FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Deutsche Börse exclusive licensor of BSE (Bombay Stock Exchange) market data to international clients

Deutsche Börse will be exclusive licensor of BSE market data to international clients New partnership gives market participants easier access to market data and information products of both exchange groups Deutsche Börse Market Data + Services and BSE today announced a partnership under which Deutsche Börse will act as the exclusive licensor of BSE market data and information products to all international clients. The new cooperation will benefit existing and potential customers by giving them access to both exchanges’ market data products under a single license agreement. A signing ceremony was held in Frankfurt on 2 October 2013.

The partnership also allows Deutsche Börse to deepen its client service capabilities in important Asian markets such as India, as well as strengthen the strategic alliance between the two exchanges.

“By partnering with BSE we give customers access to the full suite of real-time, delayed and end-of-day data products offered by both exchanges under a single license agreement. This approach meets clients’ market data needs while reducing their administrative requirements and increasing overall efficiency,” said Georg Gross, Head of Front Office Data + Services, Deutsche Börse.

“BSE is once again happy to partner with Deutsche Börse as this will enhance BSE’s visibility with international clients in the area of market data and information products. BSE will also get access to the innovative product development expertise of Deutsche Börse, which shall help BSE to provide an improved customer experience,” said Balasubramaniam Venkataramani, Chief Business Officer, BSE Ltd.

Under the new cooperation, Deutsche Börse will be responsible for sales and marketing of all BSE market data products to customers outside of India, while BSE continues to serve its domestic clients. Deutsche Börse will also share joint responsibility for product development and innovation, which includes extending its existing and the creation of new market data solutions and infrastructure to support BSE’s product offerings.

Products covered under the cooperation agreement include Real-time, Delayed and End-of-day data for BSE’s Equity and Derivatives markets, corporate data such as Results, Announcements, Shareholding Patterns and Corporate Actions as well as Real-time and Delayed Indices.

This market data agreement also further strengthens the cooperation between Deutsche Börse and BSE that began earlier this year. In March 2013, the two exchanges announced a long-term technology partnership in which BSE will deploy Deutsche Börse Group’s trading infrastructure.

Source: Bobsguide, 07.10.2013

Filed under: Data Management, Data Vendor, Exchanges, India, Market Data, , , , , , , , , ,

Derivatives: Struggling Into the New Era – Outlook 2013/14

The past few years have been challenging for the global economy but it seems as though the derivatives industry sustained more than its share of insults and injuries over the past year or so. Still reeling from the trauma of MF Global in October of 2011, exchange-traded volume went into its first nosedive in decades.

Urgent regulatory requirements added intense cost and time pressures to company staffs that were already stretched. A non-clearing FCM, Peregrine Financial, collapsed in scandal. OTC derivatives struggled with complex regulatory mandates and weak volume.

Perhaps the only positive for the year was that mergers and acquisitions at both the macro and micro level imply that innovation and creativity are still powerful industry drivers. That in turn suggests that the creative dynamism that has characterized the derivatives industry for so many years still has some innings to go.

Read the detailed report about Derivatives market outlook, challenges and issue of big deals, exchange mergers and new start ups, customer protection, Regulatory,Extraterritorial and Tax problems  and more. 

Source: WEF 25.04.2013 by Nicolas Ronalds

Filed under: Asia, Brazil, Exchanges, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Thomson Reuters to Open Up RICs for Consolidated Feeds Under EC Settlement

The European Commission has ended its lengthy enquiry into Thomson Reuters’ licensing policies for Reuters Instrument Codes (RICs), accepting commitments from the company that will create a more fluid market for real-time consolidated data feeds. The deal creates a new environment for Thomson Reuters as it finds itself competing in an increasingly open market.

The company welcomed the Commission’s decision – perhaps on the basis of the end of the enquiry rather than the commitments it must stick to – and was quick to point out that its new licensing commitment is consistent with the move it made in June 2012 to make RICS available foruse with non-real-time information in client and non-client financial institutions’ trade processing systems. At that time, Thomson Reuters’ then-Enterprise content chief Gerry Buggy, described the move as the “first step in supporting the financial community’s symbology needs across all parts of the trading life cycle through our evolving symbology services.”

The Commission made its decision to end the enquiry after accepting commitments put forward by Thomson Reuters in May 2012 that were then market tested with a third-party comment period running until August 2012. The commitments have been made legally binding, with the key outcomes being that Thomson Reuters’ customers can continue to use RICs in real-time applications after they have switched to an alternative real-time consolidated data feed provider and use RICs in combination with the alternative provider’s data.

Commenting on the Commission’s decision, Commission vice president of competition policy, Joaquin Almunia, says: “Information plays a key role in ensuring that financial markets operate in a healthy and efficient way. In order to correctly assess investment opportunities, market participants need to access accurate and timely financial data, for example through consolidated real-time data feeds. The commitments offered by Thomson Reuters will enhance competition in this market. Financial institutions that use RICs will now be able to switch to alternative providers more easily.”

Responding to the Commission’s decision to adopt Thomson Reuters’ commitments, David Craig, president of Financial & Risk at the company, says: “Following a detailed examination of the facts, the Commission accepted our proposal without any finding of infringement of EU competition law by Thomson Reuters. We now look forward to continuing to work with our customers to bring world-class, real-time data feed and symbology solutions to market.”

In essence, Thomson Reuters’ commitments allow customers to license additional RICs usage rights for the purpose of switching data vendors and to use RICs for retrieving data from other providers against a monthly licence fee. The company will also provide customers with the necessary information to map RICs to alternative symbology, and allow third parties to develop and maintain switching tools that allow RICs and rival services to interoperate by mapping RICs to the financial identifiers of other data feed providers. Third-party developers can use and keep RICs in their switching tools on payment of a monthly licence.

If the Commission’s decision is favourable for users of consolidated real-time data feeds, it must also be of great interest to their suppliers, with 2013 promising to be both a battleground and a peace mission as suppliers struggle to maintain market share while responding to market demand for more open symbology solutions.

Source: Reference Data Review, 20.12.2012

Filed under: Data Management, Data Vendor, Reference Data, , , , , , , ,

HKEx completes LME acquisition

Hong Kong Exchanges and Clearing Limited (HKEx) and LME Holdings Limited (LME Holdings), the parent company of The London Metal Exchange Limited (LME), are pleased to announce that the acquisition of the entire issued ordinary share capital of LME Holdings by HKEx has completed today.

Completion was effected by the delivery of the relevant court orders to the Registrar of Companies for England and Wales.

The transaction brings together the leading operator of exchanges and clearing houses in Asia, with the world’s leading non-ferrous base metals trading venue.

Charles Li, Chief Executive of HKEx said, “We are delighted that, as of today, the LME is formally part of the HKEx group. We are confident that this partnership will deliver enormous benefits over time as we leverage our relationships and knowledge to build on LME’s strong global position.”

Martin Abbott, Chief Executive of the LME said, “The LME will remain the world’s foremost base metals exchange thanks to HKEx’s position in Asia, its infrastructure and resources. We begin a new chapter today but the LME is more secure than at any point in its 135-year history.”

Source: Finextra, 06.12.2012

Filed under: Exchanges, Hong Kong, Services, , , , , , , ,

What’s Wrong With The Global Banking System

Robert Mazur, the U.S. Customs special agent who led one of the most successful undercover operations in U.S. law enforcement history, gave us some insight into international money laundering and said the Federal Reserve needs to do more to help.

In the 1980s Mazur spent five years infiltrating the highest circles of Colombia’s drug cartels as a money launderer, transforming more than $34 million in cocaine cash into traceable, paper-trailed bank transactions under the pseudonym Bob L. Musella.

His book, The Infiltrator: My Secret Life Inside the Dirty Banks Behind Pablo Escobar’s Medellín Cartel, explains how “Operation C-Chase” led to the indictment of 85 individuals – including several officials affiliated with the then-seventh largest privately-held bank in the world, the Bank of Credit and Commerce International (BCCI)—and the conviction of General Manuel Noriega.

Now he is on a mission to “share information with the public about how this money laundering activity has engulfed the will of the financial institutions of the world.”

Mazur says that “the international community is today doing the same thing that BCCI and their officers were doing 20 years ago”—citing the HSBC money-laundering scandal and the tax havens of the super-rich—and told BI that the problem is much larger than the estimated $2.1 trillion that crime generates each year.

“What [the corrupt bankers at BCCI] did was market flight capital, and they identified it as basically money seeking secrecy from governments,” Mazur said. “Yes it does include the items that the $2.1 trillion identifies but it’s bigger than that because there are times that you take legal money and use it for an illegal purpose, and that money is as big if not bigger than the illegal money.”

He calls the practice “a major moneymaker for the banking world” and cites the Standard Chartered scandal, in which bankers “took $250 billion worth of basically legal money and used techniques to hide from governments the fact that the money was being moved in these otherwise-legal transactions on the behalf of sanctioned nations, including Iran.”

He said the HSBC ruling listed six or seven methods “traditionally used by banks in a big way facilitate relationships with people who want to hide money from governments” and explained that bankers provide these services “to entice these people to bank with them” so that the bank is able to increase their deposits.

Mazur said that banking regulators are “not as focused on the issue of criminal conduct as they are on … making sure that the institution itself stays healthy” so investigations take years and result in a lengthy report.

There’s nothing built in the system to engage criminal investigations up front,” Mazur said.” They always come in a very rusty state after they’ve been played with by the regulators. By then everyone’s built in their plausible deniability and it’s a very difficult task to expect the investigators to then come up with the intent evidence,” which is essential for criminal prosecution.

He added that the current regulatory process ignores the fundamental problem, which is that “there are two brains in a bank—there’s this profit brain that’s motivated by earning money … and then we have a compliance department and their whole agenda has nothing to do with profit, it has to do with identifying risk and minimizing it. But when the compliance and the sales brain meet, upper management sides with sales because that’s their gig too—profits. And there has to be a way to try to begin to change that chemistry of the interaction of the two brains.”

One straightforward ways to do that, according to Mazur, would be to crack down on bankers who solicit shady business—like the ones at HSBC—by putting a few “behind bars for a very long period of time” instead of just giving them a fine.

Another simple way is to require the Federal Reserve to share information about member banks who are in the bulk bank note business. If regulators and prosecutors knew which institutions were moving much larger amounts of money through wire transfers (which the Fed tracks), they would know where to focus investigations or covert-type operations.

“You’re honing down all your information to go after, proactively, the institutions most involved in moving this type of money,” Mazur said. “It’s not complicated but the Federal Reserve doesn’t give that information out freely and that’s something that needs to change.”

He noted that concerned individuals in the military, law enforcement and intelligence community have accessed more of that information in the last 2 years than ever before, but emphasized that more has to be done.

“That’s one of the barriers that’s slowly crumbling, and it’s an important barrier to wind up crumbling, but it’s not completely accessed,” Mazur said.

Filed under: Banking, Colombia, Latin America, Mexico, Risk Management, , , , , , , , , , , ,

Latin America: Investors Newsletter 15 June 2012

Petrobras Is Worst Big Oil Investment on Deepwater Disappointments: Energy   Petroleo Brasileiro SA is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade.

Iusacell, Telefonica to challenge Mexico’s Slim America Movil  – Iusacell and Spain’s Telefonica said on Wednesday they have reached a deal to share their infrastructure in Mexico as they seek to mount a

FX swings may stir debt investors in Mexico, Peru  Mexico, Peru debt mkts most vulnerable to outflows in Latam. * Peru acting to curb FX, Mexico avoiding intervention.

Mexico’s Slim family (Grupo Carso) takes stake in Argentina YPF nationalized enegy company Mexican tycoon Carlos Slim and his family have taken a stake in Argentina’s recently renationalized energy company YPF in lieu of a loan guarantee, ..

Filed under: Argentina, Brazil, Energy & Environment, Latin America, Mexico, News, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

Market Data Technology to Hit $3.6B in 2012

Demand for market data acceleration is driving the global investment in sell-side, market-data distribution technology in 2012 to $3.6 billion, according to a report released by the Tabb Group.

The report, Market Data Acceleration: More than Just Speed, also predicts 4.5% compound annual growth in these investments for the next three years based on expected growth in FX, Derivatives and Commodities as well as movement by Asian markets towards automation.

The largest segment of this investment, 73%, will come from Europe and North America, but according to Tabb Group, there’s considerable growth potential from the Asian markets.

Moreover, while the equities markets are matured from a growth perspective, driving 45% of the global spend, a strong percentage of growth will come from over-the-counter (OTC) derivatives, FX and commodities.

According to the report, market data is an area where performance can play a crucial role for a host of trading activities. Obtaining, decoding and utilizing market data in a timely and efficient manner are no longer the purview of the ultra-low-latency firms; everyone involved needs to be able to get at market data in as timely a fashion as possible.

“This is not to say that everyone needs to be at the ‘tip of the spear’; however, it does mean that anyone who is actively involved in trading needs to be moving in that direction,” said the report.

However, according to the research firm, firms are struggling with conflicting pressures of the “need for speed” in comparison to the “need to save,” as they try reconcile price with performance.

“Market participants need to ensure that their investment in speed gets them more than just a solitary solution for a single platform,” said Tabb partner and report writer Alexander Tabb in a statement.

Different firms, according to Tabb, have different strategies, thus different needs. Whether a firm is a high frequency trader, an institutional market maker, or an algo-trading desk, the challenge is placing speed into its proper context within the accelerated market data equation.

“Due to the democratization of speed, it’s essential for every buyer to remember to factor in total cost of ownership, price versus performance, operational flexibility, control, scalability and time-to-market,” says the report.

Source: Securities Technology Monitor. 23.04.2012

Filed under: Data Management, Data Vendor, Market Data, , , , , , , , , , ,

Brazil mysterious interest rate cuts & proposed Euro Rescue package… cause to worry?

Who sets interest rates in Brazil: Is it Central Bank President Alexandre Tombini or the country’s President, Dilma Rousseff? That question hung over financial markets after the Central Bank of Brazil cut the benchmark Selic interest rate by half a point, to 12 percent, on Aug. 31. The move was unexpected: The bank’s rate-setting committee had ratcheted up the Selic at its five previous meetings to combat inflation and had not signaled a change in its stance. Yet Rousseff in an Aug. 30 radio broadcast had said rates should begin to fall as the government curbs spending.

(Interestingly a week later Guido Mantega, Brazil’s finance minister, suddenly proposed a “Bric” rescue package for the eurozone this week, he caught not only other world leaders by surprise but also many of his fellow countrymen.

Even as officials from other members of the so-called Bric grouping – Russia, India and China – said it was the first they heard of the idea, many ordinary Brazilians expressed shock at the notion of bailing out the world’s richest trading bloc. FT 16.09.2011)

The abruptness of the shift in monetary policy left money managers such as Guilherme Figueiredo, director of M. Safra, a São Paulo investment firm, with the impression that Tombini had caved in to political pressure. “This is the worst possible decision our central bank could have made at such a moment,” Figueiredo says. “The loss of credibility is going to be large.” Rousseff’s press office declined to comment when asked about the rate decision.

New data indicate that Tombini may have acted prematurely. On Sept. 6, Brazil’s statistics agency said inflation accelerated to an annualized 7.23 percent in August—its fastest pace since 2005 and well above the 6.5 percent upper end of the target range set by monetary authorities for the full year. In an Aug. 31 statement the central bank defended the rate cut, saying it will help shield the economy from the effects of a “substantial deterioration” in the world growth outlook.

It’s true that Brazil shows signs of cooling. The central bank’s economic activity index shrank in June for the first time since 2008, and business confidence in the second quarter slid to its lowest level since 2009. Economists expect growth to slow to 3.7 percent this year, from 7.5 percent in 2010.

Finance Minister Guido Mantega has pledged that the government won’t resort to fiscal stimulus to spur the economy. Whether Rousseff, who took office on Jan. 1, can discipline the spending habits of the multiparty ruling coalition remains an open question, however. Congress rebelled against her first attempts at frugality by proposing bigger salaries for police officers and an increase in health-care spending. Cutting rates in these circumstances “is really risky, with inflation building and wages set to rise,” says Elson Teles, chief economist at Maxima Asset Management in Rio de Janeiro. The central bank is “weighing such subjective things like whether there’s going to be another global recession. What if it doesn’t happen?”

The bottom line: Brazil’s central bank may have bowed to government pressure for a rate cut, endangering its goal of containing inflation.

Source: Bloomberg, 08. 09.2011is a reporter for Bloomberg News.  Ragir   Bristow is a reporter for Bloomberg News.

Filed under: Brazil, News, Risk Management, , , , , , , ,

ETF Industry Highlights – April 2011 – BlackRock

Global ETF and ETP industry:

Record April net inflows with US$25.3 Bn.

Record YTD net inflows in the first four months with US$67.2 Bn through the end of April 2011.

The global ETF industry had 2,670 ETFs with 6,021 listings and assets of US$1,469.8 Bn, from 140 providers on 48 exchanges around the world at the end of April 2011. This compares to 2,189 ETFs with 4,354 listings and assets of US$1,113.1 Bn from 122 providers on 42 exchanges, at the end of April 2010.

The global ETF and ETP industry combined, had 3,819 products with 7,893 listings, assets of US$1,670.9 Bn from 176 providers on 52 exchanges around the world. This compares to 2,967 products with 5,453 listings, assets of US$1,295.1 Bn from 150 providers on 44 exchanges, at the end of April 2010.

United States ETF and ETP industry:

Record April net inflows with US$22.4 Bn.
Record YTD net inflows in the first four months with US$51.5 Bn through the end of April 2011.
The ETF industry in the United States had 972 ETFs and assets of US$997.3 Bn, from 29 providers on two exchanges at the end of April 2011. This compares to 839 ETFs and assets of US$764.0 Bn, from 28 providers on two exchanges at the end of April 2010.
US$22.4 Bn of net new assets went into United States listed ETFs/ETPs in April 2011. US$16.7 Bn net inflows went into equity ETFs/ETPs, of which US$9.8 Bn went into ETFs/ETPs tracking US equity indices and US$3.5 Bn went into ETFs/ETPs tracking emerging markets equity indices. Fixed income ETFs/ETPs saw net inflows of US$2.9 Bn, of which US$0.7 Bn went into corporate bond ETFs/ETPs and US$0.6 Bn went into Government bond ETFs/ETPs. Commodity ETFs/ETPs saw net inflows of US$1.8 Bn, of which US$2.4 Bn went into ETFs/ETPs providing exposure to precious metals, while ETFs/ETPs providing exposure to energy experienced US$0.9 Bn net outflows in April 2011.
Of the US$45.5 Bn of net new assets in United States listed ETFs in April 2011, Vanguard gathered the largest net inflows with US$13.2 Bn, followed by iShares with US$12.7 Bn net inflows, while Bank of New York had the largest net outflows with US$1.4 Bn in 2011 YTD.

European ETF and ETP industry:

The European ETF industry had 1,128 ETFs with 3,952 listings and assets of US$328.2 Bn, from 39 providers on 23 exchanges at the end of April 2011. This compares to 932 ETFs with 2,748 listings and assets of US$234.3 Bn from 36 providers on 18 exchanges, at the end of April 2010.
US$3.6 Bn of net new assets went into European listed ETFs/ETPs in April 2011. US$2.8 Bn net inflows went into equity ETFs/ETPs, of which US$1.6 Bn went into ETFs/ETPs providing emerging markets exposure while ETFs/ETPs providing broad European exposure saw net outflows of US$1.2 Bn. Fixed income ETFs/ETPs saw net outflows of US$0.4 Bn, of which money market ETFs/ETPs experienced US$0.3 Bn net outflows while high yield ETFs/ETPs saw net inflows of US$0.2 Bn. US$1.1 Bn net inflows went into commodity ETFs/ETPs, of which US$0.5 Bn went into ETFs/ETPs providing exposure to precious metals and US$0.4 Bn went into ETFs/ETPs providing broad commodity exposure.
Of the US$2.8 Bn of net new assets in European listed ETFs in April 2011, Source Markets gathered the largest net inflows with US$0.9 Bn, followed by db x-trackers with US$0.6 Bn net inflows, while iShares and Lyxor Asset Management had the largest net outflows with US$0.2 Bn.


Asia Pacific (ex-Japan) ETF industry:

The Asia Pacific (ex-Japan) ETF industry had 250 ETFs with 362 listings and assets of US$58.6 Bn, from 63 providers on 13 exchanges at the end of April 2011. This compares to 168 ETFs with 267 listings and assets of US$44.4 Bn, from 53 providers on 13 exchanges, at the end of April 2010.


Japan ETF industry:

The Japanese ETF industry had 84 ETFs with 88 listings and assets of US$29.4 Bn, from seven providers on three exchanges at the end of April 2011. This compares to 70 ETFs with 73 listings and assets of US$26.3 Bn from six providers on two exchanges, at the end of April 2010. There are 178 ETFs which have filed notifications in Japan.


Latin America ETF industry:

The Latin American ETF industry had 27 ETFs, with 407 listings and assets of US$10.4 Bn, from four providers on three exchanges at the end of April 2011. This compares to 21 ETFs, with 243 listings and assets of US$9.1 Bn from three providers on three exchanges, at the end of April 2010.


Canada ETF industry:

The Canadian ETF industry had 180 ETFs and assets of US$43.1 Bn, from four providers on one exchange at the end of April 2011. This compares to 134 ETFs and assets of US$33.0 Bn from four providers on one exchange, at the end of April 2010.

Source: BlackRock, Carral, May 2011

Filed under: Asia, Latin America, News, , , , , , , , , , ,

ETF Landscape: Industry Review – Q1 2011 – BlackRock

At the end of Q1 2011, the global ETF industry had 2,605 ETFs with 5,905 listings and assets of US$1,399.4 Bn  from 142 providers on 48 exchanges around the world. This compared to 2,131 ETFs with 4,133 listings and assets of  US$1,081.9 Bn from 123 providers on 42 exchanges at the end of Q1 2010.  ETF Industry Review_Q1-2011

Additionally, there were 1,119 other ETPs with 1,835 listings and assets of US$183.7 Bn from 58 providers on 23 exchanges. This compared to 718 ETPs with 1,025 listings and assets of US$153.6 Bn from 42 providers on 18 exchanges at the end of Q1 2010.

Combined, there were 3,724 products with 7,740 listings, assets of US$1,583.2 Bn from 178 providers on 52 exchanges around the world at the end of Q1 2011. This compared to 2,849 products with 5,158 listings, assets of US$1,235.4 Bn from 147 providers on 44 exchanges at the end of Q1 2010.

Below is a list of some upcoming events where we will be presenting:

Asia Trader and Investor Convention 2011, Singapore 07-08 May 2011
Complimentary passes are available
www.theatic.net

2nd Annual Inside ETFs – Europe Conference, Amsterdam, 05–06 May 2011
Complimentary passes are available for institutional investors.
www.indexuniverse.eu

Turkey Investment Summit, Istanbul, 09–11 May 2011
www.terrapinn.com

iShares Investment Konferenz, Frankfurt, 11 May 2011
www.ishares-events.com

22nd Annual Conference on Globalisation of Investment Funds, Boston,
15–18 May 2011
www.int-bar.org

ETF & Indexing Investments, New York, 16–18 May 2011
www.terrapinn.com

Factset Investment Process Symposium, Monaco, 23–25 May 2011
www.cvent.com

ASX ETF Institutional Conference, Sydney, 02 June 2011
www.asx.com.au

The 10th Annual Canada Cup of Investment Management, Toronto,
07–08 June 2011
Complimentary passes are being offered by IMN to attend this event to investment professionals at Pensions, Foundations, Endowments, Hedge Funds, Insurance Companies as well as for Registered Investment Advisors. Please contact Jackie Rubbo at jrubbo@imn.org.
www.imn.org

ETF & Indexing Investments, Madrid, 15–16 June 2011
www.terrapinn.com

The Mondo Visione Exchange Forum, London, 15–16 June 2011
www.mvexchangeforum.com

Africa Investment Summit, Johannesburg, South Africa 20–23 June 2011
www.terrapinn.com

European Cup of ETFs and Investment Management, London,
19–20 September 2011
Complimentary passes are being offered by IMN to attend this event to investment professionals at Pensions, Foundations, Endowments, Hedge Funds, Insurance Companies as well as for Registered Investment Advisors. Please contact Jackie Rubbo at jrubbo@imn.org.
www.imn.org

ETF & Indexing Investments, London, 17–19 October 2011
www.terrapinn.com

Please join ETF Network on Linkedin at www.linkedin.com.

Source: BlackRock, 06.05.2011

Filed under: Banking, News, Services, Wealth Management, , , , , , , , , , , , , , , , , , ,

ETF panorama: Aspectos Destacados del 1er Quartal 2011 BlackRock

La industria global de los ETFs mantiene la trayectoria ascendente con la que inició el año, si se comparan los 2,605 ETFs con activos por USD$1,399.4 millones al cierre del primer trimestre de 2011, con respecto de los 2,131 ETFs con activos por USD$1.082 mil millones en el mismo periodo de 2010.  _ETF  Reporte 1er Quartal 2011

En Latinoamérica el sector de ETFs cuenta con 26 ETFs, 405 listados y activos bajo administración por USD $10.2 mil millones, de ocho proveedores en tres bolsas, que se comparan con 21 ETFs, 231 listados y activos por USD$9.3 mil millones de tres proveedores en tres mercados que había a finales del primer trimestre de 2010.

Como sabes, los ETFs son instrumentos que siguen índices, listados y cotizados en mercados bursátiles, que proporcionan transparencia diaria al portafolio. El reporte da cobertura a los productos Exchange Traded Funds (ETFs) a escala global e incluye rankings de proveedores de ETFs e índices globales, en Estados Unidos, Europa, Japón, Asia, Latinoamérica, Medio Oriente y Africa.

Además, incluye comentarios respecto al impacto en los mercados de inversión global debido a acontecimientos como los disturbios en países de Oriente Medio y norte de Africa, así como desastres naturales como el terremoto y tsunami, y la consecuente catástrofe nuclear en Japón.

Adjunto te hacemos llegar el reporte completo en inglés, en formato PDF. En caso de cualquier duda adicional, quedamos a tu disposición.

Source: BlackRock- Carral Sierra, 06.05.2011

Filed under: Asia, Exchanges, Latin America, Library, News, Services, , , , , , , , , , , , , , , , , , , ,

ETF Landscape: Industry Highlights de February/Febrero 2011 – En/Sp – BlackRock

ETF – 02.2011 Report/Reporte

English

At the end of February 2011, the global ETF industry had 2,557 ETFs with 5,802 listings and assets of US$1,367.4 Bn, from 140 providers on 48 exchanges around the world. This compares to 2,091 ETFs with 3,998 listings and assets of US$1,001.9 Bn from 115 providers on 40  exchanges, at the end of February 2010.

We expect global AUM in ETFs and ETPs1to increase by 20–30% annually over the next three years, taking the global ETF/ETP industry to approximately US$2 trillion in AUM by early 2012. Considering ETFs separately, AUM should reach US$2 trillion globally by the end of 2012, US$1 trillion in the United States in 2011 and US$500 billion inEurope in 2013.

Taking ETFs and ETPs together, United States AUM should reach US$2 trillion in 2013, with European AUM reaching US$500 billion in 2012.

In Latin America, the ETF sector remains with 26 ETFs, 365 listings and assets of USD $10.2 billion of four providers on three Exchanges. Compares 20 ETS, 223 listings and assests of USD$ 9.3 billions and three providers  at three exchanges in february 2010.

Español:

El reporte ETF Landscape: Industry Highlights da a conocer la situación de los Exchange Traded Funds (ETFs) y Exchange Traded Products (ETPs) en el mes de febrero.

Se espera que los activos globales bajo administración de los ETFs y ETPs se incrementen de 20 a 30% anualmente durante los próximos tres años, llegando a aproximadamente USD $2 billones (trillion dollars) a principios de 2012.  A escala global, el sector de ETFs tuvo 2,557 ETFs con 5,802 listados y activos por USD $1,367.4 millones, de 140 proveedores en 48 mercados bursátiles en el mundo a finales de febrero de 2011, comparado con 2,091 ETFs con 3,998 listados y activos por USD $1,001.9 millones de 115 proveedores en 40 mercados a fines del mismo periodo del año pasado.

En Latinoamérica el sector de ETFs permanece con 26 ETFs, 365 listados y activos por USD $10.2 mil millones, de cuatro proveedores en tres bolsas, comparado con 20 ETFs, 223 listados y activos por USD$9.3 mil millones de tres proveedores en tres mercados a fines de febrero de 2010.

Source:BlackRock, March 10, 2011

Filed under: Asia, Australia, Brazil, Chile, China, Exchanges, Hong Kong, India, Indonesia, Japan, Korea, Latin America, Malaysia, Mexico, News, Services, Singapore, , , , , , , , , , ,

Brazil: Clouds still surround the US economy – October 2010- IXE BANIF – Monthly Analysis

Fear now is of deflation in the US

The US economy has shown signs of weakness since the beginning of 2H10 and now indications of a possible deflation have surfaced. This new fear is like a two edged sword. On one hand, the imminent risk of deflation is a deterioration from previous conditions but on the other, it might force the Central Bank to accelerate its actions to stimulate the economy. In our opinion, the market would see faster action as positive in the short term. In this respect, it is worth mentioning that the first set of economic indicators released in October displayed neutral results.

In the absence of strong market drivers worldwide in October, and with a weak local agenda (the most important factor is the Presidential elections), we believe the trend is likely to be neutral for the month, although with volatility. We foresaw the same scenario for September, but the 6.6% appreciation of the Ibovespa, caused by the easing of economic concerns, surprised us.

In Europe, we have clouds in Ireland after the Irish Central Bank announced that Allied Irish Bank would need around €30bn of extra capital by year-end. However, in our view, if problems in the region remain contained to Greece and Ireland, Europe should not be a concern and ought to continue its slow recovery. In Asia, we expect neutral events, with no problems arising in China.

Brazil – Monthly Allocation – October 2010

In October, with no major operation scheduled, we believe the market will follow the economic and political news more closely. This month, we have made substantial changes in our portfolio, substituting companies having 35% of our previous total weight. The new names are PDG Realty (with a 10% weight), OGX, CSN and Itaú (with 5% each). We have also increased the weights of Telesp (from 5 to 10%) and Vale (from 15 to 20%).

Outlook for Brazil continues Bright

In Brazil, we expect the current strong economic demand to continue and believe in the likelihood of an upward revision for 2011 GDP growth forecasts, currently at 4.5% (Focus poll). For 2010, growth is relatively undisputed to be in the 7.5-8% range.

In our opinion, the political dispute in the presidential campaign can bring about one of three scenarios to affect the stock market: 1) Labor’s party, Dilma, wins in the first round; 2) a second round takes place, with a continuation of Dilma’s current advantage or 3) Dilma loses ground in a possible second round. We believe that the first and second scenarios are likely to have no effect on the market, as we have seen no response to Dilma’s advantage so far. If the third scenario takes place, it is likely to bring more volatility to the market. Investors may view this as positive but, as they note that the difference between the two candidates is in the details instead of being radical, the event should have limited positive impact. In overall terms, we think a second round would be beneficial, as it would force a greater balance between the country’s political forces.

Source: IXE-BANIF, 01.10.2010

Filed under: BM&FBOVESPA, Brazil, Exchanges, News, , , , , , , , , , ,

BlackRock Bob Dolls: 10 prediction for the next 10 years

“10 Predictions for the Next 10 Years” by BlackRock’s Bob Doll and what it means to investors:

  1. U.S. equities experience high single-digit percentage total returns after the worst decade since the 1930s.
  2. Recessions occur more frequently during this decade than only once a decade as occurred in the last 20 years.
  3. Healthcare, information technology and energy alternatives are leading growth areas for the U.S.
  4. The U.S. dollar continues to be less dominant as the decade progresses.
  5. Interest rates move irregularly higher in the developing world.
  6. Country self-interest leads to more trade and political conflicts.
  7. An aging and declining population gives Europe some of Japan’s problems.
  8. World growth is led by emerging market consumers.
  9. Emerging markets weighting in global indices rises significantly.
  10. China’s economic and political ascent continues.

Read Bob Doll’s full report  10 Predictions for the next Decade

Source:BlackRock / Carral Sierra, 02.08.2010

Filed under: Banking, Brazil, China, Energy & Environment, Japan, Korea, Mexico, News, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

Brazil: Volatile Market with no Trend – June 2010- IXE BANIF – Monthly Analysis

Focus spread over euro zone
Last month, we correctly anticipated that the Greek problem would negatively dominate the markets. However, we did not anticipate that fears would spread severely over to other countries, especially the other PIIGS members (Portugal, Italy, Ireland and Spain). After the sharp negative effect on all markets worldwide, we believe that investors continue to be sensitive, with wounds still open and, in the absence of any concrete positive news in June, markets are likely to remain tense, volatile and with no definite short-term trend. This expectation only differs from our view for the previous month in the lack of trend. We chose our suggested portfolio last month to remain defensive, and believe this is also the best choice for June, which is why we have made hardly any modifications. We have only withdrawn Tim, which was the month’s largest winner, and transferred its weight to CSN to keep the weight of the steel industry close to its weight in the Ibovespa. With this move, our portfolio has weights similar of those at the Ibovespa for the oil, mining, banks, steel, transportation and telecom industries, while we keep retail and utilities overweight.

Euro zone pros and cons
For the Euro zone, we highlight some important points. Positives: a) Economic activity in the main countries is not weak; b) Announcement of important measures directed toward stability in Portugal, Spain and Italy. Negatives: a) growth is likely to remain low for at least the next few years; b) risk rating downgrades might occur, particularly for banks, if tension continues at its current level or worsens and c) country debts are likely to stabilize at high levels. From 2008 to 2013, gross debt to GDP ratio will increase in most countries. Based on the assumptions of the European Commission, this ratio for Portugal should go from 66% to 90%, for Spain from 40% to 75%, Ireland from 44% to 93%, Italy from 106% to 118% and Greece from 99% to 135%.

Signs from other regions remain positive
In other regions, the economic trend continues to improve. In the US, the Fed revised its GDP growth estimate upwards to 3.5% for 2010 and we believe recovery is likely to continue slowly but surely. In China, the economy continues strong and on the verge of overheating, although inflation has not surpassed the official 3% limit and we see no reason for any change in course. Finally, in Brazil we also see strong signs of good and unchanged economic activity. At the announcement on June 8 of 1Q GDP we expect a 2.5% non-annualized growth that, if confirmed, would strongly support our estimate of a 7.0% growth for FY2010. On June 9, we anticipate announcement of the IPCA inflation index for May, which we expect to reach 0.45% (for June figures we expect a sharp reduction to around 0.3% that, if confirmed, would increase confidence in the growth trend of the GDP). On the same day, we expect announcement of the official Selic interest rate, when we anticipate another 0.75% hike as part of a measure to avoid the deterioration of the outlook for inflation.

See  full report Brazil_-_Monthly_Allocation_-_June_2010

Source: IXE Banif, 01.06.2010

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, Risk Management, , , , , , , , , , , ,

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