Global ETF News Older than One Year
Collapsing Deutsche Boerse Takeover of NYSE Can Still Return 45%: Real M&A
October 7, 2011--The Deutsche Boerse AG (DB1) acquisition of NYSE Euronext is valuing the owners of the New York Stock Exchange and Frankfurt bourse at $16.6 billion, about the same as the German exchange when the deal was announced in February -- diminished by the European debt crisis and an economy teetering on the brink of recession.
For all of the disappointment, traders buying NYSE Euronext shares today can make 45 percent after the deal is approved by regulators.
Since the two venues agreed to merge, the value of the acquisition has fallen more than any all-stock takeover in the U.S. this year as investors fled European equities, according to data compiled by Bloomberg. NYSE Euronext owners lost billions of dollars by tying themselves to Deutsche Boerse’s stock, which slid almost 40 percent from $16.2 billion eight months ago.
Source: Bloomberg
Dow Jones Islamic Market Indexes September 2011 Performance Report - Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
October 6, 2011--The global Dow Jones Islamic Market Titans 100 Index, which measures the performance of 100 of the leading Shari’ah compliant stocks globally, had a down month in September with a loss of 7.19%, closing at 2019.36.
In comparison, the Dow Jones Global Titans 50 Index, which measures the 50 biggest companies worldwide, posted a loss of 6.24%, closing at 160.21.
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, decreased 8.62% in September, closing at 1848.95. The Dow Jones Asian Titans 50 Index, in comparison, posted a loss of 8.74%, closing at 116.08.
Measuring Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 of the leading Shari’ah compliant stocks in Europe, closed at 1874.93, a loss of 10.38% in September, while the conventional Dow Jones Europe Index loss 11.31%, closing at 221.76.
Source: Mondovisione
FSB Consultation Paper on a Common Template for Global Systemically Important Banks
October 6, 2011--The Financial Stability Board (FSB) has published a Consultation Paper on a Common Template for Global Systemically Important Banks.
Source: Financial Stability Board (FSB)
U.S. and China moving toward trade war?
October 5, 2011--China says it could be on the march to a trade war with the United States. That’s after the U.S. Senate on Monday passed a key test vote that targets countries believed to keep their currencies artificially weak.
If the bill passes in the Senate – perhaps as early as this week – it would be the next step at shooting new tariffs onto exports from those countries. Looking between those Congressional crosshairs, this week’s legislation is clearly aimed at China.
Source: CNN
NYSE Euronext and Deutsche Boerse Statement on Statement of Objections
October 5, 2011--NYSE Euronext and Deutsche Boerse Statement on Statement of Objections
Deutsche Boerse AG (XETRA:DB1) and NYSE Euronext (NYSE:NYX) today issued
the following statement regarding the issuance of a Statement of Objections by
the EU Competition Commission:
We can confirm that we have received a Statement of Objections from the European Commission. The Statement of Objections is a normal step in a second phase merger procedure. It sets out a provisional position of the Commission and does not prejudge the final outcome of the case.
We continue to strongly believe that our combination provides substantial capital and cost savings to users; advances the goal of a unified, liquid EU capital market for raising money and managing risk; and does not materially alter the competitive landscape.
We have worked closely with the European Commission during this process, and we look forward to continuing our open and constructive discussions as we work to complete the transaction by the end of this year.
Source: Deutsche Börse
Broker-Dealers Fund Markit's New Commission Management Platform
October 4, 2011-Markit, the New York and London-based valuations and post-trade service provider, has teamed up with some of the world’s largest broker dealers to launch a new commission management system which it claims will help fund managers allocate their commission credits effectively.
Funding the development of the new Markit Commission Manager are BofA Merrill Lynch; Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley.
A key component of commission management services are commission sharing agreements which allow fund managers to consolidate their trading activities with the best counterparties while directing commission payments to other sources of investment research.
Source: Securities Technology Monitor
Concern grows over dangers of ‘synthetic’ ETFs
October 4, 2011--First it was CDOs, then SPVs. Now the latest alphabet soup of financial products to come under scrutiny from regulators as potential threats to investor protection and economic stability are ETFs and ETPs – exchange-traded funds and similar products.
Securities regulators in the US and EU are worried that these increasingly complex products are being mis-sold to unwary investors who do not understand the counterparty and derivatives risks they are running.
Source: FT.com
How Long Do Housing Cycles Last? A Duration Analysis for 19 OECD Countries -IMF Working paper
October 3, 2011--Summary: This paper analyzes the duration of house price upturns and downturns in the last 40 years for 19 OECD countries. I provide two sets of results, one pertaining to the average length and the other to the length distribution. On average, upturns are longer than downturns, but the difference disappears once the last house price boom is excluded.
In terms of length distribution, upturns (but not downturns) are more likely to end as their duration increases. This duration dependence is consistent with a boom-bust view of house price dynamics, where booms represent departures from fundamentals that are increasingly difficult to sustain.
view the IMF paper-How Long Do Housing Cycles Last? A Duration Analysis for 19 OECD Countries
Source: IMF
Share trading at NASDAQ OMX Nordic unchanged compared to September 2010, 78 % increase in ETF turnover
October 3, 2011-- NASDAQ OMX today publishes monthly trade statistics for the Nordic and Baltic markets. Below follows a summary of the highlights for September 2011:
The share trading on NASDAQ OMX Nordic matched the daily average of September 2010 of 2.4bn EUR. Compared to the previous month, August 2011, the daily average decreased by 27.3 %.
NASDAQ OMX Nordic's share of order-book trading in our listed stocks decreased to 70.8 % compared to 72.6 % in August 2011. Foreign marketplaces accounted for 27.0 % of the trading in NASDAQ OMX Nordic shares1.
Derivatives trading decreased by 3.4 % to a daily average of 577,457 contracts, compared with 597,660 contracts in September 2010.
ETF trading2 (Exchange Traded Funds) increased by 78.3 % to a daily average of 115m EUR compared to 64.5m EUR in September 2010.
Nokia was the most traded stock on NASDAQ OMX Nordic exchanges during the past month, followed by H&M.
SEB was the most active member on NASDAQ OMX Nordic during the past month, followed by Credit Suisse.
NASDAQ OMX Nordic's average time at EBBO3 (European Best Bid Offer) was:
For OMXC20 companies 85,3 %
For OMXH25 companies 78,1 %
For OMXS30 companies 83,8 %
For more information, please read the monthly statistics report published at: http://nordic.nasdaqomxtrader.com/newsstatistics/.
Source: NASDAQ OMX
Meeting of Financial Stability Board
October 3, 2011--At its meeting today, the Financial Stability Board (FSB) reviewed and approved a number of
policy proposals to be submitted to the G20 Summit in November, including on a package of measures to address the “too big to fail” problem. Members also discussed the current strains in financial markets arising from sovereign debt and the steps being taken to address them.
Key financial regulatory reforms
Addressing systemically important financial institutions (SIFIs). The FSB reviewed and approved the package of policy measures to be submitted to the G20 to address the “too big
to fail” problems posed by SIFIs, taking account of the results of the public consultation over the summer. The policy package will include:
Key Attributes of Effective Resolution Regimes for Financial Institutions, which will form a new international standard for the features all national regimes should have to enable failing financial institutions to be resolved safely and without exposing the taxpayer to the risk of loss.
A requirement that individual globally important SIFIs (G-SIFIs) have recovery and resolution plans, informed by resolvability assessments, and that home and host authorities develop institution-specific cooperation agreements and cross-border crisis management groups.
Additional loss absorbency requirements for those banks determined to be G-SIFIs, based on the methodology developed by the Basel Committee on Banking Supervision for assessing the global systemic importance of banks.
Measures to enhance the intensity and effectiveness of supervision, in particular of SIFIs. Recommendations will include improved data systems for risk management at SIFIs and assessments of the adequacy of supervisory resources
Source: Financial Stability Board (FSB)
