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Advantage Futures Partners with ELX to Offer FCM Services
December 15, 2010--ELX Futures, L.P. (ELX), a leading electronic futures exchange offering a faster, more efficient global alternative to trade U.S. Treasuries and Eurodollar futures contracts, announced today that Advantage Futures LLC, a premier technology-focused futures brokerage firm, will become an authorized Participant and offer Futures Commission Merchant (FCM) services for ELX.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, “We are pleased to partner with Advantage Futures and welcome their significant customer base to our electronic trading platform. This is an exciting time for ELX and this new FCM relationship further cements our reputation as a competitive alternative in electronic futures trading.”
Joseph Guinan, Chairman and CEO of Advantage Futures, said, “As a leading high-volume clearing firm with a diverse and growing client base, Advantage continues to seek new opportunities for our clients. We received great interest in ELX Futures and we are pleased to partner with ELX to offer clearing and execution services.”
Source: ELX Futures
Agencies Seek Comment on Market Risk and Basel II Advanced Approaches
December 15, 2010--Three federal bank regulatory agencies today announced they are seeking comment on a notice of proposed rulemaking that would revise the market risk capital rules for banking organizations with significant trading activity.
The proposed rule would implement changes approved by the Basel Committee on Banking Supervision to its market risk framework. The Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) believe the proposed revisions would better capture positions for which the market risk capital rules are appropriate, reduce procyclicality in market risk capital requirements, enhance the rules’ sensitivity to risks that are not adequately captured by the current regulatory measurement methodologies, and increase market discipline through enhanced disclosures.
The Federal Reserve, OCC, and FDIC request comments on the notice within 90 days of its publication in the Federal Register, which is expected soon.
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Source: Office of the Comptroller of the Currency
SEC Proposes Rules for Resource Extraction Issuers Under Dodd-Frank Act
December 15, 2010--The Securities and Exchange Commission today voted to propose rules mandated by the Dodd-Frank Act to require resource extraction issuers to disclose payments made to the U.S. or foreign governments.
Under the proposed rules, any resource extraction issuer would be required to disclose payments made to governments if the issuer:
Is required to file an annual report with the SEC, and
Engages in the commercial development of oil, natural gas, or minerals. The rules would apply to domestic and foreign issuers and to smaller reporting companies that meet the definition of resource extraction issuer.
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Source: SEC.gov
SEC Proposes End-User Requirements Under Dodd-Frank Act for Security-Based Swaps Exempt From Mandatory Clearing
December 15, 2010-- The Securities and Exchange Commission today voted unanimously to propose requirements of end-users when they engage in a security-based swap transaction that is not subject to mandatory clearing.
The proposed rule, required under the Dodd-Frank Act, specifies the steps that end-users must follow to notify the SEC of how they generally meet their financial obligations when engaging in a security-based swap transaction exempt from the mandatory clearing requirement.
The SEC also sought comment on whether to provide an additional exemption for certain financial institutions that would permit those institutions to use the exception to mandatory clearing that is available to end-users.
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Source: SEC.gov
SEC Proposes Review Process for Mandatory Clearing of Security-Based Swaps Under Dodd-Frank Act
December 15, 2010--2010 — The Securities and Exchange Commission today voted unanimously to propose rules required under the Dodd-Frank Act that would set out the way in which clearing agencies provide information to the SEC about security-based swaps that the clearing agencies plan to accept for clearing. This information is designed to aid the SEC in determining whether such security-based swaps are, in fact, required to be cleared.
The SEC also proposed rules that would set out the way in which those clearing agencies that are designated as “systemically important” must submit advance notices for changes to their rules, procedures, or operations that could materially affect the nature or level of risk presented at such clearing agencies.
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Source: SEC.gov
US probe into financial crisis splits
December 15, 2010--The bipartisan commission established to probe the causes of the 2008 financial crisis has split along party lines, with its Republican members publishing a report placing the government rather than Wall Street at its heart.
The Financial Crisis Inquiry Commission was set up by the US Congress as a latter-day version of the Pecora commission that examined the causes of the Great Depression. But its descent into bipartisan rancour means those examining the causes of the crisis in the future will confront duelling reports rather than an authoritative single account of what led to it.
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Source: FT.com
Financial Crisis Inquiry Commission Discusses the Release of its Final Report
December 15, 2010--As announced in November, the Financial Crisis Inquiry Commission will deliver its report on the causes of the financial crisis, which has devastated our economy and so
many families, in January to the President, Congress and the American people. The report will contain facts and evidence from the Commission’s more than year-long investigation – including
19 days of public hearings, an analysis of hundreds of thousands of documents and interviews with more than 700 witnesses. The report will also include the Commission’s findings and
conclusions as to the causes of the financial crisis based on this inquiry.
Today some members of the Commission made public their personal views on the financial crisis. The Commission had not previously seen or had an opportunity to review what was
released today. But, as it does with the views of any of its members, the Commission will review and take them into consideration.
Source: Financial Crisis Inquiry Commission
Alpha Group announces new ETF Trading Fee Structure
December 15, 2010--Alpha Group today announced that, subject to regulatory approval, it will implement a new ETF trading fee structure as of January 1st, 2011.
For all Exchange Traded Funds (ETFs) with a value greater than or equal to $5, active fees will be reduced from 35 mils per share to 25 mils per share and passive fee rebates will be reduced from 31 mils per share to 21 mils per share.
This fee reduction positions Alpha as the market with the lowest active fees for trading ETFs - a segment that represents a substantial component of the overall volume traded in Canada across all Canadian marketplaces. This is also a segment where Alpha established itself as the dominant marketplace by regularly demonstrating a market share in excess of 50%, as compared to the second most active venue in ETFs which is trending towards a 30% market share.
For a dealer facing a majority of 'taker' trades, this new fee schedule represents close to 30% savings on these trades.
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Source: iStockanalyst.com
Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through November 2010.
December 15, 2010--Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund asset flows through November 2010. After contributing $26.8 billion to long-term mutual funds in October, investors added just $5.0 billion in November. While the pattern of outflows for U.S. stock funds continued, investors also lost enthusiasm for fixed-income funds. Money market funds were the direct beneficiaries with inflows of $24.7 billion, their best month since January 2009. U.S. ETFs saw inflows of $7.4 billion in November, pushing year-to-date inflows to $93.8 billion and total industry assets to $951.4 billion.
Additional highlights from Morningstar’s report on mutual fund flows:
Inflows for taxable-bond funds reached just $6.0 billion in November versus $21.0 billion in October, the smallest monthly inflow for the asset class since May. After 22 consecutive months of net inflows, municipal-bond funds saw net outflows of $7.6 billion in November. This reversal comes after investors added nearly $105.6 billion to the asset class from January 2009 through October 2010 and marks the worst month for municipal-bond funds in terms of net outflows except for the $8.0 billion redeemed in October 2008 during the credit crisis.
Rising rates and currency swings contributed to a tough month for emerging-markets bond and world-bond funds, some of the more aggressive areas of the bond market. Nevertheless, money continued to flow to emerging-markets bond funds. These offerings have collected more than $13.7 billion in 2010, and total assets have nearly doubled over the last 12 months to $36.8 billion.
Large-growth funds had the biggest outflows of any Morningstar category this year, losing $43.5 billion.
Equity-oriented families including American, Fidelity, and Columbia continued to suffer outflows. Despite redemptions of $1.9 billion from PIMCO Total Return, the fund’s first month of net outflows in two years, PIMCO still took in $1.1 billion during November.
Additional highlights from Morningstar’s report on ETF flows:
U.S. stock ETFs, with inflows of $7.9 billion, topped all ETF asset classes in November, followed by international-stock ETFs with weaker, yet positive flows of $2.8 billion as a result of renewed sovereign credit fears in Europe and a stronger U.S. dollar.
Vanguard collected $3.3 billion of the $7.4 billion assets added industry-wide in November. The firm’s ETF assets rose more than 62% over the last 12 months, allowing it to capture nearly 15% of the market share.
Silver ETFs continued to see healthy inflows. Investors looking to increase their commodities allocations may see silver, which has seen price appreciation of 65% year to date, as a good alternative to gold, which has gained 26% over the same period.
For more information about Morningstar Fund Flows, please visit http://global.morningstar.com/fundflows
Source: Morningstar
ISE Launches Sweep and Cross Functionality in PrecISE Trade®
December 14, 2010--The International Securities Exchange (ISE) announced today that it has launched Sweep and Cross functionality for its proprietary front-end trading system, PrecISE Trade.
With the efficiency of a single click, traders who enter large crossing orders are now able to sweep the entire options market to execute against the top of book liquidity at other exchanges and then cross the
remainder of the order at ISE. The sweep orders will be sent to ISE’s Away Market Routing partner and
when sweep executions are completed, a cross will be submitted at ISE for the remaining contracts.
We are very excited to enhance our best-in-class front-end trading system with this new trading tool,”
said Boris Ilyevsky, Managing Director of ISE’s options exchange. “This powerful new functionality gives
our members an efficient mechanism to benefit from ISE’s deep liquidity and to cross large options orders
at the best available price for their customers.”
The new PrecISE Sweep and Cross functionality adheres to all inter-market linkage rules related to execution of large crosses. PrecISE users must be enabled for Away Market Routing (AMR) to take advantage of this new tool.
ISE is currently offering a two month fee waiver for new users of PrecISE Trade. The robust front-end trading system supports all exchange order types and functionality, including complex orders, tied-tostock options orders, crossing orders, and sweep functionality to access other exchanges. PrecISE Trade users have access to real time market data as well as ISE’s Depth of Market Feed, the ISE Spread Book Feed and real time options Greeks. In addition, PrecISE offers order management tools and flexible posttrade clearing and allocation functions.
For more information about Sweep and Cross functionality or PrecISE, please contact ISE Business Development at bizdev@ise.com.
Source: International Securities Exchange (ISE)
