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Statement on Support of the Dodd-Frank Rulemaking of Chairman Gary Gensler
January 13, 2011--Statements for the record on each rule: Position Limits
I support the proposed rulemaking to establish position limits for physical commodity derivatives. The CFTC does not set or regulate prices. Rather, the Commission is directed to ensure that commodity markets are fair and orderly to protect the American public.
When the CFTC set position limits in the past, the agency sought to ensure that the markets were made up of a broad group of market participants with a diversity of views. At the core of our obligations is promoting market integrity, which the agency has historically interpreted to include ensuring markets do not become too concentrated.
Position limits help to protect the markets both in times of clear skies and when there is a storm on the horizon. In 1981, the Commission said that “the capacity of any contract market to absorb the establishment and liquidation of large speculative positions in an orderly manner is related to the relative size of such positions, i.e., the capacity of the market is not unlimited.”
Today’s proposal would implement important new authorities in the Dodd-Frank Act to prevent excessive speculation and manipulation in the derivatives markets. The Dodd-Frank Act expanded the scope of the Commission’s mandate to set position limits to include certain swaps. The proposal re-establishes position limits in agriculture, energy and metals markets.
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Source: CFTC.gov
LegalMinds.TV Launches Weekly Securities & Capital Markets Interview Series from the NASDAQ MarketSite Broadcast Studio
January 12, 2011--LegalMinds.TV has announced the launch of a weekly series of video interviews filmed at the NASDAQ MarketSite Broadcast Studio in the heart of Times Square. The "LegalMinds/NASDAQ Securities & Capital Market Series" will feature timely interviews with legal experts on topics relevant to the management and boards of directors of public companies, the investment community and companies interested in accessing the capital markets.
"We're excited to be partnering with NASDAQ," says Bruce Colwin, President & CEO of LegalMinds Media LLC, which produces LegalMinds.TV. "In addition to providing a world-class broadcast operation in the capital of the world's financial market, they recognize the information provided by the legal minds we interview is vital not only to the integrity of public companies, but essential to their growth and success as well."
Upcoming interviews explore topics such as hybrid financing, maximizing the use of a shelf registration, the impact of intellectual property litigation on valuations, share repurchase consideration, and the challenges and opportunities for Chinese companies accessing the U.S. capital markets. Kicking off the series will be David Lynn, Co-chair of Morrison & Foerster's Public Companies and Securities Practice and former Chief Counsel of the Securities and Exchange Commission. Mr. Lynn will be discussing "say-on-pay" and other matters that are likely to have an impact in the current proxy season.
Ed Knight, Executive Vice President, General Counsel and Chief Regulatory Officer of NASDAQ OMX Group Inc., says, "The legal profession plays a significant role in every aspect of our exchange operations. Given the importance of ensuring a transparent regulatory environment while providing leading corporate government practices for NASDAQ-listed companies, we are delighted to partner with LegalMinds, which is focused on educating the legal community on core practices and industry developments."
The interviews are featured on the LegalMinds.TV website (http://legalminds.tv) and will also soon be accessible on SocialStream@NASDAQ (http://social.nasdaqomx.com). In addition, the full-length interviews will be published in LegalMinds digital magazine (http://www.legalmindsmagazine.com).
Source: NASDAQ OMX
New Rydex Equal Weight ETF Begins Trading
Rydex MSCI ACWI Equal Weight (EW) ETF Provides Broad Exposure to the Global Equity Markets; Brings EW Line-Up to 16
January 12, 2011--Rydex MSCI ACWI (All Country World Index) Equal Weight ETF began trading today on the NYSE Arca under the ticker symbol EWAC.
EWAC provides broad exposure to the companies in the MSCI All Country World Equal Weighted Index, which currently consists of 45 country indices representing 24 developed and 21 emerging market countries.
"EWAC is designed for investors who seek to invest broadly across the global equity markets," said Mike Byrum, chief investment officer, quantitative strategies for Rydex. "Compared with a traditional cap-weighted index, the equal weight methodology reduces the bias toward the largest constituents and provides broader diversification across all constituents, thereby potentially reducing concentration risk. Through disciplined quarterly rebalancing, EWAC sells those holdings that have appreciated in price and buys those that have not."
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Source: Marketwire
iShares Reduces Expense Ratios for 34 Foreign ETFs
January 12, 2011--One of the trends we have been predicting for 2011 is lower expense ratios for exchange-traded funds. On Tuesday, Jan. 11, iShares became the first industry player in 2011 to cut its ETF prices for investors, announcing that it has decreased the expense ratios for 34 of its ETFs, effective Jan. 1.
In the case of all but one of the ETFs, the fee reductions are minimal--between 1 and 5 basis points--and affect only ETFs that invest in foreign-domiciled companies. All 34 ETFs track MSCI indexes.
IShares attributed the price reductions to two dynamics affecting the funds: management-fee breakpoints and foreign taxes.
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Source: Morningstar
Russell Investments Buys U.S. One to Establish ETF Business
January 12, 2011--Russell Investments will acquire U.S. One Inc., issuer of the One Fund, in a step to establish its business in the $1 trillion exchange-traded-fund market.
The creator of stock-market indexes bearing its name filed for the acquisition with the U.S. Securities and Exchange Commission today. The One Fund ETF surpassed $10 million in assets under management on Jan. 6. A shareholder vote for approval of the acquisition is scheduled for mid-February.
Russell continues to build the infrastructure for viable and comprehensive ETF offerings,” said Jim Polisson, managing director of Russell’s global ETF business, in a statement today. “By acquiring U.S. One, we can more immediately leverage our proprietary research to extend the options available to investors and include ETFs in our suite of products that we deliver to the marketplace.”
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Source: Bloomberg
CBOE To Publish CBOE Volatility Index (VIX) Term Structure Data On Cboe.com
January 12, 2010--The Chicago Board Options Exchange (CBOE) today announced that beginning Friday, January 14, the Exchange will launch a web page displaying CBOE Volatility Index (VIX) term structure data, calculated every 15 seconds throughout the trading day.
The term structure of VIX refers to the characteristic differences in the volatility calculated for options of different maturities. The concept of term structure is essential in the pricing and trading of VIX futures and options, offering insight into expectations of market volatility in forward contract months conveyed by S&P 500 (SPX) index options prices.
In addition to point-in-time data, the website will allow users to create historical time series for VIX term structure values and construct their own versions of VIX based on differing times to expiration. Historical data is available throughout the week except between 7:00 a.m. and 7:10 a.m. Central time on weekdays and between 12:00 p.m. and 9:00 p.m. on Saturdays.
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Source: Chicago Board Options Exchange (CBOE)
Vanguard Attracted $84.8 Billion to Mutual Funds, ETFs in 2010
January 11, 2011--Vanguard Group Inc., the asset manager that pioneered low-cost passive funds for retail investors, gathered more client money last year than any competitor, becoming the world’s largest mutual-fund company and closing ground on its competitors in exchange-traded funds.
Investors poured $58.3 billion into Vanguard’s stock and bond mutual funds and $39.2 billion into ETFs, while pulling $12.7 billion from money-market funds, the Valley Forge, Pennsylvania-based company said today in a statement.
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Source: Bloomberg
ETF Securities files with the SEC
January 10, 2011--ETF Securities LLC has filed pre-effective Amendment NO. 2 TO Form S-1 Registration statement with the SEC for the ETFS Asian Gold Trust.
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Source: SEC.gov
iShares files with the SEC
January 11, 2011--iShares has filed a fourth amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Debate rages over muni bond defaults
January 11, 2011--Warren Buffett has warned of difficulties ahead. So has hedge fund manager Jim Chanos and Meredith Whitney, who foresaw the problems at US banks ahead of the financial crisis.
If they are right, then the $3,000bn US municipal bond market could be on the verge of a crisis to rival that in the eurozone, as cash-strapped states and cities facing big budget and pension deficits struggle to pay their debts.
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Source: FT.com
