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CFTC Releases Staff Analysis of Market Data Related to Single-Name and Index Credit Default Swaps
March 16, 2012--The staffs of the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have released analyses of market data related to single-name and index credit default swap (CDS) transactions.
The analyses, which were conducted by the staff of the SEC’s Division of Risk, Strategy and Financial Innovation and shared with the CFTC’s Office of Chief Economist, are available for review as part of the comment files for rules the Commissions jointly proposed to further define the terms “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.” The rules were proposed in December 2010 as one part of the implementation of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). For access to the information, please see the Related Links.
Analysis of this data may supplement other information considered in connection with the final rules defining the terms noted above, and it is made available to allow the public to consider this supplemental information. The CFTC and SEC staffs expect that the Commissions will consider the adoption of the final rules in the next several weeks.
view the Comments for Proposed Rule 75 FR 80174
view the SEC Memorandum-Information regarding activities and positions of participants in the single-
name credit default swap market
Source: CFTC.gov
CFTC.gov Commitments of Traders Reports Update
March 16, 2012--The current reports for the week of March 13, 2012 are now available.
view updates
Source: CFTC.gov
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
March 16, 2012--Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of RuggedCom Inc. (TSX:RCM) have accepted the $CDN33.00 cash per share offer from Siemens Canada Limited.
RuggedCom will be removed from the S&P/TSX SmallCap, Equity SmallCap and Clean Technology Indices effective after the close of Wednesday, March 21, 2012.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
New Russell ETFs offer high dividend yield exposure
ETFs use transparent, rules-based indexes and quality screens that aim to identify financially strong companies
March 15, 2012--Global asset manager Russell Investments launched two high dividend yield exchange-traded funds (ETFs) today on the NYSE Arca, expanding on its line-up of next-generation solutions with focused exposure to quality companies that demonstrate higher dividend yields.
The Russell High Dividend Yield ETFs are yield-focused products that seek to deliver more predictable returns, while offering an alternative to currently lower yielding fixed income products.
The Russell High Dividend Yield ETF (HDIV) and Russell Small Cap High Dividend Yield ETF (DIVS) seek to track the market capitalization-weighted Russell U.S. Large Cap High Dividend Yield and Russell U.S. Small Cap High Dividend Yield Indexes, respectively. Each of these new ETFs is composed of dividendpaying companies with quality characteristics such as their ability to pay a higher dividend yield, exhibit sustained dividend growth and deliver earnings stability. The quality characteristics of each company are then evaluated by measures of financial strength including positive cash flow, return on equity and analyst forecasts for earnings growth. Once the universe is screened for financially strong securities, the constituents are selected to help maximize dividend yield.
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Source: Russell
Rydex lineup intact after Guggenheim takeover
March 15, 2012--With the dust having settled on the Guggenheim-Rydex acquisition, a clearer picture of how the Rydex brand fits under the Guggenheim umbrella has emerged.
Guggenheim Investments rebranded most of the legacy Rydex products under its name to coincide with the closure of the Rydex ownership change February 29.
The new names are part of a number of changes the firm is making to its retail investment lineup. The integration spans open- and closed-end funds, exchange traded funds, unit investment trusts and variable insurance products.
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Source: FT.com
State Street Global Advisors Launches Short Term High Yield Bond SPDR® Exchange Traded Fund
March 15, 2012--State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), today announced that the SPDR® Barclays Capital Short Term High Yield Bond ETF (Symbol: SJNK) began trading on the NYSE Arca.
The new SPDR ETF offers investors access to high yield corporate bonds with short durations, which tend to be less volatile and sensitive to changes in interest rates than debt securities with longer durations. The fund’s annual expense ratio is 0.40 percent.
The SPDR Barclays Capital Short Term High Yield Bond ETF seeks to track the performance of the Barclays Capital 0-5 Cash Pay Constrained High Yield Index. The Index includes publicly issued U.S. dollar denominated, non-investment-grade, fixed rate, taxable corporate bonds that have a remaining maturity of less than 5 years, are rated high-yield (Ba1/BB+/BB+ or below) using the middle rating of Moody’s Investors Service Inc., Fitch, Inc., or Standard & Poor’s Inc., and have $350 million or more of issuance. As of March 5, 2012 there were approximately 351 securities in the Index with an average modified adjusted duration of approximately 2.06 years.
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Source: State Street Global Advisors
Treasury International Capital Data for January
March 15, 2012--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for January 2012. The next release, which will report on data for February 2012, is scheduled for April 16, 2012.
Foreign residents increased their holdings of long-term U.S. securities in January – net purchases were $94.7 billion. Net purchases by private foreign investors were $60.8 billion, and net purchases by foreign official institutions were $34.0 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $6.3 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were $101.0 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, the overall net foreign acquisition of long-term securities is estimated to have been $84.4 billion in January.
Foreigners decreased their holdings of U.S. Treasury bills by $36.9 billion. Foreign holdings of all dollar-denominated short-term U.S. securities and other custody liabilities decreased by $34.1 billion.
Banks’ own net dollar-denominated liabilities to foreign residents decreased by $31.5 billion.
In sum, the net foreign acquisition of long-term securities, the change in foreign holdings of short-term U.S. securities, and banking flows yielded monthly net TIC inflows of $18.8 billion. Of this, net foreign private inflows were $13.5 billion, and net foreign official inflows were $5.3 billion.
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Source: US Department of the Treasury
Columbia Management Investment Advisers files with the SEC
March 15, 2012--Columbia Management Investment Advisers has filed a post-effective amendment, registration statement with the SEC for the Columbia ETF Trust.
view filing
Source: SEC.gov
Swaps Industry Debates Bankruptcy Code Fix to Protect Customers
March 15, 2012--Derivatives industry executives and a U.S. regulator differed over whether to change the bankruptcy code to protect customers from sharing in losses from a brokerage failure.
CME Group Inc. (CME) has backed a plan to allow pension funds and other big asset managers to deal directly with a clearinghouse rather than with a bank brokerage to avoid customers being caught in bankruptcy proceedings that can result in clients losing money, said Tim Doar, a managing director at the world’s biggest futures exchange. A simpler solution to this problem would be to change the U.S. bankruptcy laws, said Dan Maguire, head of U.S. operations for LCH.Clearnet Ltd’s Swap Clear service.
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Source: Bloomberg Business Week
Quebec and Ontario regulators moving closer to approving Maple bid for TMX Group
March 15, 2012--Securities regulators in Quebec and Ontario are moving closer to approving a takeover offer for the company that operates the Toronto Stock Exchange by the Maple Group consortium of financial institutions.
The Autorite des marches financiers said it intends to approve the transaction, saying Maple has provided commitments that it believes will maintain the integrity and efficiency of the financial markets as well as the continuity of derivatives operations in Quebec.
"We're satisfied with the results of discussions to date with Maple and with the scope of the undertakings that Maple will be required to provide," said regulator CEO Mario Albert.
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Source: CTV.CA
