Americas ETP News
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CBOE to Begin Disseminating Two New Volatility Benchmarks Based on CME Group Corn
June 2, 2011--The Chicago Board Options Exchange (CBOE) announced today that on Monday, June 6, CBOE will begin disseminating data for CME Group on two new volatility indexes based on CBOT corn and soybean options prices. The new volatility indexes will be calculated using proprietary CBOE Volatility Index® (VIX®)) methodology.
The CBOE/CBOT Corn Volatility Index (Ticker - CIV) and CBOE/CBOT Soybean Volatility Index (Ticker - SIV) follow two other CME Group volatility indexes that CBOE began calculating for CME Group in September 2010 -- the CBOE/NYMEX WTI Volatility Index (Ticker - OIV) and the CBOE/COMEX Gold Volatility Index (Ticker - GVX).
In March 2010, CBOE entered into a license agreement with CME Group that grants CME Group a worldwide license to trade futures and options on agreed-upon futures products based on indexes calculated by CBOE. CBOE retains ownership of the resulting volatility indexes used by CME Group.
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Source: CBOE
Global X Funds Launches First Farming ETF (BARN)
June 2, 2011--Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X Farming ETF (Ticker: BARN). BARN is the first ETF that comprehensively covers the farming sector, focusing on companies involved in agricultural products, livestock operations, and the manufacturing of farming equipment.
The global food crisis, driven in part by higher fuel costs, weather events, and increased demand from emerging market nations (World Bank, 2011), has placed greater importance on the farming industry. It is directly responsible for producing the agriculture and livestock products necessary for feeding the planet. World food production will have to rise 70 percent by 2050 to feed a population forecast to grow to 9 billion people (Bloomberg, May 2011). Emerging markets are predicted to be the main drivers of demand for world agricultural production, consumption and trade, propelled by rising per capita incomes and urbanization (Food and Agricultural Organization, 2010).The reality of food scarcity, coupled with high oil prices and a feeble US dollar, and increasingly unpredictable weather conditions will multiply the severity of rising food prices and lead agricultural products to become hard assets (The Market Oracle, 2011).
"As the population in emerging economies increases their purchasing power and shifts dietary patterns, these nations have to increase food production yields," said CEO of Global X Funds, Bruno del Ama. "Investors in BARN may stand to benefit from this continuing and global demand."
The Global X Farming ETF tracks the Solactive Global Farming Index, which is designed to measure broad based equity market performance of global companies involved in the farming industry. As of May 23, 2011, the three largest components of the index were Vitierra Inc., Kubota Corp., and Wilmar International Ltd.
Source: Global X Funds
DBX files with the SEC
June 2, 2011--DBX has filed a post-effective amendment, registration statement with the SEC.
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Source: SEC.gov
CME tilts at NYSE Liffe with euribor futures launch
June 2, 2011--CME Group on Thursday turned the tables on NYSE Euronext in their battle in the futures markets by unveiling plans to offer trading in a version of euribor futures, NYSE’s flagship derivatives product.
The move comes three months after NYSE Liffe, the futures arm of NYSE Euronext, started offering trading in eurodollar futures – the flagship contracts offered by Chicago-based CME Group.
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Source: FT.com
Global X files with the SEC
June 1, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the Global X Auto ETF amd the
Global X Farming ETF.
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Source: SEC.gov
Van Eck files with the SEC
June 1, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
ISE Reports Business Activity for May 2011
June 1, 2011 –Dividend trades made up 6.3% of industry volume in May 2011.
ISE is the third largest equity options exchange in May with market share of 19.0%, excluding dividend trades.
The International Securities Exchange (ISE) today reported average daily volume of 2.9 million contracts
in May 2011. This represents a decrease of 27.1% compared to May 2010, a month which experienced high options volume due to significant market volatility on May 6, 2010 and throughout the month. Total options volume for the month was 60.6 million contracts.
ISE was the third-largest U.S. equity options
exchange in May with market share of 19.0%*. Business highlights for the month of May include:
On May 9, 2011, ISE announced that Stanley Choung was elected to its Board of Directors. Mr.
Choung, Managing Director of the Institutional Equity Division for Morgan Stanley, now serves as
an industry director representing ISE’s Primary Market Makers (PMMs).
On May 24, 2011, ISE commenced the migration of its primary market to its new options trading system on the Optimise™ trading architecture.
Aggregate assets under management for the ETFs based on ISE’s proprietary indexes was $1.7 billion as of May 31, 2011.
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Source: International Securities Exchange (ISE)
Toronto Stock Exchange Reaches Over 200 Exchange Traded Product Listings
June 1, 2011--TMX Group Inc. today announced that with the listing of two XTF Capital exchange traded funds (ETFs), Toronto Stock Exchange (TSX) has now reached over 200 exchange traded products (ETPs) comprised of 187 ETFs and 14 exchange traded notes (ETNs). The number of listed products has more than doubled in the past two years bringing the total market cap to approximately $49 billion.
Other issuers listing ETPs on TSX include Barclays Capital, BMO Financial Group, Claymore Investments, Inc., Horizons Exchange Traded Fund Group, Invesco PowerShares and iShares Funds. In 2010, there were 52 new ETP listings, and there have been 27 new ETFs listed so far this year.
"The listing of over 200 exchange traded products marks a significant achievement for TSX as we meet the increasing demand from investors who are turning to this investment tool for portfolio diversification," said Ungad Chadda, Senior Vice President, Toronto Stock Exchange. "We'd like to take this opportunity to thank all of our issuers and welcome a new issuer, XTF Capital eXchange Traded Funds, which listed two ETFs on TSX today."
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Source: TMX Group (TSX-X)
The Options Industry Council Announces Options Trading Volume In May Remains On Record Pace
June 1, 2011-- The Options Industry Council (OIC) announced today that total options trading volume in May was 359,310,820 contracts. While this is down 11.47 percent compared to May of last year when 405,860,027 contracts traded, last month is still the second highest May on record only behind May 2010 which was a peak month for options volume, partly as a result of the 'Flash Crash.'
Average daily trading volume for May was 17,110,039 contracts, keeping up a record pace for 2011 as average daily trading volume for the month of May is 10.58 percent higher than average daily volume for 2010. Additionally, year-to-date volume stood at 1,844,620,084 contracts at the end of May, 9.04 percent higher than the same point last year when 1,691,614,252 contracts were traded. Average daily trading volume for 2011 is 17,908,933 contracts, up 7.99 percent over the 16,584,454 contracts average traded in the same period last year.
OIC also reported that equity options volume in May came in at 336,176,810 contracts, down 9.25 percent compared to the same period last year. Daily equity options volume had an average of 16,008,420 contracts per day in May, which is 13.57 percent lower than the year-ago level of 18,522,423. Year-to-date equity options volume was 1,723,240,326 contracts, which is 10.63 percent higher than the same point last year when 1,557,710,476 contracts were traded.
Source: OIC
Inflation Dynamics and the Great Recession -IMF Working Paper
June 1, 2011--This paper examines inflation dynamics in the United States since 1960, with a particular focus on the Great Recession. A puzzle emerges when Phillips curves estimated over 1960-2007 are ussed to predice inflation over 2008-2010: inflation should have fallen by more than it did.
. We resolve this puzzle with two modifications of the Phillips curve, both suggested by theories of costly price adjustment: we measure core inflation with the median CPI inflation rate, and we allow the slope of the Phillips curve to change with the level and vairance of inflation. We then examine the hypothesis of anchored inflation expectations. We find that expectations have been fully "shock-anchored" since the 1980s, while "level anchoring" has been gradual and partial, but significant. It is not clear whether expectations are sufficiently anchored to prevent deflation over the next few years. Finally, we show that the Great Recession provides fresh evidence against the New Keynesian Phillips curve with rational expectations.
Inflation Dynamics and the Great Recession
Source: IMF
