Global ETF News Older than One Year
MSCI to cut 70-80 jobs as it absorbs RiskMetrics
July 29, 2010--Index firm MSCI says it plans to cut around 70-80 jobs in the first round of a restructuring as it absorbs its £1.55bn acquisition of risk management and environmental social and governance (ESG) research firm RiskMetrics.
The move – announced in a regulatory filing – aims to eliminate overlapping jobs, office space and vendor contracts. Also part of the plan will be the discontinuation of the planned integration of an unnamed product into RiskMetrics’ “standard product offering suite”. It gave no geographical location for the job cuts.
The cuts are a step towards the cost synergies MSCI referred to at the time of the acquisition in March this year. At the time, MSCI Chief Executive Henry Fernandez identified $50m of cost synergies resulting from the deal.
Source: Responsible Investor
European institutional investors growing in confidence
July 28, 2010-- Institutional investors in Europe grew slightly more confident in June, according to State Street's latest Investor Confidence index.
In Europe, investor confidence increase by 5.4 points from 92.3 to 97.7, while in Asia confidence rose by 1.7 points from 100.9 to 102.6.
North American investors, however, grew increasingly pessimistic, with investor confidence falling 6.3 points from 98.5 to 92.2.
Worldwide, confidence lifted slightly, increasing by 1.3 points to 89.7.
Source: IP&E
BP Oil Spill Has Potentially Large Implications for Oil Prices and Alternative Energy, Says ETF Securities
July 28, 2010--The BP oil spill in the Gulf of Mexico has potentially large implications for the energy sector with the cost of the spill being estimated at US$32.2 billion. With current International Energy Agency (IEA) estimates putting offshore production at around half of oil production towards 2015, and if the US tightens regulations on offshore oil drilling and other countries follow suit, the implications for longer-dated oil prices and the alternative energy sector could be significant.
Commenting on the trends and potential implications for the oil, alternative and nuclear industries, Daniel Wills, Senior Analyst at ETF Securities, said:
"The BP oil spill cannot be looked at as a one-off isolated event. The spill has potential implications for the oil industry as a whole and for global policies towards alternative and nuclear energy. With BP estimating that the cost of the spill may be as much as US$32.2 billion, the spill will likely increase the industry-wide cost of offshore oil production as companies are forced to reassess their potential liabilities from these types of activities - not just in the US Gulf but globally. This is a potentially significant development given that the IEA projects that around half of oil production towards 2015 will come from offshore sources.
In addition, recent rhetoric indicates that the spill is giving new impetus to US and international policies to boost alternative and nuclear energy sources at the expense of fossil fuels."
Source: ETF Securitites
July 2010 “Market’s Measure” Preliminary Report - A Monthly Report From Dow Jones Indexes On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
July 28, 2010-- * Dow Jones Industrial Average Posts 7.81% Gain in July, European Stocks Gain 12.42%, Asia Rises 5.06% and World Equities Rise by 8.36%
Financials Sector Posts Biggest Gain for July in Europe
Health Care Sector Posts Narrowest Gain for July in U.S, Europe, Asia & Worldwide
As of July 27 the Dow Jones Industrial Average rose 7.81% in July, closing at 10537.69. Stock market indexes in Europe, Asia and globally was up in July, according to preliminary monthly figures from global index providers, Dow Jones Indexes.
The Dow Jones Industrial Average rose 7.81% in July, closing at 10537.69
Year-to-date, the index is up 1.05%.
The Dow Jones Europe Index rose 12.42% in July to 243.72. So far this year, the index is down -7.77%.
The Dow Jones Asian Titans 50 Index rose 5.06% in July to 126.93. So far this year, the index is down -5.47%
The Dow Jones Global Titans 50 Index rose 8.36% in July, closing at 159.97. Year-to-date, the index is down -7.88%.
Source: Mondovisione
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
