Over-the-counter brings you news and views of what's going on in the ETF market.
BlackRock filed with the US Securities and Exchange Commission last week to use proprietary indices for its iShares ETFs, rather than those developed by third-party index providers.
It is a move which has sparked much commentary in the press and among some bloggers. Some have speculated that this move is a result of iShares losing market share to other large US ETF firms. Others have criticised the move, saying that it increases conflicts of interest within the business.
The Financial Stability Board noted conflicts of interest within the ETF market as a potential area of concern in its report earlier this year. There are however, already a few US providers which use their own indices to underlie the ETFs they create. In Europe it is also standard practice among some providers.
In a similar move from another point in the business chain, indexing giant Russell launched its first US ETFs in May this year. It has spoken about the Chinese walls between its businesses which ensure that conflicts of interest are prevented, or at least minimised.
This is the same for many (if not all) organisations running multiple businesses which could be subject to conflicts of interest. BlackRock has reportedly said it will do the same. However, this may not be enough to truly get rid of these conflicts and it seems unlikely to stop the speculation.
The Singapore Stock Exchange is calling for support for its November charity run. The Bull Charge is a 5km run, which takes place on a ‘scenic' route through Singapore.
The funds raised by the event will go to projects benefitting children and young people, the elderly and families in need. Over the past seven years the run has raised more than S$16 million (US $13.3 million) for charities.
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