Americas ETP News
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OCC Announces Total Contract Volume in November Increased 33%
December 1, 2010--The Options Clearing Corporation (OCC) announced today that total OCC volume reached 354,897,569 contracts in November. This represents a 33% percent increase over the November 2009 volume of 266,989,810 contracts. OCC year-to-date total volume is up 8% with 3,581,480,630 contracts, only 43,540,423 contracts away from last year's annual total.
As of the end of November, OCC's year-to-date cleared futures volume is 23,619,380, nearly double the 2009 annual total of 12,383,935 contracts.
Options: Exchange-listed options trading in the U.S for the month of November was up 33% from the previous year. Index options trading increased 5% over the previous November with 23,247,409 contracts. Equity options trading volume rose 35% compared to the same month last year with 328,797,894 contracts in November.
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Source: OCC
Volume Records Propel November Trading At CBOE Futures Exchange To All-Time High
December 1, 2010--The CBOE Futures Exchange, LLC (CFE) today announced that November 2010 was the most-active trading month in CFE history.
The record 751,481 contracts that changed hands during the month surpassed the previous high of 481,650 contracts in May 2010. November volume exceeded the 184,558 contracts traded during November 2009 and gained 57 percent from the 479,304 contracts that traded during October 2010. November marked the fourteenth consecutive month in which total volume registered an increase when comparing year-over-year trading activity.
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Source: CBOE
Fed reveals global extent of its backing
December 1, 2010-- Rivers of ink have been spilt on the crisis that gripped the world’s financial system between 2007 and 2009.
Wednesday’s huge release of data by the US Federal Reserve chronicles a similar story, but in numbers. A lot of numbers.
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Source: FT.com
Wikileaks puts focus on banks’ data security
December 1, 2010--The news that Wikileaks may be planning to release a trove of internal documents from a big US bank added to the list of woes facing an industry that still appears under attack from all sides.
Bank of America shares dropped 3 per cent on Tuesday on speculation that it will be the next high-profile target of Julian Assange’s whistle-blowing website.
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Source: FT.com
European banks took big slice of Fed aid
December 1, 2010--Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system.
The revelation of the scale of overseas lenders’ borrowing underlines the global nature of the turmoil and the crucial role of the Fed as the lender of last resort for the world’s banking sector.
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Source: FT.com
Turkey Soup Opening Statement of Commissioner Bart Chilton Before the Open Meeting on the Sixth Series of Proposed Rulemakings Under the Wall Street Reform and Consumer Protection Act
December 1, 2010--Thank you, Mr. Chairman. I hope that everyone had a good Thanksgiving. I was thinking of how my mother used to take what was left of the Thanksgiving turkey carcass and make it into a delicious turkey soup sometime later. As the carcass simmered, the meat that was left would fall off the bones and the aroma and the flavor were both terrific.
The flavor of what we’re doing here, I suppose, is just the opposite. We’re putting meat on the bones of this new law. ‘Course, we don’t want to wind up with a turkey when we’re done and I don’t think we will both because of the great work the staff is doing and the public input we’ve received.
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Source: CFTC.gov
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
December 1, 2010--Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding:
Core principles and other requirements for designated contract markets;
General regulations for derivatives clearing organizations;
Information management requirements for derivatives clearing organizations;
Reporting, recordkeeping and daily trading records requirements for swap dealers and major swap participants; and
The definition of “swap dealer,” “security-based swap dealer,” “major swap participant” and “eligible contract participant.
I will support publishing these proposed rules in their current form, but I am concerned that the rules addressing DCM core principles, as currently drafted, may be too prescriptive. If this rule was before us today as a final rule, I would have reservations voting for its release based on my firm belief that the CFTC should remain a principles based regulator, and not a prescriptive regulator. However, after meeting with our staff, it is my understanding that many of the provisions of the proposed DCM core principles are actually already being followed by industry or have become best practices over time. In essence, my understanding is that this proposed rule simply codifies what is already being done. It is my understanding that many in the industry desire the establishment of a safe harbor that will ensure that they are in fact meeting the intent of the core principle. However, I do not know this to be true and will look to the public comments on this proposed rule to guide my decision making process in regard to the final rule. Comments indicating that we are indeed merely codifying the best practices already in use and a safe harbor is needed for legal certainty, will influence my vote on a final rule.
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Source: CFTC.gov
Barclays Launches Leveraged iPath
New ETNS provide investors with access to leveraged returns on equity indices
November 30, 2010– Barclays Bank PLC announced today the launch of eleven leveraged iPath ® Exchange Traded Notes (ETNs) on the NYSE Arca stock exchange. The new iPath
ETNs provide investors with a way to access leveraged returns based on the performance or inverse performance of equity market benchmarks or strategies. The ETNs offer both long and short leveraged exposure to index provider indices from S&P, Russell and MSCI.
The new iPath ETNs are:
iPath® Long Extended Russell 1000
®TR Index ETN (ROLA)
iPath® Short Extended Russell 1000 ® TR Index ETN (ROSA)
iPath ® Long Extended Russell 2000 ® TR Index ETN (RTLA)
iPath ® Short Extended Russell 2000 ®TR Index ETN (RTSA)
iPath ® Long Extended S&P 500 ® TR Index ETN (SFLA)
iPath ® Short Extended S&P 500 ® TR Index ETN (SFSA)
iPath ® Long Enhanced MSCI EAFE ® Index ETN (MFLA)
iPath ® Short Enhanced MSCI EAFE ® Index ETN (MFSA)
iPath ® Long Enhanced MSCI Emerging Markets Index ETN (EMLB)
iPath ® Short Enhanced MSCI Emerging Markets Index ETN (EMSA) iPath ® Long Enhanced S&P 500 VIX Mid-Term Futures ETN (VZZ)
“We are delighted to expand the iPath platform with a comprehensive suite of products that provides our clients with leveraged and inverse exposure to the equity and volatility markets,” said Philippe El-Asmar, Managing Director, Head of Investor Solutions at Barclays Capital. “The leveraged iPath ETNs offer a new way to manage capital across the equity markets and we believe these investment tools will be useful for investors wishing to tailor the risk/return profile of a global equities portfolio.”
iPath ETNs are senior, unsecured, unsubordinated debt securities issued by Barclays Bank PLC. The ETNs are designed to provide investors with a way to access leveraged returns of a market or strategy, less certain costs and fees. The primary features of the ETNs are a return based on a leveraged participation in the performance or inverse performance of the applicable underlying index, a fixed maturity date, an automatic redemption mechanic and an optional redemption
feature for holders. The ETNs track a fixed multiple of the performance of the underlying index over the term of the ETNs, before the deduction of certain costs and fees as described in the applicable prospectus.
The prospectuses can be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product website at www.iPathETN.com.
Barclays Bank PLC is the issuer of iPath ETNs and Barclays Capital Inc. is the issuer’s agent. BlackRock’s broker dealer affiliate, BlackRock Fund Distribution Company, engages in the
promotion of iPath ETNs to intermediaries.
Source: Barclays
UBS Announces the UBS E-TRACS Daily Long-Short VIX ETN
December 1, 2010--UBS Investment Bank announced today that it has once again added to its suite of UBS E-TRACS Exchange Traded Notes (ETNs) with the new UBS E-TRACS Daily Long-Short VIX ETN. It began trading today on NYSE Arca under the ticker symbol, XVIX. UBS E-TRACS Daily Long-Short VIX ETN offers access to an innovative trading strategy in a single exchange traded security.
“We believe in the UBS E-TRACS platform and in the ETN as a structure that can efficiently respond to investor needs,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “Today’s launch marks our 18th ETN, giving investors a cost-efficient way to capitalize on the steepness of the short-end of the volatility market.”
UBS E-TRACS Daily Long-Short VIX ETN is linked to the S&P 500 VIX Futures Term-Structure Index ER (ticker: SPVXTSER). The Index is a composite index that measures the return from taking a long position in the S&P 500 VIX Mid-Term Futures™ Index Excess Return with 100% weight, and taking a short, or inverse, position in the S&P 500 VIX Short-Term Futures™ Index Excess Return with 50% weight, and rebalancing the weights of the long and short positions daily.
UBS E-TRACS belong to an innovative class of investment products offering access to markets and strategies that had not previously been readily available to investors, and offer unique diversification opportunities in a number of different sectors.
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Source: UBS
Horizons BetaPro launches an S&P 500 Index ETF for Savvy Canadian Investors
December 1, 2010--Jovian Capital Corporation ("Jovian") and its subsidiary BetaPro Management Inc. ("BetaPro"), the manager of the Horizons BetaPro exchange traded funds, are pleased to announce the launch of the Horizons BetaPro S&P 500® Index (C$ Hedged) ETF (the "BetaPro S&P 500® ETF" or "HXS"). The BetaPro S&P 500® ETF will begin trading on the Toronto Stock Exchange on December 1, 2010, under the symbol HXS.
In September 2010, BetaPro launched the Horizons BetaPro S&P/TSX 60(TM) Index ETF (HXT:TSX), the lowest cost ETF in Canada, tracking the S&P/TSX 60(TM) Index. Following in HXT's footsteps, HXS is the second ETF launched by BetaPro that will track an index already available to Canadian investors through another TSX listed index-tracking ETF.
"HXS represents another milestone for Canadian ETF investors and continues the new era of competition in the Canadian ETF industry, which we started with the launch of the Horizons BetaPro S&P/TSX 60(TM) Index ETF." said Howard Atkinson, president of BetaPro Management Inc. "In our view, the S&P 500® Index is the most important U.S. equity benchmark and we're offering an ETF solution designed to meet the unique tax and investment needs of Canadian investors who buy U.S. stocks.".
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Source: Jovian Capital Corporation; BETAPRO MANAGEMENT INC.
