Global ETF News Older than One Year
NYSE-Deutsche Boerse ramp up deal defense
October 20, 2011--NYSE Euronext and Deutsche Boerse have ramped up the defense of their merger with an extensive report that backs the exchanges' claim that the deal would deliver major cost-savings to the market. The findings come at a critical time for both exchanges as they seek to persuade Europe's antitrust authorities to approve the deal.
The report, which was commissioned by the exchanges and conducted by Compass Lexecon, an economic consultancy, finds that the deal would deliver around EUR3.2 billion in immediate cost-savings through a combination of clearing collateral and IT infrastructure savings.
The 200-page study was overseen by Jorge Padilla, senior managing director at Compass Lexecon. Padilla teaches competition economics at the Barcelona Graduate School of Economics and King's College, London. The report took a team of 10 people around four months to complete.
Source: efinancial news
NASDAQ OMX Commodities: New Daily Record For Carbon Futures Contracts
October 19, 2011--Trading and clearing of carbon futures amounted to 2,494 contracts (2,494,000 tons) Tuesday, which is the highest daily volume ever traded and cleared on NASDAQ OMX Commodities carbon futures market.
“We are very pleased to see that the improvements we have made to our carbon offering are generating growth in transacted volumes. In addition, having active market makers in place contribute greatly to this development,” Fredrik Voss, Vice President Carbon & Business Development, said in a statement.
For further information, please contact NASDAQ OMX Commodities
Source: NASDAQ OMX
Dow Jones Indexes Launches The Europe Dow and The Asia Dow
New Regional Indexes to Use Same Guiding Principles as The Dow Jones Industrial Average
30 Blue-Chip Stocks in Each Index
October 18, 2011-In the same year in which the Dow Jones Industrial Average (DJIA) celebrates its 115th birthday, Dow Jones Indexes today announced the launch of two regional versions of the iconic index, The Europe Dow and The Asia Dow.
The new indexes will operate according to the same guiding principles as the DJIA, measuring the Europe and Asia equity markets by tracking 30 leading blue-chip companies in each region.
“With the launch of these two important regional indexes, we have taken 115 years’ worth of experience from The Dow Jones Industrial Average and applied it to The Europe Dow and The Asia Dow,” said John Prestbo, Editor and Executive Director of Dow Jones Indexes. “These two indexes add to Dow Jones Indexes’ long and impressive track record of reliably delivering significant financial data.”
Source: Dow Jones Indexes
http://www.fin24.com/Economy/US-bill-prompts-Chinese-investor-rethink-20111013
October 13, 2011--China’s largest business group said on Thursday that it would rethink the investment environment in the United States after the US Senate approved a controversial bill aimed at making Beijing lift the value of the yuan.
The comments by the China Chamber of International Commerce, which represents over 70 000 Chinese large trade firms and investors, echo the angry diatribe from other Chinese government bodies on Wednesday after the bill was passed.
Source: FIN24
ETF Securities- Has Gold Lost Its "Safe Haven" Status?
The gold price dropped as much as 16% from its all time high during the risk asset correction of the past month. The sharp drop has caused many investors to question whether the metal has lost its status as a safe haven asset and "tail risk" hedge. In the note attached we look at what is behind the recent gold price correction in the context of previous risk asset corrections and assess the medium term outlook for the gold price.
Summary:
The recent gold price drop is consistent with its performance during previous risk asset corrections, with financial de-leveraging and a demand for immediate cash liquidity being the likely main causes of the recent price correction. In the last major risk asset sell-off in 2H 2008, the gold price rebounded swiftly after the initial de-leveraging phase of the sell-off.
The rise of the gold price in recent years does not resemble the magnitude of previous asset bubbles, with gains a fraction of those seen during the NASDAQ bubble in the 1990's and the gold bubble in early 1980's. Comparing the gold price rise of the past few years to previous major "asset bubble" events such as the 1990's dot.com bubble and the late 1970's/early 1980's gold price surge, the gold price rise of the past few years has been steadier and has not yet exhibited the exponential rise that has historically preceded a price crash.
visit www.etfsecurities.com for more info
Source: ETF Securities
Thomson Reuters Global Equities Monthly Market Share Data Reports-September 2011
October 13, 2011----Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in our summarised monthly reports.
Source: Thomson Reuters
BRICS Exchanges alliance announced
October 12, 2011--The exchanges of the BRICS emerging markets bloc have announced plans to form an alliance to expose foreign investors to their dynamic economies and to increase the liquidity of their trading venues. This initiative was announced at the 51st AGM of the World Federation of Exchanges (WFE) in Johannesburg.
The initiative brings together BM&FBOVESPA from Brazil, MICEX from Russia (currently merging with RTS Stock Exchange), Hong Kong Exchanges and Clearing Limited (HKEx, China) and Johannesburg Stock Exchange (JSE) from South Africa. The National Stock Exchange of India (NSE) and the BSE Ltd (India) have signed letters of support and will join the alliance after finalizing outstanding requirements.
At the first stage of this project the exchanges will begin cross-listing of financial derivatives on their benchmark equity indices. It is planned to launch cross-listed products by June 2012.
“Global investors are increasingly seeking exposure to leading developing markets,” says Ronald Arculli, chairman of HKEx and of the WFE. “Thanks to this alliance, investors will gain easier access to major equity index derivatives of the BRICS markets which will now be offered in local currency on the alliance exchanges”.
This is an important milestone in the history of developing countries, continues Mr Arculli. “The alliance enables more investors to gain exposure to the emerging economies of the BRICS group whose economic power is on the rise. From a global perspective this alliance highlights the growing significance of the BRICS economies and financial markets for the coming decade, and further underlines the importance of enhancing cooperation between the BRICS members”.
At the second stage of the project members of the alliance plan to jointly develop new products for cross-listing on their exchanges. “In addition to measuring market performance, equity indices may be used as underlying assets to create new products, which can be the next step in the alliance development”, says Russell Loubser, CEO of the JSE.
Source: WFE
Highlights of the latest OMR -IEA
October 12, 2011--Oil futures tracked latest economic developments amid the worsening European debt crisis, which triggered downward price moves throughout September. Prices partially recovered on renewed optimism that European leaders would address euro-zone financing issues, with WTI last trading at $84.50/bbl and Brent near $108/bbl.
Global oil demand is revised down by 50 kb/d for 2011 and by 210 kb/d for 2012 with lower-than-expected 3Q11 readings in the non-OECD and a downward adjustment to global GDP growth assumptions. Global GDP growth is now seen at 3.8% in 2011 and 3.9% in 2012 with significant downside risks. Demand estimates stand at 89.2 mb/d in 2011 (+1.0 mb/d y-o-y) and 90.5 mb/d in 2012 (+1.3 mb/d).
Global oil supply fell by 0.3 mb/d to 88.7 mb/d in September from August, due to non-OPEC outages. Non-OPEC supply projections are trimmed by 0.3 mb/d for 4Q11 and by 0.2 mb/d for 2012, with annual growth averaging 0.2 mb/d, to 52.8 mb/d, and 0.9 mb/d to 53.6 mb/d for 2011 and 2012 respectively. OPEC NGL output averages 5.9 mb/d in 2011 and 6.3 mb/d in 2012.
OPEC crude oil supply nudged down to 30.15 mb/d in September, with lower Saudi Arabian and Nigerian output partly offset by resumed Libyan supply. Output there reached 350 kb/d in early October and capacity is assumed at 600 kb/d by end-year. The 4Q11 ‘call on OPEC crude and stock change’ is adjusted up by 0.3 mb/d to 30.8 mb/d on lower non-OPEC supply, with the 2012 ‘call’ unchanged at 30.5 mb/d.
Source: International Energy Agency (IEA)
OECD launches new report on measuring well-being
October 12, 2011-- Do you like your job? How’s your health? Are you spending enough time each day with your children? When you need them, are your friends there for you? Can you trust your neighbours? And how satisfied are you, overall, with your life?
A new OECD publication, How’s Life? , looks at these questions and others, offering a comprehensive picture of what makes up people’s lives in 40 countries worldwide. The report assesses 11 specific aspects of life – ranging from income, jobs and housing to health, education and the environment – as part of the OECD’s ongoing effort to devise new measures for assessing well-being that go beyond Gross Domestic Product.
OECD Secretary-General Angel Gurría launched How’s Life? during an international conference at the OECD commemorating the two-year anniversary of the landmark Stiglitz-Sen-Fitoussi report on the measurement of economic performance and social progress. The landmark report sought to address concerns that standard macroeconomic statistics like GDP failed to give a true account of people’s current and future well-being. The OECD has been addressing the issue of measuring progress since 2000, with its latest work forming the basis of this publication.
Source: OECD
Spread betting groups face stricter rules
October 12, 2011--Spread betting companies are likely to be faced with stricter capital requirements, senior industry figures and analysts say, as the industry’s rapid growth brings it under closer scrutiny.
Spread betting has become more popular during the past decade, because it allows users to make profits and losses from betting on minor fluctuations in the prices of securities, by placing relatively small deposits.
Source: FT.com
