Global ETF News Older than One Year
Alarm over commodity ETP returns
March 21, 2010--Investment banks are racing to launch commodity-based exchange traded products after a flood of money entered the sector last year.
However, the move has highlighted concerns that the performance of commodity ETPs can dramatically undershoot that of underlying spot commodity prices, a factor not all investors may understand.
Barclays Capital, Deutsche Bank, Julius Baer, UBS and Amundi, formed by a merger of the asset management arms of Société Générale and Crédit Agricole, launched 45 commodity ETPs in the first two months of 2010, according to figures from Deutsche Bank, compared with 66 such launches across Europe in the whole of 2009. Already this month UBS has listed 69 exchange traded commodities on the London Stock Exchange.
Source: FT.com
Bosnia and Herzegovina Added to Dow Jones FEAS Index Universe
March 22, 2010--Dow Jones Indexes, a leading global index provider, today announced that Bosnia and Herzegovina will be added to the Dow Jones FEAS index universe. This will increase the total number of countries in the Dow Jones FEAS index universe to 11 from 10.
The Dow Jones FEAS Indexes measure the performance of companies across the Euro-Asian region. The three indexes are a composite, and two regional sub-indexes.
Dow Jones FEAS Composite Index currently includes component stocks of 11 of the 29 member states of the Federation of Euro-Asian Stock Exchanges. The exchanges included are Abu Dhabi (UAE), Amman (Jordan), Belgrade (Serbia), Istanbul (Turkey), Karachi (Pakistan), Manama (Kingdom of Bahrain), Muscat (Oman), Sarajevo (Bosnia and Herzegovina), Skopje (Republic of Macedonia), Sofia (Bulgaria), and Zagreb (Croatia).
The Dow Jones FEAS Middle East/Caucasus Index currently includes stocks from the following four FEAS member exchanges: Abu Dhabi, Amman, Manama, and Muscat.
The Dow Jones FEAS South East Europe Index measures the performance of companies listed at the following six FEAS member exchanges: Belgrade, Istanbul, Sarajevo, Skopje, Sofia, and Zagreb.
The Dow Jones FEAS Indexes are designed to cover 95% of the free-float market capitalization of each country in the respective index. In addition to float-adjusted market capitalization, components are selected based on readily available prices. The indexes are calculated and disseminated in euro and U.S. dollar and weighted by float-adjusted market capitalization.
The Dow Jones FEAS Indexes are rebalanced quarterly when additional FEAS member exchanges will be added.
For more information on the Dow Jones FEAS Indexes, please visit http://www.djindexes.com.
Source: Dow Jones Indexes
January’s Reduced Credit Losses May Point to a Better 2010-Risk Solutions Report-January 2010
March 19, 2010--Entering 2010 and leaving behind the $627.7 billion in defaults from 2009 we believe that early data may suggest more favorable credit conditions in the year to come.
The first month of 2010 saw 13 companies fail to make good on their debt obligations, collectively affecting $5.97 billion in debt.
These figures represent the lowest monthly dollar default volume since January, 2008 default total since January, 2008, and compare favorably to January 2009, when 17 companies experienced $21 billion in defaulted debt obligations.
Source: Standard & Poors
NYSE Euronext And Bloomberg Bring Open Symbology To Data Feeds - Industry Leaders Join Forces To Promote Transparency And Lower Data Management Costs
Industry Leaders Join Forces to Promote Transparency and Lower Data Management Costs-
March 18, 2010--In a new initiative to promote transparency and lower data management costs for financial market participants, NYSE Euronext (NYX) and Bloomberg Finance L.P. (Bloomberg) today announced that they will deliver to the investing public the market data industry’s first open-source security identifiers.
Beginning next month, NYSE Euronext will distribute Bloomberg Open Symbology (BSYM) along with NYSE Euronext's standard security identifiers for New York Stock Exchange listed companies through all of its data products globally.
Combining Bloomberg BSYM, the only free and open symbology in market data, with NYSE Euronext proprietary data feeds, this move by NYSE Euronext and Bloomberg meets the need for open standards in reference data. This innovative solution provides standardization and interoperability between NYSE Euronext’s data feeds and Bloomberg’s value-added content.
NYSE Euronext will distribute BSYM through its data feeds and web sites to ensure optimum availability and access to its global customer base. This allows market participants to benefit from the flexibility of choice and relieves them of the burden of mapping between global and local security identifiers.
“An open source, truly integrated solution for market data distribution is long overdue. NYSE Euronext is pleased to join with Bloomberg in delivering this innovative, market-based approach to benefit our customers and the investing public,” said Larry Leibowitz, Chief Operating Officer, NYSE Euronext. “Taking the lead in providing a global uniform standard demonstrates our joint commitment to move the industry forward by providing increased transparency and improved access while lowering costs.”
“Bloomberg has revolutionized the market data industry by creating a free and open standard, Bloomberg Open Symbology. BSYM contains the same identifiers used globally in the BLOOMBERG PROFESSIONAL® service, now available to everyone in the investing public,” said Mark Pesonen, head of Enterprise Products and Solutions at Bloomberg. “Furthering our commitment to open standards, we now provide an integrated solution between BSYM and all NYSE Euronext feeds. In an atmosphere of increased cross-border trading, this solution allows for quick integration into users’ systems to give the industry even greater flexibility.”
Bloomberg and NYSE Euronext will collaborate to maintain an open, market-based solution that integrates their core market information services as a vendor and supplier, respectively. NYSE Euronext will offer its data feeds and products for coding and mapping on the BSYM platform through a tiered rollout that will begin in April with its popular OpenBookTM product. After Bloomberg completes the mapping process for all New York Stock Exchange-listed ticker symbols and security identifiers, NYSE Euronext and its affiliates will globally distribute the new BSYM codes through its data feeds and related products. Bloomberg Open Symbology can be accessed via the Web site http://bsym.bloomberg.com.
Source: NYSE Euronext
Fitch Releases 2009 Global Corporate Rating Transition Study
March 18, 2010--Downgrades affected a record 26.7% of global corporate finance issuers in 2009, with the vast majority of the year's downgrades occurring in the first half of the year, according to a new Fitch Ratings study.
Corporate downgrades rose 26% year over year and exceeded upgrades by a margin of 5.6 to 1, worse than the 3.1 to 1 margin recorded in 2008.
'The recession's impact on corporate credit quality was especially severe in the first six months of 2009 which saw 80% of the year's negative rating actions,' said Charlotte Needham, Senior Director of Fitch Credit Market Research.
By broad market sector, global financial institutions experienced more credit erosion in 2009 and 2008 than did industrials. The share of financial entities downgraded reached 33% in 2009, topping 2008's 22%. The share of industrial issuers downgraded in 2009 - 20% - increased marginally from 18% recorded a year earlier.
Debilitated financial markets and a deep contraction in global economic activity also pushed up the default rate on Fitch-rated corporate issuers to 2.59% in 2009, double the rate of 1.29% recorded a year earlier. The majority of the year's defaults, however, consisted of non-investment grade issuers (93%).
'Despite the intensity of the economic downturn, Fitch's corporate ratings continued to exhibit a strong ability to differentiate default risk' said Mariarosa Verde, Managing Director of Fitch Credit Market Research.
The default rate across Fitch rated investment grade issuers was 0.24% in 2009 while the non-investment grade default rate was 8.91%.
Fitch's new study provides data and analysis on the performance of Fitch's global corporate ratings in 2009 and over the long term, capturing the period 1990-2009. The report provides summary statistics on the year's key rating transition and default trends.
The study is titled 'Fitch Ratings Global Corporate Finance 2009 Transition and Default Study' and is available on Fitch's web site under 'Credit Market Research'.
Source: Fitch Ratings
NYSE Liffe Lists Further 25 Futures Contracts On MSCI Indices On Bclear
March 17, 2010--NYSE Liffe, the European based derivatives business of NYSE Euronext (NYX), announced the launch today of twenty four new futures contracts on MSCI indices on its pioneering wholesale service, Bclear.
The twenty four MSCI indices are widely used by asset managers as benchmarks of market performance in Europe.
David Brierwood, Chief Operating Officer of MSCI Barra, said: “We are delighted to license additional MSCI indices to NYSE Liffe for the creation of futures contracts on Bclear, and believe these industry group indices complement the existing 13 futures contracts linked to MSCI regional and country indices.”
Source: NYSE Euronext
Merrill Lynch Fund Manager Survey Finds Growing Optimism in Global Economic Outlook
Fear Over Banks Holds Back Equity Recovery
March 17, 2010--Investors are at their most optimistic about the global economy since December 2005, according to the Merrill Lynch Survey of Fund Managers for March. However, the prolonged banking crisis seems to be stopping them from putting cash into equities.
For the first time in more than three years, investors do not predict lower global economic growth over the next 12 months. Renewed optimism about China's economy lies at the heart of this revival. Just two months ago, a net 70 percent of respondents thought China's economy would worsen in the year ahead. That figure fell to a net 1 percent this month.
At the same time, risk appetite has dropped with investor pessimism toward banks at a record high. A net 48 percent of asset allocators said they are underweight banks this month, up from a net 39 percent in February. A total of 22 percent said they are aggressively underweight banks, versus 17 percent in February. Respondents are noticeably bearish about Japanese and eurozone equities.
"March's survey shows signs that investors want to believe in an economic recovery. However, caution on banks is firmly capping risk appetite," said Gary Baker, Banc of America Securities-Merrill Lynch co-head of international investment strategy. "How investors resolve this anomaly between growth optimism and risk reluctance will determine the fate of equity markets this spring," said Michael Hartnett, Banc of America Securities-Merrill Lynch co-head of international investment strategy.
Out of Equities, Into Safe Havens Risk appetite in equities took a marked downward turn in March despite the improved economic outlook. Respondents say they have reduced their equity exposure in the past month while increasing cash holdings and fixed-income investments.
Source: Merrill Lynch
NASDAQ OMX Acquires Nord Pool ASA
March 17, 2010--The NASDAQ OMX Group,
Inc. (Nasdaq:NDAQ) announces the acquisition of Nord Pool ASA, the
world's largest power derivatives exchange and one of Europe's largest
carbon exchanges, following Statnett's and Svenska Kraftnät's decision
to exercise their option to sell the shares in the company. Financial
terms were not disclosed.
In October 2008, NASDAQ OMX acquired Nord Pool Clearing ASA and Nord Pool Consulting AS from Nord Pool ASA. In addition, the owners of Nord Pool ASA, Statnett and Svenska Kraftnät, received an option to sell the shares in Nord Pool ASA to NASDAQ OMX at a later date. Statnett and Svenska Kraftnät have now decided to exercise that option. The transaction is subject to regulatory approvals. The acquisition does not comprise the Nordic physical electricity market operated by Nord Pool Spot AS.
Nord Pool ASA will be a part of NASDAQ OMX Commodities, which is the common offering within commodities from the NASDAQ OMX Group. Today's activity in Nord Pool ASA will continue from the premises in Lysaker outside of Oslo, Norway.
"The transaction has strong strategic rationale by reuniting the power and carbon derivatives exchange and clearing business under the same parent, allowing attractive upside opportunities," says Geir Reigstad, Head of NASDAQ OMX Commodities. "It will broaden the current commodities product range and the aim is to attract new financial participants onto the platform and increase liquidity and volume."
Source: NASDAQ OMX
Semi-Annual Review Of NASDAQ OMX Russia 15 Index
March 12, 2010-The NASDAQ OMX Group, Inc. today announced the results of the semi-annual review of the NASDAQ OMX Russia 15 Index (Nasdaq:NORUX15), which will become effective with the market open on Monday, March 22, 2010.
As a result of the review, OJSC MAGNIT will replace OJSC POLYUS GOLD in the NORUX15 index.
The NASDAQ OMX Russia 15 Index consists of the 15 largest and most traded Russian Depository Receipts listed on the London Stock Exchange International Order Book, providing investors with an attractive tool for exposure to the Russian market. The index acts as an underlying benchmark for NORUX15 derivatives and is suitable for exchange-traded funds, structured products and other index funds.
The index is reviewed on a semi-annual basis in March and September. Changes as a result of the review are effective after the market close on the third Friday in March and September. For more information about the NASDAQ OMX Russia 15 Index, visit https://indexes.nasdaqomx.com/Data.aspx?IndexSymbol=NORUX15.
Effective March 22, 2010, the NASDAQ OMX Russia 15 Index will consist of:
Evraz Group S.A. JSC RushHydro JSC Uralkali JSC VTB Bank LUKOIL (OAO) MMC Norilsk Nickel OAO Gazprom OAO NOVATEK OAO Severstal OAO Tatneft OJSC Magnit OJSC Novolipetsk Steel OJSC OC Rosneft Sistema JSFC Surgutneftegaz
Source: NASDAQ OMX
Exchanges recover from Volcker rule
March 11, 2010--FTSE Mondo Visione Exchanges Index climbs 2.4% in February 2010: Strong performances from US based exchanges, led by NYSE Euronext and Intercontinental Exchange, boosted the overall performance of February’s FTSE Mondo Visione Exchanges Index.
All four US listed exchanges experienced an increase in share prices, showing strong recovery from the previous month which had seen them outperformed by Asia-Pacific based exchanges.
The Index*, which aims to reflect market sentiment and is a key indicator of exchanges performance, saw a 2.4% increase, with Bolsa Mexica leading the index table with a 13.4 per cent rise in shares.
Source: Commodities now
