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Hedge Funds in U.S. May Face Unprecedented Demands for Information on Risk
March 3, 2011--Hedge funds, broker-dealers and mortgage companies may face unprecedented demands for data on everything from risk exposure to trading partners as U.S. regulators seek to identify firms that pose a potential threat to the financial system, a confidential government report says.
The staff of the Financial Stability Oversight Council identified dozens of “potential metrics” to decide which non- bank financial firms should be designated “systemically important” and subject to Federal Reserve supervision, according to an 80-page study obtained by Bloomberg News.
Source: Bloomberg
NSX Releases February 2011 ETF Data Reports; Assets Continue to Reach Record Levels
March 3, 2011--Highlights from the February 2011 reports include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) continue to reach record levels, totaling approximately $1.06 trillion at February 2011 month-end, an increase of approximately 38% over February 2010 month-end when assets totaled $765 billion.
ETF/ETN net cash inflows for the month totaled over $7.4 billion, including $1.2 billion on ETNs.
Total U.S. Equity led all product categories with over $3.7 billion in net cash inflows.
ETF/ETN notional trading volume during February 2011 totaled almost $1.25 trillion, representing almost 27% of all U.S. equity trading volume.
At the end of February 2011, the number of listed products totaled 1,135 compared to 964 listed products at the same time last year.
Visit www.nsx.com for full report.
Source: National Stock Exchange (NSX)
ETFs lead inflows into US equity funds: Lipper
March 3, 2011-- Investors put $2.3 billion of fresh cash into US-domiciled equity funds in the week ended March 2, with the majority of the cash entering via exchange-traded funds, data from Lipper showed on Thursday.
Taxable bonds funds took in $2.5 billion while municipal bond funds had outflows of $1.04 billion, marking a 16th straight week of net redemptions.
Domestic-focused equity funds took in a net $3.03 billion versus inflows of $2.6 billion in the prior week. Non-domestic equity funds had outflows of $730 million, breaking a three-week streak of inflows.
The biggest inflow of new money into ETFs went to the SPDR S&P 500 ETF fund, totaling $3.7 billion, reversing some of the $6.5 billion in outflows in the prior week.
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Source: The Economic Times
PowerShares Debuts Senior Loan ETF (BKLN)
March 3, 2011--PowerShares announced today the launch of the Senior Loan Portfolio (BKLN), the first ETF offering exposure to a corner of the credit market known for low sensitivity to interest rate changes
BKLN will seek to replicate the S&P/LSTA U.S. Leveraged Loan 100 Index, a benchmark designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. The underlying index is drawn from the larger S&P/LSTA Leveraged Loan Index, which includes more than 1,100 facilities.
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Source: Business Insider
Global X Funds Launches First Argentina ETF
March 3, 2011--Global X Funds, the New York based provider of exchange traded funds, today launched the Global X FTSE Argentina 20 ETF (Ticker: ARGT). The fund is the latest expansion in the ETF issuer’s Latin America fund suite and the first ETF globally to target this country.
Argentina stands as the second largest economy in South America by GDP, trailing only Brazil, according to IMF estimates from 2010. Argentina has developed trading ties with emerging economic powers; in 2010, nearly 19% of exports went to Brazil and over 9% went to China. As the second largest corn exporter and third largest soy exporter in the world, the fund may allow investors to benefit from increased food demand from Argentina in the emerging world (CIA Factbook, 2010).
“ARGT provides a relatively cost effective way to access the second largest economy in South America, a glaring hole in the existing ETF offerings,” said Bruno del Ama, chief executive officer of Global X Funds.
The Global X FTSE Argentina 20 ETF tracks the FTSE Argentina 20 Index, which represents the performance of the twenty largest and most liquid companies that directly participate in the Argentine economy, but are not listed in Argentina. As of February 22, 2011 the three largest components for ARGT were Tenaris S.A. ADS, MercadoLibre Inc., and Banco Macro S.A. ADS.
Source: Global X
Speech by SEC Commissioner: Statement at Open Meeting to Propose Rules Regarding Incentive-Based Compensation Arrangements
March 3, 2011--Thank you, Chairman Schapiro.
I join my colleagues in thanking the staff for your efforts on this rulemaking.
Section 956 of the Dodd-Frank Act provides, most notably, that the Commission, jointly with other financial regulators, must adopt regulations or guidelines that prohibit incentive-based compensation arrangements that encourage “inappropriate risks” by a “covered financial institution” (1) by providing “excessive compensation” or (2) that “could lead to material financial loss.”
The term “covered financial institution” includes broker-dealers and investment advisers with assets of $1 billion or more. Section 956 thus implicates the SEC’s jurisdiction. The recommendation before us goes toward giving effect to this provision of Dodd-Frank.
Unfortunately, I am not able to support the proposal and respectfully dissent. My primary objections relate to the rulemaking’s approach toward regulating incentive-based compensation arrangements at broker-dealers and investment advisers, as well as other financial institutions, with assets of $50 billion or more. The recommendation, for example, is to mandate that at least 50 percent of the incentive-based compensation of an executive officer at such a firm be deferred for at least three years; that the deferred amounts be paid out no faster than pro rata; and that the deferred amounts be adjusted, or “clawed back,” to reflect actual losses at the firm during the deferral. The recommendation also provides that the compensation arrangements of certain designated risk takers, other than executive officers, must be approved by the board and that the board, in assessing an individual’s compensation, must account for certain factors that the rule enumerates.
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Source: SEC.gov
Bucharest, Palestine Exchanges To Be Added To Dow Jones FEAS Index Universe
March 3, 2011--Dow Jones Indexes, a leading global index provider, today announced the Bucharest Stock Exchange and the Palestine Exchange will be added to the Dow Jones FEAS Index universe.
The Dow Jones FEAS Indexes measure the performance of companies across the Euro-Asian region. There are three indexes in the family: a composite and two regional sub-indexes. With the addition of Bucharest (15) and Palestine (seven), a total of 22 new component stocks will be added to the index, making for a total of 403 component stocks.
The Dow Jones FEAS Composite Index includes component stocks from 14 of the 34 members of the Federation of Euro-Asian Stock Exchanges. The exchanges included are Abu Dhabi (UAE), Amman (Jordan), Banja Luka (Bosnia and Herzegovina), Belgrade (Serbia), Bucharest (Romania), Gaza (Palestine), Istanbul (Turkey), Karachi (Pakistan), Manama (Kingdom of Bahrain), Muscat (Oman), Sarajevo (Bosnia and Herzegovina), Skopje (Republic of Macedonia), Sofia (Bulgaria) and Zagreb (Croatia).
The Dow Jones FEAS Middle East/Caucasus Index includes stocks from four FEAS member exchanges: Abu Dhabi, Amman, Gaza, Manama and Muscat. The Dow Jones FEAS South East Europe Index measures the performance of companies listed on seven FEAS member exchanges: Banja Luka, Belgrade, Bucharest, Istanbul, Sarajevo, Skopje, Sofia and Zagreb.
The Dow Jones FEAS Indexes are designed to cover 95% of the free-float market capitalization of each country in its respective index. In addition to float-adjusted market capitalization, components are selected based on readily available prices. The indexes are calculated and disseminated in Euro and U.S. dollars, and weighted by float-adjusted market capitalization.
The Dow Jones FEAS Indexes are rebalanced quarterly, including an update of outstanding shares and float factors.
For more information on the Dow Jones FEAS Indexes, please visit http://www.djindexes.com.
Source: Dow Jones Indexes
US One files with the SEC
March 3, 2011--US One Funds has filed a post-effective amendment, registration statement with the SEC for the ONE FUND ETF(ONEF).
view filing
Source: SEC.gov
AdvisorShares files with the SEC
March 3, 2011--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for the Madrona Forward Domestic ETF.
view filing
Source: SEC.gov
Regular Review Results For Dow Jones Select Dividend And Dow Jones Country And Sector Titans Indexes
March 3, 2011--Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual and quarterly review of the Dow Jones Select Dividend, Dow Jones Country Titans and Dow Jones Sector Titans Indexes.
All changes will be effective after the close of trading on Friday, March 18, 2011.
Dow Jones Select Dividend Indexes
In the Dow Jones France Select Dividend 20 Index, Vallourec S.A. (France, Industrial Goods & Services, VK.FR) will be replaced by Scor SE (France, Insurance, SCR.FR).
The dividend yield of the reconstituted Dow Jones France Select Dividend 20 Index will increase to 5.01% from 4.84% as a result of this regular annual review.
In the Dow Jones Germany Select Dividend 20 Index, Salzgitter AG (Germany, Basic Resources, SZG.XE) will be replaced by Gagfah S.A. (Germany, Real Estate, GFJ.XE).
The dividend yield of the reconstituted Dow Jones Germany Select Dividend 20 Index will increase to 4.78% from 3.70% as a result of this regular annual review.
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Source: Dow Jones Indexes
