Americas ETP News
If your looking for specific news, using the search function will narrow down the results
Agencies Seek Public Comment on Risk Retention Proposal
March 31, 2011--Six federal agencies are seeking public comment on a proposed rule that would require sponsors of asset-backed securities (ABS) to retain at least 5 percent of the credit risk of the assets underlying the securities and would not permit sponsors to transfer or hedge that credit risk. In crafting the proposed rule, the agencies sought to ensure that the amount of credit risk retained is meaningful, while reducing the potential for the rule to negatively affect the availability and cost of credit to consumers and businesses.
The rule is proposed by the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development. It would provide sponsors with various options for meeting the risk-retention requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the options include:
Retention of risk by holding at least 5 percent of each class of ABS issued in a securitization transaction (also known as vertical retention).
Retention of a first-loss residual interest in an amount equal to at least 5 percent of the par value of all ABS interests issued in a securitization transaction (horizontal retention).
view the SEC proposal-Credit Risk Retention
Source: SEC.gov
Van Eck files with the SEC
March 31, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Colombia ETF.
view filing
Source: SEC.gov
ProShares files with the SEC
March 31, 2011--ProShares has filed a registration statement with the SEC for the ProShares Short 7-10 Year Treasury Fund.
view filing
Source: SEC.gov
New York markets cancel ETF trades
March 31, 2011--Nasdaq OMX and NYSE cancelled trades in 10 exchange-traded funds after their prices plummeted in early trading on Thursday, raising questions about measures implemented to safeguard investors against sharp market swings after last year’s “flash crash”.
The exchanges cancelled certain trades that occurred in 10 of 15 Focus Morningstar ETFs that launched on Wednesday, said a spokesperson for Scottrade Financial Services, the ETFs’ sponsor.
read more
Source: FT.com
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
March 31, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Thursday, March 31, 2011:
D-Box Technologies Inc. (TSXVN:DBO.A) will be removed from the index.
The company will graduate to trade on TSX under the ticker symbol "DBO".
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 & Poors
FQF files with the SEC
March 30, 2011--FQF has filed a registration statement with the SEC for 7 ETFs>
QuantShares U.S. Market Neutral Momentum Factor Fund – (MOM)
QuantShares U.S. Market Neutral Value Factor Fund – (CHEP)
QuantShares U.S. Market Neutral Beta Factor Fund – (BTAH)
QuantShares U.S. Market Neutral Small Size Factor Fund – (SIZ)
QuantShares U.S. Market Neutral Quality Factor Fund – (QLT)
QuantShares U.S. Market Neutral Anti-Momentum Factor Fund – (NOMO)
QuantShares U.S. Market Neutral Anti-Beta Factor Fund – (BTAL)
view filing
Source: SEC.gov
Hedge funds, private equity funds demand confidentiality
March 30, 2011-According to Forbes, recent rules proposed by the Securities and Exchange Commission (SEC) in connection with the Dodd Frank reforms have received strong attention and criticism from hedge funds and private equity funds.
Sponsors and managers of these funds are now required to register with the SEC, and they are requesting that steps be taken by the regulator to protect the confidentiality of the information that is provided. The generous “private adviser” exemption, which permitted many fund managers to remain outside the SEC’s reach regardless of the size of their funds, has now been repealed.
Source: Forbes
Direxion files with the SEC
March 30, 2011--Direxion has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
iShares Launches a High Dividend Equity Exchange Traded Fund
The New Fund Responds to Investors' Desire for Income-Oriented Products
March 30, 2011--BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, is scheduled to launch the iShares High Dividend Equity Fund (NYSE Arca: HDV) on the NYSE Arca on March 31, 2011. The new fund provides exposure to high quality income-producing U.S. securities.
iShares offers a broad and modular suite of income-focused ETFs, allowing investors to implement dividend investing strategies using diversified and cost-effective vehicles. iShares launched the first US-listed dividend ETF (NYSE Arca: DVY) in 2003.
"Income is in high demand, yet continues to be hard to come by from traditional sources in a cost-effective, diversified, flexible trading manner," said Noel Archard, Head of US Product at iShares at Blackrock. "A basket of high dividend yielding equities can often provide investors with several benefits such as the potential for enhanced total return (especially in uncertain market environments), possible reduced volatility as compared to more growth-oriented stocks, and greater inflation protection than bonds through the ability to provide capital appreciation."
The fund is benchmarked to the Morningstar Dividend Yield Focus Index, which provides access to U.S. equity securities issued by companies that have provided relatively high dividend yields on a consistent basis. Morningstar's proprietary index methodology screens U.S. companies for superior company quality and financial health based on the Morningstar's Economic Moat™ rating system and the Morningstar Distance to Default measure. Economic moat describes the sustainability of a company's future economic profits, and distance to default measures the likelihood that a company may encounter financial distress1. The index provides access to the top 75 companies by dividend yield that meet the eligibility criteria. The top three sectors in the index as of 2/28/11 are Consumer Goods (19.8%), Healthcare (19.1%) and Utilities (17.1%).
Source: BlackRock
Scottrade's FocusShares Launches New Family of 15 Low-Cost ETFs
March 30, 2011--FocusShares, LLC, a registered investment advisor (RIA), exchange-traded fund (ETF) sponsor and affiliate of online investing firm Scottrade, Inc., today launched 15 new low-cost ETFs benchmarked to indexes licensed from Morningstar, Inc. The FocusTM Morningstar ETFs begin trading today on NYSE Arca and are the first investment products sponsored by FocusShares since being acquired in June 2010 by Scottrade Financial Services, Inc., the parent holding company of Scottrade, Inc.
Each FocusTM Morningstar ETF is among the lowest-cost ETFs in its category available today. Online trading of these ETFs will be available commission-free to Scottrade brokerage customers and registered investment advisors using Scottrade® Advisor Services as their custodian. Investors and advisors who are not Scottrade brokerage customers can purchase FocusTM Morningstar® ETFs through their brokerage firms by paying applicable commissions.
read more
Source: Morningstar
