Global ETF News Older than One Year
BlackRock ETF Landscape Industry Review Q2 2010
July 27, 2010--At the end of Q2 2010 the global ETF industry had 2,252 ETFs with 4,637 listings, assets of US$1,025.9 Bn from 130 providers on 42 exchanges around the world.
Additionally, there were 823 other Exchange Traded Products (ETPs) with 1,174 listings and assets of US$132.6 Bn from 47 providers on 18 exchanges.
Combined, there were 3,075 products with 5,811 listings, assets of US$1,158.4 Bn from 156 providers on 44 exchanges around the world at the end of Q2 2010.
Source: BlackRock
NASDAQ OMX To Acquire World-Leading Market Surveillance System Provider SMARTS
July 27, 2010--The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) has signed an agreement to acquire SMARTS Group, the world-leading technology provider of market surveillance solutions to exchanges, regulators and brokers. This acquisition is part of NASDAQ OMX’s strategy to diversify its commercial technology business and enter the broker surveillance and compliance market. SMARTS will be part of the NASDAQ OMX Market Technology business, which delivers technology to over 70 marketplaces in more than 50 countries.
Under the agreement NASDAQ OMX will acquire 100 percent of the shares in privately held SMARTS Group Holdings. The transaction is expected to be concluded within Q3 2010. Financial terms of the transaction were not disclosed. Marlin & Associates acted as exclusive financial and strategic advisor to SMARTS.
Australia-based SMARTS has set the benchmark for surveillance systems, with the most proven and widely adopted surveillance solutions in the world.
Anna Ewing, Chief Information Officer of NASDAQ OMX, said, “The acquisition of SMARTS is a strategic fit with NASDAQ OMX’s commercial technology business. Efficient surveillance operations are imperative to ensure integrity in today’s financial markets, and SMARTS allows us to capitalize on the growing demand for surveillance technology products in exchange, regulator and broker markets worldwide. We are also excited about expanding our presence in Australia and look forward to leveraging SMARTS’ center of excellence and innovation in the region.”
Dr. Andreas Furche, CEO of SMARTS Group Holdings, said, “We are proud to have been chosen by NASDAQ OMX. This acquisition is recognition of the strength of our solutions, Australian innovation and the talent and professionalism of the SMARTS team. Being part of NASDAQ OMX provides enormous growth opportunities for SMARTS surveillance technologies and provides us with the direct connection to the U.S. markets that we have been seeking. Moreover, the SMARTS customer base will benefit from the added confidence of working with a world-leading company that has a similar customer base and therefore understands the business and requirements of SMARTS’ customers.”
Source: NASDAQ OMX
Goldman Sachs Announces Clearing Services For OTC Derivatives - New Derivatives Clearing Services (DCS) Business To Provide Suite Of Integrated Agency Clearing Services For All Listed And OTC Derivatives
New Derivatives Clearing Services (DCS) business to provide suite of integrated agency clearing services for all listed and OTC derivatives
July 27, 2010--Goldman Sachs announced today the launch of its Derivatives Clearing Services (DCS) business. DCS provides clients with a comprehensive global OTC clearing service for interest rates, credit, foreign exchange, equities and commodities.
Goldman Sachs DCS is an agency business designed to streamline the client derivatives clearing experience across products, asset classes and regions. DCS builds upon the firm's globally recognized prime brokerage and futures clearing platforms to maximize efficiency and provide an integrated suite of tools and reporting for clients.
"In partnership with our clients, regulators and multiple clearing venues, we are committed to improving market structure for derivatives," said Michael Dawley, Managing Director and Co-Head of Futures and DCS, Goldman Sachs. "The DCS offering provides our clients with a host of value-added services and multi-product expertise to successfully navigate this dynamically changing environment."
Goldman Sachs recognizes that clients will be faced with new reporting, connectivity, and regulatory requirements. The firm is committed to investing in innovative solutions to help clients address these changes.
"The move to central clearing for OTC derivatives is a significant turning point in the marketplace," said Jack McCabe, Managing Director and Co-Head of Futures and DCS at Goldman Sachs. "Our strong trading franchise, coupled with our market leading futures and prime brokerage services, enables us to provide our clients with the foundation they need to adapt to these important industry developments."
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
Source: Goldman Sachs
Deutsche Bank beats expectations
July 27, 2010--Deutsche Bank on Tuesday reported net income of €1.2bn for the second quarter, slightly beating expectations after a tough period for the trading that it and other investment banks depend upon.
“In a quarter which was characterised by increased investor uncertainty and higher market volatility, Deutsche Bank’s investment banking business followed the industry-wide trend of weaker profitability,” said Josef Ackermann, chief executive
Source: FT.com
NASDAQ OMX Reports Strong Second Quarter 2010 Results
Non-GAAP Diluted EPS Increased 21% to $0.52 (GAAP Diluted EPS $0.46)
Announces an Additional $100 Million for Share Repurchase Program
July 27, 2010--The NASDAQ OMX Group, Inc. ("NASDAQ OMX®") (Nasdaq:NDAQ) reported strong results for second quarter of 2010. Net income attributable to NASDAQ OMX for the second quarter of 2010 was $96 million, or $0.46 per diluted share, compared with $61 million, or $0.28 per diluted share, in the first quarter of 2010, and $69 million, or $0.33 per diluted share, in the second quarter of 2009. Included in the second quarter of 2010 results are $16 million of charges related to the divestiture of businesses, expenses associated with severance, merger and strategic initiatives, and other non-recurring items.
Financial Highlights1:
•Non-GAAP EPS increased 21% over first quarter of 2010 results
•Net revenues grew 8% over prior quarter to $390 million
•Non-GAAP operating income improved to $183 million, up 15% from first quarter of 2010, while operating margins increased to 47%
•Completed $200 million of the original $300 million share repurchase program. Board has authorized an additional $100 million for the program, bringing the total authorized amount to $400 million.
Source: Nasdaq OMX
MSCI and the RiskMetrics branding mystery
July 27, 2010--The company isn’t saying much, but it seems that a rebranding on the ESG side could be underway at MSCI’s recently acquired RiskMetrics division, which could jettison the RiskMetrics brand.
According to correspondence from staff in the organization seen by Responsible-Investor.com, ‘MSCI ESG Analytics’ seems to be the form of words being used for the new branding, suggesting that the RiskMetrics brand could shortly disappear from the ESG world as part of the buyout of the firm by the global index group. An MSCI spokesperson was tight-lipped: “MSCI is still finalising the business areas following the acquisition of RiskMetrics Group and will communicate to clients and wider audiences in due course.” Any repositioning would be taking place amid continuing consolidation in the ESG advisory and proxy voting sector. The merger last week between The Corporate Library and GovernanceMetrics International is the latest in a series of deals that has seen smaller providers strike up alliances or get bought up by bigger names.
Source: responsible Investor
ETFS Securities-Commodities Review H1 2010
July 26, 2010--Highlights of Report
The precious metals sector was the best performing commodity sector in H1 2010, rallying 13% as most other key asset classes succumbed to sovereign risk and growth concerns. Gold was the strongest performer rising 14% in US dollars, 34% in Euro and 23% in Sterling continuing its run as one of the best performing assets over the past ten years. This compares to a 14% decline in the FTSE 100
Index and a 20% decline in the EuroStoxx 50 index in USD over the period1.
Flows into gold ETPs rose at an unprecedented pace, with ETF Securities seeing gold ETC assets rise almost $3bn to $11.4bn. Global physically-backed gold ETP assets soared to $83bn, up $18bn (29%)1.
Energy saw mixed performance with oil trading around a $70-$85/bbl range and natural gas prices rebounding at the end of the half. ETC investors appeared to be adroitly trading the oil price range with long inflows rising at the bottom of the price range and long outflows and short positions increasing at the top. Positions were reduced in natural gas ETCs as prices rose.
· Industrial metals saw sharp declines as risk appetite fell and China growth concerns took their toll in Q2. Despite the sharp declines in Q2, the strength of the rally in 2009 meant that industrial metals as a group were still up over 20% on a 12 month basis. ETFS Short Copper saw record inflows in Q1 as some investors’ correctly hedged against price declines in Q2. Shorts have been reduced but remain high relative to history.
Source: ETFS Securities
TABB Group Sees Low-Touch Order Channels Accounting for 62% of Buy Side Firms’ Options Trading by 2011
Evolving Market Structure and Complexity Drive Adoption of Trading System Technology
Options Algorithms to Represent 28% of Total Trading by 2011
July 26, 2010-- The increasingly complex options markets is resulting in growing demand for tools and systems that can help make options trading more efficient, especially as traders are continue to adopt sophisticated trading strategies, says TABB Group in a new annual research study, “US Electronic Options Trading 2010: Algorithms, DMA and Crossing Networks.” The proportion of order flow moving through low-touch channels is projected to rise to 62% by 2011, as options traders turn to electronic trading systems to manage order flow.
According to Andy Nybo, a TABB principal, head of derivatives and author of the study, “Hedge funds are using direct market access (DMA) and algorithms as their preferred method of finding liquidity, not only because of their more complex strategies, but as a result of traders’ need to reduce execution costs with higher turnover activities.” He adds that TABB expects hedge funds to direct 31% of total trading to algorithmic tools in 2011, up from 9% in 2009.
The report details the proliferation of DMA platforms residing on the buy-side trading desk, identifying key functionalities that make the systems attractive to options traders. “Through more than 50 interviews, we identified 20 different platforms currently deployed to trade options electronically, with the most sophisticated offering a suite of tools that provide complex order-support and algorithmic-trading capabilities,” said Nybo. “We discovered that competition for low-touch flow remains fierce, that brokers are battling to attract customer flow through new functionality and tools designed to meet the needs of the larger number of firms using these low-touch channels.”
TABB also found that there are sharp differences between asset managers and hedge funds. Asset managers, Nybo points out, have been reluctant to use automated trading tools. “Asset managers are heavily dependent on the phone to get their trades done, since they tend to trade infrequently and in larger size, and prefer to rely on their brokers for access to capital and ease of execution. They have little need to learn the nuances of a trading platform.” However, he adds, “One begins to question the rationale of executing via high-touch channels and paying double or triple the going rate for electronic executions, especially for more liquid options. At some point, lower commission rates for electronic execution will become undeniably attractive.”
Electronic commission rates have remained relatively stable since 2009, averaging 89 cents per contract, a slight increase over last year’s rate. The buy side is increasingly negotiating blended options execution rates across voice, direct market access and algorithmic channels that fund commission-sharing agreements (CSAs) for research and other services.
Source: TABB Group
Consumer confidence shows a slowing down in pace of recovery for the first half of 2010
July 26, 2010--Consumer confidence in the OECD area has levelled out since January 2010, possibly announcing a new peak or maybe just indicating uncertainty in the coming months. Confidence levels remain historically low, a result of the financial crisis and indicating that the effects of the crisis are continuing to be felt by consumers who remain pessimistic about the future.
After the 2007 financial crisis, consumer confidence drastically decreased underlining a pessimistic view from households on the economy at the time and for the near future. This fall in the confidence indicators was unprecedented, and hit a recorded low. Between the end of 2008 and the beginning of 2009, a trough was reached for the OECD area and most OECD countries. Since then consumer confidence indicators have shown improved sentiment.
The charts included in this short note, indicate that the early part of 2010 has seen consumer confidence indicators experienced a decline in Canada, France, Italy and the United Kingdom, while continuing to recover in Japan, Germany and the United States. As a result of these diverging trends among the G7 countries, consumer confidence has been slowing on average in the OECD area.
view the OECD standardised Consumer Confidence Indicators (CCI)
Source: OECD
Market highlights for first half-year 2010
July 23, 2010--Exchanges across the globe saw the value of their indexes drop an average of 11.5% in USD terms in the first six months of the year, according to figures released today from the World Federation of Exchanges (WFE).
Among the markets showing gains in the first half of 2010, most were from emerging economies.
Source: World Federation of Exchanges (WFE)
