Global ETF News Older than One Year
“Lower bank profits can cover the costs of stricter regulation”
October 7, 2010--The Riksbank and Finansinspektionen (the Swedish Financial Supervisory Authority): The banks’ shareholders and customers must share the costs ensuing from new and tougher bank regulations. The new Basel III regulations have laid a global foundation for a more stable financial system in the future. The details of the regulations are complex, but based on simple insights, such as the banks' need for more and better capital.
One criticism that is often put forward is that stricter bank regulations lead to larger costs for society. We will probably have to live with slightly higher lending rates in the future. But banks which take less risk do not need to make such large profits. So some of the adjustment can be made through the banks accepting lower profits, write Stefan Ingves and Martin Andersson
Following the collapse of the major US bank Lehman Brothers in autumn 2008 the international financial crisis was a reality. Unease spread rapidly across the globe and confidence between the banks vanished overnight. When the global financial market had ceased to function, governments and pubic authorities in the countries concerned were forced to resort to special measures to maintain stability in the financial system. With the aid of loans and capital injections it was possible to avoid a total collapse. But the financial crisis nevertheless had considerable consequences, as the economic situation deteriorated, unemployment rose and deficits in public finances grew alarmingly around the world.
Source: Finansinspektionen
TOPIX Futures to launch on NYSE Liffe on 18 October 2010
October 7, 2010--Tokyo Stock Exchange, Inc (“TSE”) and NYSE Liffe today announce that TOPIX Futures will be available for trading on NYSE Liffe from 18 October 2010, making this benchmark index available in both Tokyo and London.
The Tokyo Stock Exchange’s TOPIX (Tokyo Stock Price Index) is the most popular index for benchmarking Japanese equity portfolios, and TOPIX Futures are already actively traded by investors worldwide.
The NYSE Liffe launch of TOPIX Futures will increase the number of potential investors who can access these products, particularly outside Asia. The NYSE Liffe market will remain available for trading for 11 hours (10 hours during British Summer Time) following the close of the TSE market. There will also be simultaneous trading in London and Tokyo during the final TSE trading session, leading to potential arbitrage opportunities.
The two exchanges have established a position transfer mechanism so that all NYSE Liffe TOPIX Futures positions at the end of each day will be transferred to the TSE. TOPIX Futures on TSE and NYSE Liffe will be fully fungible, allowing a single, fungible pool of Open Interest to exist in Tokyo.
Source: NYSE Liffe
Dow Jones Index Data Monthly Reports
October 6, 2010--The following Dow Jones Index Data Monthly Reports for September 2010 are now available.
Index Data Monthly Report: Asia Pacific Edition
Index Data Monthly Report: MENA Edition
Index Data Monthly Report: Europe Edition
Index Data Monthly Report: Dow Jones-UBS Commodity Indexes
Index Data Monthly Report: Latin America Edition
Index Data Monthly Report: U.S. Edition
Index Data Monthly Report: Dow Jones Brookfield Infrastructure Indexes
visit Dow Jones Indexes for more info.
Source: Dow Jones Indexes
World Bank Group Reiterates Focus on Green Energy
Financing for renewables and energy efficiency reaches $3.63 billion
Demand from borrowing countries for green energy up: accounts for more than 50% of 2010 energy lending
1.5 billion people still lack access to electricity, 640 million in Africa
October 6, 2010-The World Bank Group said today its financing commitments to new renewable energy projects increased to $1.5 billion in 2010, more than triple the amount committed in 2008. Energy efficiency lending increased 48 percent during the same period.
The figures confirm the institution is on track to meet its commitment to increase support for new renewable energy and energy efficiency by nearly $8.8 billion over 2008-2012.
“Combined with our large hydropower commitments, this amounts to $3.63 billion for green energy,” said Inger Andersen, the Bank’s Vice President for Sustainable Development. “It’s a record for the World Bank Group, and clear evidence of a shared commitment between the institution and borrowing countries to invest in a sustainable energy future.”
In 2010, the Bank Group commitments on renewable energy, energy efficiency, transmission and distribution, and energy sector reform accounted for more than 60 percent of total energy financing.
Source: World Bank
Quarterly Review Results for the FTSE China Index Series (previously named FTSE Xinhua Index Series)
Jiangsu Yanghe Brewery Joint-Stock (A) to be added to FTSE China A 50 Index
Agriculture Bank of China (H) to be added to FTSE China 25 Index
October 6, 2010-FTSE Group, the award winning global index provider, today announces the results of its FTSE China Index Series (previously named FTSE Xinhua Index Series) quarterly review.
In the FTSE China A 50 Index (previously named FTSE/Xinhua China A50 Index), Jiangsu Yanghe Brewery Joint-Stock (A Share, 002304) will replace Shenzhen Development Bank (A Share, 00001). Agriculture Bank of China (H Share, 1288) will also replace Datang International Power Generation (H Share, 0991) in the FTSE China 25 Index (previously named FTSE/Xinhua China 25 Index). Nearly 60% of assets under management in China ETFs listed globally are benchmarked to a FTSE China index. The indices are widely regarded as a leading measure of the China market by domestic and international investors.
Several changes were also approved to FTSE China B 35 index, FTSE China A 200, A 400 and A Small Cap Index. Full details of all inclusions and exclusions for the FTSE China Index Series can be obtained here. All the changes will be effective after the close of trading on Friday 15 October, 2010.
Source: FTSE
TABB Says the APAC Derivatives Market is Growing, Generating Nearly 38% of Global Volumes as the East Seeks Greater Parity with the West
TABB Says the APAC Derivatives Market is Growing, Generating Nearly 38% of Global Volumes as the East Seeks Greater Parity with the West
Gaining Functional Parity Requires Overcoming a Complex Tapestry of Regulatory, Currency, Tax and Technological Hurdles to Support Market Demand
Largest Opportunities for Western Traders Exist within the Most Open Markets of Japan, Australia, Hong Kong and Singapore
October 6, 2010--The Year of the Tiger has seen an unprecedented focus on the capital markets of the Asia-Pacific (APAC) region based on a growing interconnectedness and interdependency between the East and West. In a new research report issued today, “Trading in Asian Derivatives: Opportunities Near and Far,” TABB Group says the APAC derivatives markets are big and continuing to grow larger, currently capturing 35% of global volumes in the region.
According to E. Paul Rowady, Jr., TABB senior analyst and author of the report, 99% of commodity and 100% of FX derivatives volumes are in closed or challenged markets with 100% of rates and 31% of equity-linked derivatives volumes in the open markets in Japan, Australia, Singapore and Hong Kong. There, exchanges with the most highly integrated trading platforms across asset classes are expected to top the list, including the HKEx, SGX and ASX.
He also points out that “in aggregate, 85% of the derivatives volume is now based in markets that represent closed or challenged access from western traders, in China, India, Taiwan and Korea, e.g., the KRX, ZCE, MCX and TAIFEX. At TABB, we believe that Chinese exchanges will remain off-limits to active foreign trading strategies for the foreseeable future, with India in the same category due to factors related to poor infrastructure and the prohibitive regulatory environment, there.”
Source: TABB Group
Quarterly National Accounts - Contributions to GDP growth - Second Quarter 2010, OECD
October 6, 2010-Real GDP in the OECD area increased by 0.9% in the second quarter of 2010 from the previous quarter, a stronger pace than previously estimated (0.7%). Gross fixed investment was the main contributor to the GDP increase, adding 0.4 percentage point to overall growth. The rise in investment was the first since early 2008, and the pace was the fastest since the first quarter of 2000.
Private and government consumption contributed 0.3 and 0.1 percentage point to overall growth respectively. The rebuilding of inventories continued, but at a slower pace than in previous quarters. The increase in domestic demand was partially offset by negative contributions from net exports, which reduced overall GDP growth by 0.2 percentage point.
Among the seven major countries, the strong pace of GDP growth in Germany (to 2.2% in the second quarter) was driven by higher investment and net exports, which contributed 0.8 point each. In the United Kingdom, stronger GDP growth (up by 1.2%) reflected the positive contributions from private consumption and inventories. In Italy, foreign trade added 0.6 percentage point to overall GDP growth, more than offsetting lower domestic demand. In France, the increase in GDP growth from the previous quarter (to 0.7%) is entirely attributed to rebuilding inventories.
Source: OECD
The rise and rise of correlation
October 6, 2010--From New York to Hong Kong, investors, dealers, analysts and academics are puzzled. For months, they have been struggling to explain an investment phenomenon that has defined this year’s sharp swings in financial markets. Now they may have an answer.
Like fish swimming in shoals, shares in the world’s largest companies have see-sawn in lockstep as investors have bought heavily only to head for the exits later. This indiscriminate buying and selling, also called “risk-on, risk-off” trading, has characterised the sharp swings in equity markets during the summer sell-off and later rally that has this week sent Wall Street to near five-month highs.
Source: FT.com
IMF-World Economic Outlook—Recovery, Risk, and Rebalancing
October 6, 2010--Executive Summary
Thus far, economic recovery is proceeding broadly as
expected, but downside risks remain elevated. Most advanced economies and a few emerging economies still face large adjustments. Their recoveries are
proceeding at a sluggish pace, and high unemployment poses major social challenges. By contrast, many
emerging and developing economies are again seeing strong growth, because they did not experience major
financial excesses just prior to the Great Recession.
Sustained, healthy recovery rests on two rebalancing acts: internal rebalancing, with a strengthening of private demand in advanced economies, allowing for fiscal consolidation; and external rebalancing, with an increase in net exports in deficit countries, such as the United States, and a decrease in net exports in surplus countries, notably emerging Asia. The two interact in strong ways. Increased net exports in advanced economies imply higher demand and higher growth, allowing more room for fiscal consolidation. Strengthened domestic demand helps emerging market economies maintain growth in the face of lower exports. A number of policies are required to support these rebalancing acts. In advanced economies, the repair and reform of the financial sector need to accelerate to allow a resumption of healthy credit growth.
view the World Economic Outlook October 2010-Recovery, Risk, and Rebalancing
Source: IMF
MSCI Becomes Signatory to the United Nations Principles for Responsible Investment
October 6, 2010--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced today that it has become a signatory to the UN Principles for Responsible Investment (PRI).
The UN PRI is a global initiative supporting the integration of environmental, social and governance (ESG) factors into institutional investing practices. There are currently over 800 UN PRI signatories from 45 countries, collectively representing more than USD 22 trillion in assets under management1. They include asset owners, investment managers, as well as service providers such as MSCI.
“Investing in companies who exhibit principles of strong corporate governance and who are committed to sustainable environmental and social practices is becoming increasingly important for our clients,” said Henry Fernandez, Chairman and CEO of MSCI Inc. “By becoming a UN PRI signatory, we are demonstrating our commitment to provide critical investment decision support tools to the growing number of investors throughout the world who are focusing on long-term sustainable investing.” . They include asset owners, investment managers, as well as service providers such as MSCI.
Source: MSCI
