Americas ETP News
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SEC Proposes Product Definitions for Swaps
April 27, 2011--The Securities and Exchange Commission today voted unanimously to propose rules further defining the terms “swap,” “security-based swap,” and “security-based swap agreement.”
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The Commission also proposed rules regarding “mixed swaps” and books and records for “security-based swap agreements.”
The rules were proposed jointly with the Commodity Futures Trading Commission (CFTC) and stem from the Dodd-Frank Wall Street Reform and Consumer Protection Act.
“The proposed definitions balance several policy and legal issues in a way I believe is practical, takes into account the specific nature of derivatives contracts, and is consistent with existing securities regulations,” said SEC Chairman Mary L. Schapiro. “The proposal seeks to provide guidance in rules and interpretations by using clear and objective criteria that should clarify whether a particular instrument is a swap regulated by the CFTC, a security-based swap regulated by the SEC, or a mixed swap regulated by both agencies.”
Public comments on the rule proposal should be received within 60 days after it is published in the Federal Register.
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Source: SEC.gov
ProShares files with the SEC
April 27, 2011--ProShares has filed a 424B2 Prospectus Supplement No. 4 for ProShares Ultra Silver
ProShares UltraShort Silver and
ProShares UltraShort Yen
view filing
Source: SEC.gov
US GDP data weigh on markets
April 27, 2011--Shares in Procter & Gamble and Starbucks were hit after the companies released disappointing earnings results, while the wider markets traded in narrow range, shifting in and out of positive territory after data showing that rate of growth in the US economy had slowed during the first three months of 2011.
Procter & Gamble was down 0.8% to USD 63.49 after the world's largest consumer goods company reported weak sales growth of less than 1% in developed markets and said it had underestimated commodity inflation in "a very difficult operating environment".
The group also cut its forecasts for sales and earnings growth in the current quarter.
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Source: Money Control
Extra time granted on US reforms
April 27, 2011--Derivatives dealers and users will have more time to weigh in on financial reforms and the chance to argue for a slow introduction, US officials have said, in the face of persistent complaints about the pace and effects of new market rules.
So-called “over-the-counter” derivatives, those not traded on exchanges, have proved one of the thorniest areas of last year’s Dodd-Frank financial reforms.
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Source: FT.com
WisdomTree Announces First Quarter 2011 Results
Company achieves first GAAP net income quarter
68% growth in AUM and 67% growth in revenues year over year
$1.3 billion in net inflows; 4.7% market share of industry flows
April 27, 2011 – WisdomTree, an exchange-traded fund (“ETF”) sponsor and asset manager, today reported GAAP net income of $0.2 million for the first quarter of 2011 as compared to a GAAP net loss of $3.6 million in the first quarter of 2010 and a GAAP net loss of $0.6 million for the fourth quarter of
2010.
Proforma operating income (which excludes stock-based compensation and depreciation and amortization expenses) was $2.3 million in the first quarter of 2011 as compared to a proforma
loss of $1.0 million in the first quarter of 2010 and proforma income of $1.7 million in the fourth
quarter of 2010.
ETF assets under management (“AUM”) reached a record $11.3 billion, up 68.1% from March 31, 2010 and up 14.1% from December 31, 2010. Net inflows were $1.3 billion in the first quarter which represented 4.7% market share of industry inflows. Revenues increased 66.8% to a record $14.5 million compared to the first quarter of last year and up 8.4% from the fourth quarter of 2010.
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Source: WisdomTree
Opening Statement, Open Meeting on the Fourteenth Series of Proposed Rulemakings under the Dodd-Frank Act
Commissioner Jill E. Sommers
Wednesday April 27, 2011--Good morning. Thank you Mr. Chairman and thank you to all the teams for their hard work on the proposals we consider today. A number of these proposals are critical lynchpins to the new regulatory structure we are creating. I know the public, the industry, end users, and members of Congress have been anxiously awaiting some of these proposals.
Before moving to the specific proposals before us today, I would like to focus on the Dodd/Frank repeal of certain provisions of the Commodity Exchange Act that were added by the Commodity Futures Modernization Act of 2000 (CFMA) to provide legal certainty for the over-the-counter (OTC) markets, namely Sections 2(d), 2(e), 2(g), 2(h), and 5d. These provisions will be rescinded on July 16th, less than three months from now, even though the new regulatory framework for trading and clearing swaps will most certainly not be operational by that date.
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Source: AME Info
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
Commissioner Michael V. Dunn
April 27, 2011--Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act.
Today, as we near the end of our meetings regarding proposed rules, we will finally consider our Product Definitions rule – a joint rule with the SEC – which in a perfect world would have been one of the first rules proposed, because meaningful input from those who will be under the new regulatory regime depends upon knowing precisely what constitutes a swap and what does not.
We also will discuss our Conforming Rules, whose purpose is in part to ensure that what is required for swaps is required for futures and vice versa. In a perfect world, conforming rules would be the last proposed and finalized because to do them correctly depends on having a view of all the other rules.
This is not a perfect world and the Commission is doing what it can, when it can, with the resources we have.
In considering the proposed rule for Capital Requirements for Swap Dealers and Major Swap Participants, I will be particularly interested in hearing staff’s thoughts and the public comments on how much this rule will cost not only the industry but the CFTC. I believe this rule is a necessity, but I am interested to hear if or how these proposed capital requirements will affect the cost of transacting swaps. At the very least, these proposed capital rules will increase the burden on current Commission staff and will require the hiring of additional staff.
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Source: SEC.gov
RiverPark files with the SEC
April 26, 2011--RiverPark Advisors has filed a third amended and restated application for exemptive relief with the SEC for actively-managed funds.
view filing
Source: SEC.gov
Commodity ETFs Could See More Scrutiny
April 26, 2011--Has the rapid onslaught of commodity ETFs gone too far? Accusations over speculation and manipulation continue to fly, with ETF/ETN issuers such as U.S. Commodity Funds and Barclays serving as the complicit dealers for big-bank manipulators.
Recent actions by the Commodity Futures Trading Commission (CFTC) reveal that regulators are serious about cracking down on some commodities vehicles. According to an article in today's Wall Street Journal, the CFTC is moving to curb mutual funds that rely on non-U.S. subsidiaries to make speculative bets on commodities and currencies. By using foreign subsidiaries, these mutual funds evade the limits of CFTC regulation. (They are, however, within the regulatory range of the SEC.)
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Source: The Street
AdvisorShares Announces Partnership With Accuvest Global Advisors
Partnership Will Create a Solution That Utilizes a Global Country Rotation Strategy
April 26, 2011--AdvisorShares Investments, LLC, a sponsor of actively managed Exchange Traded Funds (ETFs), announced today a partnership with Accuvest Global Advisors ("AGA"), to develop an actively managed ETF which will utilize a proprietary global country rotation strategy. The proposed ETF would join AdvisorShares' growing stable of innovative actively managed ETFs and add a global investment strategist to the AdvisorShares family for Financial Advisors to gain insights from.
Noah Hamman, CEO and Founder of AdvisorShares said, "We feel investment advisors will be as excited as we are to be able to offer their clients access to AGA's extensive global equity investing experience. The strategy utilizes a unique top-down macro-economic scoring system as they evaluate and pick countries, not individual equities. AGA has a tremendous track record of success and the upcoming ETF will provide investors with another solution to gain global equity exposure."
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Source: AdvisorShares Investments, LLC,
