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Global X files with the SEC
March 16, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the Global X Oil Equities ETF.
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Source: SEC.gov
Traders seek answers on US derivatives reform
March 16, 2011--Amid the turmoil of the markets, the hundreds of executives from trading firms, exchanges and clearing houses meeting this week at Boca Raton in the US are sure of one thing. There are many more of them at this year’s annual industry gathering than during the financial crisis.
The higher numbers partly reflect a strong recovery in the trading of derivatives that are the lifeblood of the members of the Futures Industry Association, the trade body hosting the event in Florida. FIA data show the number of futures and options contracts traded on exchanges globally rose 25.6 per cent last year from 2009.
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Source: FT,com
State Street Global Advisors Selects Celfin Capital to Promote SPDR ETFs in Latin America's Andean Region
March 15, 2011--State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), today announced that it has entered into an agreement with Celfin Capital, a leading financial service provider in Latin America’s Andean Region, under which Celfin will promote SSgA’s SPDR® exchange traded funds (ETFs).
Recognized as the largest distributor of foreign mutual funds in the region, Celfin will be responsible for promoting SPDR ETFs to institutional investors including pension funds, mutual funds and insurance companies in Chile, Colombia and Peru.
“We are pleased to have been selected to promote the SPDR family of ETFs to our growing client base,” said Alejandro Montero, CEO at Celfin Capital. “As the industry’s pioneer and one of the most recognized brands in the world, SPDR ETFs have undoubtedly transformed investors’ ability to gain efficient exposure to a wide range of sectors, industries, asset classes and geographies through many innovative products. The addition of SPDR ETFs is a great complement to our current offering, and we look forward to a successful collaboration.”
Today, SSgA is one of the largest ETF providers globally with $255 billion in assets as of December 31, 2010* with $2.8 billion** in ETF assets in Latin America as of September 30, 2010.
“In addition to delivering superior client service to both institutional and individual investors in the Andean region, Celfin brings deep knowledge of local and international markets,” said James Ross, senior managing director and global head of SPDR ETFs at State Street Global Advisors. “Our newly formed alliance with Celfin is an important milestone as we continue to expand our SPDR ETF footprint globally to meet investors’ needs.”
Source: State Street Global Advisors
Global X Funds launches Pure Gold Miners ETF, Oil Equities ETF
March 15, 2011 – Global X Funds, the New York based provider of exchange traded funds, today launched two new funds: the Global X Pure Gold Miners ETF (NYSEArca: GGGG) and the Global X Oil Equities ETF (NYSEArca: XOIL). The launches are the latest expansion in the ETF issuer’s global commodity funds suite and are aimed at giving investors a purer play in gold and oil equities, respectively, by following the indexing methodology of the Solactive Indexes.
The goal of the Global X Pure Gold Miners ETF is to provide investors with relatively easy access to companies that get the vast majority of their revenues from gold mining. Unlike other indexes such as the NYSE Arca Gold Mining Index, which actually includes several silver miners, over 95% of the revenues from the companies in the Solactive Index are derived from gold mining. The Global X Pure Gold Miners ETF is a global fund, providing access to gold mining companies listed on exchanges all over the world. As of March 15, 2011, the Fund includes companies based in Canada, the United States, the United Kingdom, Hong Kong, Australia and Turkey.
“Not all gold miner ETFs are created equal and Global X Funds is the first to provide one which is a pure play on gold miners,” said Bruno del Ama, chief executive officer of Global X Funds.
In addition to spurring the demand for gold, recent events in the Middle East have led to soaring prices for another commodity: oil. While many indexes have been developed to track the market price of oil – using oil futures or oil equities, for example – few have been able to accurately track the performance of oil. In order to address this issue, the Global X Oil Equities ETF was developed as a Fund that only includes companies with the highest correlation to oil prices. By using this correlation criterion, the Fund provides exposure to pure-play oil companies with significant oil reserves that are not as involved in other industries such as natural gas or downstream operations.
“We are offering a product for investors looking for exposure to oil while avoiding issues such as contango1 that reduce their returns,” continues Mr. del Ama.
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Source: Global X
Van Eck Global Launches Market Vectors® Colombia ETF
New ETF Offers Direct, Targeted Exposure to Colombian Equities;
Tracks Diversified Pure Play Index
March 15, 2011--New York-based asset manager Van Eck Global has launched Market Vectors Colombia ETF (NYSE Arca: COLX), a new exchange-traded fund (ETF) designed for investors seeking direct, targeted exposure to Colombian equities.
“Investors have long looked to emerging markets for short- and long-term growth opportunities. However, in making their emerging market allocations investors are looking beyond BRIC nations, which in recent history have been among the most popular destinations for investor dollars,” said Jan van Eck, principal with Van Eck Global. “With that in mind, we’re pleased to offer investors a way to access the domestic equity performance of Colombia, a country with significant commodity production capabilities, a recent track record of substantial political reform, and rapidly developing cross-border and cross-exchange cooperation with its neighbors which could spur positive momentum for both that country and the Andean region as a whole.”
COLX seeks to replicate, before fees and expenses, the performance of the Market Vectors Colombia Index (MVCOLXTR), created by 4AssetManagement. MVCOLXTR is a “pure play” index that not only includes local companies domiciled and listed on the Colombian exchange, but also offshore companies that derive the majority of their assets (revenues) in the country. As of March 10, 2011, approximately 74 percent of the equities in the Index were local Colombian companies, while the remainder were listed offshore. The comprehensive nature of the Index, combined with its weighting caps, leads to greater diversification by sector and market cap. Its 27 holdings are made up of approximately 51 percent large-cap equities, 36 percent mid-cap equities, and 13 percent small-caps. As of March 10, the largest sector weightings were Financials (33 percent), Energy (30 percent), and Materials (17 percent). [Transparent, daily index information is available on the Van Eck Global website.]
Colombia is South America’s second largest country and the world’s third largest Spanish-speaking nation by population. A beneficiary of strong commodity price trends, the country has enjoyed improved exports and credit expansion. Fiscal reforms and reduced government debt under former President Alvaro Uribe have opened the country to international investment. GDP growth, led by domestic consumption, was estimated at 4.7% (GDP, %YoY) for 2010 and is anticipated to be approximately 4.6% in 2011.
“Colombia’s commodity-based economy appears poised to experience growth in both trade and foreign direct investment,” adds Allison Lovett, Vice President of Marketing at Van Eck Global. “And the merger of the Colombian stock exchange with Peru’s exchange may further strengthen the country’s position among regional capital markets.”
Van Eck Global notes that investing in emerging markets is not without its risks, which can include economic and political instability, pricing concerns on local exchanges, low trading volume and more, all of which are issues that an investor must consider.
COLX carries a competitive net expense ratio of 0.75 percent and a gross expense ratio of 0.97 percent and joins Van Eck Global’s family of international ETFs, which also includes funds focused on Africa (AFK), Brazil Small-Cap (BRF), China (PEK), Egypt (EGPT), the Gulf States (MES), India Small-Cap (SCIF), Indonesia (IDX), Latin America Small-Cap (LATM), Poland (PLND), Russia (RSX) and Vietnam (VNM).
Source: Van Eck Global
SPDR ETF SNAPSHOT: February 2011
March 15, 2011--Snapshot Overview
As of February 28, 2011, 985 Exchange Traded Funds (ETFs)—with assets totaling approximately $1.0TN—were managed by 34 ETF managers.
ETF industry assets rose $34.9BN for the month—up 3.5%.
State Street launched the SPDR® S&P® Emerging Markets Dividend ETF [EDIV] and the SPDR Barclays Capital Emerging Markets Local Bond ETF [EBND] on February 24th.
EDIV seeks to track the performance of the S&P Emerging Markets Dividend Opportunities Index. The Index is comprised of 100 of the highest yielding emerging markets stocks, based on market capitalization, in the S&P Dividend Opportunities family of indices.
Constituents include publicly traded companies with market capitalizations of at least $1BN (float-adjusted market cap of $300MM). EDIV’s annual expense ratio is 0.59%.
EBND follows the Barclays Capital EM Local Currency Government Diversified Index. The Index includes government bonds issued by countries outside of the United States, in local currencies, that have a remaining maturity of one year or more and are rated B3/B-/B- or higher. Each of the index components is a constituent of the Barclays Capital EM Local Currency Government Diversified Index. EBND’s annual expense ratio is 0.50%.
ETF Industry Detail
ASSET CLASSES- OVERALL
The S&P 500® Index rose 3.4% while the MSCI EAFE® Index rose 3.3%. US bonds were mixed with the Barclays U.S. Treasury Index falling 0.1% and the Barclays U.S. Aggregate Index rising 0.3%. Gold rose 6.3%, to $1,411 per ounce.
Commodities led all categories, gaining $7.7BN. International – Developed asset gains, up $7.0BN, were driven by a combination of inflows and performance. Emerging Markets assets fell for the second consecutive month, down $5.5BN
U.S. Republicans mount first Dodd-Frank challenge
March 15, 2011--Congressional Republicans on Wednesday will stage their first outright challenge to 2010's Dodd-Frank financial regulation reforms with a fistful of bills favoring private equity firms, derivatives end-users and corporate CEOs.
After months of trying to defund and defang Dodd-Frank at the administrative level, Republicans are finally unveiling draft legislation that would repeal or amend parts of the laws approved after the severe 2007-2009 financial crisis.
Source: Reuters
Treasury International Capital Data for January
March 15, 2011-- The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for January 2011. The next release, which will report on data for February 2011, is scheduled for April 15, 2011.
Net foreign purchases of long-term securities were $51.5 billion.
Net foreign purchases of long-term U.S. securities were $74.3 billion. Of this, net purchases by private foreign investors were $46.2 billion, and net purchases by foreign official institutions were $28.1 billion.
U.S. residents purchased a net $22.8 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $32.1 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $21.4 billion. Foreign holdings of Treasury bills decreased $31.3 billion.
Banks’ own net dollar-denominated liabilities to foreign residents increased $21.9 billion.
Monthly net TIC flows were $32.5 billion. Of this, net foreign private flows were $47.2 billion, and net foreign official flows were negative $14.7 billion.
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Source: US Department of the Treasury
Trading in CBOE Volatility Index (VIX) Options and Futures Sets New Records Today
ingle-Day Volume in VIX Options at CBOE Exceeds One Million Contracts for the First Time, In VIX Futures at CFE, Tuesday's All-Time High Tops Last Friday's Record
March 15, 2011--CBOE Holdings, Inc. (Nasdaq: CBOE) announced today that trading volume in options based on the CBOE Volatility Index (VIX) at the Chicago Board Options Exchange (CBOE) and futures based on VIX at the CBOE Futures Exchange (CFE) both established new single-day volume records on Tuesday, March 15.
VIX Options at CBOE
Today marked the first time in CBOE's history that VIX options volume topped the one-million-contract benchmark in a single trading session, as a reported 1,038,002 contracts changed hands. Tuesday's volume surpassed the previous single-day high of 716,815 contracts traded on December 3, 2009, while Monday's trading volume of 700,826 contracts fell just shy of this previous record. The trading activity experienced on Tuesday and Monday rank as two of the top four most-active trading days for VIX options in CBOE history.
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Source: CBOE
ELX Announces Plans To List European Interest-Rate Futures Using Maker-Taker And Taker-Maker Pricing Models
March 15, 2011--ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that it will move forward with launch plans to trade competitive interest-rate products from NYSE Liffe and Eurex using the maker-taker and taker-maker pricing models, bringing enhanced technology, competitive pricing and market structure innovation to challenge an expanding monopoly structure.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, “ELX was created to challenge monopolies, high prices and a lack of effective innovation in the futures industry. Our expansion into Europe is another bold move by ELX to launch competitive pricing, establish an additional European presence, and bring innovation to the global futures marketplace. In addition, ELX will introduce the maker-taker and taker-maker pricing models to give liquidity providers incentives to trade. This is a very exciting time at ELX and we look forward to implementing new initiatives to grow our business and provide market participants with more competition and alternatives."
ELX’s technology provider, BGC Partners, has a strong European presence, the technological infrastructure and well-developed connectivity in place in Europe for ELX to move forward with its plans and focus on a seamless and successful launch of trading these new interest-rate products.
Source: ELX Futures
