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Central Banks have been net purchasers of gold since the second quarter of 2009
The survey estimates net sales from the sector were down 90% in 2009 compared to 2008.
January 14, 2010--The latest interim Update to the GFMS Gold Survey 2009 reports that, on a quarterly basis, the official sector became a net purchaser of gold during the second quarter of 2009 and has remained so since. GFMS expects that IMF sales will augment official sector sales this year, but that modest purchases elsewhere will constrain volumes overall.
The Survey estimates that net sales from the sector were down 90% in 2009 against 2008 levels, although the study does warn that estimates may be revised in the future as a result of the lag that often exists between central bank activity taking place and subsequently being identified.
The sector shifted onto the buy-side of the market during the second quarter and has remained there since. The "collapse" in net sales is largely attributable to the substantial fall in CBGA disposals; these were down by 160 tonnes from the already low level of 2008. The final CBGA year itself (ended 26th September) saw sales of just 157 tonnes, compared with the quota of 500 tonnes.
ETF Securities’ Commodity ETC Assets Rise $9bn in 2009 to $16bn as Demand for Gold, Energy, Agriculture and Other Hard Assets Surge
January 14, 2010--Commodities bounced back strongly in 2009 following the recent credit crisis, with ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 23% over the year and 263% over the past 10 years. ETFS Industrial Metals (AIGI) was the best performing sector, up 80% over the past year.
Record breaking year for commodity ETCs, with assets up over $9bn (2.3X end-2008 levels) to $16bn
ETFS Copper (COPA) up 130% and ETFS Physical Palladium (PHPD) up 114%, 2 of top 5 best performing long ETFs/ETCs listed on the London Stock Exchange
ETFS Industrial Metals (AIGI) best performing commodity basket in 2009, up 80%
Physically-backed precious metal ETC holdings – gold, silver, platinum, palladium - reach historic highs
ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 263% over the past 10 years, making commodities the top performing major asset class over the period
Commodities bounced back strongly in 2009 following the recent credit crisis, with ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 23% over the year and 263% over the past 10 years. ETFS Industrial Metals (AIGI) was the best performing sector, up 80% over the past year. Industrial metals significantly outperformed developed market equities, outperforming the Dow Jones Euro STOXX 50 by 48 percentage points in 2009. Industrial metals have also outperformed bonds, cash and real estate over the same period as the global recovery has become more entrenched and market appetite for plays on the recovery has accelerated. The precious metals sector was the next best performing major sector, with ETFS Physical Silver (PHAG), ETFS Physical Platinum (PHPT) and ETFS Physical Palladium (PHPD) all returning over 50% in 2009.
ETF Securities: 2009 An Extremely Strong Year For High-yield and Commodity Currency ETCs With ETFS Long AUD Topping Performance, Up 32%
January 13, 2010--The Australian Dollar emerged from 2009 as the strongest performer on ETF Securities’ Currency ETC platform, with the ETFS Long AUD Short USD (LAUD) surging over 32%, driven by investors’ renewed search for yield and a renewed appetite for commodity-related investments.
The index return also incorporates an implicit interest rate return. Over 2009, investors in LAUD would have earned an implied interest return of 3.25%*, significantly better than the return of a typical local at-call bank deposit account. Australian Dollar ETCs accounted for nearly 25% of the volume traded on the Currency ETC platform since inception. The MSFXSM Long New Zealand Dollar Index followed closely behind, generating a solid return of 29%, with an implied interest return of around 2.5%*.
Currencies were one of the top performing asset classes over the past three and five years - the MSFXSM Long Australian Dollar Index returned a striking 31%* over three years and 47% over five years. A comparison with other asset classes shows how attractive an FX investment can be: the MSFXSM Long Australian Dollar Index outperformed both the S&P500 and the DJ STOXX 50 equity indices by around 47 percentage points over the past three years. Over the past five years, the MSFXSM Long Australian Dollar Index outperformed the S&P500 and the DJ STOXX 50 equity indices by around 45 percentage points and 32 percentage points, respectively.
During 2009, commodity currencies performed remarkably well. The MSFXSM G10 Currency Indices that track commodity related currencies outperformed the other MSFXSM G10 Currency Indices by over 20 percentage points last year. The top four performing G10 currencies over 2009 had solid economic ties to commodity markets. In particular, the MSFXSM Long Norwegian Krone Index and the MSFXSM Long Canadian Dollar Index posted strong returns of 22% and 17%, respectively, as crude oil rallied 78% last year.
ETF Securities, which listed Europe’s first and the world’s largest Currency ETC platform in 2009, saw trading volumes in long and short Australian Dollar (LAUD;SAD), New Zealand Dollar (LNZD;SNZD), Canadian Dollar (LCAD;SCAD) and Norwegian Krone (LNOK;SNOK) ETCs contribute 40% of the volume traded on the ETFS Currency ETC platform in 2009, as investors increasingly used these ETCs to implement their trading strategies.
TABB Group: US Futures Industry Set for Renewed Growth Due to Rising Focus on Risk Management and Advanced Execution Methodologies
January 12, 2010--According to TABB Group in a new industry benchmark study, “Trends in US Futures Trading: The Buy Side Perspective,” the US futures industry is set to rebound in 2010 after trading volume suffered its first decline since 1995.
The combination of stricter risk controls across the brokerage industry and closure of hedge and proprietary trading funds – “more than 2,000 have blown up or disappeared in a cloud of smoke” - were key factors behind the 23% volume decline in 2009. Based on a TABB estimate, trading is projected to surge 14% in 2010 as interest rate volume recovers.
While risk management has always been critical, traders tell TABB they have a new view of risk and reward, says Andy Nybo, a principal at TABB, head of derivatives and author of the study. “True, the bad news is that volume’s down, but there is plenty of good news ahead. Trading activity is beginning to stabilize, with pockets of strength in core asset classes such as energy, commodities and foreign exchange beginning to accelerate. As trading volume returns, rising open interest indicates that participants are using futures for ‘longer term’ risk management and commercial strategies.”
Nybo believes that futures will continue to become a more important weapon in the trader’s arsenal of tools used to manage risk and enhance exposure in desired asset classes. “The events of the past year are clearly focusing attention on the use of futures as a way to better manage exposures across a broad range of asset classes.”
Global ETF assets break through $1 trillion milestone at the end of 2009
January 13, 2010--Highlights
Global ETF and ETP Industry 2009:
* Global ETF assets have hit an all time high of US$1,032 Bn at year end 2009; 4.3% above the previous all time high of US$982 Bn set in November 2009.
* At the end of December 2009 the global ETF industry had 1,939 ETFs with 3,775 listings and assets of $1,032.3 Bn, from 109 providers on 40 exchanges around the world.
* Globally, net sales of mutual funds (excluding ETFs) were US$13.3 Bn, while net sales of ETFs were US$93.8 Bn during the first nine months of 2009 according to Strategic Insight.
* Additionally, there were 619 other Exchange Traded Products (ETPs) with assets of US$154.52 Bn from 40 providers on 19 exchanges.
* Combined, there were 2,558 products with 4,687 listings and assets of US$1,186.5 Bn from 132 providers on 43 exchanges around the world.
US ETF and ETP Industry 2009:
* US ETF assets have hit an all time high of US$705 Bn at year end 2009 which tops the previous all time high of US$665 Bn set in November 2009.
* At the end of December 2009 the US ETF industry had 772 ETFs and assets of $705.5 Bn, from 28 providers on two exchanges.
* In the US, net sales of mutual funds (excluding ETFs) were minus US$131.5 Bn, while net sales of ETFs domiciled in the US were positive US$64.0 Bn in the first nine months of 2009 according to Strategic Insight.
* Additionally, there were 142 other Exchange Traded Products (ETPs) with assets of US$88.1 Bn from 17 providers on one exchange.
* Combined, there were 914 products with assets of US$793.6 Bn from 41 providers on two exchanges in the US.
European ETF and ETP Industry 2009:
* European ETF assets have hit an all time high of US$223 Bn at year end 2009 which is 3.1% above the previous all time high of US$217 Bn set in November 2009 and 39.7% above the high of US$160 Bn recorded in July 2008.
* At the end of December 2009 the European ETF industry had 821 ETFs with 2,359 listings and assets of $223.5 Bn, from 32 providers on 18 exchanges.
* In Europe net sales of mutual funds (excluding ETFs) were US$210.5 Bn while net sales of ETFs domiciled in Europe were US$36.5 Bn during the first ten months of 2009 according to Lipper FMI.
* Additionally, there were 184 other Exchange Traded Products (ETPs) with assets of US$19.1 Bn from six providers on six exchanges.
* Combined, there were 1,005 products with assets of US$242.6 Bn from 34 providers on 18 exchanges in Europe.
NASDAQ Announces 2009 New Listings Statistics
January 12, 2010--The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) today announced that The NASDAQ Stock Market(R) (NASDAQ)
captured a total of 131 new listings in 2009. Included were 33 initial
public offerings, more than any other U.S. exchange.
The new listings are comprised of the following categories:
4th Qtr 2009 2009 Total
------------ ----------
Total New Listings 64 131
NYSE Group Switches 10 24
Initial Public Offerings 18 33
Upgrades from Over-the-Counter 22 47
ETFs, Structured Products & Other Listings 14 27
NASDAQ OMX captured in 2009 $157 billion in global market capitalization from NYSE Group companies that switched to NASDAQ.
NASDAQ had 5 companies transfer from the New York Stock Exchange in the fourth quarter, the most switches ever in a single quarter. The transfers include global telecommunication company Vodafone Group (Nasdaq:VOD), which commands a global market capitalization of $120 billion, BMC Software (Nasdaq:BMC), a provider of technology solutions to large enterprises, integrated telecommunication provider Windstream (Nasdaq:WIN) and semiconductor pioneers Cypress Semiconductor (Nasdaq: CY) and Micron Technology (Nasdaq:MU). NASDAQ also welcomed 5 transfers from NYSE Amex during the fourth quarter including Retail Opportunity Investments Corp. (Nasdaq:ROIC), a retail focused real estate investment trust, and Deerfield Capital (Nasdaq:DFR).
In the fourth quarter alone, NASDAQ captured a total of 64 new listings, highlighted by an emerging IPO market which brought 18 new companies to NASDAQ. The fourth quarter featured the two largest domestic IPOs of the year, of which both chose to list on NASDAQ. Verisk Analytics (Nasdaq:VRSK), a provider of risk assessment solutions, and global biotechnology company Talecris Biotherapeutics (Nasdaq:TLCR) raised $1.8 billion and $950 million, respectively. Other notable domestic IPOs included Education Management (Nasdaq:EDMC), AGA Medical Holdings (Nasdaq:AGAM), Ancestry.com (Nasdaq:ACOM), rue21 (Nasdaq:RUE), Fortinet (Nasdaq:FTNT) and Archipelago Learning (Nasdaq:ARCL).
NASDAQ welcomed seventeen companies from Greater China in the fourth quarter, bringing our total new listings from the region to 33 for 2009. NASDAQ currently lists 124 companies headquartered in Greater China, more than any other U.S. exchange. Fourth quarter Chinese listings were highlighted by the spin-off of China Real Estate Information Corp. (Nasdaq:CRIC) from E-House Holdings Ltd. (NYSE:EJ), along with the NYSE Amex transfers of Exceed Company Ltd. (Nasdaq:EDS), Sinovac Biotech Ltd. (Nasdaq:SVA) and Hong Kong Highpower Technology (Nasdaq:HPJ).
NASDAQ is also proud to announce the listing of nine new exchange-traded funds (ETFs) during the fourth quarter. The new products included seven Vanguard Bond Index ETFs (Nasdaq:VCIT), (Nasdaq:VGIT), (Nasdaq:VCLT), (Nasdaq:VGLT), (Nasdaq:VMBS), (Nasdaq:VCSH), (Nasdaq:VGSH) and the First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (Nasdaq:GRID) which is based on the NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index(SM)(Nasdaq:QGRD).
To view all new NASDAQ listings in 2009, visit http://media.globenewswire.com/cache/6948/file/7725.pdf
Statistics are sourced from internal NASDAQ information. IPOs include
offerings done on a "best efforts" basis and do not include real estate
investment trusts and closed-end funds. For more information about
these and other NASDAQ statistics, visit
http://www.nasdaqomx.com/listingcenter/usmarket/.
Minorities proposal sparks alarm in banks
January 12, 2010--When the Basel Committee on Banking Regulation brought out its plans to make the global financial system safer in December, many of the proposals were in line with what banks expected.
But a proposal to tighten the capital rules for subsidiaries that are partly owned by outside investors caused widespread alarm
The change would stop banks including the equity they hold in subsidiaries as minority owners in their core tier one capital ratio – which measures the cushion of capital banks must hold to offset the risks they take, measured by risk-weighted assets. Banks say the change could sharply reduce their capital at a time when they need to raise more to meet regulators’ demands and would make it unprofitable to expand overseas, particularly in emerging markets.
Banks braced for Basel battle
January 12, 2010--Banks are gearing up to fight a proposal by global regulators to sharply increase capital requirements for institutions that bring in outside investors to fund subsidiaries, saying it will cripple their ability to expand in emerging markets.
Bank executives fear the provision would create huge holes in the capital stocks of a wide range of UK, European and Japanese financial institutions, at a time when they are already under pressure to increase their regulatory capital.
Analysts described the proposal as one of the most “draconian” and “potentially devastating” parts of a package of measures put forward in December by the Basel committee, which sets global standards that are implemented by local regulators.
NASDAQ Announces End-Of-Month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date December 31, 2009
January 12, 2010--At the end of the settlement date of December 31, 2009, short interest in 2,423 NASDAQ Global Market(SM) securities totaled 6,197,177,687 shares compared with 6,257,533,001 shares in 2,422 Global Market issues reported for the prior settlement date of December 15, 2009. The end-of-December short interest represents 3.32 days average daily NASDAQ Global Market share volume for the reporting period, compared with 3.49 days for the prior reporting period.
Short interest in 465 securities on The NASDAQ Capital Market(SM) totaled 207,500,638 shares at the end of the settlement date of December 31, 2009 compared with 201,696,432 shares in 462 securities for the previous reporting period. This represents 1.54 days average daily volume, compared with the previous reporting period's figure of 2.18.
In summary, short interest in all 2,888 NASDAQ(R) securities totaled 6,404,678,325 shares at the December 31, 2009 settlement date, compared with 2,884 issues and 6,459,229,433 shares at the end of the previous reporting period. This is 3.20 days average daily volume, compared with an average of 3.42 days for the previous reporting period.
The open short interest positions reported for each NASDAQ security reflect the total number of shares sold short by all broker/dealers regardless of their exchange affiliations. A short sale is generally understood to mean the sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by or for the account of the seller.
For more information on NASDAQ Short interest positions, including publication dates, visit http://quotes.nasdaq.com/asp/MasterDataEntry.asp?page=ShortInterest or http://www.nasdaqtrader.com/asp/short_interest.asp.
DB Index Research -ETPs & ETFs - Market Review & 2010 Outlook
January 11, 2010--DB Index Research -- ETPs/ETFs 2009 Market Review and 2010 Outlook
Crossing the Trillion Dollar Mark
Highlights
With the arrival of the New Year we are very excited to be intiating
enhanced research in the Exchange-Traded Products (ETP) space. We now
have a new Strategist based in London and our team is dedicated to
developing an active dialogue with the market. In this first report,
we review the US and European ETP markets over the past year, we
highlight trends and express our views on what we consider to be
important in the space as well as make some observations about what we
believe will follow in the year ahead.
The year just passed marked a milestone for the two biggest global ETP
markets: the US and European combined ETP assets crossed the trillion
dollar mark at the end of 2009. With the recovery seen in equity
markets in both regions and with 74% of ETPs housed in equity
vehicles, it is no surprise that assets rose. What is much more
important to recognize is that assets continued to rise well over
(2009 ETP asset growth: 46.2%) and above that of equity market growth
(MSCI World: 23.8%) indicating investors continuing to strongly
embrace this market with $167.1 billion of net inflows.
Beyond the impressive asset growth, we have a number of key findings:
- Emergence of global ETP Providers which will be in a position to provide consistent service across a variety of asset classes globally.
- Strong tiering of both the US and European markets leading to a handful of providers controlling the majority of assets.
- With ETP asset profiles widening, a provider's ability to timely and efficiently create products will play the biggest role in being able to compete.
- We expect continued fusing of expertise across the financial services industry to create ETP products tracking more diverse benchmarks. With all major asset classes now covered by ETPs, we expect increased product creation in non equity and fixed income products.
- Equities and fixed income remain the dominant ETP asset class in terms of AUM in 2009, however, investors continue to show keen interest in commodities which will further elevate the third biggest asset class assets.
- We expect the ETP assets in the US and Europe to cross the $1.2 trillion mark in 2010 assuming flat markets, with a strong possibility of reaching $1.4 trillion if bullish equity markets continue.
- The growth rate of the European market will likely continue to outstrip that of the US market, though the US market will undoudebtly remain larger.
