Americas ETP News
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Deutsche Bank -US ETF Market Weekly Review : Market rally pushes ETP assets near all-time highs
Deutsche Bank - Equity Research - North America
July 27, 2011--ETP flows suggest that investors returned to risk – at least during last week
Last week most of the equity markets around the globe rallied driven by positive corporate earnings data and the new Greek aid package. Equity markets in the US (S&P 500) soared by 2.19%.
The total US ETP flows from all products registered $4.2bn of inflows during last week vs $1.4bn of outflows the previous week, setting the YTD weekly flows average at +$2.4bn. US ETP AUM gained $23bn, closing at $1.12 trillion or 12.5% up YTD.
Long only ETP Flows reflect the current uncertain market environment as we start Q3. US focused Equity ETPs have clearly dominated the flows and last week they added up $3.7bn in new cash. However this dominance has not been exclusive as flows have been very volatile and, at times, have swapped the leading position with Precious Metals ETP flows. We believe that although the most recent data points out to a comeback to risky assets, there are still some outstanding issues (e.g. US debt ceiling) that need to be sorted out before we could talk about long lasting trends.
Long only equity ETPs recorded $3.4bn of inflows last week vs $4.2bn of outflows the previous week. From a geographic allocation perspective, US-focused ETPs concentrated the bulk of the inflows (+$3.7bn), followed by Global ETPs with +$283m; while EM, and DM ex US ETPs experienced outflows of $452m, and $192m in the same period, respectively.
Long-only fixed Income ETPs recorded inflows of $362m last week. Corporate ETPs received $190m in inflows, followed by broad benchmarked funds with $159m. Commodity ETPs recorded inflows of $876m last week. At a sector level, Precious Metals ETPs recorded the largest inflows with $913m; while Energy ETPs registered the largest outflows with $127m.
New Launch Calendar: 2 new ETNs tracking Internet IPOs
There were 2 new ETNs listed on the NYSE Arca during last week. Both ETNs offer exposure to Internet IPOs with and without leverage respectively (See Figure 3 for more details).
Turnover Review: Floor activity declines on lower volatility
Total weekly turnover declined by 17.1% to $331bn vs. $400bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $63bn or 18.1% to $284bn. Commodity ETPs turnover also dropped driven by Gold and Crude Oil with a total weekly turnover of $30.6bn last week. Similarly, Fixed Income products turnover decreased totaling $13.1bn at the end of last Friday, about 9.5% lower from the previous week.
Assets Under Management (AUM) Review: rally adds $23bn to ETP assets
Equity market gains around the globe added $23.2bn or 2.1% to US ETP assets during last week. ETP AUM almost passed the April 29th all-time high level with $1.12 trillion as of the end of last Friday; recording a $124bn (12.5%) increase on a YTD basis.
to request report
Source: Deutsche Bank - Equity Research
Dow Jones Indexes Launches a Global Shipping Industry Index CDS on US Sovereign Debt Q&A What triggers CDS? Of course, parties are free to agree to make whichever elections they wish, but standard elections are generally used for particular transaction types (so, for example, some of the elections for North American corporates, will be different from those for, say, Western European Sovereigns).
read more Oil falls below $99 a barrel after US crude supply jump read more
Real tumbles as Brazil imposes curbs < href="http://www.ft.com/cms/s/0/855a3fea-b86f-11e0-b62b-00144feabdc0.html#ixzz1Ti0U2lVK" TARGET="_top">view more
Global X files with the SEC Fitch: U.S. Treasuries Expected to Remain Global Benchmark read more Financial Stability Oversight Council Releases First Annual Report Although we cannot predict the precise threats that may face the financial system, the best way to prepare for the inevitable uncertainty is to continue to build the shock absorbers and other safeguards that improve the resilience of the financial system. view the Financial Stability Oversight Council Annual Report 2011 ISE Completes Optimise Rollout “The completion of a successful rollout of Optimise marks a major milestone for not only the ISE and Deutsche Börse teams working on this project but also for our member firms who have undertaken their own projects to connect, test, and transition to the new system,” said Gary Katz, President and Chief Executive Officer of ISE. “I would like to express my gratitude and congratulations to all of those who have been involved – our staff, member firms, and vendors – in ensuring this important transition concluded on schedule.”
“The trans-Atlantic project team is very excited to have completed this final, critical phase of the Optimise rollout at ISE,” said Daniel Friel, ISE’s Chief Information Officer. “Now that the initial rollout is complete, we are already looking ahead to the introduction of further latency improvements and new functionality later this year.”
After an initial launch of ten options on April 11, 2011, ISE carried out a phased migration from its predecessor platform to Optimise. With Optimise now fully in place, running out of two new, state-of-the-art data centers, ISE will decommission its predecessor system and data centers.
To learn more about Optimise, visit www.ise.com/optimise. SEC Re-Proposes New Shelf Eligibility Requirements for Asset-Backed Securities “It is very important that we move forward with our new registration and reporting rules for the asset-backed securities market, but we also want to make sure we get it right,” said SEC Chairman Mary L. Schapiro. “This re-proposal will help us solicit the input and constructive comments we need to finalize this critically important project to protect investors in asset-backed securities.” read more
Dow Jones Global Shipping Index to Measure the Performance of 25 Leading Dividend-Paying Shipping Companies
July 27, 2011--Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Global Shipping Index, which measures the performance of 25 leading dividend-paying companies in the shipping industry.
The Dow Jones Global Shipping Index has been licensed to Guggenheim Funds to serve as a basis for the Guggenheim Shipping ETF.
The index universe includes all companies involved in the shipping industry globally that primarily transport goods and materials; companies solely involved in carrying passengers are excluded. A company must also have a minimum float-adjusted market capitalization of $150 million and a three-month average daily trading volume of $2 million. From this universe, the 25 stocks ranked highest by indicated annual dividend yield — subject to buffers that aim to limit unnecessary turnover — are selected for the index.
Source: Dow Jones Indexes
July 27, 2011The following are responses to the most frequently-asked questions that ISDA has received in connection with a potential CDS Credit Event on US sovereign debt. The following does not constitute legal advice, and is subject in all respects to any determination that the ISDA Americas Credit Derivatives Determinations Committee may make in relation to CDS referencing the United States. ISDA makes no comment on the likelihood of the events described in this Q&A.
How are Credit Default Swaps documented?
The vast majority of Credit Default Swaps (CDS) are documented using the 2003 ISDA Credit Derivatives Definitions, as supplemented by the July 2009 Supplement. The Definitions can be obtained from ISDA’s Bookstore.
The CDS contract contains a number of elections that parties can make (for example, which events from a menu of potential Credit Events will apply, what obligations are relevant for triggering a Credit Event, what kind of obligation will be deliverable if a Credit Event occurs).
Source: International Swaps and Derivatives Association
July 27, 2011--Oil prices fell below $99 a barrel Wednesday in Europe after a report showed US crude supplies unexpectedly jumped last week, suggesting demand may be weakening.
By early afternoon in Europe, benchmark oil for September delivery was down 73 cents to $98.86 a barrel in electronic trading on the New York Mercantile Exchange. Crude rose 39 cents to settle at $99.59 on Tuesday. In London, Brent crude fell 60 cents to $117.68 per barrel on the ICE Futures exchange. The American Petroleum Institute said late Tuesday that crude inventories rose 4.0 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a drop of 2.3 million barrels.
Source: Todays Zaman
July 27, 2011--The Brazilian real tumbled on Wednesday after the country introduced measures to curb foreign exchange speculation in a bid to bring down the currency from a 12-year high against the dollar and protect its manufacturers.
The government imposed a 1 per cent transactions tax on currency derivatives, laid down new legislation whereby the tax could be increased to up to 25 per cent, demanded the registration of “over-the-counter” currency trades and threatened further measures such as raising minimum trading margins.
Source: FT.com
July 27, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the
Global X FTSE Toll Roads & Ports ETF
Global X FTSE Railroads ETF
Global X Farmland & Timberland ETF
Global X Cement ETF
Global X Advanced Materials ETF
view filing
Source: SEC.gov
July 27, 2011--In the event of a U.S. sovereign downgrade by a major rating agency, U.S. Treasuries and broader financial markets could experience near-term volatility, according to Fitch Ratings. However, Fitch expects that, over the near to medium term, in a moderate downgrade scenario (e.g., to 'AA'), U.S. Treasuries would likely retain their standing as the benchmark security of the global fixed income market.
The possibility of a downgrade of the current 'AAA' U.S. sovereign debt rating has triggered numerous warnings about the consequences of such a move for global financial markets and the U.S. economy. Common speculation is that a downgrade could cause a significant sell-off of U.S. Treasuries, funding market dislocations, and longer-term structural increases in U.S. borrowing costs.
Source: Fitch Ratings
July 26, 2011--Today the Financial Stability Oversight Council released its 2011 Annual Report. This is the Council’s first annual report and the first public report ever issued by the U.S. government that provides a comprehensive view of financial market developments, potential threats to financial stability and recommendations for further strengthening the financial system.
This report provides a snapshot of the financial system and potential vulnerabilities. It is also part of an ongoing process by the Council to identify and mitigate potential threats to financial stability. This is an inherently difficult exercise. No financial crisis emerges in exactly the same way as its predecessors, and the most significant future threats will often be the ones that are hardest to diagnose and preempt.
Source: US Department of the Treasury
Lower Latency and Enhanced Functionality Position ISE for Future Growth
July 26, 2011-The International Securities Exchange (ISE) announced today that it has completed the rollout of its new trading system based on Deutsche Börse Group’s OptimiseTM trading architecture. In the last week, the final two tranches of options products migrated from ISE’s predecessor platform to Optimise.
This final step concludes ISE’s three-month migration to the new system, and all products on the exchange are now being traded on Optimise.
Source: International Securities Exchange (ISE)
July 26, 2011--The Securities and Exchange Commission today voted unanimously to re-propose for public comment some rules requiring greater accountability and enhanced quality around asset-backed securities (ABS) when issuers seek to use an expedited registration process known as shelf registration.
The SEC initially proposed rules in April 2010 to significantly revise the regulatory regime for ABS. Subsequent to that proposal, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and addressed some of the same ABS concerns. In light of those Dodd-Frank Act provisions and comments received from the public, the SEC re-evaluated its initial proposals.
Source: SEC.gov
