Global ETF News Older than One Year
Rising Market Power-A Threat to the Recovery?
March 15, 2021--The crisis has hit small and medium enterprises especially hard, causing massive job losses and other economic scars. Among these-less noticeable, but also serious-is rising market power among dominant firms as they emerge even stronger while smaller rivals fall away.
We know from experience and IMF research that excessive market power in the hands of a few firms can be a drag on medium-term growth, stifling innovation and holding back investment. Such an outcome could undermine the recovery from the COVID-19 crisis, and it would block the rise of many emerging firms at a time when their dynamism is desperately needed.
Source: IMF
Big tech in finance: regulatory approaches and policy options
March 15, 2021--Highlights
At present, financial services represent a relatively small part of big techs' overall activities, thoughthis can change rapidly due to the unique features of their business models and they could quicklybecome systemically important-r "too big to fail".
Big techs' financial operations are subject to the same requirements as those of other market participants.
As such, big techs need to hold appropriate licences to perform regulated financia lactivities or provide their services in partnership with financial institutions that meet the regulatory requirements
Risks connected with big tech activities in finance may not be fully captured by the regulatory approach up to now, which is geared towards individual entities or specific activities and not therisks that are created by substantive interlinkages within big tech groups and their role as criticalservice providers for financial institutions
Source: BIS
ETF inflows surge past record as investors bet on global recovery
March 11, 2021--Industry makes fastest ever start to a year after attracting $139.5bn in February
The exchange traded fund industry has made its fastest ever start to a year with a new record of $139.5bn in monthly inflows in February as investors, betting on a strong economic rebound in 2021, used ETFs to pour cash into equities.
Not only did the S&P 500, the main US stock market benchmark, hit a fresh all-time high last month, but investors have also taken encouragement from the massive support measures provided by the US Federal Reserve and other central banks to make additional allocations to stocks and commodities via ETFs.
Source: ft.com
State Street Announces Expansion of its Fund Connect ETF Digital Platform
March 10, 2021--Fund Connect ETF becomes latest GlobalLink product to embrace open architecture by making its primary market ETF trading platform available to the industry agnostic of service provider
State Street Corporation (NYSE:STT) today announced that Fund Connect ETF will now be open to support all exchange traded fund (ETF) issuers regardless of their service provider.
The platform was previously only available to issuers receiving securities services from State Street. The Fund Connect platform has long served as a conduit between Authorized Participants (APs) and issuers. This expansion marks a pivotal moment for State Street to build on its proven track record of supporting the growing ETF market.
Source: State Street Corporation
Bitcoin's Greatest Feature Is Also Its Existential Threat
March 9, 2021--The cryptocurrency depends on the integrity of the blockchain. But China's censors, the FBI, or powerful corporations could fragment it into oblivion.
Security researchers have recently discovered a botnet with a novel defense against takedowns. Normally, authorities can disable a botnet by taking over its command-and-control server.
With nowhere to go for instructions, the botnet is rendered useless. But over the years, botnet designers have come up with ways to make this counterattack harder. Now the content-delivery network Akamai has reported on a new method: a botnet that uses the Bitcoin blockchain ledger. Since the blockchain is globally accessible and hard to take down, the botnet's operators appear to be safe.
Source: wired.com
Oil logs first loss in 4 sessions, as buying after attack on Saudi oil facilities fades
March 8, 2021--Brent crude briefly rises past $70 a barrel
Oil futures pulled back Monday, posting their first loss in four sessions after an attack on Saudi oil facilities briefly lifted global benchmark Brent crude prices above $70 a barrel for the first time since early last year.
Warplanes from a Saudi-led coalition dropped bombs on Yemen's rebel-held capital San'a on Sunday, following attacks on Saudi Arabia’s oil and military facilities. The coalition blamed the administration of President Joe Biden for the attacks by Iran-backed Houthi rebels after a decision to remove them from U.S. terror lists.
Source: marketwatch.com
Freedom In The World 2020 A Leaderless Struggle for Democracy
March 5, 2021--Democracy and pluralism are under assault. Dictators are toiling to stamp out the last vestiges of domestic dissent and spread their harmful influence to new corners of the world. At the same time, many freely elected leaders are dramatically narrowing their concerns to a blinkered interpretation of the national interest.
In fact, such leaders-including the chief executives of the United States and India, the world's two largest democracies-are increasingly willing to break down institutional safeguards and disregard the rights of critics and minorities as they pursue their populist agendas.As a result of these and other trends, Freedom House found that 2019 was the 14th consecutive year of decline in global freedom. The gap between setbacks and gains widened compared with 2018, as individuals in 64 countries experienced deterioration in their political rights and civil liberties while those in just 37 experienced improvements. The negative pattern affected all regime types, but the impact was most visible near the top and the bottom of the scale. More than half of the countries that were rated Free or Not Free in 2009 have suffered a net decline in the past decade.
view the Freedom In The World 2020 A Leaderless Struggle for Democracy
Source: freedomhouse.org
OSCO Reviews Implementation of Liquidity Risk Management Recommendations and Market Participants ́ Responses to COVID-19 Induced Market Stresses
March 5, 2021--IOSCO today launched its Thematic Review of the Recommendations for Liquidity Risk Management for Collective Investment Schemes issued by IOSCO in 2018. The Recommendations are meant to ensure that liquidity risk is managed to safeguard and protect the interests of investors, including in stressed market conditions.
They are also designed to address potential structural vulnerabilities in the asset management sector that could impact financial stability. The Thematic Review-conducted by the IOSCO Assessment Committee (AC) - aims to assess the extent to which the Recommendations have been implemented through member regulatory frameworks.
Source: IOSCO
FCA Issues Timeline to Cease LIBOR Benchmark
March 5, 2021--Most of the currency settings will end by the end of 2021.
The Financial Conduct Authority (FCA) is officially ending the controversial LIBOR benchmark for most of the currencies, a decision that came after an industry consultation in December led by the ICE Benchmark Administration.
The FCA, which oversees the global benchmark, announced on Friday that the publication of LIBOR will cease after December 31, 2021, for the pound sterling, euro, Swiss franc, Japanese yen and for the one-week and two-month US dollar settings.
The rest of the US dollar settings will cease on 30 June 2023.
Source: financemagnates.com
TrackInsight Monthly ETF Report-ESG Surge Pushes ETFs to $8 Trillion
March 4, 2021--ESG Pushes Global ETF Industry to $8 Trillion
Global ETF assets reach $8 Trillion as US ETF flows surge nearly 50%
ESG ETF assets rise 9% over February to reach the 11th consecutive monthly high
7th consecutive record month for ESG ETF Flows- $19 Billion added
Investors Dump Gold, Buy Bitcoin
February data from TrackInsight, the world's first global Exchange-Traded Funds (ETFs) analysis platform, shows that ETFs continued their seemingly unstoppable growth trajectory to reach a new global high of $8 Trillion, in AuM, driven by exploding flows in North American markets and huge investor appetite for ESG products.
Contributing to this important milestone were ETFs listed in North America which witnessed historic flows of $95 Billion over February, an almost 50% increase month-on-month. There are now 3,200 ETFs listed on North American exchanges with $5.9 Billion in AuM.
Source: trackinsight.com
