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President’s Working Group on Financial Markets Releases Money Market Funds Report
October 21, 2010--The President's Working Group on Financial Markets (PWG) today released a report detailing a number of options for reforms related to money market funds. These options address the vulnerabilities of money market funds that contributed to the financial crisis in 2008.
Following the crisis, the Treasury Department directed the PWG to develop this report to assess options for mitigating the systemic risk associated with money market funds and reducing their susceptibility to runs. The PWG agrees that, while a number of positive reforms have been implemented, more should be done to address this susceptibility.
The PWG now requests that the Financial Stability Oversight Council (FSOC), established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, consider the options discussed in this report and pursue appropriate next steps. To assist the FSOC in any analysis, the Securities and Exchange Commission, as the regulator of money market funds, will solicit public comments, including the production of empirical data and other information in support of such comments. A notice and request for comment will be published in the near future.
Today's release is one part in a series of steps that the regulatory community will be taking in the coming months to implement financial reform and to help ensure that the financial system continues to become more resilient.
view the Report of the
President’s Working Group on Financial Markets-Money Market Fund Reform Options
Source: U.S. Department of the Treasury
PowerShares files with the SEC
October 21, 2010--PowerShares has filed a post-effective amendment, registration statement with the SEC for 5 ETFs.
PowerShares S&P 500® High Beta Portfolio
PowerShares S&P 500® Low Beta Portfolio
PowerShares S&P 500® High Momentum Portfolio (NYSE Arca, Inc.
PowerShares S&P 500® High Volatility Portfolio
PowerShares S&P 500® Low Volatility Portfolio
view filing
Source: SEC.gov
Huntington Asset Advisors files with the SEC
October 21, 2010-Huntington Asset Advisors has filed an amended and restated application for exemptive relief with the SEC. Applicants request that the relief requested herein extend to any future series of the Trust and to any other open-end investment company or series thereof that is an actively managed exchange-traded fund (“ETF”) (“Future Funds”).
view filing
Source: SEC.gov
Huntington Asset Advisors files with the SEC
October 21, 2010--Huntington Asset Advisors has filed an amended and restated Application application for exemptive relief with the SEC.
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Source: SEC.gov
Fannie & Freddie ‘could cost US $363bn’
October 21, 2010--Fannie Mae and Freddie Mac, the government-owned mortgage finance companies, could cost US taxpayers as much as $363bn to the end of 2013, according to their regulator, less than some of the worst-case scenarios circulated by critics of the agencies, but more than projections by the White House.
Since they were rescued by the government in 2008, Fannie Mae and Freddie Mac have drawn $148bn from the US Treasury to stay afloat as losses on bad loans underwritten during the housing boom turned bad at a record pace.
In August, the Congressional Budget Office said Fannie and Freddie would need $390bn in federal subsidies to the end of 2019. The White House’s Office of Management and Budget had in February estimated the cost to be as little as $160bn for the same period, providing the economy continued to strengthen.
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Source: FT.com
Transatlantic clearing war set to get hotter
October 21, 2010--A transatlantic battle in the derivatives business is poised to heat up after LCH.Clearnet, the UK-based clearing house, said it would launch clearing of a vast untapped section of the interest rate swaps markets “in the next few weeks”.
The disclosure comes a week after rival CME Group, which owns the Chicago Mercantile Exchange, said it had started clearing interest rate swaps.
It will provide a boost to LCH.Clearnet, which has pinned much of its hopes for growth on cracking the US market for interest rate swaps clearing as it is losing customers in cash equities clearing in Europe.
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Source: FT.com
BM&FBOVESPA posts record financial volume in ETF BOVA11 funds
Financial volume reaches BRL71.67 million in ETF BOVA11, totaling 1,029,790 lots in 1,457 trades at an average price of BRL69.59
October 20, 2010-- BM&FBOVESPA recorded a record financial volume on Wednesday in ETF BOVA11 Exchange Traded Funds for the Ibovespa index, at BRL71 million. The previous record was BRL65.87 million, on January 21.
There were 1,029,790 BOVA11 round lots traded on Wednesday, at an average price of BRL69.59, in 1,457 trades. Trades in PIBB11, SMALL11, MOBI11 and CSMO11 reached financial volumes of BRL1.77 million, BRL1.17 million, BRL1.75 million and BRL 67,780, respectively.
ETFs
ETFs are funds which mirror indexes and their units are traded on the Exchange just like shares. When investors buy the units of any given ETF, they become holders of all the component shares of the index which that ETF replicates without having to buy the shares of each company in the index separately. There are currently seven index funds (ETFs) trading at BM&FBOVESPA: BOVA11, SMAL11, MILA11 PIBB11, BRAX11, CSMO11 and MOBI11.They track the Bovespa, Small Cap, MidLarge Cap and IBrX-50, IBrX-100, Índice de Consumo and Índice Imobiliário, indices respectively.
Source: BM&FBOVESPA
BNY Mellon OnCoresm Service Integrates Middle-Office and Data Management Solutions for Investment Managers
October 20, 2010--BNY Mellon Asset Servicing, the global leader in securities servicing, has recently announced its newly named outsourcing service, BNY Mellon OnCore, which provides an integrated offering for investment managers, combining technology and operations to deliver a sophisticated suite of middle-office and data management solutions.
The OnCore service and platform combines our Asset Servicing capabilities around trade processing, data warehousing, accounting, and performance measurement to provide a comprehensive solution to our clients. Our OnCore offering spans the continuum of investment operations solutions from traditional software installation to ASP hosting models to full business process outsourcing.
For more information, contact +1-203-614-0800 or visit www.argainvest.com.
Source: BNY Mellon
Claymore files with the SEC
October 20, 2010--Guggenheim Funds Investment Advisors, LLC (formerly, Claymore Advisors, LLC) has filed an application for exemptive relief with the SEC.
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Source: SEC.gov
BlackRock dismisses ETF price war concerns
October 20, 2010--BlackRock has felt little impact from the price war currently being fought by US exchange traded fund providers, according to Larry Fink, chief executive of the world’s largest asset manager.
“Fees are a consideration and may be a bigger driver, possibly in the future,” said Mr Fink. “[But] we are not seeing industry-wide pressure at all.”
Mr Fink said BlackRock’s “experiment” in lowering fees on its gold ETF had led to increased inflows but “only a fraction of what we expected”
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Source: FT.com