FSB in November. Banks will have to boost reserves by 1 to 2.5 percentage points above minimum levels agreed on by international regulators.
Source: Bloomberg
iShares EMEA reports strong 2011 asset growth
January 9, 2012--iShares, the Exchange Traded Funds (ETF) platform of BlackRock, Inc, says its EMEA business generated strong growth in 2011 despite challenging macroeconomic conditions.iShares exceeded $18bn of net new assets in EMEA during 2011, an increase of 43% from 2010 net new assets of $12.6bn. iShares total assets under management (AUM) in the region increased 4% to $105.9bn as at the end of December 2011.
iShares also says it captured over 70% of all flows into ETFs in EMEA in 2011, and maintained its position as the market leader in assets. There was particular interest in US equity, German equity and corporate bond funds. According to Joe Linari, head of iShares EMEA, notes: "As more investors return to the market and reposition portfolios in 2012, we believe ETFs will attract significant new interest and we are upbeat on the prospects for continued industry growth. Investors increasingly recognise the value of ETFs as transparent, liquid and highly regulated vehicles through which they can execute strategies and build up longer-term allocations."
Source: FTSE Global Markets
BATS Chi-X Europe First to Launch Four-Way Interoperable Clearing
TRADES ON BATS EUROPE AND CHI-X EUROPE NOW CLEARED THROUGH ONE OF FOUR FULLY INTEROPERABLE CENTRAL COUNTERPARTIES
January 9, 2011--BATS Chi-X Europe today announced the launch of four-way interoperable clearing, which allows BATS Europe and Chi-X Europe participants to choose from EMCF, EuroCCP, LCH.Clearnet and SIX x-clear to clear their trades.
BATS Europe and Chi-X Europe are the first trading platforms to offer four-way interoperable clearing. The first day of live four-way interoperable clearing for trades on BATS Europe and Chi-X Europe was Friday, 6th January.
BATS Global Markets (BATS), a global operator of stock and options markets, closed the acquisition of Chi-X Europe on 30th November 2011. BATS reported on 3rd January 2012 that BATS Europe and Chi-X Europe accounted for 25.4% combined market share of European equities trading in December 2011, making BATS Chi-X Europe the largest European securities market operator.
Source: BATS Global Markets
ETFS US Precious Metals Weekly: Precious Metals Futures Positioning and Recovery in Global Manufacturing Points to Potential For Price Rebound
January 9, 2012--De-leveraging leaves COMEX gold speculative futures positions the lowest in almost 3 years, other precious metals at lowest level
since 2H 2008. The low level of futures positioning overhang has removed a key headwind to the gold price heading into 2012, although positioning still remains above end 2008 crisis levels.
The futures clear-out has been even more extreme in the more cyclically-focussed precious metals silver, platinum and palladium, where positioning has dropped back to post-Lehman troughs.
Successful break above 200 day m.a. would be key bull signal. The gold spot price fell below its 200 day moving average in mid-December for the first time since the credit crisis, triggering a round of short term technical-related selling by quant funds and short-term traders at yearend. Market participants will be looking to see if gold can sustainably move up above its 200 day m.a. over coming days and weeks (currently circa. $1,633/oz) as a possible precursor to a new up-leg in gold spot prices.
Sovereign debt, monetary policy key factors to watch in 2012. Expectations for modest global growth in the context of fragile banking systems and a large sovereign debt rollovers, is likely to keep central bank monetary policy extremely accommodative in 2012. The high money supply/low interest environment should be supportive of precious metals – particularly gold - as investors look to the possibility of currency debasement via high inflation and/or currency depreciation. More cyclically oriented precious metals – silver, platinum and palladium - could be the beneficiaries of stronger US activity data if sustained, particularly given exceptionally low levels of futures speculative positioning. If H1 2009 is a guide, investors may wait for confirmation of stronger survey data in official statistics before returning to such higher beta investments – particularly if European debt questions remain unanswered.
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Source: ETF Securities
