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UBS Announces New Exchange Traded Note Linked to 2X Leveraged Wells Fargo® Business Development Company Index
May 25, 2011--UBS Investment Bank announced today that it has expanded its ETRACS Exchange Traded Notes (“ETNs”) platform by adding the new ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index. It began trading today on NYSE Arca under the ticker symbol, BDCL, and provides leveraged exposure to Business Development Companies through a single investment.
“We are excited to add this ETN to our growing family of ETRACS ETNs. This new ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index is particularly useful for investors seeking exposure to the BDC space and with 2X leverage, the Current Annual Leveraged Yield is 14.57%*,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “This ETN follows our successful launch of the Wells Fargo Business Development Company Index ETN (Ticker: BDCS), the first exchange traded product giving exclusive exposure to BDCs, on April 28, 2011. It is our third ETN with Wells Fargo and we are pleased to partner with them once again.”
BDCs are public vehicles that invest in private equity and debt and were created to increase financing available to small businesses. They function much like private equity funds, although BDCs allow various investors, regardless of size, to participate. A BDC lends to small and midsized companies at high yield equivalent rates and often takes equity stakes in these companies.
The Wells Fargo Business Development Company Index is comprised of 26 BDCs and is a float adjusted, capitalization-weighted index that is intended to measure the performance of BDCs that are publicly listed and satisfy specified market capitalization and other eligibility requirements.
Source: UBS
New York City Proclaims May 26, 2011 To Be ‘Dow Jones Industrial Average Day’ in Recognition Of Iconic Index’s 115th Anniversary
NYC Mayor Michael Bloomberg Calls Dow:
'Most Recognizable, Most Frequently Quoted, Longest-Serving Market Indicator of its Kind'
Charles Dow was a 'Pioneer' Who Anticipated Investors 'Would Value Objective Measure of How Large Companies Traded During a Standard Session in the Stock Market', Mayor Bloomberg Adds
May 25, 2011-- The City of New York has proclaimed May 26, 2011 to be “Dow Jones Industrial Average Day” in recognition of the iconic index’s 115th anniversary.
Founded on May 26, 1896 in New York City by Charles Dow, one of the founders of The Wall Street Journal, the Dow Jones Industrial Average has evolved from 12 stocks published for readers of The Journal to 30 stocks, becoming “the most recognizable, most frequently quoted, and longest-serving market indicator of its kind,” said New York City Mayor Michael Bloomberg in an official proclamation issued from his office.
Referring to The Dow’s 115th anniversary as an “historic milestone,” Mayor Bloomberg added that Mr. Dow anticipated investors “would value an objective measure of how large companies traded during a standard session in the stock market.”
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Souce: Dow Jones
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
May 25, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Thursday, May 26, 2011:
Rare Element Resources Ltd. (TSXVN:RES) will be removed from the index.
The company will graduate to trade on TSX under the same ticker symbol. Rare Element will remain a constituent of the S&P/TSX Venture 30 Index until the next index rebalancing at the end of July, 2011.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor
Global X Funds Launches First Canada Preferred ETF (CNPF)
May 25, 2011--Global X Funds, the New York based provider of exchange traded funds, today launched the Global X Canada Preferred ETF (Ticker: CNPF). This is the first ETF to target Canadian companies that issue preferred stock.
For investors seeking income, preferred shares are an asset class worth considering due to their unique combination of bond and equity characteristics. Like bonds, preferred shares generally pay stable dividends with more frequent distributions than common shares. Like equity, preferred shares trade on an exchange and have the potential to appreciate in value, offering additional income growth potential for investors. Moreover, preferred shareholders have priority over common shareholders with regard to claims on company earnings and assets, which provide some downside protection.
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Source: Global X
SEC Adopts Rules to Establish Whistleblower Program
May 25, 2011--The Securities and Exchange Commission today adopted rules to create a whistleblower program that rewards individuals who provide the agency with high-quality tips that lead to successful enforcement actions.
The new SEC whistleblower program, implemented under Section 922 of the Dodd-Frank Act, is primarily intended to reward individuals who act early to expose violations and who provide significant evidence that helps the SEC bring successful cases.
view the Implementation of the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934
Source: SEC.gov
SEC Proposes Rule to Disqualify Felons and Bad Actors From Securities Offerings
May 25, 2011--The Securities and Exchange Commission today proposed a rule to deny certain securities offerings from qualifying for exemption from registration if they involve certain “felons and other bad actors.”
The proposed rule would implement a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Regulation D provides three exemptions that a company can use to avoid registration under the securities laws, the most widely used of which is Rule 506. If an offering qualifies for the Rule 506 exemption, an issuer can raise unlimited capital from an unlimited number of accredited investors and up to 35 non-accredited investors.
view the proposed rule-Disqualification of Felons and Other “Bad Actors” from Rule 506 Offerings
Source: SEC.gov
Direxion Launches Four New Leveraged ETFs
New Funds Offer Leveraged Long and Short Exposure to the Agribusiness Sector and to Russia
May 25, 2011--Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, is pleased to announce the launch of four new Direxion Shares ETFs to its existing lineup of multi-directional, leveraged funds.
The new ETFs are leveraged Bull and Bear funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses), of the DAXglobal® Russia+ Index and DAXglobal Agribusiness Index. There is no guarantee that the ETFs will achieve their objectives.
“Our new leveraged ETFs are the latest in Direxion’s growing line of tactical trading funds offering magnified benchmark exposure for investors who actively manage their trading positions,” said Direxion President Dan O’Neill. “The funds’ launch reinforces Direxion’s commitment to providing innovative investment products that enable sophisticated investors to take advantage of short-term market opportunities as part of their overall investment strategies.”
Bull Funds
The four new Direxion shares are:
Fund: Direxion Daily Agribusiness Bear 3x Shares
Symbol: COWS
Index:DAXglobal Agribusiness Index
Daily Target: -300%
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Bear Funds
Source: Direxion
First Trust files with the SEC
May 24, 2011--First Trust has filed a post-effective amendment, registration statement with the SEC for the First Trust NASDAQ Global Auto Index Fund.
view filing
Source: SEC.gov
First Trust files with the SEC
May 24, 2011--First Trust has filed a post-effective amendment, registration statement with the SEC for the First Trust Mega Cap AlphaDEX.
view filing
Source: SEC.gov
ConvergEx Group Announces Expanded ETF Relationship With IndexIQ
May 24, 2011--ConvergEx Group, a leading technology company, today announced that it has expanded its relationship with alternative investment firm IndexIQ. IndexIQ is now live on ConvergEx's award-winning order management system, the Eze OMS, and ConvergEx has also signed an agreement to be an authorized participant for IndexIQ's suite of exchange traded funds (ETFs).
Based in Rye Brook, New York, IndexIQ is a leading developer of index-based liquid alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by active managers.
As a client of the Eze OMS, IndexIQ leverages Eze's extensive portfolio management and modeling capabilities to rebalance ETFs against Standard & Poor's market indices on a daily basis and against internally generated indices on a monthly basis. IndexIQ also uses the Eze OMS to manage real-time cash inflows and redemptions.
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Source: PRNewswire
