Global ETF News Older than One Year
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
9% rise in 2009 sovereign wealth assets to $3.51 trillion, Preqin says
March 11, 2010--Sovereign wealth fund assets increased an estimated 9% to an aggregate $3.51 trillion in 2009, partly the result of the global economic recovery, according to a Preqin report.
Norway’s Government Pension Fund-Global, Oslo, was among the funds with the largest gains — up 25% to well over $400 billion as of Dec. 31,
Some of the biggest declines were in Russia’s Reserve Fund, Moscow, down 54% to about $60 billion, and Chile’s Economic and Social Stabilization Fund, Santiago, falling 45% to about $11 billion, Preqin spokesman Sam Meakin said in a telephone interview.
Preqin said that among the 60 funds it studied, many are looking closely at portfolio diversification and greater exposure to alternative investments.
Mr. Meakin, in an e-mail response to questions, noted the following changes:
• Norway’s global fund announced plans in November to establish a new environmental investment portfolio to include natural resources, clean technology, environmental services and renewable energy.
• Korea Investment Corp., Seoul, awarded in the third quarter $100 million in secondary markets to Partners Group.
• China Investment Corp., Beijing, announced in September a $1 billion investment with hedge fund firm Oaktree Capital Management and $200 million with fixed-income manager Capula Investment Management.
Source: Preqin
Dow Jones Islamic Market Indexes Index Review Results: 1st Quarter 2009
March 11, 2010--Dow Jones Indexes today announced the results of the regular quarterly review of the Dow Jones Islamic Market Indexes. As part of this review, the index universe of the Dow Jones Islamic Market World Index will be expanded to include Russia. All changes will be effective after the close of trading on Friday, March 20, 2009.
In the Dow Jones Islamic Market World Index, 134 companies will be exchanged, which keeps the number of components in the index at 2,538.
With 50 additions and 60 deletions, the number of components in the Dow Jones Islamic Market Asia/Pacific Index will decrease to 1,088. In the Dow Jones Islamic Market Europe Index, 33 components will be added, while 32 components will be deleted. That brings the number of components in the index to 473. The number of components in the Dow Jones Islamic Market Americas Index will increase to 820, with 40 additions and 34 deletions. In the Dow Jones Islamic Market Middle East & Africa Index, 11 components will be added, while eight components will be deleted. That brings the number of components in the index to 157.
In the Dow Jones Islamic Market BRIC Equal Weighted Index, four components will be added, while one component will be deleted. That brings the number of components in the index to 73.
In the Dow Jones Islamic Market China Offshore Index, 19 components will be added, while one component will be deleted. That brings the number of components to 40. With two additions and 22 deletions, the number of components in the Dow Jones Islamic Market Hong Kong Index will decrease to 80. In the Dow Jones Islamic Market India Index, eight components will be added, while seven components will be deleted. That brings the number of components in the index to 202. The number of components in the Dow Jones Islamic Market Turkey Index will decrease to 32, with two additions and three deletions.
The total free-float market capitalization of the reconstituted Dow Jones Islamic Market World Index increased to US$8.53 trillion from US$8.05 trillion(1).
Source: Dow Jones Indexes
KRX and Eurex to Start Link in August 2010
Eurex to launch daily futures on KOSPI 200 Options on 30 August 2010/ KRX to extend global reach of its KOSPI 200 Options
March 10, 2010--Eurex, Europe’s largest derivatives exchange, and the Korea Exchange (KRX), a leading Asian exchange, today announced the start date of their Eurex/KRX Link, a product cooperation to trade and clear KOSPI 200 Options. In-soo Kim, Executive Director of KRX, and Michael Peters, member of the Eurex Executive Board, stated today that both exchanges are jointly preparing to launch daily futures on KOSPI 200 Options at Eurex on 30 August 2010. For the first time, KOSPI 200 Options will be available worldwide after Korean trading hours.
Mr. In-soo Kim said: “Our agreement with Eurex today is part of our strategy to extend the global reach of KRX markets and furthermore, it is in line with KRX’s vision of becoming a world-class premier exchange. Through this cooperation, we will provide round-the-clock trading opportunities in the KOSPI 200 Options market, which is already the most liquid exchange-traded derivative product in the world.”
Michael Peters said: “This cooperation is another major milestone in our strategy to extend our global product suite by offering our members access to existing liquidity pools. The listing at Eurex of the most heavily traded options contract in the world will enable international investors and traders to access the KOSPI 200 Options market during core European trading hours.”
Both partners believe that the cooperation will increase the liquidity and efficiency of the Korean market. This newly extended market for KOSPI 200 Options will provide existing market participants trading and hedging opportunities for KRX positions after Korean trading hours and the potential to take positions as the global market fluctuates.
Source: Eurex
