Americas ETP News
If your looking for specific news, using the search function will narrow down the results
CFTC might vote on position limits next month, Gensler says
August 25, 2011--The U.S. Commodity Futures Trading Commission may vote as early as Sept. 22 to complete Dodd-Frank Act limits on speculative trading in commodities such as oil, natural gas and wheat, CFTC Chairman Gary Gensler said.
The so-called position-limits rule and regulations governing derivatives clearinghouses may be voted on by commissioners next month, Gensler told reporters today during a CFTC economic research conference in Washington. The agency has a rulemaking meeting scheduled for Sept. 22.
“I don’t know if it will be that meeting or early October,” Gensler said. “I feel very good about the progress staff has made.”
READ MORE
Source: Bloomberg
BNY Mellon Repeats as Safest Bank in the U.S. in Global Finance Magazine Survey
BNY Mellon Repeats as Safest Bank in the U.S. in Global Finance Magazine Survey
August 25, 2011--BNY Mellon, the global leader in investment management and investment services, ranks as the safest U.S.-based bank for the third consecutive year in Global Finance magazine's annual "World's 50 Safest Banks" ranking.
The "World's 50 Safest Banks" 2011 rankings were based on an evaluation of long-term credit ratings — from Moody's, Standard & Poor's and Fitch — and total assets of the 500 largest banks worldwide. Now in its 20th year, Global Finance's annual ranking of "World's 50 Safest Banks" is a recognized and trusted standard of creditworthiness for the global financial community. In the 2011 rankings, BNY Mellon maintained its standing as the safest bank in the U.S., and moved up six places in the global ranking.
"The strength of our balance sheet and our capital management strategy continues to distinguish BNY Mellon in the marketplace. It also sustains our strategic focus on developing innovative new solutions that help our clients succeed," said Robert P. Kelly, chairman and chief executive officer of BNY Mellon.
"More than ever, creditworthiness is being viewed as a key attribute for banks," said Joseph D. Giarraputo, the magazine's publisher. "Investors and customers alike are increasingly drawn to banks with proven strength and stability — underscoring the importance of our survey and reflecting positively on banks with superior rankings."
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $26.3 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com and through Twitter @bnymellon.
Source: BNY Mellon
Van Eck files with the SEC
August 24, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the
European Currency High Yield Bond ETF (HYE).
view filing
Source: SEC.gov
Chile: Selected Issues
August 24, 2011--A. Introduction
1. Chile’s exchange rate has appreciated in recent years alongside the copper price boom. The appreciation has raised concerns about the competitiveness of Chile’s nonmineral
exports. This paper uses two approaches to assess competitiveness. First, the IMF’s Consultative Group on Exchange Rate Issues (CGER) methodologies are applied to assess the alignment of the overall real exchange rate with economic fundamentals.
Second, an analysis of exchange rates and competitiveness is done at a sectoral level. The main finding
is that Chile’s real exchange rate is broadly in line with fundamentals. The sectoral analysis suggests that competitive pressures have been more pronounced in the industrial sector,
pointing to the need to increase productivity and diversify into higher-value added products in this sector to maintain competitiveness.
2. The chapter is organized as follows: Section II discusses the stylized facts on Chile’s trade performance; Section III assesses the exchange rate level using the IMF’s CGER methodology; Section IV studies external competitiveness by sector; and finally, Section V concludes. An appendix contains more details on methodology and data description.
B. Stylized Facts
3. Chile’s exports have been increasingly dominated by mining, in particular copper exports, since 2003 (Figure 1). The share of copper exports in Chile’s total exports increased from 36 percent in 2003 to 57 percent in 2010, while the share of industrial and agricultural exports2 declined from 43 and 10 percent in 2003 to 27 and 6 percent in 2010, respectively. Copper exports increased from US$7.8 billion in 2003 to US$40.3 billion in 2010. The ratio of copper exports to nominal GDP also increased from 11 to 20 percent.
view the IMF report-Chile: Selected Issues
Source: IMF
Global X Funds Now On Dorsey Wright Platform
August 24, 2011--Global X Funds, the New York based provider of exchange traded funds, today announced the partnership with Dorsey Wright & Associates' (DWA), an independent registered investment advisory firm. The ETF provider is pairing up with DWA to market the Global Opportunities portfolio, a global portfolio based off of relative strength.
Dorsey Wright's relative strength methodology has long been a vehicle for advisors utilizing ETFs. Global X Funds passively managed ETFs, broken down into Developed Markets, Emerging Markets, Commodity Producers, Income Producers and Special Opportunities fund suites, will be selectively available in the portfolio.
“Dorsey Wright’s expertise in relative strength and technical analysis provides an additional resource to our investors’ portfolio allocation tactics,” said Bruno del Ama, chief executive officer of Global X Funds.
"We are rarely interested in timing precise tops and bottoms in a market, but are very interested in finding the strongest of performance trends within an asset class, and staying with them. We feel our relative strength-based approach is as adept a means for identifying such trends as exists today, and when applied in a disciplined fashion can help investors get the most out of a dynamic fund lineup such as Global X's,” said Tom Dorsey, President Dorsey, Wright & Associates.
Source: Global X
Chavez formalizes nationalization of gold industry
August 24, 2011--Venezuelan President Hugo Chavez signed a decree on Tuesday formalizing the nationalization of his country's gold mining industry, a move aimed at giving the government total control over gold produced in the South American country.
Speaking during a televised speech, Chavez also announced the repatriation of $11 billion in Venezuelan gold reserves currently held in US and European banks would begin within several weeks. Chavez did not offer details how the new decree differs from a 1965 law that nationalized gold mining. In 1977, the government granted itself exclusive rights to extract gold. But he suggested it would give authorities increased powers to evict wildcat miners from illegal mines.
read more
Source: Todays Zaman
BNY Mellon Clearing Joins CME Group for OTC Clearing
August 23, 2011--BNY Mellon Clearing, LLC announced today that it has joined CME Group as a clearing member firm in order to clear over-the-counter interest rate swaps on behalf of its institutional clients.
As a result of recent regulatory changes, it is expected that a large percentage of derivatives transactions will be cleared through central clearinghouses. The Dodd-Frank Act passed in the United States last year mandated clearing of "standardized" OTC derivatives.
"The standardization of OTC derivatives and migration to central clearing should reduce counterparty credit risk and allow better regulatory oversight," said Sanjay Kannambadi, CEO of BNY Mellon Clearing. "By joining CME Group as a clearing member for OTC interest rate derivatives, we have partnered with one of the leading and most respected derivatives clearinghouses and expanded the options available to our clients."
read more
Source: BNY Mellon
ETFs: Growing Up
August 23, 2011--Exchange-traded funds have been lauded for their efficiency and cost effectiveness over traditional fund structures. As their global and market expansion quickens—assets are on pace to exceed $2 trillion by 2015, according to a new study— Joe Keenan, head of Global Exchange Traded Fund Services at BNY Mellon Asset Servicing, speaks with Global Custodian about what is behind the growth and what the world’s largest global custodian can do for ETFs as they evolve
GC: What are the major reasons behind the rapid growth of exchange-traded funds and related products?
JK: The primary reason is that the exchange-traded fund product structure simply offers a better mousetrap. It is a fundamental en-hancement over more traditional fund struc-tures. Depending on the market, some of the inherent costs have been either addressed, or improved upon, by ETFs. For instance, with most traditional funds investors buy or sell their shares at the end of day net asset value. Inevitably, you get the price that reflects the impact of all the market decisions that have happened throughout the day. So that is one fundamental restriction that ETFs address, be-cause you can buy and sell them throughout the day based upon the quoted price on the exchange. This offers a real advantage.
read more
Source: BNY Mellon
PowerShares files with the SEC
August 23, 2011-PowerShares has filed a post-effective amendment, registration statement with the SEC for the
PowerShares KBW Bank Portfolio
(KBWB)
PowerShares KBW Capital Markets Portfolio (KBWC)
PowerShares KBW Insurance Portfolio (KBWI)
PowerShares KBW Regional Banking Portfolio (KBWR)
view filing
Source: SEC.gov
DB Global Equity Research: US ETF Market Weekly Review : GLD overtakes SPY as the largest ETP due to risk off trade
August 23, 2011-Risk off trade continues expanding amidst glooming economic outlook
This week's title says it all. Market sentiment kept wearing down throughout last week, especially after the Philly Fed Survey results came out significantly lower-than-expected increasing the likelihood of recession thus taking a toll on the equity markets. Equity markets in the US (S&P 500) plunged by 4.69% by the end of last week, while Gold prices advanced 6.02%. Market movements and flows have crowned a new king among ETPs: GLD.
The total US ETP flows from all products were $1.1bn of inflows last week vs $7.5bn of outflows the previous week, setting the YTD weekly flows avg. at +$1.7bn.
As weeks go by we just see signs of expansion for the risk off trade. Within long only US ETPs, Equity products added another round of outflows (-$3.1bn) last week and completed 4 weeks of straight negative flows for a total of -$18.7bn in such period. At the same time, we have seen increasing and consistent inflows to Fixed Income and Commodity ETPs. Last week Fixed Income funds received $2.0bn of inflows, lead by IG funds with $1.6bn; similarly Commodity ETPs also received $2.0bn in inflows, driven almost exclusively by Gold products with $1.9bn. On a quarter to date basis, Equity, Fixed Income, and Commodity products have recorded flows of -$8.7bn, +$4.5bn, and +$6.2bn (Figure 1).
Recently, another face of the risk off trade has been most notable among long only US-focused Sector ETPs. Flows pattern among sectors grouped by business cycle sensitivity suggest that fears about a US recession have increased. In the risk off trades earlier this year we had seen outflows from Global Cyclicals, inflows to Defensives, and flat flows to Domestic Cyclicals, suggesting that most of the defensive trade was being fueled by global growth concerns; however sector allocations took a clear shift during last week with Domestic Cyclicals experiencing massive outflows of $2.9bn, while Global Cyclicals recorded $1.6bn of outflows and Defensives received $518m in inflows (Figure 2).
New Launch Calendar: Multiple Asset Class choices joined the ETF offering
There were four new ETPs and one ETN launched in the NYSE Arca during the last week. The new products offer access to US Mortgage REITs, Target Date funds, Emerging Markets Small Cap stocks and Volatility exposure
Turnover Review: floor activity pulls back after record highs
Total weekly turnover decreased by 40.8% to $516bn vs. $872bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $308bn or 40.3% to $456bn. Commodity ETPs turnover decreased by $26bn to $33.9bn last week, mainly driven by Precious Metals ETPs. Finally, Fixed Income products turnover decreased by 47.1% totaling $21.9bn at the end of last Friday.
Assets Under Management (AUM) Review: AUM "recession"
The economy may not be in recession yet, but ETP AUM growth already entered into negative territory for 2011. Assets dropped by $20.5bn or 2.1% falling to $982bn as of the end of last Friday. On a YTD basis ETPs have recorded negative growth of 1.3% or a $13.4bn slip.
to request report
Source: Deutsche Bank - Equity Research
