Global ETF News Older than One Year
International Derivatives Clearing Group Announces Interest Rate Swap Link With MarkitSERV
March 31, 2010--The International Derivatives Clearing Group (IDCG) announced today that it will be able to accept interest rate derivative products into its clearinghouse via MarkitSERV, the leading electronic platform for processing over-the-counter (OTC) derivatives.
MarkitSERV provides a single gateway for over-the-counter derivative transaction processing globally, covering credit, interest rate, equity and commodity derivatives.
"MarkitSERV's support of the IDCG platform is very important," said Garry O'Connor, Chief Executive Officer of IDCG. "Allowing market participants to deliver trades to our clearinghouse through their existing infrastructure is a major step forward for IDCG and the interest rate derivative market."
"We are pleased to implement electronic connectivity between MarkitSERV's interest rate swap trade processing platform and IDCG's clearinghouse. This represents another milestone in the industry's efforts to reduce operational risk and counterparty risk in the OTC derivative markets," said Jeff Gooch, CEO of MarkitSERV.
IDCG is a majority owned, independently operated NASDAQ OMX subsidiary that operates a CFTC licensed designated clearing organization for clearing and settling interest rate derivative products. IDCG has cleared in excess of $3 trillion in notional value in its Shadow Clearing environment, a process to prepare market participants for central clearing of derivatives. Newedge, the world's largest futures commission merchant, announced the week of March 8, 2010 that it would become a clearing member of IDCG's clearinghouse, joining MF Global who joined previously.
Source: NASDAQ OMX
2009 International Public Finance Rating Transition Study Released
March 30, 2010--The global recession left a lasting impact on sovereign nations as well as local and regional authorities, faced with shrinking revenues and bulging deficits. Despite these recent economic difficulties, the rate of downgrades among Fitch-rated international public finance issuers remained relatively modest in 2009, edging lower to 4.2% from 5.2% in 2008. Upgrades however contracted to 2.6% from 8.7% a year earlier.
As a result, the international public finance downgrade to upgrade ratio turned negative in 2009, with downgrades outpacing upgrades by 1.6 to 1, up from positive results of 0.6 to 1 recorded a year earlier.
There were no Fitch-rated international public finance issuer defaults in 2009, echoing 2008's results.
Fitch's new study provides data and analysis on the performance of Fitch's international public finance ratings in 2009 and over the long term, covering the period 1995-2009. The report provides summary statistics on the year's key rating trends.
The study is titled 'Fitch Ratings International Public Finance 2009 Transition and Default Study' and is available on Fitch's web site under Credit Market Research.
Source: Fitch
Component Changes Made To Dow Jones Select Dividend Indexes
March 30, 2010--Dow Jones Indexes, a leading global index provider, today announced that Acea S.p.A. (Italy, Utilities, ACE.MI) will be removed from the Dow Jones Italy Select Dividend 20 and Dow Jones EPAC Select Dividend indexes.
Acea S.p.A. is being removed due to the cancellation of its dividend payment.
In the Dow Jones Italy Select Dividend 20 Index, Acea S.p.A. will be replaced by Banca Popolare di Sondrio S.C.A.R.L. (Italy, Banks, BPSO.MI).
In the Dow Jones EPAC Select Dividend Index, Acea S.p.A. will be replaced by Snam Rete Gas S.p.A (Italy, Utilities, SRG.MI).
All changes in the Dow Jones Italy Select Dividend 20 Index and Dow Jones EPAC Select Dividend Index will be effective as of the open of trading on Monday, April 5, 2010.
Further information on the Dow Jones Select Dividend indexes can be found at http://www.djindexes.com.
Company additions to and deletions from the Dow Jones Italy Select Dividend 20 and Dow Jones EPAC Select indexes do not in any way reflect an opinion on the investment merits of the company.
Source: Dow Jones Indexes
March 2010 Monthly Preliminary Performance Report Dow Jones-UBS Commodity Indexes
March 29, 2010--The Dow Jones-UBS Commodity Index was down -3.09% for the month of March. The Dow Jones-UBS Single Commodity Indexes for Nickel, Platinum and Copper had the strongest gains with month-to-date returns of 11.48%, 3.66%, and 3.62%, respectively. The three most significant downside performing single commodity indexes were Sugar, Natural Gas and Wheat, which were down -27.97%, -19.45%, and -10.50% respectively, in March.
Year to date, the Dow Jones-UBS Commodity Index is down -6.81% with the Dow Jones-UBS Nickel Sub-Index posting the highest gain of 27.05% so far in 2010. Dow Jones-UBS Sugar Sub-Index has the most significant downside YTD performance, down -35.06%.
Source: Mondovisione
Global Recession Weighed on Sovereign Ratings in 2009
March 25, 2010--Highlights
Credit quality eroded for sovereign issuers in 2009, as the global recession's impact on advanced and emerging economies continued to deepen. The share of sovereign issuers downgraded remained steady year-over-year at roughly 14%, while upgrades tumbled to just 2% in 2009 from nearly 10% a year earlier.
Emerging markets registered the most negative, as well as positive, movements on the year, recording 11 downgrades, while simultaneously accounting for the two sovereign upgrades in 2009. Developed market sovereigns observed a total of three downgrades with no upgrades on the year.
'Despite the unprecedented global recession, there were no Fitch-rated sovereign issuer defaults in 2009,' said Charlotte Needham, Senior Director in Fitch Ratings' Credit Market Research Group.
'Fitch Ratings believes diverging sovereign credit trends between advanced and emerging markets will remain a predominant theme in 2010 as public debt/GDP ratios climb steeply toward 100% in the former, even as comparable debt ratios settle at less than half this level in emerging markets,' said Paul Rawkins, Senior Director in Fitch Ratings' Sovereign Group London.
Fitch Ratings' current assessment is that 2010 will be characterized by a gradual rebalancing between positive and negative rating actions and notes that already this year the gap between Stable and Negative Outlooks has already begun to narrow.
The new study provides data and analysis on the performance of Fitch's sovereign ratings in 2009 and over the long term, capturing the period 1995-2009. The report provides summary statistics on the year's key sovereign rating trends.
Source: Fitch Research
FTSE 100 Dividend Index futures reach 1 million contract milestone
March 25, 2010--NYSE Liffe, the European derivatives business of NYSE Euronext, said that its FTSE 100 Dividend Index futures contract has traded its millionth contract. The contract, which was only launched in May last year, is available both through LIFFE CONNECT® and Bclear, the exchange’s trade administration and clearing service.
Following the success of the FTSE 100 dividend index future, NYSE Liffe launched a similar contract based on the CAC 40 dividend index late last year. Both indices represent the cumulative value of ordinary cash dividends declared by the individual constituents each index over a one-year period, calculated in terms of index points.
Source: NYSE Euronext
March 2010 “Islamic Market’s Measure” – Preliminary Report - Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
March 24, 2010--Based on the close of trading on March 23, the global Dow Jones Islamic Market Titans 100 Index, which measures the performance of 100 of the leading Shari’ah compliant stocks globally, gained 4.79% month-to-date, closing at 2145.77. In comparison, the Dow Jones Global Titans 50 Index, which measures the 50 biggest companies worldwide, posted a gain of 4.67%, closing at 173.61.
The Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah compliant stocks in the Asia/Pacific region, increased 5.43%, closing at 1895.92. The Dow Jones Asian Titans 50 Index, in comparison, posted a gain of 6.11%, closing at 139.25.
Measuring Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 of the leading Shari’ah compliant stocks in Europe, closed at 2146.59, a gain of 5.24%, while the conventional Dow Jones Europe Index gained 5.70%, closing at 257.50.
Measuring the performance of 50 of the largest Shari’ah compliant U.S. stocks, the Dow Jones Islamic Market U.S. Titans 50 Index increased, closing at 2179.41. It represents a gain of 4.49%. The U.S. blue-chip Dow Jones Industrial Average increased 5.46%, closing at 10888.83.
Source: Dow Jones Indexes
March 2010 “Market’s Measure” - Preliminary Report - A Monthly Report From Dow Jones Indexes And STOXX Ltd. On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
March 24, 2010-Dow Jones Industrial Average Posts 5.46% Gain in MARCH, European Stocks Gain 5.71%, Asia Rises 6.11% and World Equities Rise by 4.67%
Automobiles & Parts Sector Posts Biggest Gain for March in Europe
Telecommunications Sector Posts Narrowest Gain for March in Asia
As of March 23 the Dow Jones Industrial Average rose 5.46% in March, closing at 10888.83. Stock market indexes in Europe, Asia and globally were up in March, according to preliminary monthly figures from global index providers, Dow Jones Indexes and STOXX Ltd.
The Dow Jones Industrial Average rose 5.46% in March, closing at 10888.83. Year-to-date, the index is up 4.42%.
Measuring Europe, the STOXX Europe 50 Index is up 5.71% for March, closing at 2611.20. Year-to-date, the index is up 1.00%.
Measuring Eastern Europe, the STOXX EU Enlarged Total Market Index is up 9.07% for March, closing at 227.24. Year-to-date, the index is up 9.51%.
The performance of the STOXX EU Enlarged 15 blue-chip index is up 9.41% for March, closing at 2377.41. The index is up 8.39% so far this year.
The Dow Jones Asian Titans 50 Index rose 6.11% in March to 139.25. So far this year, the index is up 3.71%.
The Dow Jones Global Titans 50 Index rose 4.67% in March, closing at 173.61. Year-to-date, the index is down -0.03%.
Source: Mondovisione
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
