Global ETF News Older than One Year
Economic Freedom, Not Goverment Spending, Provides Path To Prosperity, 18TH Index of Economic Freedom Shows
Hong Kong and Singapore top Index; United States falls to 10th; countries trying to spend their way out of recession failed, data shows
January 12, 2012--Economic freedom declined worldwide in 2011 as many countries attempted -- without success -- to spend their way out of recession, according to the 18th annual Index of Economic Freedom, released today by The Heritage Foundation and The Wall Street Journal.
The average economic freedom score for the 2012 Index stands at 59.5 (on a scale in which 100 represents the ideal), down two-tenths of a point from 2011.
“The mounting burden of reckless government spending has overwhelmed gains in economic freedom in other policy areas,” write the Index editors. “Tension between government control and the free market has heightened around the world, particularly in developed countries.”
Hong Kong and Singapore finished first and second in the rankings for the 18th straight year. Australia and New Zealand ranked third and fourth, and Switzerland fifth. Canada finished sixth, slipping almost a full point and falling out of the group of “free” economies into the “mostly free” category.
Chile took seventh place and moved almost a full point toward greater economic freedom. Mauritius was eighth with an overall score of 77 and became the first Sub-Saharan country to rank among the top 10. Ireland finished ninth to best the United States, which dropped to tenth. P>read more
Source: The Heritage Foundation
ISDA Announces Membership and Mission of the Industry Clearing Committee
Janury 11, 2012--The International Swaps and Derivatives Association, Inc. (ISDA) announced today the membership and charter of the Industry Clearing Committee (ICC).
The ICC, which consists of a broad cross-section of over-the-counter (OTC) derivatives industry market participants, was formed by ISDA in June 2011 to meet current and emerging industry needs in respect of clearing.
More specifically, the ICC will assist in coordinating industry efforts to reach optimal levels of central counterparty clearing and to address obstacles in achieving those levels.
The ICC will also provide recommendations on central counterparty clearing practices across multiple OTC derivative asset classes. The aims and functions of the ICC are to:
Be representative of the sell-side, buy-side, Central Counterparty Clearing houses (CCPs) and Futures Commissions Merchants (FCMs) in order to deliver collaborative solutions
Extend the reach of clearing in terms of both eligible product types and clearing participants
Source: ISDA
ETFs attract record global inflows in 2011
January 11, 2012--Further strong growth is likely for the global exchange traded funds industry this year after it attracted record cash inflows in 2011, according to Deutsche Bank.
Deutsche estimated that ETFs attracted global inflows of $163.8bn last year, up slightly from the $163bn gathered in 2010. Christos Costandinides, European head of ETF research and strategy at Deutsche Bank, said he expected net new investor inflows of between $137bn and $190bn in 2012, helping global ETF assets to rise by 15-20 per cent this year, depending on how equity markets performed.
Source: FT.com
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
