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SIFMA Securitization Group Stresses Need for Coordinated, Comprehensive and Measured Regulation
February 22, 2010--In a comment letter filed today with the Federal Deposit Insurance Corporation (FDIC), the Securities Industry and Financial Markets Association’s Securitization Group (SSG) expresses its support for coordinated, comprehensive and measured regulation to improve the safety and soundness of the securitization market and for an insolvency safe harbor to provide certainty to market participants and investors
However, SIFMA stresses the need for regulation to be coordinated within the broader context of regulatory reform, and to base criteria for a safe harbor on the legal principles of isolation of assets in insolvency.
“We support reasonable efforts to restore and reshape the securitization market, but we do not believe the proposed safe harbor is an appropriate means of regulation,” said Chris Killian, vice president at SIFMA. “Securitization is a key component to ensuring credit availability to consumers and businesses, and therefore plays a critically important role in the economic recovery. Changes to regulation of the securitization market must be done in a coordinated manner which incorporates the views of various market participants, regulators and policymakers, and is mindful of the impact of the sum total of the changes on the ability of institutions to utilize securitization to fund credit creation.”
The comment letter was filed in response to the Federal Deposit Insurance Corporation’s (FDIC) advance notice of proposed rulemaking, which would amend the current safe harbor treatment. SIFMA does not believe the proposed safe harbor is the appropriate means to regulate the securitization market for two reasons:
Research Confirms Shifts in Global Foreign Exchange Trading Patterns and Reactions to Credit Constraints
February 22, 2010--CME Group, the world's leading and most diverse derivatives marketplace, today released results from its third annual Global Foreign Exchange (FX) Market Study of both cash and exchange-traded FX products. Overall, concerns over counterparty risk remain high, albeit reduced slightly from last year.
"This year's study with our partner ClientKnowledge illustrates that there continues to be a fundamental shift in the global FX market towards risk mitigation," said Derek Sammann, Managing Director of Financial Products, CME Group. "Investors continue to look for alternative ways to mitigate counterparty risk in both the over-the-counter (OTC) and futures markets. By offering liquidity, transparency and credit risk mitigation, we provide investors with the solutions they need to manage their risk on exchange. In addition, we plan to offer a post-execution clearing service for OTC FX trades through CME ClearPort giving market participants increased security, efficiency and flexibility."
view summary of Third Annual Global FX Market Study: 2009
IOSCO publishes Principles for Periodic Disclosure by Listed Entities
February 22, 2010--The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a final report ¡V Principles for Periodic Disclosure by Listed Entities (Periodic Disclosure Principles) ¡V that includes a set of recommendations for disclosures that could be provided in the periodic reports, particularly annual reports, of listed entities whose securities are listed or admitted to trading on a regulated market in which retail investors participate.
The Periodic Disclosure Principles also cover other issues related to periodic disclosure, such as the timeliness of disclosures, disclosure criteria and storage of information.
The report is available on the IOSCO website.
Summary
The Periodic Disclosure Principles are intended to provide a useful framework for securities regulators that are reviewing or revising their regulatory disclosure regime for periodic reports.
The Periodic Disclosure Principles provide guidance to securities regulators for use in developing or reviewing their disclosure regimes for the periodic reports of listed entities with securities listed or admitted to trading on a regulated market in which retail investors participate. These periodic reports enhance investor protection by providing relevant information which facilitates investor decision-making, allow investors to compare the performance of the same company over regular intervals and enable investors to make comparisons between different companies.
These principles form part of IOSCO¡¦s ongoing work to develop principles for disclosure by issuers of listed securities to investors in the public capital markets. These proposed principles complement IOSCO¡¦s existing disclosure principles which provide guidance for:
International Disclosure Standards for Cross-Border Offerings and Initial Listings by Foreign Issuers, September 19981
International Disclosure Principles for Cross-Border Offerings and Listings of Debt Securities by Foreign Issuers, March 20072; and
„h Principles for Ongoing Disclosure and Material Development Reporting by Listed Entities, October 20023.
Principles for the Periodic Disclosure by Listed Entities The following principles have been identified as essential for any periodic disclosure regime:
1. Periodic reports should contain relevant information;
2. For those periodic reports in which financial statements are included, the persons responsible for the financial statements provided should be clearly identified, and should state that the financial information provided in the report is fairly presented;
3. The issuer¡¦s internal control over financial reporting should be assessed or reviewed;
4. Information should be available to the public on a timely basis;
5. Periodic reports should be filed with the relevant regulator;
6. The information should be stored to facilitate public access to the information;
7. Disclosure criteria;
8. Equal access to disclosure; and
9. Equivalence of disclosure.
1 International Disclosure Standards for Cross-Border Offerings and Initial Listings by Foreign Issuers, Report of IOSCO, September 1998, available at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD81.pdf.
2 International Disclosure Principles for Cross-Border Offerings and Listings of Debt Securities by Foreign Issuers, Final Report, Report of the Technical Committee of IOSCO, March 2007, available at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD242.pdf.
3 Principles for Ongoing Disclosure and Material Development Reporting by Listed Entities, Statement of the Technical Committee of IOSCO, October 2002, available at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD132.pdf.
UAE banks have $15bn Dubai exposure
February 22, 2010--Banks based in the United Arab Emirates have $15bn of exposure to Dubai World, Moody’s estimated in a report on Monday, as the group prepares to present a restructuring proposal to creditors next month.
The rating agency said 12 rated UAE banks and the regional entity of HSBC could probably absorb losses of 40 per cent.
The government denies the likelihood of losses on this scale. Under such a scenario, the lenders would incur losses of about 9 per cent of their capitalisation at the end of 2009, affecting profits but not threatening solvency.
NASDAQ OMX Builds Its Suite of Investor Relations Products With Launch of Dynamic Annual Reports
February 22, 2010--The NASDAQ OMX Group, Inc. today announced the launch of its Dynamic Annual Report,
an enhanced NASDAQ OMX Corporate Solutions product providing companies
with paperless shareholder communications technology. The Report
features on-demand accessibility, social media sharing and embedded
video capabilities.
Dynamic Annual Reports meet the needs of the SEC's 2007 e-proxy notice
and access guidelines, while increasing visibility, significantly
reducing postage costs and supporting green sustainability initiatives.
"We're seeing more and more companies using video, social media, and dynamic online platforms to interact with their shareholders and improve the effectiveness of their communications strategies," said Demetrios N. Skalkotos, Senior Vice President of Global Corporate Services, NASDAQ OMX.
New features of Dynamic Annual Reports include embedded video to help companies tell their story and better connect with investors through dynamic content. Adobe Flash animation, a simulation akin to flipping pages, combined with a custom-branded interface increases audience interaction, while social media sharing via Twitter and Facebook allows visitors to organically increase distribution. Dynamic Annual Reports can also incorporate a scrolling RSS Feed to display the company's most recent news. The annual reports technology can be adapted to a range of marketing and communications materials, including retail catalogs, brochures and other collateral material. Dynamic Annual Reports is one of many investor relations and communications products from NASDAQ OMX Corporate Solutions, which services across communications, Intelligence, Visibility, and Governance Platforms.
For more information, please visit:
http://www.shareholder.com/home/solutions/Webcasting-Video-AR.cfm
Islamic finance eyes new regions
February 18, 2010--Muslim countries in Central Asia and Indonesia are seen as the next growth areas for the Islamic finance industry after hopes of expansion into Western markets faded and Gulf Arab markets remain fragmented.
Islamic banks are struggling to expand within the Gulf Arab region that due to shareholders’ sensitivities, a lack of transparency and national interests has seen hardly any acquisitions, forcing them to look elsewhere for growth.
ETF Landscape: Industry Highlights - Data as at End January 2010
February 18, 2010--Highlights
Global ETF and ETP Industry January 2010:
• At the end of January 2010 the global ETF industry had 2,053 ETFs with 3,928 listings, assets of US$984.0 Bn, from 113 providers on 40 exchanges around the world.
Assets
• YTD assets have fallen by 5.0% which is more than the 4.2% fall in the MSCI World Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 5.4% with 106 new ETFs launched.
• The number of ETFs listed in Europe has surpassed the US, with 896 ETFs listed in Europe, compared to 791 in the US.
• There are currently plans to launch 820 new ETFs.
Trading volume
• YTD the average daily trading volume in US dollars increased by 40.6% to US$70.7 Bn or 3.3 Bn shares.
ETF providers
• Globally, iShares is the largest ETF provider in terms of both number of products, 434 ETFs, and assets of US$470.0 Bn, reflecting 47.8% market share; State Street Global Advisors is second with 107 products and US$139.1 Bn, 14.1% market share; followed by Vanguard with 47 products and assets of US$92.2 Bn and 9.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 2,673 products with 4,839 listings, assets of US$1,132.7 Bn from 137 providers on 43 exchanges around the world.
European ETF and ETP Industry January 2010:
At the end of January 2010 the European ETF industry had 896 ETFs with 2,468 listings, assets of US$217.9 Bn, from 34 providers on 18 exchanges.
Assets
• YTD assets have fallen by 4.0%, which is less than the 5.9% fall in the MSCI Europe Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 8.1% with 67 new ETFs launched.
• 11 April 2010 will mark the tenth anniversary of ETFs in Europe.
Trading volume
• YTD the average daily trading volume in US dollars increased by 24.5% to US$2.8 Bn. Most ETF trades are not required to be reported in Europe as ETFs are not covered by the European Union directive on markets in financial instruments (MiFID).
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 172 ETFs, and assets of US$82.5 Bn, reflecting 37.9% market share; Lyxor Asset Management is second with 127 products and US$43.8 Bn, 20.1% market share; followed by db x-trackers with 118 ETFs and assets of US$35.8 Bn and 16.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 1,072 products with assets of US$233.1 Bn from 36 providers on 18 exchanges in Europe.
United States ETF and ETP Industry January 2010:
At the end of January 2010 the US ETF industry had 791 ETFs, assets of US$665.4 Bn, from 28 providers on two exchanges.
Assets
• YTD assets have fallen by 5.7%, which is more than the 3.6% fall in the MSCI US index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 2.5% with 19 new ETFs launched.
• 29 January 2010 marked the 17th anniversary of ETFs in the US.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 43.2% to US$65.6 Bn.
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 197 ETFs, and assets of US$349.5 Bn, reflecting 52.5% market share; State Street Global Advisors is second with 88 products and US$128.2 Bn, a 19.3% market share; followed by Vanguard with 46 products, assets of US$92.2 Bn and 13.8% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 935 products with assets of US$750.1 Bn from 41 providers on two exchanges in the US.
Canada ETF and ETP Industry January 2010:
At the end of January 2010 the Canadian ETF industry had 125 ETFs, assets of US$28.4 Bn, from four providers on one exchange.
Assets
• YTD assets have fallen by 0.5%, which is less than the 7.8% fall in the MSCI Canada Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 14.7% with 16 new ETFs launched.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 1.6% to US$0.97 Bn.
ETF providers
• iShares is the largest ETF provider in terms of assets with US$22.6 Bn in 36 ETFs, reflecting 79.7% market share; Claymore Securities is second with 26 products and US$3.3 Bn, an 11.5% market share; followed by BetaPro Management with 41 products, assets of US$2.3 Bn and 8.1% market share at the end of January 2010.
Asia Pacific ex-Japan ETF and ETP Industry January 2010:
At the end of January 2010 the Asia Pacific ex-Japan ETF industry had 133 ETFs with 215 listings, and assets of US$36.9 Bn from 47 providers on 13 exchanges.
Assets
• YTD assets have fallen by 4.3%, which is less than the 6.4% fall in the MSCI AC Asia Pacific ex-Japan index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 3.1% with four new ETFs launched.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 1.4% to US$0.90 Bn.
ETF providers
• State Street Global Advisors is the largest ETF provider in terms of assets with US$9.6 Bn, in six ETFs, reflecting 26.0% market share; iShares is second with 13 products and US$7.1 Bn, a 19.2% market share; followed by Hang Seng Investment Management with three products, assets of US$5.5 Bn and 14.8% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 145 products with 229 listings, and assets of US$39.3 Bn from 50 providers on 13 exchanges.
Japan ETF and ETP Industry January 2010:
At the end of January 2010 the Japanese ETF industry had 68 ETFs with assets of US$24.2 Bn from six providers on two exchanges.
Assets
• YTD assets have fallen by 1.6%, compared to an increase of 1.3% in the MSCI Japan Index in US dollar terms.
ETFs
• YTD the number of ETFs remains unchanged with 68 ETFs.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 12.2% to US$0.17 Bn.
ETF providers
• Nomura Asset Management is the largest ETF provider in terms of assets with US$13.5 Bn, in 30 ETFs, reflecting 55.7% market share; Nikko Asset Management is second with 10 products and US$5.4 Bn, a 22.4% market share; followed by Daiwa Asset Management with 22 products, assets of US$4.7 Bn and 19.4% market share at the end of January 2010.
ETFs & ETPs
• Combined, there were 73 products with 82 listings, and assets of US$24.5 Bn from six providers on two exchanges.
Latin America ETF and ETP Industry January 2010:
At the end of January 2010 the Latin American ETF industry had 17 ETFs with 211 listings, and assets of US$9.5 Bn from three providers on three exchanges.
Assets
• YTD assets have fallen by 2.6%, which is less than the 8.9% fall in the MSCI EM Latin America Index in US dollar terms.
ETFs
• YTD the number of ETFs remains unchanged with 17 locally domiciled ETFs.
Trading volume
• YTD the average daily trading volume in US dollars has increased by 16.0% to US$0.26 Bn.
ETF providers
• iShares is the largest ETF provider in terms of assets with US$8.2 Bn, in 15 ETFs, reflecting 86.2% market share; Banco Itau is second with US$1.3 Bn in one locally domiciled ETF, a 13.8% market share at the end of January 2010.
Component Changes Made To Dow Jones Select Dividend Indexes
February 18, 2010--Dow Jones Indexes, a leading global index provider, today announced component changes in the Dow Jones France Select Dividend 20 and Dow Jones Germany Select Dividend 20 indexes.
In the Dow Jones France Select Dividend 20 Index, Euler Hermes S.A. (France, Insurance, ELE.FR) will be replaced by Credit Agricole d'Ile de France (France, Banks, CAF.FR).
In the Dow Jones Germany Select Dividend 20 Index, Daimler AG (Germany, Automobiles & Parts, DAI.XE) will be replaced by Deutsche Euroshop AG (Germany, Real Estate, DEQ.XE).
Euler Hermes S.A. (France, Insurance, ELE.FR) and Daimler AG (Germany, Automobiles & Parts, DAI.XE) are being removed due to the cancellation of their dividend payments. All changes will be effective as of the open of trading on Tuesday, February 23, 2010.
Further information on the Dow Jones France Select Dividend 20 and Dow Jones Germany Select Dividend 20 indexes can be found at http://www.djindexes.com
Buy-out investors step up demands
February 17, 2010--In most industries, the largest customers can demand better terms from a company when they place big orders. But in private equity, investors have for many years been prepared to accept the same terms, however much they invest.
This is now changing, according to some of the world’s biggest buy-out bosses.
David Rubenstein, co-founder of the Carlyle Group, told last week’s Super Return conference in Berlin that big investors were starting to ask for special terms on custom accounts tailored especially for them.
CDP drives forward carbon management globally
Record number of investors support CDP’s 2010 request for climate change information
February 17, 2010--The Carbon Disclosure Project (CDP) today announced its eighth annual request for information on greenhouse gas emissions and climate change strategies to over 4,500 companies globally. Companies this year will report to CDP through an upgraded system, developed with Accenture, Microsoft and SAP, that will for the first time utilize the full power of online analysis tools to drive improved carbon management.
A global, independent, not-for-profit organization, CDP is the world’s largest institutional investor collaboration working to inform the global market place on investment risk and commercial opportunity. The number of institutional investors that signed CDP’s annual request for climate change information this year has risen from 475 in 2009, to a record 534 with a combined US$64 trillion of assets under management. New signatory investors include Wells Fargo, BNY Mellon, Generali and the Industrial Bank of Korea.
CDP continues to act on investor interest in emerging markets with requests for information going to companies in the S&P/IFCI Carbon Efficient Index. This year CDP is, for the first time, writing to companies in Turkey, Peru, Morocco, Egypt and Israel as well as continuing to expand its coverage in areas such as Asia, Poland, Chile and Mexico.
CDP gives companies the tools they need to identify and report material risk and opportunity to their business from climate change. This is an increasingly important skill for US corporations to master, following the recent publication of climate change risk disclosure guidance by the Securities and Exchange Commission (SEC).
