Americas ETP News
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ALPS files with the SEC
March 29, 2011--ALPS has filed an application for exemptive relief with the SEC for actively-managed ETFs.
view filing
Source: SEC.gov
FQF Trust files with the SEC
March 29, 2011--FQF Trust has filed an amended application for exemptive relief with the SEC.
view filing
Source: SEC.gov
ISDA: SEF Rules Should Provide Greater Choice, Access and Liquidity to OTC Derivatives Market Participants
March 29, 2011--In a paper published today, the International Swaps and Derivatives Association, Inc. (ISDA) outlined its views on the role, impact and optimal structure for Swap Execution Facilities (SEFs*) in the global over-the-counter (OTC) derivatives markets.
Core SEF Principles
ISDA believes that SEFs can play a positive role in the over-the-counter derivatives market by strengthening its infrastructure, helping prevent insider trading and other market abuse, and increasing transparency and access for smaller participants. To achieve this potential and become an effective marketplace, SEFs need to offer derivative users broad choice in trade execution at very low cost. SEFs should be structured to, among other things:
Provide maximum choice in trade execution to market participants;
Provide pre- and post-trade transparency while maintaining liquidity;
Have reasonable, tailored and product specific block trade exemptions that reflect the risk of a transaction instead of a “one size fits all” approach;
view the SWAP EXECUTION FACILITIES: CAN THEY IMPROVE THE STRUCTURE OF OTC DERIVATIVES MARKETS? paper
Source: ISDA
Morgan Stanley ETF Weekly Update
March 29, 2011--Weekly Flows: $39 Million Net Outflows
ETFs Traded $301 Billion Last Week
Launches: 5 New ETFs
Invesco PowerShares Changes Tickers on 10 ETFs
Egypt ETF Resumes Accepting Creation Units
US-Listed ETFs: Estimated Flows by Market Segment
ETF flows ended slightly in the red last week; $39 million net outflows
Net outflows were driven by US Large-Cap ETFs (SPY specifically)
ETF assets stand at more than $1 trillion, up 5% YTD; more than 50% attributed to capital appreciation
13-week flows were mostly positive among asset classes
$21.6 bln net inflows into ETFs over past 13 weeks (International-Developed took in $9.4 bln)
EM Equity ETFs posted meaningful net outflows ($8.5 bln) over the past 13 weeks; over past 4 weeks EM
Equity ETFs have bounced back, generating net inflows of $1.2 bln
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares Russell 2000 Fund (IWM) posted net inflows of $2.4 bln last week, the most of any ETF
iShares MSCI Japan Index Fund (EWJ) continued to take in new money; last week EWJ generated net inflows of $518 mln and over the past 13 weeks has exhibited net inflows of $2.9 bln, by far the most of any ETF
SPDR S&P 500 ETF (SPY) was a drag on industry flows last week, posting net outflows of $4.3 bln; SPY has historically exhibited net outflows during the 1st quarter of the year
US-Listed ETFs: ETF Dollar Volume
ETF monthly $ volume has declined to 25% of listed trading volume (coming off May ’10 highs)
Weekly ETF $ volume declined precipitously last week from the prior week (down 42%)
US Large-Cap ETFs accounted for 39% of weekly ETF volume, down from 46% the prior week
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ProShares Launches First Inverse Investment Grade Corporate Bond ETF "There are signs that investment grade corporate bonds could possibly be richly valued relative to historical levels. Since the financial crisis, investment grade corporate bond indexes have reached record highs,1 and credit spreads have tightened significantly," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "For investors who believe that investment grade corporates could come under pressure, IGS can be used to help hedge against or to seek to benefit from potential declines." read more US muni bond demand slips into big freeze read more
US bill raises fears for covered bonds read more
“Stopping Stammering: Overcoming Obstacles in Financial Regulatory Reform” I’m sure that many of you have seen “The King’s Speech.” It won four Academy Awards, including Motion Picture of the Year. It was among the best pictures I’ve seen in a long, long time. Colin Firth did a remarkable job of playing King George VI. You couldn’t help but feel for a guy who never really asked for the job and had to overcome a stammer while serving as one of the most powerful people in the world. In real life, George VI became a beloved monarch, and of course, the movie had a joyful ending. read more U.S. Treasury Futures Begin Trading on NYSE Liffe U.S. Today “Today, we are extremely pleased to offer Treasury interest rate futures to customers of NYSE Liffe U.S. Through the capital efficiency of the NYPC’s ‘one pot’ margin methodology and it’s unique automated delivery protocol, these Treasury futures represent a clear advancement in our customer’s ability to manage risk and optimize their use of capital,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “We are grateful for the strong level of support we have received from our customers to date and we sincerely thank them for their partnership in building a competitive new choice in the U.S. futures market.” read more ISDA Leads Industry Effort to Establish Commodity Derivatives Trade Repository
Trade repositories improve transparency by providing global regulators with significant visibility into risk exposures by firm and by counterparty. ISDA has helped establish trade repositories for other asset classes, including OTC interest rate, credit and equity derivatives.
Information relating to the RFP is available on ISDA's website: www.isda.org
Source: Morgan Stanley
March 29, 2011--ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETF in the United States that provides inverse exposure to the investment grade corporate bond market.
The ProShares Short Investment Grade Corporate (NYSE: IGS) seeks to provide -1x the daily performance of the Markit iBoxx® $ Liquid Investment Grade Index, before fees and expenses. The ETF lists on NYSE Arca today.
Source: ProShares
March 28, 2011--A feared meltdown has yet to materialise. Instead, the US municipal bond market, blighted by concern that struggling states and cities could default on their obligations, has gone into a deep freeze.
Sales of new bonds have plunged as retail investors, traditionally the biggest buyers of municipal debt, have fled. The first quarter of the year will record the lowest amount of quarterly new issuance in more than a decade. At $44bn, the amount raised will be less than half the new bonds sold by this time last year.
Source: FT.com
March 28, 2011-US proposals for a covered bond market risk wrecking the products’ centuries-old reputation for boring stability, an industry group has warned.
European banks are selling record amounts of the bonds, which have their roots in 18th-century Prussia and are backed by pools of loans that remain on a bank’s books, unlike the toxic subprime securitisations the financial crisis made infamous.
Source: FT.com
March 28, 2011--Speech of Commissioner Bart Chilton to the Goldman Sachs Global Commodity Conference, London, UK
March 28, 2011
Introduction: The King’s Speech
It’s great to be with you this evening. Thanks to Don Casturo for the kind invitation to speak with you and thanks to Ken Connolly who does your Washington, D.C. work and I have known for years. When Don first invited me, I must admit to feeling a little dash of doubt about the prospect of speaking to such a sophisticated group of financial market participants.
However, as the great Winston Churchill once said, “There are two things that are more difficult than making an after-dinner speech: climbing a wall which is leaning toward you and kissing a girl who is leaning away from you.” I’ve never tried to climb such a wall, but have tried to kiss a girl leaning away, so I guess I’m more than half way there. My wife, incidentally, tells me she still loves me anyway. So, perhaps I can deliver this speech.
Source: CFTC.gov
Eurodollar Futures Traded Nearly 190,000 Contracts in the First Week-
March 28, 2011-- NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the immediate availability of 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures contracts.
These products complement the successful Eurodollar contract that debuted on March 21 with 189,484 contracts traded on NYSE Liffe U.S. in the first week. By utilizing the revolutionary new clearinghouse, New York Portfolio Clearing (NYPC), customers trading any of these interest rate futures products will benefit from the combined value of trading on NYSE Liffe U.S. coupled with the “one-pot” margining power of NYPC.
Source: NYSE Liffe U.S.
March 28, 2011--The International Swaps and Derivatives Association, Inc. (ISDA) today announced that, as part of its continuing efforts to improve transparency in the over-the-counter (OTC) derivatives markets, it has issued a Request for Proposals (RFP) to establish a Commodity OTC Derivatives Trade Repository.
The RFP seeks proposals to create a trade reporting repository that ultimately will record all Commodity OTC Derivatives trade types. The repository will meet all current and future regulations governing repositories and will provide a structure to rapidly report and provide timely access to information to applicable regulators. The deadline for interested providers to submit their proposals is Monday, April 25, 2011.
Source: ISDA
