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Unlike Banks, This Wall St. Group Embraces Dodd-Frank
August 30, 2011--While the United States military has Defcon, the tiered alert system used during times of national crisis, Wall Street has fashioned a critical event of its own, Sefcon.
The industry conference known as Sefcon is devoted to the relatively obscure swap execution facility, or SEF, the electronic derivatives marketplace designated under the Dodd-Frank Act, the sweeping financial regulatory overhaul.
With Washington cracking down on derivatives, Sefcon’s nod to Defcon was not coincidental.
“I thought that Sefcon would give people a sense of urgency,” said Chris Ferreri, a co-founder of the event and a managing director at ICAP, the largest derivatives broker for banks, which plans to register with regulators as a swap execution facility.
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Source: Deal Book
Knight Uses Its Size to Thwart HFTs
August 30, 2011--Knight Capital Group has revamped technology used by its institutional customers to help them steer clear of high-frequency traders.
Because some HFTs are looking to take advantage of the information inherent in large institutional orders, Knight has rejiggered the technology supporting its Knight Direct execution management system to avoid imparting too much information.
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Source: Traders Magazine
John Hancock files with the SEC
August 29, 2011--John Hancock has filed a second amended and restated application for exemptive relief with the SEC. In addition, the Applicants are also requesting relief (“Master-Feeder Relief”) to permit the Feeder Funds to
acquire shares of Master Funds beyond the limitations in Section 12(d)(1)(A) of the Act and permit the Master Funds, and any principal underwriter for the Master Funds, to sell shares of the Master Funds to the Feeder Funds beyond the limitations in Section 12(d)(1)(B) of the Act.
view filing
Source: SEC.gov
John Hancock files with the SEC
August 29, 2011--John Hancock has filed a second amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Brazil leads gains in Latin America
August 29, 2011--Latin American equities were stronger, led by gains in Brazil as traders were closely watching the results of a meeting of Banco Central do Brasil, the country’s central bank.
The Brazilian government raised a key budget surplus target, indicating it would control spending while examining how and when to lower interest rates.
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Source: FT.com
Morgan Stanley -ETF Weekly Update
August 29, 2011--Weekly Flows: $8.2 Billion Net Inflows
ETF Assets Stand at $1.0 Trillion, up 3% Last Week
No ETF Launches
Christian Values ETF (FOC) to Cease Trading
US-Listed ETFs: Estimated Flows by Market Segment
For the second consecutive week, ETFs posted net inflows (the most since week of 7/5/11)
ETFs posted net inflows of $8.2 bln last week; primarily driven by US Large-Cap ETFs
ETF assets stand at $1.0 tln, up 3% last week; a combination of net inflows and market appreciation
13-week flows were mixed among asset classes; combined $17.8 bln net inflows
Fixed Income ETFs up $7.8 bln; US Mid-, Small- and Micro-Cap ETFs down $6.9 bln
We estimate ETFs have generated net inflows 20 out of 34 weeks in 2011; YTD net inflows are more than $20
bln ahead of where we were at this point last year.
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) had net inflows of $6.3 bln last week, the most of any ETF
SPY regained its status as the world’s largest ETF last week, surpassing SPDR Gold Trust (GLD)
Seven out of the top 10 ETFs to generate net inflows were US Equity ETFs
Last week, GLD gave back the prior week’s net inflows; GLD exhibited net outflows of $3.5 bln while posting a
1.4% market price decline
US-Listed ETFs: Change in Short Interest
Data Updated: Based on data as of 8/15/11
SPY exhibited the largest increase in USD short interest since last updated
$23.5 billion in additional short interest
Highest level of shares short for SPY of all-time
XLU exhibited the largest decline in USD short interest since last updated
$237 million in reduced short interest
XLU’s decline in shares short comes amid its relative market outperformance vs. the S&P 500 over 7/29-8/15 time period
request report
Source: Morgan Stanley
Russell files with the SEC
August 29, 2011--Russell has filed an application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Foreign ETFs must issue a prospectus to trade on Ontario exchanges: OSC
Regulator has received many inquiries regarding possible cross-listings
August 29, 2011--Foreign exchange-traded funds will have to issue a prospectus if they want to list and trade on an exchange in Ontario, provincial securities regulators say.
The Ontario Securities Commission has published a notice setting out the views of its staff regarding possible cross-listings by foreign ETFs. The OSC notes that it has received several inquiries relating to foreign ETFs that may be interested in cross-listing.
In the notice, the OSC says that its employees view a possible cross-listing of foreign ETF securities as constituting a distribution in Ontario. “ETFs differ from other exchange-listed issuers primarily because an ETF’s exchange listing functions as the primary distribution channel through which an ETF issues its securities to investors and increases its net assets. As a result, we do not consider the ETF’s exchange listing as merely providing a source of secondary market liquidity,” it notes.
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Source: Investment Executive
Estimates for US corn harvest cut due to heat exposure
August 28, 2011--Food price inflation looks set to continue as a threat into 2012 as expectations for the US corn harvest, the world’s largest, are being lowered by the week.
Analysts and trading executives are cutting estimates of how many bushels each acre will grow as the effects of punishing heat last month result in smaller ears of corn. The private sector estimates are well below already disappointing official forecasts published earlier this month.
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Source: FT.com
Derivatives Tax Won’t Hurt Brazil Market, CME CEO Says
August 26, 2011--A tax on currency derivatives imposed by the Brazilian government last month to curb the real’s appreciation won’t cause a migration of derivatives trading offshore, said Craig Donohue, chief executive officer of CME Group Inc. (CME), the world’s largest futures market.
The 1 percent tax on some bets against the dollar “is a function of the larger dynamics of the currency appreciation,” Donohue said today in an interview at the BM&FBovespa derivatives conference in Campos do Jordao, Brazil. “I don’t expect it to be permanent so I think it won’t result in that outcome,” Donohue said.
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Source: Bloomberg
