Global ETF News Older than One Year
Basel III is priming big banks to work the system
September 21, 2010--The slow implementation period for the new Basel III capital regime, which will not be fully phased in until 2019, means that the world cannot afford to have another large-scale banking crisis for nine years. Can we rely on the bankers to do the decent thing and refrain from jumping the gun?
Merely to formulate the question invites a cynical response, in the light of recent history. Yet a longer historical perspective provides modest reassurance, in that the gap between big banking crises since the 1970s has usually been quite long.
Source: FT.com
Industry Review: September 2010-The Eurekahedge Monthly
September 21, 2010--Highlights from this month’s report are as follows:
Hedge funds are ahead of global markets by 9.2% August YTD.
Strong launch activity pushed the number of Asian hedge funds to a new record historical high of 1,278.
Global distressed debt hedge funds are up 8.40% August YTD.
Assets in UCITS III hedge funds crossed US$130 billion.
North American hedge funds grew by US$12.8 billion in August (1.21%) and witnessed the seventh consecutive month of net positive asset flows.
Source: Eurekahedge
Eurex Welcomes Five New Members out of Taiwan
September 21, 2010-- The international derivatives exchange Eurex announced today that it has admitted the first five exchange members based in Taiwan to its international distribution network. Concord Futures Corp., KGI Futures Co., Polaris MF Global Futures Co., SinoPac Futures Corp., and Ta Chong Futures Co. were connected this month. The admission of the new, additional members from Taiwan increases the number of Eurex’s Asian member firms to 19 across five countries. Trading volume originated by Eurex’s Asia-based members has doubled in the first half of 2010 year-on-year.
"We are very pleased to welcome the first local brokers from Taiwan at Eurex, and we look forward to providing them with new trading opportunities enabling them to diversify their trading strategies. The recently signed Economic Cooperation Framework Agreement (ECFA) between Taiwan and China should further support the Taiwanese economy and its capital market”, said Michael Peters, member of the Eurex executive board. “Through the connection to our global distribution network, our new customers now have direct and reliable access to our well-diversified product suite and our international trading network.” With the new admitted members, Eurex now serves around 420 members in 27 countries.
In July 2010, Eurex introduced a “Trader Training Program” for professional traders in Taiwan, as part of its “Training & Education Initiative Asia”. The program is the first of its kind in Taiwan and is targeted towards new professional traders. Significant parts of the trainings have been the setup and functioning of the European financial markets and the efficient use of exchange-traded derivatives.
Source: Eurex
Recession caused global decrease in economic freedom but Hong Kong remains number one overall in economic freedom rankings
September 20, 2010--In the wake of the global recession, the average level of economic freedom around the world dropped for the first time in decades, according to a new study released today by the Fraser Institute, Canada’s leading public policy
think-tank.
This year’s report shows that economic freedom experienced its first global downturn in a quarter century, with the average score falling to 6.67 in 2008 (the most recent year for which data is available) from 6.74 in 2007. Of the 123 countries with economic freedom rankings dating back to 1980, 88 (71.5 per cent) saw their rankings decrease while only 35 (28.5 per cent) recorded increases. P>“In response to the economic decline of 2008, many countries opted for perverse credit expansion and regulatory policies, damaging economic freedom and hindering future growth,” said Fred McMahon, Fraser Institute vice-president of international policy research.
“Even in the wake of recession, the quality of life in nations with free and open markets is vastly superior to that of countries with government
view Economic Freedom of the World: 2010 Annual Report
Source: Freethe world.com
FSA and FINRA Sign Cooperation Agreement
September 20, 2010-- The Financial Services Authority (FSA) and the US Financial Industry Regulatory Authority (FINRA) have entered into a Memorandum of Understanding (MOU) to support more robust cooperation between the two regulators.
The MOU establishes a strong framework for enhancing the ability of the FSA and FINRA to oversee the world's largest securities firms and markets. The agreement will facilitate the exchange of information on firms and individuals under common supervision, support collaboration on investigations and enforcement matters, and allow further sharing of regulatory techniques, including approaches to risk-based supervision of firms.
The agreement was signed by Jon Pain, FSA's Managing Director of Supervision and FINRA's Chairman and CEO Richard Ketchum.
"Given the linkages between our markets, it is vital that both regulators cooperate closely with each other," Jon Pain said. "This MOU will enhance the supervision of firms and financial markets in both the UK and the U.S."
Mr. Ketchum added, "To ensure consumer protection and market integrity in today's global market, regulators must work together with key regulatory partners. Under this agreement, the FSA and FINRA will be able to share information more freely and expeditiously in support of the oversight of common firms and investigations into wrongdoing."
view the Memorandum of Understanding
Source: FINRA
Climate change climbs boardroom agenda among leading global firms
Carbon management initiatives and ‘green’ investments embedded into company-wide business strategy
Top five global leaders for carbon disclosure and performance revealed: Siemens, Deutsche Post, BASF, Bayer and Samsung Electronics
September 20, 2010--Carbon management is becoming a strategic business priority and competitive driver for the largest global companies, despite the lack of global agreement on climate change. These are among the findings of the 2010 Global 500* report and leadership index released today by the Carbon Disclosure Project (CDP), produced by PwC and sponsored by Bank of America Merrill Lynch.
Carbon performance leaders are forging ahead of competitors – 85% of these leading global companies surveyed reported having board or senior executive level responsibility for climate change and nearly half (48%) are now embedding climate change initiatives into the overall business strategy and across the organization.
Amidst global regulatory uncertainty, nine out of ten companies surveyed identified significant commercial opportunity arising from climate change, separating the companies driven by risk-factors, from those companies identifying and seizing competitive advantages and cost-benefits.
The top five Global 500 leaders for 2010 announced today included: Siemens, Deutsche Post, BASF, Bayer and Samsung Electronics. These companies are in the new Carbon Performance Leadership Index (CPLI) and scored highest (95 or above out of 100) in the Carbon Disclosure Leadership Index (CDLI).
view the Carbon Disclosure Project 2010
Global 500 Report
Source: Carbon Disclosure Project
Oslo Bors, Toronto Stock Exchange And TSX Venture Exchange Sign Memorandum Of Understanding
Oslo Bors representatives will open trading today on Toronto Stock Exchange
September 20, 2010--Oslo Bors ASA and Toronto Stock Exchange announced that today they will sign a Memorandum of Understanding (MoU). Under the MoU, Toronto Stock Exchange, TSX Venture Exchange and Oslo Bors will explore joint marketing initiatives and cooperate in understanding each other's markets and regulatory regime, explore a framework to promote and facilitate dual listings on each other's exchanges, participate in joint events and roadshows, facilitate introductions to regulatory authorities and capital market professionals and participants in each other's jurisdiction, and more.
To celebrate the signing of the MoU, Oslo Bors representatives including Ms. Bente A. Landsnes, President & CEO, Mr. Oivind Amundsen, Senior Vice President Listing and Issuer Services, Legal Affairs & Market Surveillance, and Mr. Inge Myhrvold, Vice President and Head of Issuer Sales, will join Thomas Kloet, CEO, TMX Group, to open trading today on Toronto Stock Exchange.
"For Oslo Bors it is exciting to further expand our international scope by entering into this MoU with Toronto Stock Exchange. Cooperating on important strategic areas for both exchanges will mutually strengthen our two markets and benefit issuers who wish to expand their investor base," said Ms. Bente A. Landsnes, President and CEO, Oslo Bors.
"We are very pleased to expand our relationship with Oslo Bors," said Thomas Kloet, CEO, TMX Group. "We look forward to further exploring the opportunities to strengthen our ties with the Norwegian and European markets."
Since 2009, Oslo Bors ASA has used Montreal Exchange's SOLA® derivatives trading technology. The MoU builds on the existing relationship between Toronto Stock Exchange and Oslo Bors ASA, which currently have four dual listed issuers.
Source: Toronto Stock Exchange
Preqin Research Report: Private Equity Performance Report - Fund Performance Data As Of Q1 2010
September 20, 2010--Preqin recently updated its benchmarks to show performance data accurate to March 31st 2010. The results show further improvement, and although PE returns are lagging behind public markets over one year, they beat all the indices over a five year period.
You can find out all about the changes, including NAV shifts and private equity vs. public markets in Preqin's latest complimentary performance report.
Source: Preqin
Global Financial Centres Index - The Top 10
Spetember 20, 2010--The Z/Yen Group has published its eighth Global Financial Centres Index covering 75 financial centres. The big change from 6 months ago is that Hong Kong has clearly joined London and New York as one of the 'Big Three' Global Financial Centres.
Key points from the six monthly index include:
•Hong Kong has steadily closed the gap with London and New York over three years - now just 10 points behind New York compared with 76 in March 2007;
•There has been no significant difference between London (772) and New York (770) in the ratings since they were first published in 2007;
•Singapore (728) is the most likely contender for the fourth global financial centre;
•Confidence in the future of financial centres has fallen since March, as shown by lower overall ratings - 53 centres had lower ratings in September compared with just 17 centres having higher ratings (five have the same ratings);
•Asia continues to rise, with Shanghai now into the top ten and Seoul into the top 25;
•Financial centres tipped to become more significant in the next few years are all Asian - Singapore, Shanghai, Shenzhen, Beijing and Seoul;
•Since the financial crises began, all offshore centres show larger falls than average.
view the The Global FinancialCentres-Index8-SEPTEMBER 2010
Source: Zyen.com
MSCI to Consult on a Proposal to Construct "Risk Weighted" and "Value Weighted" Indices
September 17, 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 will consult with the investment community on a proposal to construct "Risk Weighted" and "Value
Weighted" indices aimed at reducing the risk of an equity index and achieving a value tilt respectively, by reweighting
all market cap weighted constituents of a parent MSCI index using historic volatility and company fundamentals.
In particular, MSCI will seek feedback on the objectives as well as the design of the proposed "Risk Weighted" and "Value Weighted" indices.
MSCI welcomes feedback from the investment community and will solicit comments from certain market participants. Other interested market participants may also request a consultation document describing the proposal.
Please note that this consultation may or may not lead to the creation of "Risk Weighted" or "Value Weighted" indices as proposed in the consultation document. MSCI’s final decision will be announced in advance of the launch of such indices if it occurs.
Source: MSCI Inc.
