Global ETF News Older than One Year
Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced Economies - IMF Working paper
July 11, 2011--Summary: We analyze the link between nonperforming loans (NPL) and macroeconomic performance using two complementary approaches. First, we investigate the macroeconomic determinants of NPL in panel regressions and confirm that adverse macroeconomic developments are associated with rising NPL.
Second, we investigate the feedback between NPL and its macroeconomic determinants in a panel vector autoregressive (PVAR) model. The impulse response functions (IRFs) attribute to NPL a central role in the linkages between credit market frictions and macrofinancial vulnerability. They suggest that a sharp increase in NPL triggers long-lived tailwinds that cripple macroeconomic performance from several fronts.
Source: IMF
Composite Leading Indicators (CLIs), OECD, July 2011
The OECD composite leading indicators point to slowdown in most major economies
July 11, 2011--Composite leading indicators (CLIs) designed to anticipate turning points in economic activity relative to trend, point to a slowdown in most major economies for May 2011.
The CLIs point to slowdowns in Canada, France, Germany, Italy, the United Kingdom, Brazil, China and India. In the United States, Japan and Russia tentative signs of turning points in the growth cycle are emerging.
The outlook for Japan should be interpreted with some caution, reflecting the necessarily higher degree of uncertainty in the relationships between the leading components of the Japanese CLI and overall economic activity in the wake of the March 2011 earthquake.
Source: OECD
CME Group Announces The Launch Of New Yuan FX Futures Contracts - Innovative New Product Design Developed To Suit Global Customers' Needs
Innovative New Product Design Developed to Suit Global Customers' Needs
July 11, 2011--CME Group, the world's leading and most diverse derivatives marketplace and the largest regulated market for foreign exchange, today announced the launch of new foreign exchange (FX) futures contracts based on the Chinese Yuan (CNY), or Renminbi.
In order to meet growing global customer demand for products denominated in the Chinese currency, these innovative new futures contracts will be quoted in interbank (European) terms, reflecting the number of CNY per US dollar.
These futures products are aligned with the OTC market convention for non-deliverable forwards while providing the benefits of counterparty risk mitigation from exchange-traded derivatives. These new currency products, which will be listed on and subject to the rules and regulations of CME, will launch Monday, 22 August for September 2011 settlement and will be allocated to the IMM (International Monetary Market) Division.
Source: CME Group
A coalition of financial-services trade associations (the “Trade Associations”) today released a comprehensive set of requirements for establishing a legal entity identifier (LEI) system to aid regulators and industry in monitoring systemic risk.
July 11, 2011--A coalition of financial services firms and trade associations (the “Trade Associations” [i]), in coordination with the Global Financial Markets Association (ASIFMA/AFME/SIFMA, collectively known as GFMA), has presented to regulators a recommendation for the organizations that it believes are best suited to operate a global legal entity identifier (LEI) system to aid regulators and industry in monitoring systemic risk. The recommendation document can be found here: www.sifma.org/LEI-Recommendation-Process/.
The recommendation is the culmination of several months of work by the Trade Associations and GFMA as a first step in developing a global industry consensus on the requirements and standards for a viable, uniform and global LEI solution.
The Trade Associations, working through GFMA, now intend to consult further with the international regulatory community, as well as the recommended organizations and other parties, to understand fully the requirements that could make the global implementation and adoption of the LEI solution possible. This includes, as a top priority, working cooperatively with these parties in defining and establishing the LEI governance structure.
Source: Placingtraders.com
Low-cost ETFs reap fat profits - FT.com
July 10, 2011--Exchange traded fund providers in Europe are generating profit margins that are more than four times higher than the traditional mutual funds industry, even though ETFs are sold as low-cost products.
The fat profit margins could help explain the growing enthusiasm for launching ETFs with 139 new funds unveiled in Europe so far this year, taking the total to 1,185.
Source: FT.com
Joint Supplemental Statement of the Management Board and the Supervisory Board of Deutsche Börse Aktiengesellschaft
Mandatory publication pursuant to section 27 (3) sentence 1 in conjunction with section 14 (3) sentence 1 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz (WpÜG))
July 8, 2011--The Joint Supplemental Statement of the Management Board and the Supervisory Board of Deutsche Börse
Aktiengesellschaft, Mergenthalerallee 61, 65760 Eschborn, Germany, pursuant to section 27 of the German Securities Acquisition and Takeover Act on the Amendment to the Voluntary Public Takeover Offer (Exchange Offer) published on 27 June 2011 made by Alpha Beta Netherlands Holding N.V. Beursplein 5, 1012 JW Amsterdam, The Netherlands to the shareholders of Deutsche Börse Aktiengesellschaft can be downloaded at www.deutsche-boerse.com/supplementalstatement
THIS DOCUMENT IS A NON-BINDING CONVENIENCE TRANSLATION OF THE GERMAN LANGUAGE JOINT SUPPLEMENTAL STATEMENT (GEMEINSAME ERGÄNZENDE STELLUNGNAHME) OF THE MANAGEMENT BOARD (VORSTAND) AND THE SUPERVISORY BOARD (AUFSICHTSRAT) OF DEUTSCHE BÖRSE AKTIENGESELLSCHAFT OF 8 JULY 2011.
Source: Deutsche Börse
NYSE Euronext Announces Trading Volumes for June 2011 and Other Metrics
Global Derivatives ADV Up 8% Year-Over-Year on U.S. Options and European Fixed Income; NYSE Liffe U.S. Total Open Interest Over 650,000 Contracts; Completed Successful Migration of MSCI-Index Based Futures
July 8, 2011--NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for June 20111.
Global derivatives average daily volume (“ADV”) of 8.8 million contracts in June 2011 increased 8.0% versus the prior year driven by a 19.7% increase in U.S. options ADV and a 14.3% increase in European fixed income derivatives which offset a 14.4% decrease in European equity products ADV. Cash equities ADV declined across all venues in June 2011, with European cash ADV decreasing 2.8% and U.S. cash trading ADV decreasing 28.7% from June 2010 levels.
Highlights
NYSE Euronext global derivatives ADV in June 2011 of 8.8 million contracts increased 8.0% compared to June 2010, but decreased 16.3% from May 2011 levels.
NYSE Euronext European derivatives products ADV in June 2011 of 4.6 million contracts decreased 2.1% compared to June 2010 and decreased 28.1% from May 2011 levels. Excluding Bclear, NYSE Liffe's trade administration and clearing service for OTC products, European derivatives products ADV increased 4.8% compared to June 2010 and decreased 2.0% from May 2011.
Source: NYSE Euronext
FAO Food Price Index up slightly in June
But outlook for cereals improves
July 7, 2011--FAO's Food Price Index rose one percent to 234 points in June 2011 - 39 percent higher than in June 2010 but four percent below its all-time high of 238 points in February of this year.
A strong rise in international sugar prices was behind much of the increase.
The FAO Cereal Price index averaged 259 points in June, down one percent from May but 71 percent higher than in June 2010. Improved weather conditions in Europe and the announced lifting of the Russian Federation's export ban contributed to the price drop.
Source: FAO
NYSE Euronext shareholders approve Deutsche Boerse merger
July 7, 2011-- NYSE Euronext shareholders approved Thursday a merger with Deutsche Boerse to form the biggest stock exchange operator in the world valued at some $25 billion.
A merged Deutsche Boerse and New York Stock Exchange Euronext will own bourses in New York, Frankfurt, Paris, Lisbon, Amsterdam and Brussels.
Source: EUbusiness
NYSE Euronext Shareholders Overwhelmingly Approve Combination With Deutsche Boerse - Preliminarily, Over 96% Of Votes Cast In Favor Of The Proposed Merger
July 7, 2011--NYSE Euronext (NYSE:NYX) today announced that its shareholders have approved the adoption of the business combination agreement with Deutsche Boerse AG (XETRA: DB1) and related proposals. The proposals, which required approval by a majority of the outstanding shares or in some cases majority of shares voted of NYSE Euronext common stock, were approved at a special shareholders meeting held today in New York.
Based on preliminary results, approximately 96.09% of the shares present at the special meeting voted for the approval of the combination, representing 65.68% of NYSE Euronext’s outstanding common shares.
“We are delighted that our shareholders support the value inherent in this compelling combination with Deutsche Boerse and recognize the substantial benefits the combined company will be positioned to provide,” said Jan-Michiel Hessels, Chairman of the Board of NYSE Euronext.
Source: NYSE Euronext
