Americas ETP News
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DTCC And Markit Launch First DVP Platform For The Syndicated Loan Market -
Settlement Date Coordination and Cash on Transfer services simultaneously transfer cash and loan assets on settlement date
August 17, 2011-- The Depository Trust & Clearing Corporation (DTCC), in conjunction with Markit, today announced the launch of its Loan/SERV Cash on Transfer service.
The DTCC service, coupled with Markit’s loan settlement platform, gives the global syndicated loan market its first delivery-versus-payment (DVP) platform for secondary loan trading. The service is a major advance in reducing settlement risk in the loan market.
In the current trading process, there is no assurance that cash settles simultaneously with the change of ownership recorded by agent banks at the time of trade settlement. This leaves the seller on each trade at risk of no longer being the lender of record of the loan asset without ensuring that cash payment has been received.
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Source: DTCC
Venezuela's Chavez Plans To Nationalize Gold Industry
Chavez says he will introduce "decree to take the gold sector"
Government looks to take over production, ramp up international reserves
Chavez hinted in May he may centralize control over gold
Rusoro CEO says he's not worried about expropriation
August 17, 2011--Venezuelan President Hugo Chavez said Wednesday he plans to nationalize the country's gold industry in a bid to take over production and cut down on smuggling, while ramping up international reserves.
Speaking on state television via telephone, the leftist leader said he will introduce a new decree in the coming days to put exploration and extraction of gold into the government's hands.
It will be "a decree to take the gold sector," which still remains in the hands of a "mafia and smugglers," Chavez said. "We don't only have oil wealth, we have here one of the largest reserves of gold in the world ... Let's convert it into our international reserves because gold is increasing in its value."
Venezuela has for years talked about cracking down on illegal gold mining and smuggling along the country's sparsely populated southeast region. At the same time, however, many critics say years of insufficient investment and government red tape have limited extraction of the precious metal.
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Source: Wall Street Journal
Exchange Traded Concepts files with the SEC
August 17, 2011--Exchange Traded Concepts Trust has filed a post-effective amendment, registration statement with the SEC for the
KraneShares China Consumer Luxury ETF
KraneShares China Alternative Energy ETF
KraneShares China Internet ETF
KraneShares China Consumer Staples ETF
KraneShares China Consumer Discretionary ETF
KraneShares China Urbanization ETF
KraneShares China Five Year Plan ETF
view filing
Source: SEC.gov
Claymore files with the SEC
August 17, 2011--Claymore has filed a post-effective amendment, registration statement with the SEC for the Guggenheim Shipping ETF.
view filing
Source: SEC.gov
AdvisorShares files with the SEC
August 16, 2011--AdvisorShares has filed a post-effective mendment, registration statement with the SEC for the STAR™ Global Buy-Write ETF
NYSE Arca Ticker: VEGA.
view filing
Source: SEC.gov
DB Global Equity Research: North America: ETP Market records $7.6bn in outflows
August 16, 2011--Major outflows follow dimmer economic outlook and high market volatility
For somebody looking at weekly figures it would be easy to miss the most active and volatile week since March 2009. While the S&P 500 closed just 1.72% lower relative to the previous Friday, following the historic S&P downgrade of the US Long Term debt from AAA to AA+, the index jumped up and down +/- 5% during the week.
The total US ETP flows from all products were $7.6bn of outflows last week vs $5.6bn of outflows the previous week, setting the YTD weekly flows average at +$1.7bn. US ETP AUM lost $17bn, closing at $1.00 trillion or 0.7% up YTD.
Long only equity ETPs recorded $4.6bn of outflows last week vs $7.8bn of outflows the previous week. From a geographic allocation perspective, most segments were in red again, US-focused, EM, and DM ex US ETPs all experienced outflows of -$2.6bn, -$1.4bn and -$753m last week, respectively.
Long-only fixed Income ETPs recorded outflows of $710m last week. Sovereign ETPs received $318m in inflows; while Corporates recorded the largest outflows (-$1.1bn). Commodity ETPs recorded outflows of $1.5bn last week. At a sub sector level, Crude Oil ETPs recorded the largest inflows with $0.59bn; while Gold products had $1.1bn in outflows.
The overall reading of last week’s long only ETP flows is that the risk off trade keeps expanding in size. During this period, long only equity ETPs with the additional $4.6bn of outflows totaled $5.6bn of outflows since the beginning of the quarter (-$15bn in the last three weeks) (Figure 1).
In addition to risk off trades, flows data also suggests that investors were engaged in a variety of market timing trades in an attempt to exploit any possible opportunity arising from these volatile markets. Gold, Equity Energy sector, and Commodity Energy products (with flows of -$1.1bn, +$1.0bn, and +$0.57bn, respectively) were among such trades. (Figure 2)
New Launch Calendar: new India Consumer ETF
There was one new product launched in the NYSE Arca during the last week. The new ETP offers access to the Indian Consumer sectors (
Turnover Review: trading soars as VIX approaches March 2009 levels
Total weekly turnover increased by 19.9% to $871bn vs. $727bn in the previous week. The largest increase was on Equity ETP turnover which rose by $120bn or 18.7% to $764bn. Commodity ETPs turnover increased by $15.3bn to $60bn last week, mainly driven by Gold ETPs. Finally, Fixed Income products turnover increased by 27.1% totaling $41.4bn at the end of last Friday.
Assets Under Management (AUM) Review:
AUM growth almost flat YTD
Following another round of market turmoil, ETP AUM dropped by $17bn or 1.7% falling to $1.00 trillion as of the end of last Friday. Assets on a YTD basis have recorded just a $7.3bn (0.7%) increase.
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Source: Deutsche Bank - Equity Research
Invesco PowerShares Announces Dividend Distribution for the PowerShares S&P 500® Low Volatility Portfolio (SPLV)
August 16, 2011 – Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $57 billion in franchise assets, today announced the dividend distribution for the recently listed PowerShares S&P 500® Low Volatility Portfolio (SPLV).
“Research studies have shown that U.S. stocks with low volatility tend to provide high risk-adjusted returns,1" said Ben Fulton, Invesco PowerShares managing director of global ETFs. “For advisors seeking to allocate lower volatility into the portfolio core, the PowerShares S&P 500® Low Volatility Portfolio (SPLV) may provide a better degree of protection in down cycles while still participating in upward trending cycles. SPLV is currently yielding 55 percent more than the S&P 500® Index.2"
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Source: Invesco PowerShares
Fitch affirms US credit rating
August 16, 2011--Fitch Ratings said on Tuesday it affirmed the United States' top-notch credit rating at AAA, giving the world's largest economy a reprieve after it was downgraded by Standard & Poor's little more than a week ago.
Fitch said the outlook for the rating was stable.
"The affirmation of the US 'AAA' sovereign rating reflects the fact that the key pillars of (the) US' exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base," Fitch said.
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Source: FIN24
Treasury International Capital Data For June
August 15, 2011--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for June 2011. The next release, which will report on data for July 2011, is scheduled for September 16, 2011.
Foreign residents decreased their holdings of long-term U.S. securities in June — net sales were $11.5 billion. Net sales by private foreign investors were $23.0 billion, and net purchases by foreign official institutions were $11.5 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $15.2 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were $3.7 billion. After adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, are included, the overall net foreign acquisition of long-term securities is estimated to have been negative $8.0 billion in June.
Foreign holdings of all dollar-denominated short-term U.S. securities and other custody liabilities decreased $14.7 billion.
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Source: US Department of the Treasury
iShares files with the SEC
August 15, 2011--iShares has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
