Global ETF News Older than One Year
Junk bond funds back in demand
April 11, 2011--Funds investing in junk bonds had record inflows last week as individual investor demand for higher-yielding corporate debt roared back after a brief pause last month.
On a global basis, $1.47bn was invested in junk bond or “high-yield†funds last week, the biggest weekly inflow ever seen, according to EPFR, which tracks funds flows. In the US, inflows totalled $933m, also one of the biggest ever weeks. “All major high-yield markets have seen fund inflows in the search for yield,†said analysts at Barclays Capital.
Source: FT.com
The Oil Trading Markets, 2003 – 2010:Analysis of market behaviour and possible policy responses Paper
April 11, 2011--In this working paper Adair Turner et al. consider price movements in the oil trading markets between 2003 and 2010 and provide an analysis of factors which potentially explain the significant trends in this period.
The authors also discuss the impact of different forms of oil price volatility and propose the type that matters most from an economic standpoint is medium-term price trends. The authors then discuss possible public policy actions that could be employed to prevent or mitigate such trends with the paper concluding that proposals solely related to the operation of the financial markets will not address the fundamental drivers of instability.
Source:Oxford Institute for Energy Studies
Deep Probe Expected for Deutsche Borse-NYSE Euronext Merger
Derivatives competition a concern for regulators
Talks with authorities globally 'going well' -NYSE CFO
OSC clarifies focus on London-Toronto bourse tie-up
April 11, 2011--Regulators are likely to take a long, hard look at Deutsche Borse's planned takeover of NYSE Euronext, the EU's antitrust chief said, while a top NYSE executive said talks with authorities globally are so far "going well."
EU's Almunia says deal is a 'complex' case
EU Competition Commissioner Joaquin Almunia's comments on Thursday underscored the hurdles the deal faces in Europe compared with the United States, where regulators are expected to clear the $10.2 billion takeover.
The tie-up, announced last month, would give the merged company a stranglehold on European exchange-traded derivatives, and immediately raised questions over whether competition authorities would block it.
Source: Wall Street & Technology
World Economic Outlook (WEO) Tensions from the Two-Speed Recovery: Unemployment, Commodities, and Capital Flows
April 11, 2011--The World Economic Outlook (WEO) presents the IMF staff's analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries.
It focuses on major economic policy issues as well as on the analysis of economic developments and prospects. It is usually prepared twice a year, as documentation for meetings of the International Monetary and Financial Committee, and forms the main instrument of the IMF's global surveillance activities.
view the WORLD ECONOMIC OUTLOOK April 2011
Source: IMF
NASDAQ OMX Group and IntercontinentalExchange Respond to NYSE Euronext Board's Summary Rejection of Superior Proposal
Board of NYSE Euronext Wants to Deny Stockholders Benefit of Superior Proposal
Significant Execution Risks with Deutsche Boerse Proposal
Reaffirms Proposal that Delivers Significantly More Value to NYSE Stockholders
April 10, 2011--NASDAQ OMX (NDAQ) and IntercontinentalExchange (ICE) today issued the following statement in response to the summary rejection by NYSE Euronext (NYX) of their joint proposal to acquire NYSE Euronext, valued at $43.13 per share in cash and stock, as of the close of trading on Friday, April 8, 2011.
NYSE Euronext's Board of Directors, without engaging in any dialogue or discussion, has summarily elected to deny its stockholders the opportunity to benefit from a clearly superior proposal to the announced transaction with Deutsche Boerse, a proposed transaction that is indisputably financially inferior.
This NASDAQ OMX/ICE transaction would create two global leading exchanges, one primarily focused on cash equities and the other on derivatives. This reduces execution risk and allows investors to make their own allocation decisions.
The superior cash and stock proposal from NASDAQ OMX and ICE provides NYSE Euronext's stockholders with immediate value and a higher premium to the proposal from Deutsche Boerse.
There is greater potential for long-term value creation under the NASDAQ OMX/ICE proposal by placing NYSE Euronext's businesses under management teams with proven track records of unlocking value through successful merger integrations.
Source: NASDAQ OMX
Deutsche Börse NYSE Euronext Board of Directors rejects NASDAQ/ICE proposal
April 10, 2011-- Deutsche Börse AG has been informed by NYSE Euronext that the NYSE Euronext Board of Directors has unanimously decided to reject the unsolicited proposal by NASDAQ OMX and IntercontinentalExchange.
Deutsche Börse shares the view of NYSE Euronext that the agreed merger of two of the strongest exchange organizations in our industry, NYSE Euronext and Deutsche Börse, will create compelling value for shareholders of both companies. The value creation unlocked by this combination is driven by significant growth opportunities across different asset classes and geographies, identified cost synergies based on conservative joint estimates and highly attractive distributions for shareholders in the combined group based on superior cash flow generation paired with a strong balance sheet.
Since Deutsche Börse and NYSE Euronext entered into a definitive Business Combination Agreement on 15 February 2011, Deutsche Börse and NYSE Euronext have commenced regulatory proceedings and made significant progress on integration planning. With the proxy statement already on file with the US Securities and Exchange Commission, Deutsche Börse and NYSE Euronext continue to be fully on track to close the transaction at the end of 2011.
Source: Deutsche Börse
Gold surges to record on euro
April 8, 2011---- Gold struck a record high on Friday, and silver hit $40 an ounce for the first time since 1980, as a weaker dollar and concerns about inflation sent investors piling into precious metals.
Silver exchange traded fund holdings jumped to an all-time high and gold holding rose to their largest since mid-March as a surge in oil and other commodity prices threatens to bolster already rising inflation.
Source: MiningX
BlackRock * New Report * ETF Landscape: Industry Review - February 2011
April 8, 2011--At the end of February 2011, the global ETF industry had 2,557 ETFs with 5,802 listings and assets of US$1,367.4 Bn from 140 providers on 48 exchanges around the world. This compared to 2,091 ETFs with 3,998 listings and assets of US$1,001.9 Bn from 115 providers on 40 exchanges at the end of February 2010.
Additionally, there were 1,092 other ETPs with 1,808 listings and assets of US$175.3 Bn from 57 providers on 23 exchanges. This compared to 630 ETPs with 921 listings and assets of US$150.3 Bn from 40 providers on 18 exchanges at the end of February 2010.
Combined, there were 3,649 products with 7,610 listings, assets of US$1,542.7 Bn from 174 providers on 52 exchanges around the world, as at the end of February 2011. This compared to 2,721 products with 4,919 listings, assets of US$1,152.2 Bn from 139 providers on 43 exchanges at the end of February 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
Thomson Reuters MiFID Monthly Market Share Reports For March 2011
April 8, 2011--Trading is fragmenting between exchanges and competing venues. But by how much and which venues? Find out in our summarised monthly reports.
Monthly Data at a Glance The charts below show the traded value of all MTF operated Dark Pools and six of the leading broker crossing services equities (in Euro € millions) recorded over the last 13 months. For the most recent month the break down for the main venues is provided. The data for the MTFs has been sourced from our Equity Market Share Reporter whilst the Broker Crossing System data, available since June 2010 has been sourced from Markit BCS Daily reporting (http://www.markit.com/).
Source: Thomson Reuters
2011 Review of the Standards and Codes Initiative
April 8, 2011--Summary: The Standards and Codes Initiative ("Initiative") has been identified as one of several building blocks for the overhaul of the global financial architecture after the Asian crisis in the late 1990s. Twelve policy areas were selected as key for sound financial systems and a framework for Reports on the Observance of Standard and Codes (ROSCs) was established and has been implemented by the Bank and the Fund for about a decade.
Since the Initiative’s inception, a majority of member countries have had one or more ROSCs, although—in part due to the voluntary nature of ROSCs—the coverage is not fully complete.
After peaking in 2003, the annual number of ROSCs completed has declined considerably. In particular, the number of fiscal transparency and data ROSCs has dropped, reflecting the downsizing of the Fund, and changes in departmental priorities. The reduction in financial sector ROSCs—generally done as a part of the Financial Sector Assessment Program (FSAP)—has been less, although fewer ROSCs have been done per FSAP.
Revisions to the standards to incorporate the lessons from the crisis, the initiatives of the Financial Stability Board (FSB), and changes to financial surveillance are likely to have important implications for the future of the Initiative. In particular, the commitment by FSB members to undergo FSAPs every 5 years and the FSB’s framework to enhance adherence to international financial standards are likely to boost demand for financial sector ROSCs. These resource pressures impose a greater burden on the prioritization process, and strategic decisions will have to be made to augment resources for the Initiative or on where the resource cuts could come from in order to maintain adequate coverage of non-G20 countries.
view the 2011 Review of the Standards and Codes Initiative
Source: IMF
