Global ETF News Older than One Year
Thomson Reuters And Lepus Survey Reveals Data Quality And Consistency Key To Risk Management And Transparency
March 2, 2010--Thomson Reuters and Lepus, the independent research firm, today released the results of a survey highlighting the responsibility fragmented IT systems played in the financial crisis and the role data will play as the market rebuilds.
The survey of data management strategies at over 100 top tier buy- and sell-side firms revealed how more than three quarters (77%) of participants intend to increase spending on projects that address data quality and consistency issues. Firms are increasingly looking to exploit data consistency to support data hungry risk management processes and achieve a more extensive view of risk, with an overwhelming majority (87%) citing improvements in this area as a priority.
The need for clarity of data to facilitate compliance is a key focus for 44% of survey participants, likely driven by the need for data intensive stress tests as firms look to improve scenario modeling for low probability, high impact events following largely unpredicted volatility across financial markets in recent years.
Portfolio management, regulatory compliance, trading, finance, clearing and client profitability were all highlighted as areas that would benefit from an improved data infrastructure, according to the executives who took part in the survey.
Robert Smith, Head of Research, Lepus, said: “A huge majority of firms have looked to revise their data management solutions in the wake of the credit crisis. The results of this survey show that firms are committed to improving data quality and consistency across the organization and are investing significantly in a bid to move closer to their ideal data management solution.”
Jason du Preez, Global Business Manager, Enterprise Platform for Data Management, Thomson Reuters, said: "As the economy recovers, financial institutions are looking to improve and simplify data operations by demanding greater consistency and quality of data across the front, middle and back-office. Through this survey, the industry has outlined the importance of next-generation data management solutions to support effective risk, regulatory compliance and trading strategies."
Thomson Reuters recently unveiled the latest release of its Enterprise Platform for Data Management, the only integrated platform in the market today that unifies the acquisition, management and distribution of multi-sourced enterprise data assets. It incorporates a market standard canonical data model that simplifies data integration and promotes data transparency throughout the enterprise. Not only does the platform handle the aggregation, cleansing and normalization of a firm’s data sources but uniquely addresses new and changing business needs including risk management, compliance and portfolio valuation.
Source: Thomson Reuters
February Statistics Report From The NASDAQ OMX Nordic Exchanges
March 2, 2010--Share Trading in February
The value of average daily share trading amounted to EUR 2.6 billion, as compared to EUR 2.3 billion during the past 12-month period. The average number of trades per business day amounted to 290,141 as compared to 226,005 during the past 12-month period. The total market cap of listed companies at NASDAQ OMX Nordic Exchange amounted to EUR 642 billion, compared to EUR 382 billion in February 2009.
Share Trading in February
The value of average daily share trading amounted to EUR 2.6 billion, as compared to EUR 2.3 billion during the past 12-month period. The average number of trades per business day amounted to 290,141 as compared to 226,005 during the past 12-month period. The total market cap of listed companies at NASDAQ OMX Nordic Exchange amounted to EUR 642 billion, compared to EUR 382 billion in February 2009.
Source: NASDAQ OMX
BATS Exchange, BATS Europe Gain Market Share In February
BATS Exchange Earns 10.7% Us Equities Market Share, Maintains Rank As 3rd-Largest Us Equities Trading Venue, 3rd-Largest Global Exchange Operator - BATS Europe Continues To Set Records
March 2, 2010-– BATS Global Markets, an innovative global
financial markets technology company, reports BATS Exchange increased its share of US equities trading
in February with 10.7% matched market share for the month, compared to 10.2% in January, and set new
matched market share records in Tape B securities with 17% and Tape C securities with 11.8%
BATS Exchange’s matched market share on its single US equities platform places it more than 1.5 billion shares ahead of combined monthly volume from the next closest US competitor’s three trading platforms.
Among top global equities market operators, BATS Exchange earned third place in January after NYSE and NASDAQ and ahead of exchanges based in Shanghai, Tokyo and London in terms of value of shares traded.
BATS Europe, the fast-growing Multilateral Trading Facility, again recorded strong monthly market share results in the FTSE 100 (8.1%), FTSE 250 (5.9%), FTSE MIB (5.6%) and CAC 40 (4.9%), and set new monthly records in the DAX (4.9%), AEX (4.9%), SMI (4.3%) and the overall European market (4.7%). BATS Europe also earned record total average turnover of more than €1.73 billion (Integrated and Dark books) for the month.
Source: BATS
NASDAQ OMX to Introduce New Symbology for NASDAQ-Listed Securities
March 2, 2010--The NASDAQ OMX Group
(Nasdaq:NDAQ) today announced that, effective September 1, 2010, it
will introduce new trading symbology in preparation for the industry's
listing and trading of five-character root U.S. equity symbols as
permitted by the National Market System Plan for the Selection and
Reservation of Securities Symbols.
Since no cash equities exchange currently lists root ticker symbols of more than four characters, NASDAQ OMX will be required to modify its current root and suffix symbols in order to avoid investor confusion associated with the listing and trading of five-character root symbols.
Under the new symbology, NASDAQ OMX will identify all subordinate issues for NASDAQ-listed securities with the use of a "." mark. The character following the "." mark will now relay the basic information about the issue class or issue type. For example, ABCDA would become ABCD.A. The current A-Z suffix definition will not change. NASDAQ-listed symbols that follow the current suffix symbology will be migrated to the new plan outlined above.
More detailed information is available in Equity Trader Alert #2010-011:
http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2010-011
The list of affected NASDAQ-listed symbols is available at: http://media.globenewswire.com/cache/6948/file/7926.pdf
Please note this list is subject to change.
Source: NASDAQ OMX
MSCI sees $50m in RiskMetrics’ deal synergies and staff cuts
March 2, 2010--MSCI says it has identified $50m of cost synergies in its proposed acquisition of RiskMetrics and plans to cut an unspecified number of jobs at the combined firm. Speaking on a conference call for investors following yesterday’s announcement of a $1.55bn takeover of RiskMetrics, MSCI chairman and chief executive Henry Fernandez, said he also saw an “opportunity” to move some positions within a combined group to emerging market locations.
Fernandez said one potential growth area for the combined firm could include ESG indices and that MSCI was on the lookout for further acquisitions amongst equity index providers, although he said there were no identifiable targets at present.
Source: Responsible Investor
Component Changes Made to Dow Jones Select Dividend Indexes
March 1, 2010--Component Changes Made to Dow Jones Select Dividend Indexes
In the Dow Jones Sweden Select Dividend 15 Index, Seco Tools AB Series B (Sweden, Industrial Goods and Services, SECO-B.SK) will be replaced by Tele2 AB Series B (Sweden, Telecommunications, TEL2-B.SK).
In the Dow Jones U.K. Select Dividend 20 Index, BRIT Insurance Holdings N.V. (United Kingdom, Insurance, BRE.LN) will be replaced by RSA Insurance Group PLC (United Kingdom, Insurance, RSA.LN).
In the Dow Jones Global Select Dividend Index, BRIT Insurance Holdings N.V. (United Kingdom, Insurance, BRE.LN) will be replaced by Tate & Lyle PLC (United Kingdom, Food and Beverage, TATE.LN).
Seco Tools AB Series B and BRIT Insurance Holdings N.V. are being removed due to the cancellation of their dividend payments. All changes will be effective as of the open of trading on Thursday, March 4, 2010.
Further information on the Dow Jones Select Dividend Indexes can be found at http://www.djindexes.com.
Source: Dow Jones Index
MSCI buys RiskMetrics for $1.55bn
March 1, 2010--MSCI, the index and risk group is buying RiskMetrics, the New York-listed risk management and corporate governance firm, in the latest twist to consolidation in the ESG research and governance space.
It is paying approximately $1.55 billion in a cash and stock transaction that values RiskMetrics at $21.75 per share. RiskMetrics last traded at $18.69 and its highest ever share price was $25.50 during 2008. MSCI’s offer, which is subject to approval by shareholders of RiskMetrics, consists of $16.35 in cash and 0.1802 shares of MSCI per share of RiskMetrics. The combined company would have approximately $750m of revenues and 2,000 employees across 20 countries. To support the buy-out, Ethan Berman, chief executive officer of RiskMetrics Group, and other RiskMetrics shareholders, said they had entered into an agreement with MSCI through which they will vote approximately 54% of RiskMetrics shares in favour of the transaction. Private equity firms, General Atlantic Partners, Technology Crossover Ventures and Spectrum Equity own 46% of RiskMetrics, while part of the remaining shares are listed in New York.
Source: Responsibloe Investor
IIFM and ISDA launch Tahawwut (Hedging) Master Agreement
March 1, 2010--The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association, Inc. (ISDA) today launched the ISDA/IIFM Tahawwut (Hedging) Master Agreement.
The development is a breakthrough in Islamic finance and risk management, and marks the introduction of the first globally standardized documentation for privately negotiated Islamic hedging products. The ISDA/IIFM Tahawwut (Hedging) Master Agreement is the first financial industry framework document that is applicable across all jurisdictions where Islamic finance is practiced. The launch of the Tahawwut Master Agreement was officially announced at a launch event in Bahrain hosted by IIFM and ISDA under the patronage of H. E. Rasheed Mohammed Al Maraj, Governor, Central Bank of Bahrain.
IIFM and ISDA jointly developed the Tahawwut documentation under the guidance and approval of the IIFM Shari’ah Advisory Panel for this project and in consultation with market participants. The published document consists of the Tahawwut Master Agreement and an Explanatory Memorandum, both of which are part of the official Shari’ah Pronouncement.
“Given the growing nature of the Islamic finance industry, the institutions operating on Shari’ah principles can no longer afford to leave their positions un-hedged,” said Khalid Hamad, Chairman of IIFM and Executive Director of Banking Supervision at Central Bank of Bahrain. “Hence, some key hedging products are now becoming common across jurisdictions to mitigate risk. The ISDA/IIFM Tahawwut Master Agreement gives the industry access to a truly global framework document which is neutral in terms of treatment to both the transacting parties and at the same time strictly conforms to Shari’ah principles. IIFM is honored to have achieved this milestone in collaboration with ISDA and I am confident that such joint efforts will continue in the future.”
“Demand for customized, privately negotiated hedging tools that conform to the principles of Islamic finance has increased in momentum,” said Eraj Shirvani, Chairman of ISDA and Managing Director, Head of Fixed Income for the EMEA Region, Credit Suisse. “The Tahawwut Master Agreement provides the critical framework for the growth and evolution of Shari’ah-compliant hedging instruments.”
The ISDA/IIFM Tahawwut Master Agreement provides the structure under which institutions can transact Islamic hedging transactions such as profit-rate and currency swaps, which are estimated to represent most of today’s Islamic hedging transactions.
It is designed to be used between two principal counterparties as a master agreement. Parties understand that no interest shall be pay¬able or receivable and no settlement based on valuation or without tangible assets is allowed. Moreover, the counterparties to the Tahawwut Master Agreement make representations as to the fact that they enter into Shari’ah-compliant transactions only.
It is a completely new framework document though the structure of the document is similar to the conventional ISDA Master Agreement. However, the key mechanisms and provisioning such as early termination events, closeout and netting are developed based on the Islamic Shari’ah principles.
“Standardization is a key element in the progress of Islamic finance though it is not a simple process as evident from the efforts put in to the development of this master agreement,” said Ijlal Ahmed Alvi, Chief Executive Officer, IIFM. “A record number of drafts - 24 drafts – were developed during the industry consultation and Shari’ah guidance process before ultimately reaching the final version, which is comprehensive as well as practical in terms of usage with no compromise to Shari’ah principles. It was indeed a pleasure to work with such an experienced and dedicated execution team and the efforts were supplemented by exemplary understanding and cooperation shown by ISDA, our joint partner. We express our heartfelt thanks to the Central Bank of Bahrain for their continuous support and to all who were involved in completing this important project. ”
“ISDA is pleased to have partnered with the IIFM as part of its own on-going efforts to promote prudent risk management and to support the efficient development of privately negotiated hedging products,” said Robert Pickel, Executive Vice Chairman, ISDA.” The Tahawwut Master Agreement represents a major milestone in the development of risk management in Islamic finance.”
“IIFM has taken a lead in preparing Shari'ah complaint Master Agreements for specific areas of Islamic finance, which a number of financial institutions globally have recognized and adopted in order to avoid misunderstanding, uncertainty, and confusion; and also to seek clarity and sound business activities. The adoption of these Master Agreements will pave the way not only for Shari'ah compliance but also product innovation” said Dr Ahmad Rufai, IIFM Shari'ah Head. “The IIFM Shari'ah Advisory Panel have considered the Tahawwut Master Agreement to be a necessary step forward for promoting global standardization for Islamic financial product standards, because the absence of a global Shari'ah compliant standardized agreement may lead to negative effect in the industry. On this occasion, the IIFM Shari'ah Department would like to thank the IIFM Shari'ah Advisory Panel for their indispensable and greatly appreciated support. We don't know where the TMA development would be without their invaluable help and patience in reviewing many of the drafts. Maybe it would not have seen the light.”
In addition to developing documentation for Islamic transactions, ISDA in coordination with IIFM is in contact with various regulators in a number of Islamic jurisdictions, such as the Gulf Cooperation Council (GCC) region, namely UAE, Bahrain and Qatar, plus Pakistan to improve the local legal framework for hedging products and close-out netting provisioning.
The ISDA/IIFM Tahawwut Master Agreement is available at IIFM’s website www.iifm.net or at ISDA’s website www.isda.org.
Source: International Islamic Financial Market (IIFM)
ETF Landscape: Industry Review January 2010
February 26, 2010--At the end of January 2010 the global ETF industry had 2,055 ETFs with 3,941 listings, assets of US$984.0 Bn from 114 providers on 40 exchanges around the world.
Source: Source: ETF Research and Implementation Strategy, Blackrock
Buy-out groups consider Asian sales
February 25, 2010--Global private equity groups are considering the sale of profitable Asian units to pay down debts held by their portfolio companies in the US and Europe.
Bain Capital, the US private equity fund, is in talks to divest the north Asian business of Outback Steakhouse, a global restaurant chain.
Source: FT.com
