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CBOE to Relaunch Credit Event Binary Options (CEBOs) Contracts on March 8 The contracts also provide the advantages of price transparency available through a regulated exchange, currently unavailable in over-the-counter credit default swaps markets. A CEBO contract has just two possible outcomes - a payout of a fixed amount if a credit event occurs or nothing if a credit event does not occur. The CBOE, which first began trading single-name and basket Credit Event Binary Options in 2007, recently received SEC approval to amend the Credit Event Binary Options rules. One change simplifies the terms of a payout for CEBO contracts, allowing CBOE to list CEBO contracts that specify bankruptcy as the only trigger for a payout. read more Invesco PowerShares Set to List Industry’s First Senior Loan ETF Senior loans - also called leveraged loans, syndicated loans, bank loans or floating rate loans - are privately arranged corporate debt instruments that provide capital to a company and are syndicated to a group of banks and institutional lenders. The loans are typically secured by specific assets of the borrower such as property, plant, or equipment and are senior to all other outstanding debt obligations. Proceeds are often used to finance leveraged buyouts, mergers, acquisitions, stock repurchases and other transactions.
The PowerShares Senior Loan Portfolio (BKLN) is based on the S&P/LSTA U.S. Leveraged Loan 100 Index. The Underlying Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. The Fund will normally invest at least 80% of its total assets in the securities that comprise the Underlying Index. read more RBS Floats Gold Trendpilot ETN Morgan Stanley US ETF Weekly Update 13-week flows were mostly positive among asset classes EM Equity ETFsposted meaningful net outflows ($7.4 bln) over the past 13 weeks; however, last week they were able to manage net inflows of $237 US-Listed ETFs: Estimated Largest Flows by Individual ETF After eight straight weeks of net outflows, the iSharesRussell 2000 Fund (IWM) bounced back IWM posted net inflows of $797 mln, the most of any ETF; YTD IWM has posted a 6.5% market return SPDR S&P 500 ETF (SPY) exhibited the largest net outflows last week; YTD SPY has also posted net outflows US-Listed ETFs: ETF Dollar Volume US Large-Cap accounts for 40% of weekly ETF volume, but only has 22% of market cap International Equity counts for only 16% of weekly ETF volume, but has 24% of market cap request report SPDR® files with the SEC SPDR® Series Trust files with the SEC Brazil may be heading for a subprime crisis read more IOSCO identifies benefits of organised platform derivatives trading view report- Report on Trading of OTC Derivatives Opening Statement, Meeting of the: Joint Advisory Committee on Emerging Regulatory Issues I also would like to thank the staff of the CFTC for all of their hard work planning this meeting, reviewing the circumstances surrounding May 6 and working with the Committee.
I want to recognize and thank my fellow CFTC Commissioners, Mike Dunn, Jill Sommers, Bart Chilton and Scott O’Malia. read more
CFTC to Hold Open Meeting on Twelfth Series of Proposed Rules under the Dodd-Frank Act
Antidisruptive trading practices authority interpretive order;
Amendments to Commodity Pool Operator and Commodity Trading Advisor regulations;
Swap data recordkeeping and reporting requirements for pre-enactment and transition swaps; and
Requirements for processing, clearing and transfer of customer positions read more
February 22, 2011--The Chicago Board Options Exchange (CBOE) announced today that on Tuesday, March 8, the Exchange will begin trading newly-designed Credit Event Binary Options (CEBOs) contracts.
Due to inverse correlations between credit and equity markets, CEBO® contracts can be used as a hedging tool for individual stocks.
Source: CBOE
February 22, 2011--– Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs) with more than $57 billion in franchise assets, announced today the PowerShares Senior Loan Portfolio is anticipated to begin trading March 3, 2011, on the NYSE Arca under the ticker symbol BKLN. The PowerShares Senior Loan Portfolio is the first ETF that provides investors access to a portfolio of senior secured bank or floating rate loans. The fund is expected to issue monthly dividends.
“Senior loans can provide an attractive income stream for yield-minded advisors and investors interested in shortening portfolio duration,” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “As a result of shorter maturities and a floating interest rate feature that typically resets quarterly, senior secured loans have the ability to keep pace with rate changes and have historically proven to be more stable than traditional high yield fixed-income investments. We believe the PowerShares Senior Loan Portfolio (BKLN) provides a compelling new means to access this asset class through the benefit-rich ETF structure.”
Source: Invesco PowerShares
February 22, 2011--RBS Securities, a subsidiary of Royal Bank of Scotland, has unveiled a new gold-based ETN, Index Universe reports. The RBS Gold Trendpilot ETN will be listed on the New York Stock Exchange’s Arca platform and track the performance of the RBS Gold Trendpilot Index
The vehicle defines the price of gold bullion as the spot price of physical gold, as measured by the afternoon gold-fixing price for delivery in London through a member of the London Bullion Market Association. The index strategy seeks to lessen the volatility of the price of gold bullion by tracking the T-Bill Rate if the price of gold bullion is on a downward trend.
Source: emii.com
February 22, 2011--Weekly Flows: $2.7 Billion Net Inflows
ETFsTraded $251 Billion Last Week
Launches: 2 New ETFs-Fidelity Expands Commission-Free ETF Program
PowerShares& Sector SPDRsReach Settlement
ProSharesAnnounces Share Splits
US-Listed ETFs: Estimated Flows by Market Segment
ETFs had net inflows of $2.7 blnlast week; second consecutive week of net inflows
Net inflows were led by US Small-& Micro-Cap ETFslast week ($982 mlnnet inflows)
ETF assets stand at more than $1 trillion, up 5% YTD
$34.9 billion of net inflows into ETFs over past 13 weeks (majority into US Equity ETFs)
ETF monthly $ volume has recently declined to 25% of listed trading volume (lowest % since May ’08)
Source: Morgan Stanley
February 22, 2011--SPDR® Index Shares Fund has filed a post-effective amendment, registration statement with the SEC for the SPDR S&P Emerging Markets Dividend ETF.
view filing
Source: SEC.gov
February 22, 2011--SPDR® Series Trust has filed a post-effective amendment, registration statement with the SEC for Barclays Capital Emerging Markets Government Bond ETF.
view filing
Source: SEC.gov
February 21, 2011--Brazil has been on a credit binge – over the past 5 years credit growth has run at 2.4 times nominal gross domestic product. This compares with 2, 1.6 and 1.2 times for Russia, India and China respectively.
Normally this isn’t a problem, as leverage is rising from a low level and the ratio of loans to GDP is “only” 46 per cent; this compares with private sector debt in the US at 165 per cent of GDP.
Source: FT.com
February 18, 2011--The Technical Committee of the International Organisation of Securities Commissions (IOSCO) has published a Report on Trading of OTC Derivatives. The report analyses the benefits, costs, and challenges associated with increasing exchange and electronic trading of over-the-counter (OTC) derivative products and contains recommendations to assist the transition of trading in standardised derivatives products from OTC venues onto exchanges and electronic trading platforms (organised platforms) while preserving the efficacy of those transactions for counterparties.
The Report was prepared by the Technical Committee’s Task Force on OTC Derivatives Regulation (Task Force), in response to a request from the Financial Stability Board to examine increasing exchange and electronic trading of OTC derivative products in response to the G-20 Leaders’ commitments on this issue and their stated objectives of improving transparency, mitigating systemic risk, and protecting against market abuse in the derivatives markets.
Source: IOSCO
February 18, 2011--Good morning. I am pleased to join Chairman Schapiro in welcoming the members of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues to our fifth public meeting. This is the third time this week that Chairman Schapiro and I have shared a table. I had the honor of testifying alongside Chairman Schapiro before Congressional committees in both the House and Senate on implementation of the Dodd-Frank Act. We also are focused on strengthening our markets to prevent similar events as those that occurred on May 6 of last year.
I would like to thank Chairman Schapiro, her fellow Commissioners and the staff of the SEC for all they have done on the May 6 review as well as our strong collaboration with regard to the Dodd-Frank Act.
Source: CFTC.gov
February 18, 2011-- The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, February 24, 2011, at 9:30 a.m. to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Registration of intermediaries;
Source: CFTC.gov
