Global ETF News Older than One Year
BATS Global Markets Reports Record January
- BATS Exchange Earns More Than 10% Us Market Share, Sets Monthly Tape B Record - Bats Europe Eclipses Highs For Market Share, Notional Value
February 1, 2010 – BATS Global Markets, an innovative global
financial markets technology company, reports that BATS Exchange increased its US matched market
share in January to 10.2%, compared to 9.3% in December 2009, and set a new market share record in
Tape B securities with 16.6%.
BATS Europe, the fast-growing Multilateral Trading Facility (MTF), finished its best month to date with new market share records in the FTSE 100 (8.4%), FTSE 250 (5.9%), FTSE MIB (6.8%), DAX 30 (4.7%), SMI (3.6%), STOXX 50 (5.1%) and the overall European market (4.6%)
Source: BATS
SEC and UK FSA Hold Fifth Meeting of the SEC-FSA Strategic Dialogue
February 1, 2010--Today, Financial Services Authority (FSA) chairman Lord Turner and chief executive Hector Sants, and US Securities and Exchange Commission (SEC) chairman Mary Schapiro met as part of the SEC-FSA Strategic Dialogue.
The purpose of the Dialogue, which was established in 2006, is to engage at the senior levels of the two agencies on current matters affecting the US and UK capital markets and areas of future collaboration. This was the fifth meeting of the Dialogue. Some of the areas of mutual interest discussed during today's meeting included:
Corporate governance and executive compensation;
Regulation of hedge funds and investment advisors and the protection of customer assets;
Disclosure regimes around client asset risks;
Market infrastructure, particularly relating to central counterparties for OTC derivatives;
Market supervision;
Cooperation on cross-border supervision.
At the meeting, Schapiro, Turner, and Sants agreed that, given the linkages between the US and UK markets, enhanced supervisory cooperation is critical to market integrity. Cooperative efforts between the staffs of the two agencies are increasing in areas such as oversight of credit rating agencies, hedge fund advisers and the clearing of OTC derivatives. To facilitate this expanding cooperation, the two agencies plan to review the existing Memorandum of Understanding Concerning Consultation, Cooperation and the Exchange of Information Related to the Supervision of Financial Services Firms and Market Oversight, entered into by the SEC and the FSA in 2006. This memorandum of understanding is designed to promote the coordination of robust and sound supervision of cross-border financial institutions and markets.
Today’s Dialogue also provided the opportunity for the SEC and the FSA to continue discussions in the areas of corporate governance, particularly board risk oversight, and executive compensation. Consistent with the emerging international consensus, both agencies’ current efforts seek to address, among other things, the intrinsic links between the types and degree of risks regulated entities/registrants assume and their corporate governance and compensation policies.
FSA chief executive Hector Sants said,
“Global cooperation between regulators is central to tackling the reform agenda and the relationship between the FSA and the SEC is key for international markets. Our ongoing dialogue gives us the opportunity to widen the areas of cooperation between the FSA and the SEC, in particular progressing our collaborative work on hedge funds and credit rating agencies.”
SEC chairman Schapiro said,
“This Dialogue has proven its utility again in allowing the SEC and FSA to share expertise and experiences regarding the rapid changes occurring in our capital markets. As regulatory reform advances on both sides of the Atlantic, we can feed this combined body of knowledge into the development of high-quality regulatory systems that take into account both national and international market dynamics.”
Source: FSA
Eurex achieved 63.4 million contracts in its equity index segment – the largest product segment, compared with 70.2 million contracts the year before. Futures on the DJ EURO STOXX 50® Index stood at 26.6 million contracts and 23.5 million on the options o
ADV increased by 3 percent/ Significant growth year-on-year for Eurex’s interest rate derivatives segment
February 1, 2010--In January 2010, the international derivatives exchanges of Eurex Group recorded an average daily volume of 10.8 million contracts (Jan 2009: 10.5 million). Of those 7.0 million were Eurex contracts and 3.75 million contracts were at the U.S.-based International Securities Exchange (ISE). In total, 140.0 million contracts were traded at Eurex and 71.2 million at the ISE.
Eurex achieved 63.4 million contracts in its equity index segment – the largest product segment, compared with 70.2 million contracts the year before. Futures on the DJ EURO STOXX 50® Index stood at 26.6 million contracts and 23.5 million on the options of this index.
The equity derivatives (equity options and single stock futures) segment at Eurex recorded 36.8 million contracts (Jan 2009: 40.0 million). Thereof, equity options totaled at 28.8 million contracts and single stock futures another 8.0 million contracts. Dividend-based derivatives represented roughly 370,000 contracts.
The interest rate derivatives segment increased by 16 percent and achieved 39.6 million contracts (Jan 2009: 34.1 million). The Euro-Bund-Future reached 15.0 million contracts in January, the Euro-Bobl-Future 8.7 million contracts and the Euro-Schatz-Future 10.6 million contracts. The Euro BTP future – launched in September 2009 – totaled almost 100,000 contracts.
In January 2010, Eurex Repo reported growth in all markets. Its secured money market segment GC Pooling recorded an average outstanding volume of 78.7 billion euro, which is up 57 percent year-on-year. The EUR Repo market grew by 31 percent and totaled 95 billion euro. All Eurex Repo markets achieved an average outstanding volume of €181.1 billion, an increase of 19 percent year-on-year.
The electronic trading platform Eurex Bonds, which rounds out Eurex’s fixed-income product range, grew in January 2010 by 8 percent y-o-y and recorded a volume of €7.7 billion (single counting) compared to €7.1 billion the previous year. In December the figure was €5.2 billion.
Source: Eurex
Repo market to escape planned US bank levy
February 1, 2010--The Obama administration plans to exclude a crucial part of the financial system from a proposed levy on banks’ administration, officials disclosed on Monday.
Under the proposed financial crisis responsibility fee, banks would pay a fee of 15 basis points on all liabilities above $50bn (€36bn, £31bn) that are not already subject to an insurance premium paid to the Federal Deposit Insurance Corporation.
Source: FT.com
Islamic finance is likely to grow apace on broadening geographic reach in 2010
February 1, 2010--Just when many of the world's
financial systems have been working to weather the capital market turmoil and
its spread to economies around the globe, Islamic finance growth has stayed
strong and will likely be brisk during the next year, said Standard & Poor's
Ratings Services in a report "Islamic Finance Is Likely To Advance In 2010 On
Firm Growth And Widening Geographic Reach," published today on RatingsDirect.
"We believe Islamic finance has become a recognized and a specific segment of finance on its own with still-bright growth prospects," said Standard & Poor's credit analyst Mohamed Damak. "We think Islamic finance is set to make further inroads in developed Western markets while Southeast Asian countries will likely fuel the Islamic finance advance in Asia in 2010."
At the same time, though, we believe there are a number of important questions for which the answers are not necessarily yet clear but that may play a part in shaping the sector's future growth. Specifically in non-Muslim countries, and especially in Europe, we consider they include the size of demand for Sharia-compliant products, regulatory and tax environments, the support of the political and financial communities, sovereign sukuk issuance, and the possibility of a common strategy for extending Islamic finance across EU countries.
Assets of the top 500 Islamic banks expanded 28.6% to total $822 billion in 2009, compared with $639 billion in 2008, according to publicly available information.
Source: Standard & Poors
Global Pension Funds Rebound in 2009
February 1, 2010--Global institutional pension fund assets in the 13 major markets increased by 15% during 2009, from US$20 trillion to over US$23 trillion, according to Towers Watson’s Global Pension Assets Study released today. The growth is in sharp contrast to a 21% fall in asset values during 2008 and brought assets back to 2006 levels.
The study also reveals that the global pensions balance sheet[1] strengthened by around 10% in 2009, compared to a 25% fall in 2008. According to the study, pension assets now amount to 70% of the average global GDP, down from 76% a decade earlier, but substantially higher than the equivalent figure in 2008 of 58%.
Roger Urwin, global head of investment content at Towers Watson, said: “The global financial crisis was a huge wake-up call and problems of poor systemic design in the industry point to increased likelihoods of further periods of financial distress in future. While the recovery of markets will be welcomed, it is hoped that it will not stifle recognition of these as major issues for national governments and companies to address. I fear that without exceptional leadership we will have another tough decade in the pension and investment world.”
Other highlights from the report include:
Global asset data for the P13
On average global pension assets (measured in local currency) grew by over 16% in 2009, compared with an 11% fall in 2008, improving the ten-year average growth rate to almost 7% Despite losing market share in the past ten years the US, Japan and the UK remained the largest pension markets in the world, accounting for 57%, 14% and 8% respectively of total pension global fund assets
All countries saw significant growth in pension assets in 2009 (measured in local currency), except Japan which still has a negative five-year growth rate In terms of ten-year CAGR (in local currency terms), these are mostly positive, with Brazil (18%), Hong Kong (14%), the Netherlands (12%) and Australia (10%) having the highest and Japan (1%), Switzerland (2%), US (3%) and the UK (3%) having the lowest The Netherlands now has the largest proportion of pension assets to GDP (120%), followed by Switzerland (113%) and Australia (93%).
Asset Allocation for the P7
Bond allocations for the P7 countries increased from 25% in 2005 to 32% in 2008, but fell back to 27% in 2009. Allocation to equities rose significantly during 2009 to reach 54%
Other assets, especially real estate and to a lesser extent hedge funds, private equity and commodities, have grown from 12% to 17% in the last five years.
Roger Urwin said: “The gyrations of markets during the past few years has presented pension funds with very difficult strategic asset allocation choices. During the crisis, some funds sold out of equities to address solvency issues, some drifted out of equities and into bonds by not rebalancing, while others maintained their strategic mix and rebalanced to prior equity percentages. The result overall was a phase of de-risking, but not in a measured way and this has largely been reversed as equity markets have rebounded and risk allocations rebuilt.
Highly changeable market conditions in short periods of time will have caused serious disruptions for pension funds. In order to get back on track, they will be reviewing all options, including extra contributions from sponsors, contingent funding arrangements, investment strategy reviews, hedging strategies and pension insurance buy-ins, not to mention changes to benefits structures including fund closures.”
Defined Benefit (DB) vs. Defined Contribution (DC) for the P7
During the ten-year period from 1999 to 2009, the CAGR of DC assets was 6% against a rate of 2% for DB assets DC assets now comprise 42% of global pension assets compared with 32% in 1999
Australia has the highest proportion of DC pension assets, having increased them from 78% to 82% of overall assets between 1999 and 2009
The countries that show a larger proportion of DC assets than DB assets are the US, Australia and Switzerland while Japan and Canada are close to 100% DB.
Roger Urwin said: “As a result of the crisis there is a heightened awareness of the need to be better prepared in future and to think differently about how markets can be buffeted by extreme events. An important characteristic of this new environment is the acknowledgement by asset owners of much increased complexity and the recognition that the appropriate governance for a chosen investment strategy is critical. This will increasingly lead investors to either prioritising higher governance and allocate proportionate resources or simplifying their investment strategies to minimise cost and avoid value destruction. This will become all the more important as pensions and financial services regulators seek to spell out what governance standards funds should adhere to and their broader responsibilities. Funds in the past have had a very light touch applied on these issues, but the massive size and sphere of their influence make pension funds ripe for greater regulatory influence.”
view the Global Pension Asset Study 2010 report
Source: Towers Watson
IOSCO Quarterly Update – January 2010
January 29, 2010--Key Issues – Enforcement MMoU, Joint Forum, Audit Services, Emerging Markets, Unregulated Markets & Products, Annual Conference 2010.
IOSCO’s announcements and publications reflect its work in support of the organizations objectives:
The protection of investors
Ensuring that markets are fair, efficient and transparent;
The reduction of systemic risk
ource: IOSCO
January 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
Dow Jones Industrial Average Posts 2.24% Loss in JANUARY, European Stocks Lose 2.71%, Asia Falls 0.05% and World Equities Fall by 2.92%
Travel & Leisure Sector Posts Biggest Gain for January in Europe & Worldwide,
Telecommunications Takes the Hardest Hit for January in U.S.
January 27, 2010--As of January 26 the Dow Jones Industrial Average fell 233.75 points in January, closing at 10194.29. Stock market indexes in Europe, Asia and globally were down in January, according to preliminary monthly figures from global index providers, Dow Jones Indexes and STOXX Ltd.
The Dow Jones Industrial Average fell 233.75 points in January, closing at 10194.29. Month-to-date, the index is down 2.24%.
Measuring Europe, the Dow Jones STOXX 50 Index is down 70.02 points for January, closing at 2515.31. Month-to-date, the index is down 2.71%.
Measuring Eastern Europe, the Dow Jones STOXX EU Enlarged Total Market Index is up 3.19 points for January, closing at 210.69. Month-to-date, the index is up 1.54%.
The performance of the Dow Jones STOXX EU Enlarged 15 blue-chip index is up 31.16 points for January, closing at 2224.53. The index is up 1.42% so far this month.
The Dow Jones Asian Titans 50 Index fell 0.07 points in January, to 134.20. So far this month, the index is down 0.05%.
The Dow Jones Global Titans 50 Index fell 5.07 points in January, closing at 168.58. Month-to-date, the index is down 2.92%.
Source: Mondo Visione
M Stanley warns on ‘prop trading’ crackdown
January 27, 2010--US proposals to limit sharply proprietary trading by banks could cut earnings at global investment banks by 3-5 per cent, with JPMorgan, Bank of America and Deutsche Bank particularly at risk, new analysis by Morgan Stanley has found.
But the Morgan Stanley analysts were more bullish on US banks than their European counterparts because they believe the another big set of regulatory proposals – from global banking regulators based in Basel – will hit European banks harder than those in the US.
Source: FT.com
Fund industry wants ETF issues resolved, says SSgA
Regulatory uncertainty still clouds parts of the exchange-traded fund market, says a new report from State Street Global Advisors.
January 27, 2010--The exchange-traded funds market may be growing fast, but regulatory uncertainty remains over products such as commodity, inverse, leveraged and active ETFs. And there's pressure to get quick resolution on structural issues, says State Street Global Advisors (SSgA), the world's second biggest ETF provider.
Global ETF assets under management grew by 31% to $933 billion in the nine months to September 30, with the Asia-Pacific region accounting for $62 billion, or around 7% of the total, said SSgA in a report* published yesterday. But Asia-Pacific ETF assets are growing faster than those of any other region, having risen by 50% in the same period.
Source: Asian Investor
