Global ETF News Older than One Year
Investment banks gain by going with the flow
November 11, 2009--Another bank earnings season, another round of outrage about bonuses as institutions such as Goldman Sachs, JPMorgan Chase and Credit Suisse report bumper profits.
In spite of the usual seasonal slowdown as bankers decamp to summer hotspots such as the Hamptons and Sardinia, the top 13 global investment banks raked in $73bn in net revenues in the third quarter, according to research from analysts at Morgan Stanley.
Source: FT.com
ETF Landscape: Industry Review, end of Q3 2009
November 11, 2009--At the end of Q3 2009, global ETF assets hit an all time high of US$933Bn, 4.8% above the previous all time high of US$891Bn set in August 2009.
There were 1,819 ETFs with 3,247 listings from 96 providers on 40 exchanges around the world.
To request a copy of the report click here
Source:ETF Research and Implementation Strategy, BGI
Barclays Global Investors ETF Landscape Industry Preview - End Of October 2009
November 11, 2009--Highlights
Global ETF and ETP Industry 2009:
• Global Exchange Traded Products "ETP" AUM breaks through US$1 trillion - all time high.
• Global ETF assets have hit an all time high of US$942 bn at the end of October 2009 – 0.9% above the previous all time high of US$933 bn set in Q3 2009.
• At the end of October 2009 the Global ETF industry had 1,859 ETFs with 3,327 listings, assets of $941.85 billion, from 97 providers on 40 exchanges around the world.
• YTD assets have risen by 32.5% which is more than the 20.2% rise in the MSCI World index in USD terms.
• YTD the number of ETFs increased by 16.8% with 336 new ETFs launched, while 73 ETFs were closed.
• In Q2 the number of ETFs listed in Europe surpassed the US with 801 ETFs listed in Europe, compared to 732 in the US .
• There are currently plans to launch 805 new ETFs.
• YTD the number of exchanges with official listings decreased by three to 40.
• YTD the average daily trading volume in USD decreased by 7.7% to US$74.4 Billion.
• MSCI ranks 1st in terms of ETF AUM tied to their benchmarks with assets of US$222.66 Bn and 267 ETFs, while Standard & Poors (S&P) ranks 2nd with US$218.83 Bn and 229 ETFs, followed by Barclays Capital in 3rd with US$81.33 Bn and 62 ETFs.
• Globally, iShares is the largest ETF provider in terms of both number of products, 405 ETFs, and assets of US$455.72 Bn, reflecting 48.4% market share; State Street Global Advisors is second with 106 products and US$137.08 Bn, 14.6% market share; followed by Vanguard with 40 products and assets of US$80.76 Bn and 8.6% market share at the end of October 2009.
• Globally, net sales of mutual funds (excluding ETFs) were US$155.2 Bn, while net sales of ETFs were US$76.8 Bn during the first eight months of 2009 according to Strategic Insight.
• Additionally, there were 569 other ETPs (Exchange Traded Products)1 with assets of US$139.70 Bn from 40 providers on 19 exchanges.
• Combined, there were 2,428 products with 4,166 listings, assets of US$1,081.54 Bn from 124 providers on 43 exchanges around the world.
• FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the US , issued a regulatory notice in June 2009 to provide guidance on leveraged and inverse ETFs. The notice states that "...inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets...".
• The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued an Investor Alert on Tuesday 18 August 2009 entitled 'Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors'. The following is taken from the Alert: The SEC staff and FINRA are issuing this Alert because we believe individual investors may be confused about the performance objectives of leveraged and inverse exchange-traded funds (ETFs). Leveraged and inverse ETFs typically are designed to achieve their stated performance objectives on a daily basis. Some investors might invest in these ETFs with the expectation that the ETFs may meet their stated daily performance objectives over the long term as well. Investors should be aware that performance of these ETFs over a period longer than one day can differ significantly from their stated daily performance objectives.
• U.S. Commodity Futures Trading Commission (CFTC) held hearings on Energy Position Limits and Hedge Exemptions on July 28, July 29 and August 5, on whether federal position limits should be set on the energy markets. The hearings provided critical input from a wide range of industry participants and academics to the Commission's efforts to examine different approaches to regulate energy markets. The Commodity Exchange Act states that the Commission shall impose limits on trading and positions as necessary to eliminate, diminish or prevent the undue burdens on interstate commerce that may result from excessive speculation. The CFTC's hearings examined the role of position limits in energy markets in fulfilling the CFTC's mission to ensure the fair, open and efficient functioning of futures markets. Goldman Sachs, JPMorgan Chase and other leading banks are exempt from most commodity-trading limits in order to manage risks as they serve as market makers. The Commodity Futures Trading Commission is looking into whether those exemptions should stand, as it considers blanket limits on a variety of commodity markets. A number of ETPs/ ETFs providing exposure to commodities have recently issued notices that they have suspended their creation process.
US ETF and ETP Industry 2009:
• US ETF assets have hit an all time high of US$640 Bn at the end of October 2009 which tops the previous all time high of US$631 Bn set in Q3 2009.
• At the end of October 2009 the US ETF industry had 732 ETFs, assets of $639.58 billion, from 25 providers on 3 exchanges.
• 29 January 2009 marked the 16th anniversary of ETFs in the US .
• YTD assets have risen by 28.7%, which is more than the 15.3% rise in the MSCI US index in USD terms.
• YTD the number of ETFs increased by 4.9% with 75 new ETFs launched, while 42 ETFs were delisted.
• YTD the average daily trading volume in US dollar has decreased by 10.3% to US$69.1 Bn.
• iShares is the largest ETF provider in terms of both number of products, 183 ETFs, and assets of US$341.21 Bn, reflecting 53.3% market share; State Street Global Advisors is second with 87 products and US$126.12 Bn, a 19.7% market share; followed by Vanguard with 39 products, assets of US$80.72 Bn and 12.6% market share at the end of October 2009.
• In the US , net sales of mutual funds (excluding ETFs) were minus US$47.1 Bn, while net sales of ETFs domiciled in the US were positive US$55.1Bn in the first eight months of 2009 according to Strategic Insight.
• Additionally, there were 137 other ETPs (Exchange Traded Products) with assets of US$78.86 Bn from 18 providers on 1 exchange.
• Combined, there were 869 products with assets of US$718.44 Bn from 39 providers on 3 exchanges in the US.
European ETF and ETP Industry 2009:
• European ETF assets have hit an all time high of US$206 bn at the end of October 2009 which is 0.6% above the previous all time high of US$204 bn set in Q3 2009 and 28.6% above the high of US$160 bn recorded in July 2008.
• At the end of October 2009 the European ETF industry had 801 ETFs with 2,001 listings, assets of $205.54 Bn, from 32 providers on 18 exchanges.
• 11 April 2009 marked the ninth anniversary of ETFs in Europe.
• YTD assets have risen by 44.2%, which is greater than the 25.5% rise in the MSCI Europe index in USD terms.
• YTD the number of ETFs increased by 26.7% with 193 new ETFs launched.
• YTD the number of exchanges with official listings decreased by three to 18.
• YTD the average daily trading volume in US dollar has increased by 34.0% to US$3.0 Bn. Most ETF trades are not required to be reported in Europe as ETFs are not covered by the European Union directive on markets in financial instruments (MiFID).
• iShares is the largest ETF provider in terms of both number of products, 168 ETFs, and assets of US$80.20 Bn, reflecting 39.0% market share; Lyxor Asset Management is second with 118 products and US$41.94 Bn, 20.4% market share; followed by db x-trackers with 113 ETFs and assets of US$34.53 Bn and 16.8% market share at the end of October 2009.
• In Europe net sales of mutual funds (excluding ETFs) were US$174.7 Bn while net sales of ETFs domiciled in Europe were US$23.6 Bn during the first eight months of 2009 according to Lipper FMI.
• Additionally, there were 150 other ETPs (Exchange Traded Products) with assets of US$17.96 Bn from 5 providers on 6 exchanges.
• Combined, there were 951 products with assets of US$223.51 Bn from 33 providers on 18 exchanges in Europe.
To request a copy of the report click here
Source:ETF Research and Implementation Strategy, BGI
BlackRock’s Fink Says ‘Record’ Cash Going Into Funds
November 10, 2009--BlackRock Inc. Chief Executive Officer Laurence Fink said his firm was hired to manage assets for Swiss Reinsurance Co. and other institutions as investors are moving “record” amounts of funds out of cash.
BlackRock gathered $3 billion from an unnamed institutional investor in Denmark and may get $11 billion from an undisclosed client, Fink said today at an event in New York organized by the Wall Street Journal. He didn’t say how much his firm manages for Swiss Re, the world’s second-largest reinsurer.
Source: Bloomberg
NASDAQ Announces End-of-month Open Short Interest Positions In NASDAQ Stocks As Of Settlement Date October 30, 2009
November 10, 2009--At the end of the settlement date of October 30, 2009, short interest in 2,430 NASDAQ Global Market(SM) securities totaled 6,187,719,999 shares compared with 6,196,860,577 shares in 2,432 Global Market issues reported for the prior settlement date of October 15, 2009. The end-of-October short interest represents 2.95 days average daily NASDAQ Global Market share volume for the reporting period, compared with 2.70 days for the prior reporting period.
Short interest in 465 securities on The NASDAQ Capital Market(SM) totaled 173,705,058 shares at the end of the settlement date of October 30, 2009 compared with 172,054,929 shares in 454 securities for the previous reporting period. This represents 1.70 days average daily volume, compared with the previous reporting period's figure of 1.65.
In summary, short interest in all 2,895 NASDAQ(R) securities totaled 6,361,425,057 shares at the October 30, 2009 settlement date, compared with 2,886 issues and 6,368,915,506 shares at the end of the previous reporting period. This is 2.89 days average daily volume, compared with an average of 2.65 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.
Source: NASDAQ OMX
Financial Stability Board Releases Reports Submitted to the G20
November 7, 2009-The Financial Stability Board (FSB) is publishing today four reports submitted to G20 Finance Ministers and Central Bank Governors.
(i) Progress since the Pittsburgh Summit in Implementing the G20 Recommendations for Strengthening Financial Stability
This updates the progress reportmade to the Pittsburgh Summit in September, and includes a description of the actions to date to implement the policy measures for improving financial regulation set out by the FSB in Pittsburgh. The areas on which it provides updates include:
- Building high quality capital and mitigating pro-cyclicality;
- Strengthening accounting standards;
- Reforming compensation practices to support financial stability;
- Improving over-the-counter derivatives markets;
- Addressing cross-border resolutions and systemically important financial institutions;
- Strengthening adherence to international supervisory and regulatory standards.
(ii) Exit from extraordinary financial sector support measures
This note reviews policies to withdraw from exceptional financial support measures. Exit policies in this area should be pre-announced, flexible, transparent and credible. Although decisions on the timing of withdrawal of measures will depend on judgements on the strength of national financial systems, there are gains from advanced information exchange between countries and from stronger forms of co-ordination where cross-border spillover effects are potentially significant.
The note includes a report by the staffs of the International Association of Deposit Insurers and the International Monetary Fund (IMF) on strategies to unwind temporary deposit insurance arrangements.
This report by the IMF, Bank for International Settlements and FSB responds to a request made by the G20 Leaders in April 2009 to develop guidance on this subject for use by national authorities. It outlines conceptual and analytical approaches to the assessment of systemic importance and discusses a possible form for general guidelines that would be sufficiently flexible to apply to a broad range of countries and circumstances.
(iv) The Financial Crisis and Information Gaps
This report by the staff of the IMF and the secretariat of the FSB identifies information gaps and sets forth proposals for strengthening data collection to better capture the build-up of risk in the financial sector, improve data on international financial network connections, monitor the vulnerability of domestic economies to shocks, and improve the communication of official statistics.
Source: Financial Stability Board
Mobile Edition Of NASDAQ.com Is Launched At http://mobile.nasdaq.com
November 9, 2009--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) has launched a mobile web version of NASDAQ.com, the world's most popular stock exchange web site, which draws about 2.4 million unique visitors per month. NASDAQ is the world's first major stock exchange to offer free access to information on all web-enabled mobile devices and smartphones. At http://mobile.nasdaq.com, users have access to real-time stock quotes, breaking news, charts, commentary and features such as Guru Analysis -- which empowers users with simulated investment philosophies of several world-renowned investors.
"Investors now have instant access to a wealth of market information on NASDAQ.com from any location," said John Jacobs, Executive Vice President, NASDAQ OMX. "This is another step in our continuing efforts to meet greater demand for timely information and to promote market transparency."
The mobile edition of NASDAQ.com is powered by mDog.com, the world's most comprehensive destination for mobile search, mobile web browsing, and mobile blogging.
"We're thrilled to be working with NASDAQ," said Keith Gerard, Founder of mDog.com. "Powering the mobile initiatives of NASDAQ is a testament to our technology's ability to comprehensively render data in real-time for one of the world's premier stock exchanges."
The launch of the mobile web version follows another recent enhancement to www.nasdaq.com. NASDAQ OMX announced the introduction last week of NASDAQ Community, an engaging and interactive financial networking community, on http://community.nasdaq.com.
NASDAQ OMX has long been a technology leader and innovator in market information. In 1996, NASDAQ became the first stock market to create its own website. In 2008, NASDAQ became the first U.S. stock exchange to help provide millions of investors with immediate and free web access to real-time market data.
Source: NASDAQ OMX
Study finds overseas listing of futures contracts benefits home
October 9, 2009--A study by the Capital Markets Cooperative Research Centre has found
that trading in overseas-listed futures contracts benefits both the index futures as well as its
component stocks in the home exchanges.
This is the first study to examine how the trading activities of the home markets are affected by the additional listing of a similar index future in a foreign market. Singapore Exchange Limited (SGX) was chosen as “it provides an ideal experimental setting for examining the relationship between cross-border exchanges, as it is a satellite hub that facilitates the trading of numerous dual-listed financial derivatives,” said Professors Alex Frino and Frederick H. deB. Harris and Mr Wong Jin Boon in their paper, entitled “The relationship between satellite market and home market volumes: evidence from cross-listed Singapore futures contracts.”
Source: Capital Markets
NASDAQ OMX Announces Third Quarter 2009 Results - Non-GAAP Diluted EPS $0.42 (GAAP Diluted EPS $0.28)
November 5, 2009--The NASDAQ OMX Group, Inc. ("NASDAQ OMX(R)") (Nasdaq:NDAQ) today reported net income attributable to NASDAQ OMX of $60 million, or $0.28 per diluted share, for the third quarter of 2009 compared with net income attributable to NASDAQ OMX of $58 million, or $0.27 per diluted share, in the third quarter of 2008, and net income attributable to NASDAQ OMX of $69 million, or $0.33 per diluted share, in the second quarter of 2009.
For comparison purposes, results for the second and third quarters of 2009 are presented on a non-GAAP basis and exclude merger expenses, losses on the sale of investments, a debt conversion expense, and certain other non-recurring items. Results for the third quarter of 2008 are presented on a pro forma non-GAAP basis that reflect the financial results of NASDAQ OMX and the Philadelphia Stock Exchange as if they were a combined company for the period presented and exclude merger expenses and certain other non-recurring items. A complete reconciliation of GAAP results to non-GAAP and to pro forma non-GAAP results is provided as an attachment.
For the third quarter of 2009, net income attributable to NASDAQ OMX on a non-GAAP basis was $89 million, or $0.42 per diluted share, a decrease of 18%, when compared to pro forma non-GAAP net income attributable to NASDAQ OMX of $108 million, or $0.51 per diluted share, for the third quarter of 2008, and a decrease of 10% when compared to non-GAAP net income attributable to NASDAQ OMX of $99 million, or $0.47 per diluted share, for the second quarter of 2009.
Items excluded from third quarter 2009 non-GAAP results are:
$25 million in debt conversion expense associated with the inducement provided to Silver Lake and another holder to convert their 3.75% convertible notes into common stock; $16 million in pre-tax expenses associated with asset retirements, workforce reductions, and other non-recurring items; and, $5 million in pre-tax merger expenses. "As stated throughout this year, we've targeted organic growth initiatives designed to bring transparency and innovation to the markets and are pleased to see several of these strategic initiatives gain traction," commented Bob Greifeld, NASDAQ OMX's Chief Executive Officer. "The growth of the BX market has established it as the most successful new trading venue, as it now averages more than 3.5% of the U.S. cash equities market. The recent move to a positive fee structure at BX follows a similar move at The NASDAQ Options Market, with the combined actions expected to make significant contributions to our results. And in our Market Technology business we are excited that the Osaka Securities Exchange and the Kuwait Stock Exchange each selected NASDAQ OMX as their strategic technology partner. We will continue to be innovative and use our technology leadership to bring new, creative market solutions to our trading community and to our exchange partners around the world."
Highlights
Continued expansion of the Market Technology business following its selection as the strategic technology provider to the Osaka Securities Exchange (OSE) and the Kuwait Stock Exchange (KSE). OSE, the premier Japanese derivatives and securities exchange, is the second major customer in Japan to choose NASDAQ OMX as a technology partner within the past 18 months. As part of the agreement with KSE, NASDAQ OMX will deliver technology for trading, surveillance and market data. KSE marks NASDAQ OMX's eleventh technology partner in the Middle East region. Additionally, NASDAQ OMX and BM&FBOVESPA continue their discussions regarding possible technology cooperation agreements.
Enjoyed continued growth in volume and market share at NASDAQ OMX BX (BX), as the market now regularly trades approximately 350 million shares per day with market share of U.S. cash equity trading in excess of 3.5%. In the month of October, market share for The NASDAQ Stock Market grew to 21.1% while BX grew to 3.7%, for a combined market share of 24.8%.
Captured a total of 35 new listings during the third quarter of 2009, including 33 on The NASDAQ Stock Market and 2 on the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic. Included in new listings are 12 IPOs and 7 companies that switched their listing to NASDAQ from exchanges operated by NYSE Group. Switches include Mattel, R.R. Donnelley & Sons, and TriMas Corporation. NASDAQ OMX also recognized 135 secondary offerings during the quarter, up from 110 in the first two quarters of 2009.
Launched central counterparty clearing in the NASDAQ OMX Nordic exchanges in Copenhagen, Helsinki, and Stockholm through a partnership with EMCF (European Multilateral Clearing Facility in October 2009. The introduction of central counterparty clearing in the Nordic equity markets is part of NASDAQ OMX's strategy to increase market liquidity by introducing a competitive market structure that is accessible to new participants.
Grew Nordic derivatives volumes during the quarter. Contributing to growing volume is the transition of volumes from the London Stock Exchange's EDX system into the NASDAQ OMX derivatives markets and clearinghouse. This transition is expected to be completed by year-end 2009.
Witnessed renewed volume growth in our European power markets, with total cleared carbon contracts up more than 50% from the second quarter of 2009.
Announced plans to launch a third equity trading platform during 2010, pending SEC approval. NASDAQ OMX expects to offer this equity trading platform with a new price/size priority model using the license acquired from its 2008 acquisition of the former Philadelphia Stock Exchange, known today as NASDAQ OMX PHLX.
Introduced next generation trading technology through the rollout of new enhancements and upgrades to INET, NASDAQ OMX's core trading technology platform. Recognized as the most sophisticated trading technology in the world, INET is the common technology utilized across NASDAQ OMX's U.S. and European markets. It also serves as the backbone for GENIUM, NASDAQ OMX's commercial exchange technology offering.
Announced plans to establish a new listing market, pending SEC approval, for companies that do not presently qualify for an exchange listing. The new listing market will be a modern venue for companies that aspire to list on, or return to, The NASDAQ Stock Market.
Continued the development of International Derivatives Clearing Group, an independently operated NASDAQ OMX subsidiary that operates a designated clearing organization for clearing and settling interest rate swap futures contracts and other fixed income derivatives contracts. More than 20 counterparties have submitted in excess of $850 billion in notional value into the clearinghouse to test systems and internal processes.
Reduced total principal amount of debt obligations by $232 million in the third quarter of 2009, bringing the total year-to-date reduction to $452 million. Actions during the third quarter of 2009 include repaying $113 million in principal on $2.0 billion term loan and converting $119 million of 3.75% convertible notes held by Silver Lake and another holder into common equity.
"During the third quarter, NASDAQ OMX continued to execute on a key priority of lowering total debt obligations," noted Adena Friedman, Chief Financial Officer. "Through principal debt payments, repurchases of convertible notes, the conversion of convertible notes, as well as other actions, we have been able to reduce total debt obligations by approximately $452 million this year alone. Looking forward, we will continue to maintain the same financial discipline that has provided NASDAQ OMX with the flexibility needed to compete effectively. For the full year of 2009, we are updating our guidance for total operating expenses to be in the range of $840 million to $850 million, including approximately $50 million in non-recurring costs."
For more info visit NASDAQ OMX
Source: NASDAQ OMX
Fraud lawyers and investment professionals to launch asset recovery fund
November 5, 2009--A team of global commercial fraud lawyers and investment professionals is launching a USD150m investment fund, named Echemus, to underwrite the investigation, seizure and recovery of worldwide assets for victims of fraud.
The team is led by Martin Kenney, a renowned commercial fraud lawyer and asset recovery specialist currently engaged in unwinding billions of dollars connected to the Bernard Madoff investment scheme.
Kenney will serve as managing director of the fund and will oversee all of its investigation, collection and litigation activities.
The International Monetary Fund estimates that purportedly fraudulent, "black transactions" account for five to ten per cent of the world’s gross domestic product each year, and data from the International Chamber of Commerce shows more than USD1bn in high-value commercial fraud is reported every month worldwide.
Source: ETF Express
