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January 11, 2012 • 3:42 am 0

Brazil:BM&FBOVESPA annuonces 2011 Market Performance and News

BM&FBOVESPA announced 2011 market performance.
Financial volume and number of transactions in the equity market;
  • Total number of contracts traded, DI futures contracts traded and of corn futures contracts and options on corn futures traded in the Derivatives Market;
  • Financial volume and number of equity lending transactions.

Read other highlights (update 11.01.2012):

The total financial volume and the number of trades in the equity market set a record in 2011

In 2011, the total financial volume in the Bovespa segment set a historic record of BRL1.61 trillion, surpassing the previous record of BRL1.60 trillion set in 2010. The average daily financial volume also established a new record of BRL6.49 billion, exceeding the BRL6.48 billion reached in 2010.

The total number of trades reached the milestone of 141,229,649 in 2011, surpassing last year’s record high of 106,418,437. The average daily trading volume also established a new record at 567,187, exceeding the 2010 mark of 430,844.

Historic records set in 2011:

  • Financial volume and number of transactions in the Bovespa segment;
  • Total number of contracts traded, DI futures contracts traded and of corn futures contracts and options on corn futures traded in the BM&F segment;
  • Financial volume and number of equity lending transactions.

Bovespa Segment

In 2011, the total financial volume in the Bovespa segment set a historic record of BRL1.61 trillion, surpassing the previous record of BRL1.60 trillion set in 2010. The average daily financial volume also established a new record of BRL6.49 billion, exceeding the BRL6.48 billion reached in 2010.

The total number of trades reached the milestone of 141,229,649 in 2011, surpassing last year’s record high of 106,418,437. The average daily trading volume also established a new record at 567,187, exceeding the 2010 mark of 430,844.

In December, the financial volume in the Bovespa segment was BRL130.68 billion, compared to the BRL118.72 billion registered in November. The daily average financial volume was BRL6.22 billion in December, compared to BRL5.93 billion in the previous month. There were a total of 12,746,660 transactions carried out in December compared to 12,284,986 in November, and the average daily trading volume was 606,984, compared to 614,249 in November.

Equities

In 2011, the most traded stocks were: Vale PNA, with BRL174.33 billion; Petrobras PN, with BRL125.81 billion; OGX Petróleo ON, with BRL73.22 billion; Itauunibanco PN, with BRL67.73 billion; and Vale ON, with BRL45.05 billion.

In December, the most traded stocks were: Vale PNA, with BRL11.30 billion; Petrobras PN, with BRL8.75 billion; Itauunibanco PN, with BRL5.59 billion; OGX Petróleo ON, with BRL4.33 billion; and Bradesco PN, with BRL3.66 billion

Ibovespa

The Ibovespa closed out 2011 at 56,754 points, down 18.11% for the year.

In 2011, the best performing stocks were: TIM PART S/A ON (+72.58%); CIELO ON (+53.32%); REDECARD ON (+49.20%); KLABIN S/A PN (+42.53%); and ELETROPAULO PN (+41.13%). In 2011, the worst performing stocks were: B2W VAREJO ON (-71.07%); GAFISA ON (-64.95%); HYPERMARCAS ON (-62.06%); GOL PN (-50.00%); and V-AGRO ON (-48.39%).

In December, the Ibovespa declined 0.21%.

The best performing stocks on the Ibovespa, in December, were: TRAN PAULIST PN (+16.03%); ELETROBRAS PNB (+14.06%); CPFL ENERGIA ON (+13.62%); ELETROPAULO PN (+12.97%); and LLX LOG ON (+12.33%). In December, the worst performing stocks were: V-AGRO ON (-39.62%); GAFISA ON (-23.28%); ROSSI RESID ON (-19.76%); BROOKFIELD ON (-16.67%); and CIA HERING ON (-15.02%).

All other indexes

All of the other indexes calculated by the Exchange performed as follows:

IBrX-50 (-14.06% with 8,279 points at the end of 2011; up 0.99% in December);

IBrX-100 (-11.39% with 19,706 points at the end of 2011; up 1.52% in December);

ISE (-3.28 with 2,018 points at the end of 2011; up 3.65% in December);

ITEL (+15.59% with 1,670 points at the end of 2011; up 5.11% in December);

IEE (+19.72% with 32,613 points at the end of 2011; up 9.47% in December);

INDX (-12.12% with 9,618 points at the end of 2011; up 2.31% in December);

IVBX-2 (-4.71% with 5,756 points at the end of 2011; up 0.86% in December);

IGC (-12.45% with 6,679 points at the end of 2011; up 1.76% in December);

ITAG (-11.54% with 8,708 points at the end of 2011; up 2.88% in December);

SMLL (-16.63% a 1,200 points at the end of 2011; up 0.79% in December);

MLCX (-10.39% with 877 points at the end of 2011; up 1.77% in December);

ICON (+0.55% with 1,693 points at the end of 2011; up 3.03% in December);

IMOB (-27.71% with 749 points at the end of 2011; down 5.47% in December);

IFNC (-7.40% with 3.468 points at the end of 2011; up 4.13% in December);

ICO2 (-7.37% with 1,025 points at the end of 2011; up 3.18% in December);

IBRA (-10.84% with 1,810 points at the end of 2011; up 1.68% up);

IDIV (+13.99% with 2,926 points at the end of 2011; up 5.56% in December);

IGCT (-12.36% with 1,877 points at the end of 2011; up 2% in December);

IMAT (-28.51% with 1,592 points at the end of 2011; up 0.90% in December);

UTIL (+22.61% with 2,939 points at the end of 2011; up 9.74% in December).

Market Value

The market value (market capitalization) of the 373 companies listed at BM&FBOVESPA at the end of 2011 totaled BRL2.29 trillion. In 2010, the market value was BRL2.56 trillion for the 381 companies that were listed at that time.

Special Corporate Governance Levels

At the end of 2011, the 182 companies that were part of the BM&FBOVESPA Special Corporate Governance Levels represented 64.87% of the market capitalization, 78.68% of the financial volume, and 82.72% of the trades on the cash market. At the end of 2010, there were 167 companies, representing 65.65% of the market capitalization, 75.14% of the financial volume, and 78.77% of the cash market trades.

In December, the 182 companies that were part of the BM&FBOVESPA Special Corporate Governance Levels represented 64.87% of the market capitalization, 75.82% of the financial volume, and 84.90% of the trades on the cash market. At the end of November, there were also 182 companies, representing 64.55% of the market capitalization, 82.40% of the financial volume, and 85.89% of the cash market trades.

Market Participation

The cash market (round lot) accounted for 93.9% of the total financial volume in 2011, followed by the options market with 4.3%, and by the forward market with 1.8%. The after-market traded BRL11.37 billion in 724,314 trades.

In December, the cash market (round lot) accounted for 94.6% of the total financial volume, followed by the options market with 4%, and by the forward market with 1.4%. The after-market traded BRL887.60 million with 48,002 trades, compared to BRL1.02 billion with 52,952 trades during the previous month.

Investor Participation

In 2011, foreign investors led trading in the Bovespa segment accounting for 34.74% of total contracts traded, compared to 29.57% in 2010. They were followed by institutional investors with 33.34%, compared to 33.29% in 2010, and individual investors with 21.44%, compared to 26.41% during the previous year. Financial institutions accounted for 8.65%, up from 8.35% in 2010, and companies accounted for 1.74% compared to 2.31% the previous year. The group Others accounted for 0.08% compared to 0.06% in 2010.

In December, foreign investors were also the leaders in the Bovespa segment, accounting for 39.07% of total contracts traded, compared to 32.98% in November. They were followed by institutional investors with 32.20% in December, compared to 34.29% in the previous month, and individual investors with 17.99% in December, compared to 20.46% in November. Financial institutions accounted for 8.81% in December, down from 9.33% in the previous month, and companies accounted for 1.92% in December, compared to 2.87% in the previous month. The group Others accounted for 0.01% in December, compared to 0.07% in November.

Foreign Investment

In 2011, the net flow of foreign investment into the Brazilian stock market, up to December, reached BRL8.23 billion, which is the result of BRL9.58 billion in acquisitions carried out by foreign investors in stock offerings (including BRL8.0 billion registered in Brazil) and the negative balance of BRL1.35 billion on the BM&FBOVESPA secondary market.

In December, the balance of transactions carried out by foreign investors at BM&FBOVESPA was a negative BRL2.42 billion, which was the net balance between stock sales of BRL52.08 billion and stock purchases of BRL49.66 billion.

Foreign investor participation in stock offerings, including IPOs, represented 55.3% of the total BRL17.33 billion in transactions related to the publication of the closing announcement dates ending on January 3, 2012, pursuant to information available on the Exchange’s website, under the media section.

Check the data for public offerings and IPOs

Investment Clubs

At the end of 2011, the number of investment clubs stood at 2,852, with 10 new clubs opening in December. In November, total liquid assets were BRL8.97 billion and the number of investment club participants was 117,078, according to the latest data available.

Individual Investors

At the end of 2011, the number of individual investor accounts in the equities market stood at 583,202. At the end of 2010, that number was 610,915.

ETFs

In 2011, the 10 ETFs available for trade at BM&FBOVESPA (BRAX11, CSMO11, MOBI11, BOVA11, SMAL11, MILA11, PIBB11, IT NOW IFNC 11, IT NOW ISUS 11, and IT NOW GOVE 11) reached a total financial volume of BRL12.11 billion with 577,723 transactions carried out. In 2010, there were seven ETFs (BRAX11, CSMO11, MOBI11, BOVA11, SMAL11, MILA11, PIBB11), which together accounted for a total financial volume of BRL6.99 billion, and 196,567 transactions.

In December, 74,438 transactions were carried out with the 10 ETFs available for trade at the Exchange. In November, that number was 86,037. The total financial volume in December was BRL1.21 billion, compared to BRL1.45 billion in November. In December, the ETF BOVA11 registered the largest financial volume with BRL1.15 billion, compared to the BRL1.37 billion it registered in November.

Securities lending

In 2011, securities lending transactions at BM&FBOVESPA reached a new milestone with a financial volume of BRL732.75 billion and 1,417,787 trades, surpassing 2010’s financial volume of BRL465.6 billion and 971,558 trades.

In December, the financial volume for securities lending transactions also set a new record with BRL84.76 billion, exceeding the mark of BRL67.30 billion set in November. The number of transactions in December was 121,897, compared to 122,983 in November.

Real Estate Investment Funds

In 2011, Real Estate Investment Funds (FIIs) accounted for a financial volume of BRL912.46 million and 77,075 transactions. During the previous year, they accounted for a financial volume of BRL379.09 million and 24,983 transactions. At the end of 2011, there were 66 Real Estate Investment Funds registered and authorized for trade on the BM&FBOVESPA markets and on its OTC market.

In December, Real Estate Investment Funds (FIIs) accounted for a financial volume of BRL144.16 million and 7,617 transactions. During the previous year, they accounted for a financial volume of BRL78.54 million and 7,812 transactions.

Fixed Income

In 2011, the financial volume for the fixed income secondary market, counting both the Bovespa Fix and the Soma Fix, totaled BRL268.14 million, compared to BRL416.20 million in 2010. Of this total, debentures accounted for BRL142.78 million, Receivables Investment Funds (FIDC) accounted for BRL25.17 million, and Mortgage Backed Securities (CRI) accounted for BRL100.19 million.

In December, the financial volume for the fixed income market, counting both the Bovespa Fix and the Soma Fix, totaled BRL14.4 million, compared to BRL9.5 million in November. Of this total, debentures accounted for BRL11.76 million, and Mortgage Backed Securities (CRI) accounted for BRL2.38 million.

BM&F Segment

Em 2011, the BM&F segment set a new record for contracts traded with 671,979,899, surpassing the previous 2010 record of 618,634,157. The financial volume in 2011 totaled BRL46.50 trillion, compared to a total of BRL42.51 trillion in 2010, and the average daily trading volume in 2011 was 2,687,920, compared to 2,494,493 in 2010.

In December, the markets in the BM&F segment accounted for a total of 43,358,744 contracts traded and a financial volume of BRL3.10 trillion, compared to 54,301,136 contracts and BRL3.87 trillion in November. The average daily trading volume in December was 2,064,702, compared to 2,715,057 in November. Open interest contracts ended the last trading day of December with 38,230,036 positions, compared to 37,001,711 in November.

Check the data for General Volume

Financial Derivatives

In 2011, the interest rate futures (DI) traded a record 320,821,062 contracts, compared to the previous record of 293,065,417 set in 2010. The US dollar futures ended the year with 86,167,955 contracts traded, compared to 82,453,621 in 2010. The Ibovespa futures traded 21,650,138 contracts in 2011, compared to 18,039,345 during the previous year, and in 2011 the Euro futures (EUR) traded 552,481 contracts up from 390,295 in 2010.

In December, the interest rate futures (DI) accounted for 21,511,662 contracts, compared to 28,561,969 in November. The US dollar futures ended December with 6,239,499 contracts traded, compared to 7,189,024 in November. The Ibovespa futures traded 1,618,153 contracts compared to 1,774,340 during the previous month, and, in December, the Euro futures (EUR) traded 34.546 contracts down from 62.901 in November.

Mini Contracts

In 2011, derivatives mini contracts traded 28,517,331 contracts compared to 18,700,470 in 2010. The Ibovespa futures traded 26,234,515 mini contracts in 2011, up from 16,705,118 in 2010, and the US dollar futures accounted for 1,710,007 mini contracts traded compared to 1,969,427 in 2010.

In December, derivatives mini contracts traded 2,338,964 contracts compared to 2,663,926 in November. The Ibovespa futures market traded 2,172,318 mini contracts, compared to 2,473,109 the previous month. The US dollar futures market traded 164,136 mini contracts down from 186,664 in November, and the open interest on mini contract futures ended December with 14.852 positions compared to 43,983 in November.

Commodity derivatives

In 2011, a total of 2,389,454 futures and options commodity contracts were traded, down from 2,702,705 in 2010.

A total of 558,311 Corn futures and options contracts were traded in 2011, surpassing the previous record of 490,265 in 2010. Live cattle futures and option contracts totaled 1,170,100 in 2011, down from 1,352,469 in 2010. Arabica coffee ended 2011 with 463,121 contracts traded compared to 694,348 in 2010, while the Ethanol futures market traded 94,726 contracts in 2011, up from 22,615 in 2010 and the Soybean market traded 70,639 contracts.

In December, a total of 160,585 futures and options commodity contracts were traded, down from 245,561 in November. When trading closed in December there were 129,006 open interest contracts, compared 133,410 at the end of the previous month.

Live cattle futures and options contracts totaled 82,627, in December, compared to 160,824 in November. Corn closed out the period with a total of 44,768 futures and options contracts traded, up from 42,279 in November. Arabica coffee ended December with 23,106 contracts traded, down from the 28,791 contracts traded in November. The Soybean market registered 3,310 contracts in December compared to 6,622 during the previous month, and the Ethanol futures market accounted for 6,774 contracts traded, compared to the 7,045 contracts traded in November.

Click here for the monthly commodities report

Agribusiness Securities

After adding up all of the transactions carried out in the SRTA registration system, the agribusiness securities registered at BM&FBOVESPA totaled BRL8.68 billion in 2011, compared to BRL1.24 billion in 2010. In 2011, a total of 46,690 records were also checked for agribusiness securities, and together they represented the cumulative financial volume of BRL29.43 billion, up from the 15,270 records with a trading volume of BRL10.05 billion in 2010. The stock of LCAs (Agribusiness Credit Bills) registered in the stock market in 2011 totaled BRL7.46 billion, compared to the BRL297 million registered during the previous year.

After adding up all of the transactions carried out in the SRTA registration system, the stock of agribusiness securities registered at BM&FBOVESPA totaled BRL8.68 billion in December, compared to BRL8.02 billion in November. The stock of LCAs totaled BRL7.46 billion in December, compared to BRL6.77 billion in November.

Spot Gold

In 2011, the spot gold market (250 grams) traded 23,579 contracts, compared to 9,567 in 2010. The financial volume for the spot gold market totaled BRL509.80 million, compared to BRL179.02 million the year before.

In December, the spot gold market (250 grams) traded 749 contracts, down from 2,240 in November. The total financial volume in December was BRL18.03 million, compared to BRL55.44 million in the month before.

Spot Dollar

In 2011, the spot US dollar totaled 12,859 transactions with a financial volume of US$32.89 billion, compared to 14,339 transactions and a financial volume of US$31.41 billion in 2010. The financial volume of U.S. dollars traded on the Brazilian interbank settlement market and registered in the BM&FBOVESPA FX Clearinghouse was US$588.83 billion, with 31,462 trades, down from US$718.31 billion and 36,428 trades in 2010.

In December, the spot dollar totaled 1,547 transactions with a financial volume of US$2.07 billion. In November, 1,999 transactions were registered with a financial volume of US$2.17 billion. In December, the financial volume of U.S. dollars traded on the Brazilian interbank settlement market and registered in the BM&FBOVESPA FX Clearinghouse was US$40.62 billion with 2,711 transactions, compared to US$37.65 billion and 2,475 transactions in November.

Public Fixed Income

In 2011, the financial volume for the public fixed income secondary market, counting all the transactions carried out on Sisbex, totaled BRL257.58 billion, compared to BRL116.89 billion in 2010. Of this total, BRL5.1 billion was related to final transactions and BRL251.1 billion was related to repo transactions. The financial volume for public securities lending transactions totaled BRL1.36 billion in 2011.

In December, the financial volume for the public fixed income secondary market, counting all the transactions carried out on Sisbex, was BRL18.6 billion, up from BRL6.9 billion in November. Of this total, BRL32.10 million was related to final transactions and BRL18.57 billion was related to repo transactions.

Investor Participation

In 2011, financial institutions led trading in the markets of the BM&F segment accounting for 36.41% of total contracts traded, compared to 42.40% in 2010. They were followed by institutional investors with 31.27% in 2011, compared to 29.61% in 2010, and foreign investors with 25.86% compared to 22.40% during the previous year. Individual investors ended the year with 5.22%, up from 3.88% in 2010, and companies accounted for 1.24%, compared to 1.71% the previous year.

In December, financial institutions led trading in the markets of the BM&F segment accounting for 38.08% of total contracts traded, compared to 35.75% in November. They were followed by institutional investors with 32.53%, down from 34.49% the previous month. During this same period foreign investors accounted for 23.04%, compared to 23.18%. Individual investors ended the year with 4.48% in December compared to 5.19% in November; and companies accounted for 1.83%, up from 1.34% the month before.

Individual investors

At the end of 2011, there were 135,256 individual investors with at least one active account registered at the Derivatives Clearinghouse, compared to 137,820 at the end of the previous year.

DMA

BM&F Segment

In December, the transactions carried out via Direct Market Access (DMA) in the BM&F* segment totaled 25,617,886 contracts traded in 2,483,514 trades. During the previous month, 31,537,229 contracts were traded in 2,887,206 trades.

The volumes registered by each DMA model in the BM&F segment were as follows:

Traditional DMA – 12,266,856 contracts traded in 879,061 trades in December, compared to 15,783,631 contracts traded in 1,219,049 trades in November;

Via DMA provider (including orders routed via the Globex System) – 8,225,628 contracts traded in 234,539 trades in December, compared to 10,736,890 contracts traded in 252,343 trades the month before;

DMA via direct connection – 1,255 contracts traded in 303 trades in December, up from 1,034 contracts traded in 289 trades during the previous month; and

DMA via co-location – 5,124,147 contracts traded in 1,369,611 trades in December, compared to 5,015,674 contracts traded in 1,415,525 trades in November.

In December, the transactions carried out by foreign investors who were presented to BM&FBOVESPA by CME (which either use the order routing system or access the BM&FBOVESPA markets via co-location) totaled 2,240,922 contracts traded in 537,582 trades. In November, those totals were 2,297,168 and 554,624 respectively.

BOVESPA Segment

In December, the transactions carried out via Direct Market Access (DMA) in the BOVESPA*segment had a total financial volume of BRL86.68 billion in 12,297,326 trades. During the month of November, those numbers were BRL92.18 billion and 11,690,154 respectively.

The volumes registered by each DMA model in the BOVESPA segment were as follows:

Traditional DMA – BRL71.67 billion in 9,727,649 trades in December, compared to BRL76.89 billion in 9,411,041 trades in November;

Via DMA provider – BRL1.04 billion in 188,596 trades in December, compared to BRL981.77 million in 119,734 trades in November; and

DMA via co-location – BRL13.87 billion in 2,369,659 trades in December, compared to BRL14.21 billion in 2,150,118 trades in November.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4.

In model 1 or traditional DMA, the client accesses the trading system through technological intermediation of a brokerage house.

In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2.

In model 3 or DMA via direct connection, the client connects to the system through a direct connection.

In model 4 or DMA via co-location, the client installs its own computer within the Exchange’s facilities.

Notes: The volumes registered by access modality include both buy and sell sides of a trade. The volumes by access modality for both the BM&F and the Bovespa market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

Source: BM&FBOVESPA, 10.01.2012

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, , , , , , , ,

November 21, 2011 • 10:57 am 0

Mexico´s Exchanges take huge steps to boost High-Speed Trading.

The Mexican Exchange, which is the second largest exchange in Latin America, announced a number of strategic and technology initiatives designed to promote foreign investment in the Mexican financial markets and its position as a Latin American leader in high-frequency trading.

While Brazil continues to be the hottest emerging market in Latin America, the Mexican Exchange (BMV Group), is taking huge steps to boost its growth in the high-speed marketplace.

The Mexican Exchange, which is the second largest exchange in Latin America, announced a number of strategic and technology initiatives designed to promote foreign investment in the Mexican financial markets and its position as a Latin American leader in high-frequency trading.

Mexico now provides worldwide participants with seamless, high-speed and efficient access through low touch direct market access (DMA), high speed co-location services, and FIX standard protocol for order routing and market data Part of Mexico’s success is down to its determination to improve its operative rules to better comply with international market standards, as well as adopting new technology.

In 2012, the Mexican Exchange will announce the launch of a new trading engine, internally developed. This multi-market, multi-asset, flexible and scalable trading engine has throughput of more than 200,000 messages per second. The trading engine will be ultra low latency, executing trades in 100 microseconds roundtrip (improvement over 25 milliseconds on legacy trading system). Full deployment is planned for Q2 2012. Further in 2012, The Mexican Exchange will introduce several new initiatives including midpoint hidden order book trading, aimed at institutional investors looking to trade large blocks anonymously with reduced execution risk. Simpler cross order rules will also be implemented; all stocks, global market equity securities and debt instruments will be crossed within the best bid/ask spread with no intervention. And, VWAP executions for the day will be able to be entered from 8:00 AM CT to 2:40 PM CT.

Recently, the Mexican Exchange has established major alliances broadening investment opportunities in the Mexican market. The Mexican Derivatives Exchange (MexDer) and the Chicago Mercantile Exchange (CME) established phase one, “south-to-north,” of its strategic order routing agreement, giving Mexican investors access to CME Group’s benchmark derivatives contracts, including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities.

Phase two of the partnership, “north-to-south,” now in place provides CME Group customers with access to MexDer benchmark products, including Mexican Stock Exchange Index futures, bond futures and MXN Peso / US dollar futures contracts.

Source: Wallstreet&Technology, Melanie Rodier, 18.11.2011

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

September 21, 2011 • 10:36 am 0

Brazil: BM&FBOVESPA – News September 2011 – Nr.20

Launch of the first stage of the BM&FBOVESPA PUMATrading System

BM&FBOVESPA announces the conclusion of the first stage of development and integrated tests with the market of its new trading platform, named the BM&FBOVESPA PUMA Trading System. This is a multi-asset electronic trading platform that has been developed by BM&FBOVESPA and CME Group. BM&FBOVESPA PUMA Trading System will replace the Global Trading System (GTS), Mega Bolsa, BOVESPA FIX and SISBEX, integrating them into a single system with greater processing capacity, extremely low latency, and new functions. The implementation will occur in stages:

  • 1st Stage: Substitution of GTS (derivatives and spot foreign exchange);
  • 2nd Stage: Substitution of Mega Bolsa (equities and equity derivatives);
  • 3rd Stage: Substitution of BOVESPA FIX (fixed-income corporate securities) and SISBEX (government securities).

The Exchange implemented the BM&FBOVESPA PUMA Trading System in the spot foreign exchange market on August 29, 2011. The other stages will be executed in the following weeks, at dates to be announced at an opportune moment. As part of the GTS replacement effort, instruments will migratein four-stages. At each stage, orders sent to the Exchange for these contracts will be processed exclusively by the new system. The migration stages are:

  • 1st Migration: Spot foreign exchange contracts.
  • 2nd Migration: Agricultural derivatives.
  • 3rd Migration: Financial derivatives (interest rates, foreign exchange, inflation indices, gold etc.), except for derivatives based on stock indices.
  • 4th Migration: Derivatives based on stock indices.

Automated solution for market surveillance, operation and market oversight

BM&FBOVESPA and BOVESPA Market Supervision (BSM), the Brazilian self-regulatory organization in charge of inspecting and supervising transactions and trade authorizations, announced on September 15 that they will use NASDAQ OMX’s SMARTS Integrity market surveillance platform to monitor trading across their equities and commodities platforms. Using SMARTS Integrity, BM&FBOVESPA and BSM will have a comprehensive portfolio of alert scenarios for market behavior.

> More information

BM&FBOVESPA and BNDES present new portfolio for the Carbon Efficient Index

BM&FBOVESPA and BNDES announced on September 5 the composition of the theoretical portfolio of the Carbon Efficient Index, valid from September to December 2011. The ICO2 is an index composed of stocks in IBrX-50 index companies that have accepted involvement in the initiative, adopting transparent practices as regards greenhouse gas emissions (GGEs). The calculation of shares in the ICO2 index takes into consideration the greenhouse gas emissions and free float of companies.

The portfolio valid as of today can be viewed here.

New head of BM&FBOVESPA for UK

BM&FBOVESPA announces that Sergio Gullo has been hired as the new chief representative for BM&FBOVESPA in London. He will report to BM&FBOVESPA International Business Development Officer Lucy Pamboukdjian and be responsible for operations with the European, Middle Eastern and African markets. Sergio Gullo has been active in the financial market for more than 27 years. He was Business Development Manager in the United Kingdom for BGC Partners and has worked in financial institutions such as Banco Votorantim and Renaissance Capital, specializing in emerging markets and always in commercial areas with a focus on fixed income and structured products. He also held a wide range of positions at Lloyd’s TSB Bank for 19 years, in both Brazil and the UK.

New office in London

The BM&FBOVESPA office in London has moved to One New Change, 4th floor (London, EC4M, 9AF, United Kingdom). The London office may be contacted by e-mail at sgullo@bvmf.com.br and by telephone at (+44) 203 379 3978.

BM&FBOVESPA and Shenzhen Stock Exchange Sign Memorandum of Understanding

BM&FBOVESPA (BVMF) and the Shenzhen Stock Exchange (SZSE) signed on September 26 a memorandum of understanding (MOU) which includes personnel exchange, mutual training and information and experience sharing. Ms Song Liping, President of the Shenzhen Stock Exchange, and Mr. Edemir Pinto, CEO of BM&FBOVESPA, signed the MOU last month during the 5th International, Financial and Capital Market Conference in Campos do Jordão, in the state of São Paulo.

BM&FBOVESPA’s options and capital raising activity

According to the WFE (World Federation of Exchanges), BM&FBOVESPA is ranked as #1 in volume of Stock Options contracts trades and #4 in IPOs (Capital Raised). These and other regulated exchange industry numbers are available at: http://www.world-exchanges.org/statistics

Securities Lending

In August, the total number of securities lending transactions reached a record 141,721 compared to the previous record of 121,971 in May 2011 and to 114,989 in July. Financial volume was BRL 62.63 billion in August from BRL 52.16 billion the previous month.

Ibovespa and other index portfolios, valid for September-December 2011

BM&FBOVESPA has announced the Ibovespa theoretical index portfolio, which will be valid from September 5 to December 29, 2011, based on the closing of the September 2, 2011 trading session. The new portfolio now includes common shares in BR Malls and Cia Hering, which brings its total to 68 stocks in 63 companies.

> More information

BM&FBOVESPA launches app for Google Chrome web browser

BM&FBOVESPA announced on September, 16th that users of the Google Chrome web browser can download a free app that allows real time monitoring of the share prices of companies traded on BM&FBOVESPA and of the directions taken by the main capital market indexes. This tool allows users to customize their share portfolio, storing in the “Favorites” tab the companies that they wish to monitor daily. The app includes films that explain stock investment, wealth creation, and financial education. It also contains messages that are sent to the BM&FBOVESPA twitter channel @Info_BMFBOVESPA

To obtain the BM&FBOVESPA Google Chrome app, please access the Google Web Store and download the file at: https://chrome.google.com/webstore.

2011 EVENTS

Family Office Summit – Latin America

BM&FBOVESPA is currently sending invitations for this event promoted by the World Research Group and which will be held in São Paulo September 26-28. A BM&FBOVESPA representative is scheduled to talk about alternative investments. The summit will present current trends for optimizing effective strategies and alternative methods to produce investments for single and multi family offices in the Brazilian capital market. There will be a special networking session bringing together managers, single and multi family offices, advisors and consultants.

Location: Intercontinental São Paulo – Alameda Santos, 1123, São Paulo , SP.
Date: September 26-28, 2011.

> Full Agenda and Registration

2nd FX Growth Markets Series: Brazil – Profit & Loss

BM&FBOVESPA will join the Profit & Loss FX Growth Markets conference on October 20, 2011 at the Tivoli Hotel in São Paulo. Profit & Loss has been operating its highly successful series of Forex Network and FX Growth Markets conferences for more than 10 years, with regular annual events held in London, New York, Chicago, Singapore, Brazil, Mexico, Colombia, Chile, Shanghai and Toronto, and comes to Brazil for the second time. A BM&FBOVESPA representative will talk at the event.

Location: Tivoli Hotel São Paulo, São Paulo, Brazil
Date: October 20, 2011.

> Full Agenda

BM&FBOVESPA at Chicago’s FIA EXPO

BM&FBOVESPA will exhibit at FIA EXPO 2011. The event attracts approximately 5,000 people from more than 30 countries, from senior staff at brokerage firms and exchanges to floor traders, pension fund managers, corporate treasurers, CTAs and CPOs, and individual investors. BM&FBOVESPA staff will present the Exchange’s products, connectivity, DMA access via Globlex, co-location and others.

Location: Hilton Chicago, USA
Date: October 10-12, 2011

> More info

The World Cup of ETFs and Indexing Latin America

BM&FBOVESPA is lending its support to the World Research Group’s “World Cup of ETFs and Indexing Latin America.” The event aims at providing attendees with the best practices for ETFs use, as well as a comprehensive analysis of market structure, regulations and current and future opportunities. The expected audience includes pension funds, hedge fund managers and investors, investment advisors, financial consultants, and other market participants. A BM&FBOVESPA representative will talk about the Exchange’s ETF products.

Location: São Paulo (TBC)
Date: October 17-18, 2011.

> Full Agenda and Registration

Volumes and trades by Direct Market Access (DMA)

BM&F Segment
In August, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 41,417,494 contracts traded and 4,431,750 trades. In July, the volume reached 20,009,841 contracts traded and 2,417,398 trades.

The volumes registered by each access modality in the BM&F segment were as follows:

  • Traditional DMA – 17,540,231 contracts traded, in 1,306,241 trades, in comparison to 7,440,774 contracts and 797,002 trades in July;
  • Via DMA provider (including orders routed via the Globex System) – 14,088,756 contracts traded, in 435,281 trades, compared to 7,040,432 contracts and 258,881 trades in July;
  • DMA via direct connection – 4,210 contracts traded in 830 trades, against 3,691 contracts and 977 trades in July;
  • DMA via co-location – 9,784,297 contracts traded, in 2,689,398 trades, compared to 5,524,944 contracts and 1,360,538 trades in July.

In August, transactions carried out by foreign investors presented by CME to BVMF (who use the Globex-GTS order routing system or access BVMF markets via co-location) totaled 5,308,308 contracts traded, in 1,235,349 trades, compared to 2,897,744 contracts and 688,862 trades in July.

BOVESPA Segment
In August, order routing via DMA in the BOVESPA* segment totaled BRL 138,522,096,000.00 and 17,021,408 trades, from BRL 95,030,778,000.00 and 11,225,193 trades the previous month.

Trading volumes per type of DMA in the BOVESPA segment:

  • Traditional DMA – Volume of BRL 120,451,427,000.00 and 14,098,638 trades from BRL 87,674,861,000.00 and 10,091,956 in July;
  • DMA via co-location – Volume of BRL 16,691,370,000.00 and 2,755,498 trades from BRL 6,381,361,000.00 and 1,007,081 in July;
  • DMA via provider – Volume of BRL 1,379,299,000.00 and 167,272 trades from BRL 974,556,000.00 and 126,156 in July.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4. In model 1 or traditional DMA, the client accesses the GTS or Mega Bolsa through technological intermediation of a brokerage house. In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. In model 3, the client connects to the system through a direct connection. In model 4 or via co-location, the client installs its own computer within the Exchange’s facilities.

Notes:

The volumes registered by access modality include both buy and sell sides of a trade.

The volumes by access modality for both the BM&F and the BOVESPA market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

MARKET RESULTS

BM&F Segment August 2011

Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 78,606,873 contracts and BRL 5.23 trillion in volume in August, compared to 44,199,125 contracts and BRL 3.35 trillion in July. The daily average of contracts traded in the derivatives markets in August was 3,417,690, in contrast to 2,104,720 in July. Open interest contracts ended the last trading day of August with 37,821,302 positions, compared to 30,716,596 in July.

BOVESPA Segment August 2011

In August 2011, the equity markets (BOVESPA segment) financial volume totaled a record BRL 177.906 billion, in a record 16,234,673 trades, with daily averages of BRL 7.73 billion and a record 705,855 trades. This was in comparison to the prior total volume record of BRL 155.55 billion in October 2010, the prior total trades record of 11,172,707 in May 2011 and the prior daily average trades record of 544,88 in February 2011.

Source:BM&FBOVESPA, 20.09.2011

Filed under: BM&FBOVESPA, Brazil, FIX Connectivity, News, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

September 20, 2011 • 10:59 pm 1

China: Shanghai Stock Exchange: SSE 380 Style Indices, SSE Health Care Index, SSE Agriculture Index to be launched

To further enhance the SSE and CSI index family as well as to provide new analysis tool and underlying instrument for investors, SSE 380 Style Indices 、SSE Health Care Theme Index and SSE Agriculture Theme Index and are to be launched on October 18th，2011 by SSE and CSI.

See the SSE 380 Style Indices Methodology

Source; Mondo-visione, 20.09.2011

Filed under: China, Exchanges, News, , , , , , ,

July 2, 2011 • 12:08 am 0

Brazil: Greek accord might buy some peaceful time – Monthly Allocation July 2011 – BANIF

Greek accord might buy some peaceful time

We maintain our negative view on the international market for July. In the US, after a series of weak economic indicators, even worse than initially expected, there is no evidence of a turnaround in the short term, especially while the unemployment rate remains at high levels. The ongoing recovery in Japan, together with a slight reduction in commodity prices and the slight reduction in US interest rates (10-yr bonds) seem to us to be a base for some economic recovery that to date has not yet materialized. We believe that potentially increasing inflation might stress the Chinese market, but this possibility remains uncertain for the moment. In the Euro zone, economic indicators tend to play a secondary role to political tension, as the outcome for the Greek debt remains undefined. The recent measures approved by the parliament enabled only the receipt of a tranche of aid previously negotiated. We expect a temporary ease in this tension, which might pick up shortly as it negotiates a second aid package by September, under uncertain political support from all European countries. The dominant feeling is that Greece has no orthodox solution while it remains under the Euro umbrella and tied to its rules. The biggest fear, however, is not of Greece defaulting, but that it would spread the problem to other countries also on the list of troubled economies.

Despite our negative view for international markets, we believe that July may be less negative than June was, mainly due to the temporary ease that the Greek accord brought. However, tensions should increase with the negotiations for the next agreement, expected by September.

Local inflation likely to continue low

Inflation in July might continue low, although not as low as in June, which confirmed and even surpassed the most optimistic expectations. While in June inflation was slightly negative (according to some of the main indexes), consensus expectations for the IPCA in July are around 0.15-0.20%. This reduction was a result of seasonal factors that might lose effect shortly, with inflation likely to pick up as they do.

Delinquency rates increased slightly in June, but we tend to believe this is not a source of concern because: 1) personal income is likely to show improved figures because of the recently reduced inflation and 2) the amount of late payments, the step before writing off debt, decreased for two months in a row.

We predicted that June’s local positive sentiment based on reduced inflation would overcome a bad international scenario, but this did not materialize. We continue with the same views for July, bad internationally and good locally. This time, however, we believe that the negative mood might continue to prevail.

We changed our portfolio to be more defensive, having in mind our somewhat negative view for the market. We have added Tractebel and Telesp (both with 5% stake), two traditionally defensive names, we reduced weight on Even (from 10% to 5%) and have withdrawn Itaú.

Source: BANIF CVC, 01.07.2011

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

June 28, 2011 • 11:04 pm 0

BlackRock Readies Colombia Index ETF in South America Expansion

BlackRock Inc. (BLK) is preparing to start a local exchange-traded fund in Colombia as the world’s largest money manager expands its operations in South America.

The fund will be denominated in Colombian pesos and will track the Colcap Index, said Axel Christensen, BlackRock’s managing director for South America excluding Brazil.

“We’re very close to starting a product in Colombia,” he said in an interview from London during a Chilean investment promotion event. “We are days away, we hope.”

IShares, the ETF fund business of New York-based BlackRock, also plans to start a local fund in Chile after regulatory changes that enable ETFs take effect next month, Christensen said. IShares already has local ETFs in Mexico and Brazil, Latin America’s two largest markets.

ETFs issue a fixed number of shares and trade throughout the day like stocks. Most are designed to passively track a benchmark equity index.

Source: Bloomberg, 27.06.2011 by James Attwood in Santiago at Jattwood3@bloomberg.net.

Filed under: Brazil, Colombia, Latin America, Mexico, , , , , , , , , ,

June 15, 2011 • 11:28 pm 0

VAM: Vietnam Market Analysis May 2011

Interest rates the highlight of the month
With the aim of controlling inflation, the SBV tightened money supply, thereby increasing interest rates. Market interest rates are now averaging 19.86% for short term borrowing, and if including fees (which banks apply to get around the lending rate cap) the effective borrowing costs increased to 23%. On the other hand, the US$ cost of borrowing (approximately 3%) and the rate paid by SOEs is actually negative in real terms, due to a two-tier lending rate. Rates at these prohibitive levels in the private sector threaten to choke off any growth for the year; despite this, another 100 bps interest rate hike for the year is still a possibility.
 
Following Aprils introduction of USD-denominated deposit cap of 3% for individuals, domestic residents attracted by the large gap between USD and VDN deposit rates, opted to keep fewer dollar deposits, thereby contributing to 2.89% MoM decline in USD-denominated deposits. VND-denominated deposits increased by 1.27%. No slowdown in credit growth, as seen by M2 levels, is yet visible. With credit growth reaching 6.5% year-to-date (as of April), the annual target credit growth rate of 16  18% will likely be overshot. The SBV lifted Open Market Operations repo rates 100 bps to 15%, thus sending a message that tight monetary conditions will remain.
 
Inflation still very much a concern
Nationwide CPI rose 2.21% MoM (2.1% when seasonally adjusted) with the first five months of 2011 reaching 12.07%. Inflation in May continued to accelerate, approaching levels not seen since 2008 with no signs of easing. Three months into a shift in focus from growth to curbing inflation, monetary authorities have used both fiscal and monetary tools, tightening aggressively, yet little impact is invisible. Seasonally adjusted food prices were up 3% MoM in May, following a 3.8% increase in April. Prices in food and energy related items were most noticeably up, however, it should be noted that this was aided by double digit hikes in electricity and fuel prices in late February and later March. It is likely that inflation will surpass 20% in the coming months and further monetary tightening is to be expected.
 
Stability in the dong continues
Stability in the VND/USD exchange rate continued into the month of May. With the dong appreciating about 0.43% over the previous month, banks appear to have sufficient USD dollar supplies to meet importers needs. Although exact figures are difficult to come by, recent media reports have quoted a government minister as saying that reserves stood at $10bn (the equivalent to about 6 weeks of imports) in December 2010. Towards the end of May, the central bank announced that it has purchased USD 1.2bn with the aim of increasing international reserves. In this quest, the SBV outbid the market by 40  50 dong, to VND 20,600 per USD, indicating it exercises caution while added to reserves by striving to avoid furthering inflation through increased liquidity. 
 
Domestic indicators continued to show positive signals
Domestic indicators such as growth in exports and imports both continued to show increases for the month however, growth came at a decreasing pace than in April. Exports and imports, increased at 5.7% and 2.7% respectively for May. While Mays trade deficit came to US$1.7bn, the highest in 18 months, the drop in commodity export growth rates was a contributing factor. Domestic consumption remains strong with industrial production expanding by 14.4% YoY and retail sales growing by 23.7% YoY, FDI, overseas remittances and aid money remain important sources of exchange for Vietnam to offset its trade deficit. FDI figures for the first 5 months of the year totaled $4.7bn, or about 23.5% of the years target.
 
Equity markets 
Starting the month after a long holiday weekend, the VN-Index opened at 483.3 points and ended the month at 421.37, representing a 12.23% loss MoM. The VN-Index even plummeted to 386.36 points on 23 May 2011, its lowest level since 2009. May also saw dramatic downward trend in trading volume anda squeeze on liquidity on both bourses. Trading values for both bourses fell for yet another month, dropping to $27 million in May, down from $62 million and $42 million in March and April, respectively.
 
The massive sell-off from retail and even institutional investors resulted from investors low confidence which in turn was caused by the upward revision of inflation forecast and “persistently high interest rate”. Moreover, news about the banks deadline to reduce real-estate and non production loans to below 20% of total loans also ignited fears of margin calls and forced selling to recover bad debts on the banks part, leading to a 10 consecutive bear sessions on the market in spite of a strong rebound after hitting the record 2 year low bottom. Further contributing to downward pressure was many investors needing to meet margin calls by liquidating holdings at limit down prices in a period of low liquidity. The trading band further fueled negative sentiment by preventing the market from finding its true equilibrium.
 
Rounding out the month, the market saw an upturn with several large caps closing limit up. Many investors are abstaining from the market, choosing instead bank fixed term deposits as high bank interest rates provide a profitable, safe alternative.
 
To better reflect the true sentiment in the market, a senior official has called for the introduction of new indices. While the composition of the indices is yet to be determined, suggestions range from top 30 or top 50 large-market cap companies or dividing the market into business sectors. The poor equity market performance shows macroeconomic factors continue to impede recovery and outlook remains bearish.
 
Our View – We believe the market will continue to fluctuate within the wider range of the trading band in the short-term as investors key concerns, namely double-digit inflation and trade deficit are still prevalent. Economic recovery seems a distant prospect, and investors prefer the high fixed deposit rate to equity at this time. However, in term of valuations, we think Vietnamese equities are currently priced more cheaply than those of other regional markets.
 
In response to poor market sentiment, the Ministry of Finance recently announced their support to recover the equity market by allowing (1) investors to use more than one brokers; and (2) buying and selling the same securities within a trading day provided that investors securities for sales are available in their depository accounts, with effect from 1st August 2011. This news is considered good catalyst to regain the capital inflow into the system despite the current market instability. For investors with a medium- to long-term outlook, the current poor market is a great opportunity to increase their equity holdings at cheap valuations.  We maintain our picks of telecommunication, consumers and energy sectors with focus on strong fundamental resilient companies with little or no debts as most companies in the other industries are struggling hard with the high-interest rate environment.
Source:VAM, 14.06.2011

Filed under: News, Risk Management, Vietnam, , , , , , , , ,

May 18, 2011 • 12:49 pm 0

Brazil: BVMF (BM&F BOVESP) News May 2011, Nr 26

COMPLETE REPORT

BM&FBOVESPA launches four new indices
BM&FBOVESPA began on May 2 the calculation and publication in real time of four new indices: the Brazil Broad-Based Index, the Dividend Index, the Basic Materials Index and the Public Utilities Index.
Market Makers for Options on the Stock of OGX and Itaú Unibanco
BM&FBOVESPA announced the start of the process to select three market makers for options on the stocks of OGX Petróleo e Gás Participações S.A. (OGXP3) and Itaú Unibanco Holding.
New bidding process to select the manager for three new ETFs
The winner will have an exclusive one-year license for the use of the Dividend Index (IDIV), Basic Materials Index (IMAT) and Public Utilities Index (UTIL).
More than USD 11.5 billion in public offerings and follow-ons in 2011
In the year to April 20, BM&FBOVESPA registered more than USD 11.5 billion in public offerings and follow-ons. There have been seven Initial Public Offerings (IPOs) in 2011.
Enforcement Training in Brazil
“Securities Enforcement Training in Brazil” was promoted on May 9 by BM&FBOVESPA Market Surveillance (BSM), the Securities and Exchange Commission of Brazil (CVM) and SEC
New portfolios for the Ibovespa and other indices for the May-August 2011 period
BM&FBOVESPA announced the Ibovespa Index theoretical portfolio valid for the period of May 2 to August 31, 2011, based on the closing of the April 29, 2011 session.
ETF financial volume hits record figure in April
BM&FBOVESPA Exchange Traded Funds (ETFs) reached a record BRL 942.43 billion financial volume in April, in 28,969 trades and 14,734,230 units.
2011 EVENTS
Join BM&FBOVESPA in the 2011 events.
Volumes and trades by Direct Market Access (DMA)
BOVESPA Segment (Equities)
In April, order routing via DMA in the BOVESPA* segment totaled BRL 87,859,208,000.00 and 9,531,246 trades.
BM&F Segment (Derivatives)
In April, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 23,531,729 contracts traded and 1,840,059 trades.
MARKET RESULTS – BM&F Segment April 2011 (derivatives)
In April, derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 66,111,464 contracts and BRL 4.57 trillion in volume.
MARKET RESULTS – BOVESPA Segment April 2011 (equities)
In April, equity markets (BOVESPA segment) traded BRL 127.04 billion, in 9,864,428 trades, with daily averages of BRL 6.68 billion and 519,180 trades
Source, BM&FBOVESPA, 17.05.2011            COMPLETE REPORT

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

May 6, 2011 • 9:52 pm 0

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: Uncategorized, , , , , , , , , , , , , , , , , , ,

April 2, 2011 • 10:00 pm 0

Brazil – Measures to Curb Inflation in Limelight – Monthly Allocation- April 2011

International Scenario Might Calm the Market in April

March brought to Europe, Northern Africa and Asia, a number of serious events, such as the disaster in Japan, civil war in Libya and the fall of the Portuguese Cabinet, which affected most markets negatively. However, we expect the international scenario to improve in April for two main reasons. First, these events were of a non-recurring nature. Second, key indicators suggest economic recovery in China, US and Europe continues, despite all the social and political turmoil mentioned above, and the inflationary pressures.

Brazil – Monthly Allocation – April 2011 detailed report

All attention focuses on the next move by the Central Bank

Inflation continues at a high level, while economic activity also seems intense. Credit figures released in February were high, although there were doubts about the base of comparison, with Carnival holidays having been in February in 2010 and March in 2011. Data on credit suggests that average maturity terms for credit lines increased, which might explain part of this behavior, as it reduces the concern of an increase in the level of interest rate hikes.

This unabated inflation is evidence that Government action was not enough, indicating the need for further measures. We are still in the middle of the interest rate hike cycle intended to curb inflation. In April, we bet on a final 50 basis points hike for this ongoing move, to 12.25%, after which we believe the Central Bank will wait and see if it needs to increase rates further in the final part of the year. After this last move, it is likely that the CB will make use of alternative measures to continue its fight against inflation. We believe that the market mood will depend greatly on what it decides. If it announces further measures in April, we believe market tension should ease while, if it does nothing more, nervousness might prevail.

Another issue not likely to affect the short term, but which should appear more and more on the market’s radar, is the possibility of Moody’s rating agency upgrading the Brazilian sovereign risk. The agency suggested that it might do so by the end of the second quarter. Currently, Brazil remains at the lowest investment grade level, ten levels below the top of the range.

After the results season, and with this expectation of a tense local scenario, we have changed our portfolio for April. We increased the weight of Vale to 20 from 15% and made substitutions with the same weights: 1) Eletropaulo for Tractebel, with dividends already paid out, and 2) We substituted MRV and PDG for Even and EZ Tec because the first two reported reduced margins. Finally, we withdrew Telesp, as the share performed well and we see no short-term catalyst.

Source: BANIF, 01. April 2011

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

March 21, 2011 • 1:37 am 0

Brazil: BVMF (BM&FBOVESPA) – News March 2011, Nr 24

BVMF March 2011 – Complete Report 

“Think London” includes BM&FBOVESPA as one of top 100 companies to watch in 2011
The Brazilian exchange was selected as an “Intelligent Optimiser” among the groups that Think London believes will come to define London’s role in the global economy.
BM&FBOVESPA and the Getúlio Vargas Foundation launch Index for the Real Estate Sector
The objective is to become a profitability reference for commercial real estate, contributing greater transparency to investors as regards price formation for buying, selling and rental.
BM&FBOVESPA has new trading hours as of March 14
BM&FBOVESPA announces its new trading hours for the equity and derivative markets, due to the end of daylight saving time in Brazil and its onset in the United States.
BM&FBOVESPA announces new selection process for Unsponsored Level 1 BDRs
The winner will issue 10 BDR programs that represent stocks issued by publicly-traded companies with headquarters overseas.
BM&FBOVESPA posts records for Exchange-Traded Funds (ETFs) in February
BM&FBOVESPA Exchange Traded Funds (ETFs) had a record 33,804 trades in February, up 76.8% on the 19,120 of January and from a previous record of 30,059 in December 2010.
More than USD 2 billion of public offering and follow-ons in 2011
To March 10, BM&FBOVESPA registered more than USD 2 billion in public offerings and follow-ons.
2011 EVENTS
Join BM&FBOVESPA in the 2011 events
Volumes and trades by Direct Market Access (DMA)
BOVESPA Segment (Equities)
In February, BOVESPA* market segment transactions carried out through DMA via co-location registered a record financial volume of BRL 4,221,936,000.00 and a record 697,943 trades.
BM&F Segment (Derivatives)
In February, BM&F* market segment transactions carried out through order routing via DMA registered 21,597,076 contracts traded and 2,659,274 trades.
MARKET RESULTS
BM&F Segment 2010 (derivatives)
In February, derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 56,375,869 contracts.
BOVESPA Segment 2010 (equities)
In February 2011, equity markets (Bovespa segment) traded BRL 145.67 billion, in a record 10,897,755 trades, with daily averages of BRL 7.28 billion and 544,888 trades.

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

January 11, 2011 • 10:46 pm 0

VAM: Vietnam Market Analysis December 2010

Market Update - Vietnam ended 2010 with a remarkable GDP growth of 7.34% in the last quarter, bringing the full year growth to 6.78% versus last years number of 5.32%. The resilient economic recovery was driven by domestic factors such as industrial production and retail sales, both significantly up 14% and 24.5% on year, respectively. On the external front, exports had a good year with revenue reaching US$71.6 billion, up 25.5% compared to 2009, whilst import turnover was up 20% in the same period, recorded at US$84 billion. This brought the full year trade deficit to S$12.4 billion, accounting for 17.3% of the total export revenue, well below the government target of 20%. VAM Monthly Newsletter – December 10

The deficit in the current account would be sufficiently financed by stable capital inflows, namely (i) FDI and ODA disbursement of US$11 billion and US$3.5 billion, respectively; (ii) overseas remittances of US$8 billion; and (iii) foreign indirect investments (FII) of US$1 billion. However, macroeconomic instability and the ratings downgrades by Fitch in June and by Moody and Standard & Poor in December cast gloom over the countrys economic achievement. Reasons cited by the rating agencies such as accelerating inflation, worrying balance of payments (BoP), weakening currency,… are also major concerns to market participants as well as policy-makers.

Inflation had been under well control from March to August, then suddenly picked up from September to December, finishing the year up 11.75% compared to end 2009. This number far exceeded the government target of 8% for 2010. The soaring inflation was mainly attributed to the governments loosening monetary policy in the second half of the year to support economic growth and raising global commodity prices. Inflation would likely continue through 1Q2011 due to high festive season consumption, and we would expect it to gradually come down from 2Q2011 if the governments tightening monetary policies are to be effectively applied.

Despite that the trade deficit would be offset by the capital inflows, Vietnams overall balance of payments still had a deficit of US$4 billion in 2010. This was an improvement from the BoP deficit of US$8.8 billion in 2009, but still put pressure on the Vietnam dong. It is noteworthy that the volatility in the FX market in the last months was additionally caused by other factors like strong local gold price hikes, high inflation leading to weakening confidence in the dong, peoples hoarding dollars and gold as a way of storing their assets.

However, the downward pressure on the dong has been considerably taken off thanks to a number of measures implemented by the government in 2H2010 such as raising the interest rates in dong terms, injecting dollars into the market, committing not to devaluate the dong until after Tet – Lunar New Year (February 2011). And the improving overseas remittances towards year end also helped cool down the FX market. Given the demand for dollars should be coming down after Tet, we would expect the FX market to get more stabilized from 2Q2011 as long as there will be no major event in the domestic and global economy.

The government has set major macroeconomic goals for 2011, specifically GDP growth of 7-7.5%; inflation of 7% or less; BoP to have a surplus of US$500 million, credit growth of 23%. It seems that the government puts more emphasis on stability and less on growth in 2011 when slowing down the credit growth to 23% in 2011 from 38% and 28% in 2009 and 2010, respectively. Most observers agree that the immediate priority for Vietnam now is inflation control. But with GDP growth target set at 7-7.5%, we think inflation would unlikely be kept at 7% or less. Some forecasts are pointing to the level of 8.5-9% for Vietnams inflation in 2011.

Vietnam stock markets had a disappointing year with the VN-Index closing the year at 484.66, down 2% on year and the Hanoi bourse even loosing 32% to close the year at 114.24. Average daily trading value combined on both bourses throughout the year was recorded at US$124 million. Foreign investors continued to be net buyers with new inflows into the market being estimated at US$1 billion in 2010, of which about US$700 million going to equity and the remaining going to fixed income.

Our View – 2010 was a disappointing year for Vietnam stock market. It underperformed most of its peer markets in the region. Despite showing a good recovery in GDP growth, the economy has been facing quite a number of challenges including rising inflation, high interest rates, weakening currency and prolonged trade deficit. Corporate with high leverage and high dependence on imported raw materials are facing constant pressure on margin. Consumer sector remains the bright and stable spot given the countrys strong and resilient domestic demand.
Going into 2011, we expect the market will continue to remain volatile until the current challenges in the economy can be skillfully managed. The bright note is that the market valuation has become increasingly attractive, especially when compared with regional peers. We are seeing many solid, well-managed companies trading at attractive valuation levels. We continue to favor the consumer, pharmaceutical, petroleum and natural resource, and IT-Telecommunication sectors. Banking is a very interesting sector to watch for a potential recovery play given its deep discounted valuation. Given the countrys strong GDP growth and favorable demography, property and building material sectors should also do well once interest rates start to come down.
Source:VAM, 11.01.2011

Filed under: News, Vietnam, Wealth Management, , , , , , , ,

January 4, 2011 • 4:55 am 0

Brazil – Optimism May Prevail at Last- Monthly Allocation – January 2011

Amid old concerns, the US gives signs of improvement

The New Year will begin in the same way 2010 is ending: full of doubts. However, a more positive mood is emerging in relation to the international economy, at least for the near future. A tendency towards a solid recovery of the US economy particularly reflects this sentiment. Thus, although markets continue to monitor closely the rolling of sovereign and bank debts in Europe, pay particular attention to economic growth in Germany and inflationary trends in China, during January 2011, US economic indicators will probably dominate the spotlight, as analysts seek to confirm signs of a stronger growth.

See detailed report: Brazil – Monthly Allocation – January 2011

The implementation in the US of the fiscal package that maintains tax breaks for personal taxpayers, recently agreed to between the Obama Administration and Congress, supports this optimism. Also, various economic indicators have shown improvement and the overall data pointing to an increase in the speed of recovery is indeed impressive, although in some cases this is slow and in others apparently only transitory. For example, personal consumption has grown consistently in the last few months and growth recorded in October and November indicates that in 4Q10 the increase in the consumption component of GDP may surpass 3% for the first time since 2006. The figures in the indicators of industrial and service activities – ISM Manufacturing and ISM Non-manufacturing – also give grounds for confidence in a faster growth for 2011. Even the labor market has shown some signs of life. Indeed, excluding the surprisingly disappointing payroll data for November, nearly all market indicators have revealed improvements, particularly the drop in weekly jobless insurance claims since the middle of November.

We expect a calm local scenario, with confirmation of the interest rate hikes foreseen for the next months

In Brazil, the minimum wage is set and all signs point to the Central Bank starting a cycle of hikes in the Selic interest rates in January. This should leave the short-term picture clearer. Our basic scenario points to three further hikes of 0.5% in subsequent COPOM meetings, a total rise of 2.0%, maintained until mid-2012.

Additionally, the installation of a new administration always brings hopes of further structural advances. However, several uncertainties cloud the medium-term horizon, such as, for example, questions on how the new Government will conduct its fiscal policy.

We believe that, despite the positive signs expected locally and in the US, a seasonally weak stock market in January will not allow the Ibovespa to recover consistently. Instead, it is likely to continue volatile, but moving sideways. Faced with this, we have not changed our portfolio in terms of the names included. We have only re-balanced weights by reducing the weights for Vale and PDG Realty (from 20 to 15% and from 10 to 5%, respectively) and increasing the weights for Telesp and MRV (both from 5 to 10%).

Source: BANIF – IXE, 03.01.2011

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

December 26, 2010 • 11:43 pm 0

BlackRock lista 7 nuevos ETF de indices de Asia, Polonia, Brazil y renta fija International en Mexico

Ciudad de México, 26 de diciembre de 2010 – El pasado jueves 23 de diciembre, empezaron a negociarse en el Sistema Internacional de Cotizaciones (SIC) de la Bolsa Mexicana de Valores (BMV) 7 nuevos ETFs iShares internacionales, patrocinados por Deutsche Securities, S.A. de C.V., Casa de Bolsa y administrados por BlackRock, en lo que constituye el cuarto paquete de ETFs iShares listados en el SIC el presente año.

Los 7 ETFs iShares que integran este paquete brindan exposición a índices de renta variable internacional de mercados emergentes y de Asia no emergente, así como de renta fija internacional.

Los ETFs iShares listados en el SIC son:

Nombre Clave de pizarra % Gastos Aprobado por CONSAR
Instrumentos de renta variable
iShares MSCI China Small Cap Index Fund ECNS 0.65 No
iShares MSCI Indonesia Investable Market Index Fund EIDO 0.65 No
iShares MSCI New Zealand Investable Market Index Fund ENZL 0.55 No
iShares MSCI Poland Investable Market Index Fund EPOL 0.65 No
iShares MSCI Brazil Small Cap Index Fund EWZS 0.65 No
Instrumentos de renta fija
iShares FTSE Gilts UK 0-5 IGLS 0.20 No
iShares DEX Short Term Bond Index Fund XSB 0.25 No

Estos 7 ETFs iShares permiten tener acceso a un perfil de inversión representado por el dinámico sector de empresas de baja capitalización de economías que han tenido desempeños recientes interesantes, como la china, indonesia, neozelandesa, polaca o brasileña.

Por ejemplo, el iShares MSCI China Small Cap Index Fund mantiene una posición diversificada en empresas chinas de baja capitalización del sector automotriz, minero, tecnológico, de bienes raíces, energético, cementero y de materias primas, entre muchos otros.

Las carteras, desempeños recientes, retornos históricos, prospectos y otros datos de interés de estos nuevos ETFs pueden ser consultados en www.iShares.com.mx.

“Con este cuarto paquete de ETFs iShares listados en el SIC este año, culmina un 2010 de intensa actividad para BlackRock en México, pues arrancamos con 126 ETFs, y estamos cerrando con un total de 168: 146 ETFs listados en el Sistema Internacional de Cotizaciones y 12 ETFs listados en el mercado local de la Bolsa Mexicana de Valores (BMV). Asimismo, pasamos de 10 mil millones a 14 mil millones de dólares en activos bajo administración para clientes en México a través de los ETFs iShares, en cuentas segregadas y clientes institucionales. Ambos indicadores ratifican nuestra posición de liderazgo en esta industria”, indicó Isaac Volin, Director Ejecutivo de BlackRock México.

A escala internacional, BlackRock también mantuvo su liderazgo este año con un total de activos gestionados globalmente por 3.45 billones de dólares (trillion dollars), al 30 de septiembre de 2010.

Con los ETFs iShares de BlackRock, los inversionistas mexicanos tuvieron por primera vez en 2004 acceso desde México a una amplia gama de vehículos de inversión con exposición a diferentes clases de activos internacionales, que les han permitido conformar portafolios mejor diversificados para optimizar rendimientos ajustados por riesgo.

BlackRock está firmemente comprometido a poner al alcance de los inversionistas mexicanos la familia más completa y diversificada de vehículos de inversión para tener acceso a todas las clases de activos disponibles a escala global. A su vez, ofrece acceso a inversionistas internacionales a instrumentos de activos mexicanos que contribuyen al financiamiento y desarrollo de México.

Source: BlackRock 26.12.2010

Filed under: BMV - Mexico, Brazil, China, Indonesia, Mexico, News, , , , , , , , , , ,

December 8, 2010 • 10:36 pm 0

VAM: Vietnam Market Analysis November 2010

Market Update - November was characterized by mixed news flow. On the one hand, there were a couple of good macroeconomic developments, namely (i) the last quarter GDP growth expected at 7.24%, resulting in a full year growth of 6.7% versus 5.32% last year; (ii) capital inflows from disbursed foreign direct investment and official development assistance keeping improving; (iii) overseas remittances likely to reach US$ 7.2 billion in 2010 compared to US$ 6.6 billion in 2009; (iv) full year export growth expected to reach 23%, nearly quadrupling the governments earlier target of 6%, while imports growth will stay slower at 19% – 20%; (v) overall balance of payments expected to be $2 billion in deficit this year, down from last year’s deficit of $8.8 billion. VAM Monthly Newsletter – November ’10

On the other hand, ongoing accelerating inflation and volatile FX market continued to attract increasing concerns from policy makers as well as market participants. November CPI increased by 1.86% from October, marking the third consecutive MoM increase above 1% after six months being kept under this threshold. November number brought year-to-date figure to 9.58% and full year CPI is being forecasted to stand at 11-12%. The FX market, too, heated up during November, with the greenback being offered at 21,500 dong/dollar in the unofficial market at month end, 10.25% higher than the official ceiling band of 19,500 despite the governments announcement early in the month that it would allow the State Bank of Vietnam (SBV) to use the foreign reserves to inject dollars into the market and that the SBV had no plan to further depreciate the dong until the Lunar New Year (February 2011).

Strong rally in the local gold price in the past few months has been a major cause for the FX situation and panicky market sentiment. After the SBVs decision to allow gold import in early November, local gold prices started to cool down and got to around VND35.9 million per tael (local unit for gold, equivalent to about 1.2556 troy ounce) at the end of the month compared to its all time record high at VND38.2 million per tael at mid-November.

As GDP growth target for this year has been achieved, the governments focus now moves to curbing inflation and cooling the FX and gold markets to stabilise the macro environment. They implemented successive tightening monetary measures in November, such as (i) raising interest rates by 1% per annum (VND base interest rate to 9% p.a., refinancing interest rate to 9% p.a., discount rate to 7% p.a., and overnight rate to 9%); (ii) removing cap on both deposit and lending rates for banks. Toward month end, many banks increased the deposit rate for VND to 13-14% per year. Some smaller commercial banks even offered borrowing rates of 14.5-15% p.a. in an attempt to retaining their depositors and mobilising more capital for their increasing year-end lending demand. However, the desired effects on inflation of these tightening policies will be likely to be seen only from next year.
The VN-Index ended November at 451.59, down 1.5% on-month. During the month, we saw a divergence in the market trend, hitting the trough at mid month and then significantly picking up during the last week of the month. Additionally, the low average liquidity might indicate that retail investors were still cautious about the recovery of the equity market in the short-term.

Our View – We are not too bullish about the market in the short-term but equities have come down to the very attractive level. The negative macro situation has mostly been priced in so it might be a good time for investors to consider accumulating stocks. Nevertheless, we think the Government should be more transparent and proactive in implementing its monetary policy measures in order to restore investors confidence and to help the equity market sentiment.
We continue to like stocks in consumer staples, oil & gas, and materials. For a longer horizon we prefer materials, real estate and banking sectors. In this time of volatility, we recommend that our investors keep close tabs on macroeconomic developments for signs of recovery and stability before jumping in.
Source: VAM, 08.12.2010

Filed under: News, Vietnam, Wealth Management, , , , , , , , ,

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