Global ETF News Older than One Year
IOSCO Issues Industry Survey on Exchange-Traded Funds
December 22, 2020--The International Organization of Securities Commissions (IOSCO) has issued a Questionnaire for industry participants on Exchange-Traded Funds (ETFs). IOSCO, through its Committee 5 on Investment Management, has conducted extensive work related to ETFs since 2018.
To date, the project has considered potential investor protection, market integrity and financial stability issues related to ETFs. In doing so, IOSCO has consulted with industry stakeholders regularly, including at a Committee 5 industry roundtable on ETFs in 2018 and a joint FSB/IOSCO workshop on ETFs and Market Liquidity in June 2019.
Source: IOSCO
EFI Prospects Group Global Monthly-December 2020
December 22, 2020--Overview
The global economic recovery is decelerating amid rising new cases of COVID-19 in many regions.
Sentiment about medium-term growth prospects appears to have improved, however, buoyed by favorable vaccine-related developments.
Movements in financial markets and commodity prices reflect rising optimism, with oil prices lagging slightly, mostly as a result of continued weakness in oil demand.
Special Focus: How does informality aggravate the impact of COVID-19?
COVID-19 is taking a severe toll on emerging markets and developing economies (EMDEs) with large informal sectors.
Widespread informality is linked to many vulnerabilities-widespread poverty, lack of access to sanitation facilities, and weak social safety nets-that have amplified the economic and health consequences of COVID-19.
Source: worldbank.org
Total crypto fund inflows top $5 billion this year, up more than 600%-report
December 21, 2020--Total investor inflows into cryptocurrency funds and products hit $5.6 billion so far this year, up more than 600% from 2019, according to the latest data from asset manager CoinShares.
The inflows plus the latest price moves lifted assets under management for the sector to nearly $19 billion in 2020. Assets under management ended 2019 at just $2.57 billion.
Source: reuters.com
Reserve Currencies in an Evolving International Monetary System
November 17, 2020--Summary:
Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. Using a newly compiled database of individual economies' reserve holdings by currency, this departmental paper finds that financial links have been an increasingly important driver of reserve currency configurations since the global financial crisis, particularly for emerging market and developing economies.
The paper also finds a rise in inertial effects, implying that the US dollar dominance is likely to endure. But historical precedents of sudden changes suggest that new developments, such as the emergence of digital currencies and new payments ecosystems, could accelerate the transition to a new landscape of reserve currencies.
view the IMF paper-Reserve Currencies in an Evolving International Monetary System
Source: IMF
What is Really New in Fintech
December 17, 2020--The financial industry is undergoing rapid technological change. Traditional banks face competition from online start-ups with no physical branches. Social media and other digital platforms are expanding into payments and credit. The increase in demand for digital services triggered by COVID-19 is turbo-charging this transformation.
The confluence we are witnessing is driving fintech innovation and raises important questions. What are the transformative aspects of recent financial innovation that can uproot finance as we know it? Which new policy challenges will the transformation of finance bring?
Recent IMF and ECB staff research distinguishes two areas of financial innovation. One is information: new tools to collect and analyse data on customers, for example for determining creditworthiness. Another is communication: new approaches to customer relationships and the distribution of financial products. We argue that each dimension contains some transformative components.
Source: IMF
Bitcoin tops $20,000 milestone and continues to surge to record highs
December 16, 2020-Bitcoin has blown past the $20,000 mark and continues to hit record highs as investors flock to the cryptocurrency during the coronavirus pandemic.
After topping the symbolic benchmark Wednesday, bitcoin continued to surge late into the evening. It was last trading at roughly $21,851, according to data provider Refinitiv.
Bitcoin (XBT) has been on a tear this year, having tripled in value. It and other cryptocurrencies have been attractive to investors as the US dollar has weakened.
Source: cnn.com
Nigeria: Exxon Mobil Says Will Lower Greenhouse Gas Emissions Intensity By 2025
December 15, 2020--Oil major Exxon Mobil Corp said on Monday it planned to reduce its greenhouse gas emissions over the next five years, an official said.
Pete Trelenberg, the ExxonMobil Director of Greenhouse Gas and Climate Change, said this during a news conference on Monday.
The company added that as investors and climate change campaigners ratchet up the pressure for action to limit global warming.
Source: allafrica.com
Glaciers of Global Finance: The Currency Composition of Central Banks' Reserve Holdings
December 15, 2020--The currencies that are being held by central banks as foreign exchange reserves have remained largely steady over decades. Changes in the composition of these holdings can, at best, be described as glacial in pace.
But geopolitical shifts and technological revolutions are reshaping the global economy and the international use of currencies. These forces, and the fallout from the COVID-19 pandemic, could further accelerate the transformations in the reserve holdings of central banks.
The status quo
There are currently around 180 national currencies, but only a few are widely used for international transactions, such as invoicing, paying for imports, and issuing debt or investing abroad. These currencies are the U.S. dollar, the euro, and, to a lesser extent, the Japanese yen, the British pound, and a few others. When crises hit, companies and investors usually seek safety in dollars.
Source: IMF
G20 GDP Growth-Third quarter of 2020, OECD-G20 GDP showed a strong recovery in the third quarter of 2020, but remained below pre-pandemic high
December 14, 2020--Gross domestic product (GDP) in the G20 area rebounded by 8.1% in the third quarter of 2020 following the unprecedented falls in the first half of the year due to COVID-19 containment measures. However, GDP remained 2.4% below its pre-crisis high of the final quarter of 2019.
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Among the G20 economies, GDP in India rebounded strongest, by 21.9%, following a fall of 25.2% in the second quarter, the sharpest drop ever recorded.
GDP also rebounded with double-digit numbers in the third quarter, after double-digit falls in the second quarter, in France (by 18.7%, following a contraction of (minus) 13.8%), Italy (by 15.9%, after minus 13.0%), Turkey (by 15.6%, after minus 10.8%), United Kingdom (by 15.5%, after minus 19.8%), South Africa (by 13.5%, after minus 16.6%) and Mexico (by 12.1%, after minus 17.0%). GDP also grew in the other major economies: 8.9% in Canada; 8.5% in Germany; 7.7% in Brazil; 7.4% in the United States; 5.3% in Japan; 3.3% in Australia; 3.1% in Indonesia; 2.7% in China; 2.1% in Korea; and 1.2% in Saudi Arabia.
GDP in the G20 area as a whole remained significantly below the levels of the same quarter a year earlier (minus 2.0%), with only Turkey and China recording positive growth (of 5.4% and 4.9%, respectively), while the United Kingdom experienced the largest fall (minus 9.6%). A similar picture emerges when comparing economic activity in the third quarter with pre-pandemic levels, as approximated by the cumulative growth rate for the first three quarters of 2020.
Source: OECD
The Behavior of Fixed-income Funds during COVID-19 Market Turmoil
December 14, 2020--Summary:
This note analyzes the stress experienced (and caused) by open-end mutual funds during the March COVID-19 stress episode, with a focus on global fixed-income funds. In light of increased valuation uncertainty, funds experienced a short period of intense withdrawals while the market liquidity of their holdings deteriorated substantially.
To cover redemptions, afflicted funds predominantly shed liquid assets first-for example, cash, cash equivalents, and US Treasury securities. But forced asset sales amplified price pressures in markets and contributed to liquidity falling across fixed-income markets. This drop in market liquidity, as well as the general stress in financial markets, may have led to fund investors becoming even more sensitive to challenging portfolio performance and encouraged further withdrawals. Only after central banks intervened, directly and indirectly supporting asset managers, did liquidity and redemption stress subside. Overall, the March episode validated the financial-stability concerns about liquidity vulnerabilities in the fund industry and calls for further action to address them.
Source: IMF
