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Door Reopens For Synthetic ETFs In Hong Kong

Written by IU.eu Staff

  
January 06, 2012 15:26 (CET)

Hong Kong’s financial regulator has approved six db X-trackers’ synthetic exchange-traded funds, the first time in around 18 months it has given its stamp of approval to such products.

The newly-authorised listings from the ETF arm of Deutsche Bank are the first synthetic ETFs to gain regulatory approval from the Securities and Futures Commission (SFC) since it licensed two BlackRock-operated funds back in July 2010.

The new listings come less than three months after one of Deutsche’s closest rivals, Lyxor, was rumoured to be planning to pull out of the Hong Kong market. Both Deutsche and Lyxor focus solely on synthetic products in Hong Kong.

The SFC has displayed an increasingly cautious stance towards synthetically-replicated ETFs over recent years, tightening collateral requirements for domestic funds in August of last year, after introducing a compulsory marker to help investors identify synthetic products in November 2010.

According to the SFC’s website, it approved the MSCI China TRN Index ETF, the MSCI India TRN Index ETF, the MSCI Indonesia TRN Index ETF, the MSCI Malaysia TRN Index ETF, the MSCI Thailand TRN Index ETF and the Australian Dollar Cash ETF on December 30 of last year.


 



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Europe Blog

Friday, January 27, 2012 14:43 (CET)

Posted By Paul Amery

Paul Amery

By comparing two low-volatility offerings in the US, it’s easy to see why ETFs continue to gain at the expense of other funds

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