Global ETF News Older than One Year
The Too-Important-to-Fail Conundrum: Possible to Ignore and Difficult to Resolve - IMF Working Paper
May 27, 2011--EXECUTIVE SUMMARY:
The unprecedented scope and intensity of the recent financial crisis underscored the tooimportant-
to-fail (TITF) problem associated with systemically important financial institutions (SIFIs). Ahead of the crisis, implicit government backing permitted these institutions to take on
greater risks without being adequately subject to market discipline and to enjoy a competitive advantage over systemically less important institutions.
And when the crisis broke, their scale, complexity, and interconnectedness, which had made them difficult to manage and supervise, also proved too significant to permit them to fail.
Yet, some SIFIs have already become bigger and even more complex following the crisis, and risky lending practices have begun to reappear. The restructuring following the crisis increased the level of concentration in many advanced economies’ financial systems, with implications for stability and competitiveness. Policies are therefore needed to make financial institution failures less likely and less devastating when they occur, reestablish market discipline, level the playing field, and spare governments and taxpayers the costs of future bailouts.
Source: IMF
Exchanges fight for control of LCH.Clearnet
May 27, 2011--Three of the world’s largest exchanges have entered a battle for control of LCH.Clearnet as a wave of exchange consolidation sweeps up Europe’s largest independent clearing house, three people familiar with the matter said.
The move for the London-based clearer, between NYSE Euronext, Nasdaq OMX and the London Stock Exchange, is a sign that the world’s bourses are desperate to snap up businesses that allow them to profit from sweeping post-crisis reform of the financial system.
Source: FT.com
IEA Climate and Electricity Annual 2011--Data and Analyses
May 27, 2011--Electricity use is growing worldwide, providing a range of energy services: lighting, heating and cooling, specific industrial uses, entertainment, information technologies, and mobility.
Because its generation remains largely based on fossil fuels, electricity is also the largest and the fastest-growing source of energy-related CO2 emissions, the primary cause of human-induced climate change.
Because its generation remains largely based on fossil fuels, electricity is also the largest and the fastest-growing source of energy-related CO2 emissions, the primary cause of human-induced climate change.
Source: IEA
Euro gains on fears over US growth
May 27, 2011--The euro had a volatile five sessions but still managed to fashion gains against the dollar as risk appetite began to pick up towards the end of the week and drove the US currency lower.
Thursday’s disappointing update on first-quarter US growth and evidence of weaker consumer spending underlined the notion that the world’s biggest economy was still a long way from tightening its monetary policy.
Source: FT.com
ISDA Publishes OTC Derivatives Market Analysis
May 26, 2011--The International Swaps and Derivatives Association, Inc. (ISDA) published today a new analysis of the over-the-counter (OTC) derivatives market based on year-end statistics published by the Bank for International Settlements (BIS) and LCH.Clearnet’s SwapClear.
According to the analysis, the level of cleared interest rate swaps exceeded 50 percent of interest rate swap notional outstanding at the end of 2010, up from 21 percent at year-end 2007. Over the same time frame, the volume of uncleared interest rate swaps outstanding declined from $201 trillion to $116 trillion, a decrease of $85 trillion or 42 percent.
“The strong commitment of ISDA and market participants to make the OTC derivatives markets safe and efficient is evidenced by the increased use of central counterparty clearing and the continuing reduction in uncleared volumes,” said Conrad Voldstad, ISDA CEO. “Further progress in this area lies ahead as we look to expand central clearing while ensuring that the financial strength, risk standards and governance of clearinghouses remain extremely strong.”
view the OTC Derivatives Market Analysis Year-end 2010
Source: International Swaps and Derivatives Association, Inc. (ISDA)
Bad weather poses threat to wheat supplies
May 26, 2011--Expectations for a sharp rebound in global wheat supplies were lowered on Thursday after an intergovernmental trading group said bad weather threatened key breadbaskets.
The International Grains Council trimmed its forecast for the annual global wheat crop by 5m tonnes to 667m tonnes, citing “unfavourable weather”, especially in Europe and the US.
Source: FT.com
Draghi warns on global recovery
May 25, 2011--Mario Draghi, the Italian central bank governor widely expected to become the head of the European Central Bank in November, has warned that rising inflation and ballooning public debt could hamper the global recovery.
In his first speech in Germany since being nominated to succeed Jean-Claude Trichet, Mr Draghi said overheating was a “clear and present danger.”
Source: FT.com
China to buy Europe bail-out bond
May 25, 2011--The European Union enjoyed strong demand for its third bond to raise money for the rescues of Portugal and Ireland, in a sign of investors’ confidence that the eurozone can survive the debt crisis.
Despite rising concern over contagion, and the single currency coming under pressure this week, banks, pension funds, insurers and other investors from Europe and Asia, including some big sovereign wealth funds, bought the debt.
Source: FT.com
TMX Group Obtains Interim Order For Plan Of Arrangement Involving London Stock Exchange Group
May 25, 2011-- TMX Group Inc. announced today that it has obtained an interim order of the Ontario Superior Court of Justice. The interim order provides for, among other things, the holding of a special meeting of holders of common shares of TMX Group to approve the previously announced plan of arrangement under the Business Corporations Act (Ontario) regarding the proposed merger with London Stock Exchange Group plc.
The annual and special meeting of shareholders is scheduled to be held at The Design Exchange, located at 234 Bay Street, Toronto, Ontario on June 30, 2011 at 10:00 a.m. (Eastern Time).
TMX Group will mail the meeting materials, including the Notice of Annual and Special Meeting, Management Information Circular and form of proxy to shareholders of record as of May 20, 2011. The meeting materials will also be available at www.sedar.com and on TMX Group's website at www.tmx.com once they are posted on SEDAR.
Completion of the arrangement is subject to certain conditions, including the receipt of requisite approval by TMX Group's shareholders, the final approval of the Ontario Superior Court of Justice, and approvals by provincial securities regulators and by Industry Canada under the Investment Canada Act. If all necessary approvals are obtained and the conditions of the completion of the arrangement are satisfied or waived, it is expected that the arrangement will be completed in the Fall of 2011.
Source: TMX Group
TMX Merger - Shareholder Meetings
May 25, 2011-The Board of London Stock Exchange Group plc (“LSEG”) notes the announcement today from TMX Group Inc. (“TMX”) that it has obtained an interim order of the Ontario Superior Court of Justice which provides for, amongst other things, the holding of a special meeting of holders
of common shares of TMX to approve the previously announced plan of arrangement regarding the proposed merger with LSEG (the “Merger”) and that the annual and special meeting of TMX shareholders is scheduled to be held on June 30, 2011.
LSEG also expects to hold its general meeting to approve the Merger on 30 June 2011.
Source: TMX
