Global ETF News Older than One Year
Moving Public Debt onto a Sustainable Path
Debt problems began before crisis, will take years to fix
Detailed long-term plans to reduce debt would help protect fragile recovery
Credible action by countries essential to manage risks
September 2, 2010--The global economic crisis has eroded the government coffers of advanced economies and countries will need to return debt levels to a sustainable path to manage fiscal risks, foster long-term growth, and create jobs in the coming years.
The IMF said governments need to develop credible fiscal plans that focus on longer-term solutions, rather than on quick fixes, to protect the fragile recovery and reassure financial markets. In some cases, a marked departure from the normal historical pattern of adjustment to rising public debt is needed to manage fiscal risks.
The research is part of the IMF’s ongoing analysis to help countries emerge out of the crisis and return to economic growth and more sustainable debt levels.
Long-Term Trends in Public Finances in the G-7 Economies, Fiscal Space, and Default in Today’s Advanced Economies: Unnecessary, Undesirable and Unlikely provide a comprehensive analysis of the fiscal challenges faced by different countries in the coming years.
Source: IMF
Emerging market dollar-issues soar
September 1, 2010--Companies and governments in emerging markets can borrow more cheaply in the dollar than in their own currencies for the first time in two years – in a further boost to buoyant dollar-denominated bond markets.
Issuance of emerging market dollar-denominated bonds has surged to record levels this year as the cost of borrowing in the US currency has fallen.
In August, according to JPMorgan indices, yields on emerging market dollar-enominated debt averaged 5.7 per cent against comparable yields in local currencies of 6.5 per cent
Source: FT.com
Average Daily Volume of 7.8 million Contracts at Eurex and ISE in August
Eurex Repo continues to grow
September 1, 2010--At the international derivatives markets of Eurex, an average daily volume of 7.8 million contracts was traded in August (August 2009: 9.1 million). Thereof, 5.4 million contracts were traded at Eurex (August 2009: 5.4 million) and 2.4 million contracts were traded at the International Securities Exchange (August 2009: 3.7 million).
In total, 171.2 million contracts were traded on both exchanges compared with 191.5 million contracts in August 2009.
At Eurex, the equity index derivatives segment was the most active segment, totaling 55.5 million contracts, compared with 55.7 million contracts in August 2009. Futures on the EURO STOXX 50 reached 24.8 million contracts and options recorded another 21.2 million contracts. The futures and options on the DAX index reached a combined turnover of 7.9 million contracts.
The Eurex segment of equity-based derivatives (equity options and single stock futures) recorded 25.0 million contracts (August 2009: 25.1 million). Thereof, equity options totaled at 21.4 million contracts. Single stock futures totaled 3.6 million contracts.
Eurex’s interest rate derivatives segment reached 38.5 million contracts, compared with 32.0 million in August 2009. Approximately 16.7 million contracts were traded in the Euro-Bund-Future, 8.6 million contracts in the Euro-Schatz Future, 8.5 million contracts in the Euro-Bobl-Future and nearly 69,000 contracts in the Euro-BTP-Future.
Source: Eurex
* New Report * ETF Landscape Industry Review July 2010
August 31, 2010--Current ETF and ETP landscape, as at end July 2010
Global
At the end of July 2010 the global ETF industry had 2,282 ETFs
with 4,872 listings, assets of US$1,095.2 Bn, from 124 providers
on 42 exchanges around the world.
YTD assets increased by 5.7%, compared to the the 3.7%
decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,282, account for 63.9% of global ETF AUM, while 1,187 ETFs have less than US$50.0 Mn in assets and 457 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 17.3% with 368 new ETFs launched, while 33 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 969 ETFs listed in Europe, compared to 866 in the US at end July 2010.
There are currently plans to launch 970 new ETFs.
YTD the number of exchanges with official listings increased from 40 to 42.
YTD the average daily trading volume in US dollars increased by 30.9% to US$66.4 Bn.
MSCI ranks first in terms of ETF AUM tied to its benchmarks with assets of US$263.9 Bn and 323 ETFs, while Standard & Poor’s (S&P) ranks second with US$244.3 Bn and 277 ETFs, followed by Barclays Capital with US$110.3 and 78 ETFs.
Globally, iShares is the largest ETF provider in terms of both number of products, 453 ETFs, and assets of US$506.8 Bn, reflecting 46.3% market share; State Street Global Advisors is second with 110 products and US$153.3 Bn, 14.0% market share; followed by Vanguard with 47 products and assets of US$113.1 Bn and 10.3% market share at the end of July 2010.
The top three ETF providers, out of 124, have 70.6% market share.
Globally, net sales of mutual funds (excluding ETFs) were minus US$283.3 Bn, while net sales of ETFs were positive US$71.3 Bn during the first six months of 2010 according to Strategic Insight.
Additionally, there were 849 other Exchange Traded Products (ETPs) with 1,415 listings and assets of US$128.6 Bn from 47 providers on 20 exchanges.
Combined, there were 3,131 products with 6,287 listings, assets of US$1,223.7 Bn from 150 providers on 45 exchanges around the world at the end of July 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
Knight Direct Joins ExNet By Orc Software For Global Market Access
August 31, 2010--Swedish company Orc Software AB (STO: ORC) said today that US firm Knight Direct, part of financial services firm Knight Capital Group (NYSE: KCG | PowerRating), has jointed the Orc ExNet broker connectivity network to offer algorithmic execution services and market access to clients.
The partnership allows Orc Software's users to trade securities directly via Knight Direct, and provides access to the latter's extensive set of execution algorithms.
By joining Orc ExNet, Knight Direct is able to offer its suite and global market access to an even wider community of traders, managing director at a Knight Capital's subsidiary Bradley Duke said.
Orc ExNet provides hedge funds, proprietary traders, and other advanced traders with non-membership access to major liquidity pools worldwide, including official exchanges and electronic communication networks (ECNs).
Source: Nordic Business Report
Annual inflation in OECD area edges up to 1.6% in July 2010
August 31, 2010--Consumer prices in the OECD area rose by 1.6% in the year to July 2010, up from 1.5 % in June. This small increase mainly reflected developments in energy and food prices, which increased by 6.2% and 1.1% respectively in the year to July, compared with rises of 4.7% and 0.6% in June.
Excluding food and energy, consumer prices rose by 1.2% in the year to July 2010, down from 1.3% in June.
Deflation continued in Japan where consumer prices fell by 0.9% in the year to July, compared with a decline of 0.7% in June. Inflation rose in all other G7 countries except the United Kingdom, where annual inflation was 3.1% in July down from 3.2% in June. In Canada, inflation was 1.8% in the year to July, up from 1.0% in June. In France, inflation was 1.7% in July, up from 1.5% in June. Prices rose 1.7% in Italy in July, up from 1.3% in June. In Germany, prices rose 1.2% in July, up from 0.9% in June. Inflation was 1.2% in the United States in July, up from 1.1% in June. Euro area annual inflation (HICP) was 1.7% in July up from 1.4% in June.
Source: OECD
Investors Pull $7.1 Billion From Stock Funds Globally
August 27, 2010--Investors withdrew a net $7.1 billion from equity funds tracked worldwide in the week to Aug. 25 and put some $5.2 billion into bonds amid concern economies in the U.S. and Europe are losing momentum, EPFR Global said.
A net $5.4 billion was redeemed from U.S. stock funds, while inflows into emerging markets were the lowest in 13 weeks, EPFR said in an e-mailed statement. Developing-nation bond funds took in $1 billion, on course for a record-setting year, while U.S. bond funds drew $2.5 billion, according to the Cambridge, Massachusetts-based research firm.
Source: Bloomberg Business Week
* New Report * ETF Landscape Industry Review July 2010
August 26, 2010--Current ETF and ETP landscape, as at end July 2010
Global
At the end of July 2010 the global ETF industry had 2,282 ETFs
with 4,872 listings, assets of US$1,095.2 Bn, from 124 providers
on 42 exchanges around the world.
YTD assets increased by 5.7%, compared to the the 3.7%
decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,282, account for 63.9% of global ETF AUM, while 1,187 ETFs have less than US$50.0 Mn in assets and 457 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 17.3% with 368 new ETFs launched, while 33 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 969 ETFs listed in Europe, compared to 866 in the US at end July 2010.
There are currently plans to launch 970 new ETFs.
YTD the number of exchanges with official listings increased from 40 to 42.
YTD the average daily trading volume in US dollars increased by 30.9% to US$66.4 Bn.
MSCI ranks first in terms of ETF AUM tied to its benchmarks with assets of US$263.9 Bn and 323 ETFs, while Standard & Poor’s (S&P) ranks second with US$244.3 Bn and 277 ETFs, followed by Barclays Capital with US$110.3 and 78 ETFs.
Globally, iShares is the largest ETF provider in terms of both number of products, 453 ETFs, and assets of US$506.8 Bn, reflecting 46.3% market share; State Street Global Advisors is second with 110 products and US$153.3 Bn, 14.0% market share; followed by Vanguard with 47 products and assets of US$113.1 Bn and 10.3% market share at the end of July 2010.
The top three ETF providers, out of 124, have 70.6% market share.
Globally, net sales of mutual funds (excluding ETFs) were minus US$283.3 Bn, while net sales of ETFs were positive US$71.3 Bn during the first six months of 2010 according to Strategic Insight.
Additionally, there were 849 other Exchange Traded Products (ETPs) with 1,415 listings and assets of US$128.6 Bn from 47 providers on 20 exchanges.
Combined, there were 3,131 products with 6,287 listings, assets of US$1,223.7 Bn from 150 providers on 45 exchanges around the world at the end of July 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
August 2010 “Islamic Market’s Measure” - Preliminary Report - Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
August 25, 2010--Based on the close of trading on August 24 the global Dow Jones Islamic Market Titans 100 Index, which measures the performance of 100 of the leading Shari’ah compliant stocks globally, dropped -3.45% month-to-date, closing at 1888.71. In comparison, the Dow Jones Global Titans 50 Index, which measures the 50 biggest companies worldwide, posted a loss of -3.65%, closing at 152.75.
The Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah compliant stocks in the Asia/Pacific region, decreased -1.79%, closing at 1799.33. The Dow Jones Asian Titans 50 Index, in comparison, posted a loss of -2.07%, closing at 125.68.
Measuring Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 of the leading Shari’ah compliant stocks in Europe, closed at 1827.21, a loss of -3.15%, while the conventional Dow Jones Europe Index loss -4.91%, closing at 230.04.
Source: Mondovisione
IMF economists criticise CDS model
August 24, 2010--One of the main tools used by investors and policymakers to predict whether a company may default on its debt is riddled with problems, making it a potentially ineffective gauge for measuring the risks of large banks, according to International Monetary Fund economists.
Bank credit default swaps – which offer investors protection in the event of a default – were closely watched during the financial crisis with some critics arguing that they tipped some groups closer to collapse. But a recent working paper by Manmohan Singh and Karim Youssef, economists at the IMF, argues that they offer a flawed model for policymakers looking at potential losses and contagion among large banks in times of financial stress.
view the working paper-Price of Risk—Recent Evidence from Large Financials
Source: FT.com
