Americas ETP News
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BATS takes on New York with new platform
March 29, 2011--BATS Global Markets, operator of the third-largest US stock exchange, has confirmed it will launch a market for primary listings in the fourth quarter, opening a new front in its challenge to the dominance of the New York Stock Exchange and Nasdaq.
The company said it had submitted draft rules to the Securities and Exchange Commission, the US regulator, and expected to make a formal filing and public comment shortly.
read more
Source: FT.com
Bats Global Markets to Launch U.S. Primary Listings Business in Q4
Technology, Pricing, Issuer Support Will Be Key Differentiators
March 29, 2011--BATS Global Markets (BATS), a global operator of securities and derivatives markets, today confirmed its plans to launch a primary listings market in the U.S. in the fourth quarter of 2011.
The company has submitted draft rules to the SEC and anticipates formally filing them for notice and public comment shortly. The new listings venue will create a competitive alternative to the incumbent exchanges which offer listings services for companies considering the IPO process.
“We believe there is a need for an alternative listing venue in today’s market, which has only been heightened in recent weeks as legacy exchanges weigh different merger and acquisition strategies,” said Joe Ratterman, president and chief executive of BATS Global Markets.
“In addition, market conditions have become increasingly favorable to companies looking to gain access to the capital markets so we’re excited to launch our listings business later this year,” he said.
The listings program will reflect the BATS philosophy with:
•Simple and competitive pricing
•Innovative tools and technology
•Leading customer support and education
BATS will release additional information about BATS Listings in the coming months. Companies that are interested in learning more should contact BATS at listings@batstrading.com.
Source: BATS
CFTC Cancels Open Meeting Scheduled for March 30, 2011
March 29, 2011-- The Commodity Futures Trading Commission has cancelled its open meeting on Thirteenth Series of Proposed Rules under the Dodd-Frank Act scheduled for Wednesday, March 30, 2011.
Last Updated: March 29, 2011
Source: CFTC.gov
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
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
