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FIA Calls for Joint Industry-CFTC Cooperation to Develop Ownership and Control Reporting System
October 11, 2010-- The futures industry is working on an ownership and control reporting system that will serve as a practical and cost-effective alternative to the OCR system proposed by the Commodity Futures Trading Commission, the Futures Industry Association said in comments submitted to the agency on Oct. 7.
“We recognize and support the CFTC’s need to develop a more robust trade practice and market surveillance program,” said FIA President John Damgard. “The FIA OCR Working Group has devoted considerable time to developing an industry solution that we hope will meet the Commission’s goal, but CFTC feedback is critical to the progress of the initiative.”
The FIA working group, comprised of 16 firms and all the U.S. exchanges, is actively involved in designing an industry-wide reporting solution that is expected to be submitted to the CFTC by the end of this month. The industry solution is designed to use data currently available in existing systems. It is also designed to be less costly and less time-consuming to implement, and have less impact on small entities.
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Source: FIA
US stocks higher on hopes of monetary intervention
October 8, 2010--US stocks advanced, with the Dow rising above the key 11,000 mark for the first time since May, after weak jobs data raised investors’ hopes that the Federal Reserve could embark on further quantitative easing.
The S&P 500 closed up 0.6 per cent to 1,165.15 on Friday, higher by 1.8 per cent over the week.
The Dow Jones Industrial Average had gained 0.5 per cent to close at 11,006.48, up 1.9 per cent over the five days. The Dow has not closed above 11,000 since May 3.
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Source: FT.com
Investors wait for official word on easing
October 8, 2010--Dollar selling intensified this week as economic data from the US continued to support the case for a further round of quantitative easing by the Federal Reserve.
The dollar has found scant support since the US central bank’s monetary policy meeting in September when Ben Bernanke, chairman, said in a statement after the meeting that the Fed would act “appropriately” should economic conditions worsen.
Investors have taken this to mean that another round of quantitative easing is on the way, probably at the Fed’s November meeting, and have been dollar bears ever since.
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Source: FT.com
Invesco PowerShares Announces Changes to ETF Family
October 8, 2010-- Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $50 billion in franchise assets, announced changes to its PowerShares family, one of the broadest in the marketplace today. In a continuing effort to proactively address the growing needs of investors in ETFs and to position its business for future growth opportunities, Invesco PowerShares announced that it plans to close 10 of its ETFs. The affected funds represent less than 1% of Invesco PowerShares’ total assets.
“We regularly review portfolios carefully evaluating numerous factors such as investment results, length of time in the market, investor interest, and the potential for future growth," said Ben Fulton, Invesco PowerShares managing director of global ETFs. “Based on this assessment, we believe that it’s in the best interest of our investors that we refocus our resources on areas that we believe are of greater client interest. As a pioneer and one of the leading innovators in the ETF industry, Invesco PowerShares continues to be fully committed to maintaining and developing a comprehensive product line. We have actively introduced several innovative ETFs to the market in the past year and we anticipate introducing new products in the months ahead.”
At an Oct. 5, 2010 meeting, the PowerShares Funds Board of Trustees approved the closings. The final day of trading on The NASDAQ Stock Market LLC (“NASDAQ”) and NYSE Arca, Inc. (“NYSE Arca”) will be Dec. 14, 2010.
Shareholders may sell their holdings on or before Dec. 14, 2010, and may incur typical transaction fees from their broker-dealer. Shareholders who do not sell their holdings on or before Dec. 14, 2010, will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, in the cash portion of their brokerage accounts on the liquidation date (currently scheduled for Dec. 21, 2010). Shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares.
The affected ETFs are listed below:
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Name |
Ticker Symbol |
| PowerShares Dynamic Healthcare Services Portfolio | PTJ |
| PowerShares Dynamic Telecommunications & Wireless Portfolio | PTE |
| PowerShares FTSE NASDAQ Small Cap Portfolio | PQSC |
| PowerShares FTSE RAFI Europe Portfolio | PEF |
| PowerShares FTSE RAFI Japan Portfolio | PJO |
| PowerShares Global Biotech Portfolio | PBTQ |
| PowerShares Global Progressive Transportation Portfolio | PTRP |
| PowerShares NASDAQ-100 BuyWrite Portfolio | PQBW |
| PowerShares NXQ Portfolio | PNXQ |
| PowerShares Zacks Small Cap Portfolio | PZJ |
For additional information, shareholders of the ETFs which are scheduled for liquidation may call Invesco PowerShares at 800-983-0903.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $50 billion as of Sept. 30, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
Source: Invesco PowerShares Capital Management LLC
Unit of Springs firm launches exchange traded fund
October 8, 2010--A unit of Colorado Springs money management firm Huntley Thatcher Ellsworth Ltd. has launched a publicly traded investment fund that allows small investors to use the primary investment strategy used by most hedge funds.
Mars Hills Partners LLC, formed in January by Huntley Thatcher to manage exchange traded funds it plans to launch, has grown its first such fund, the Global Relative Value fund, from $2.5 million when it began trading July 9 to $44 million this week, said David Houle, a partner in both Huntley Thatcher and Mars Hill.
Exchange traded funds are similar to mutual funds but trade like stocks and in many cases are designed to track a stock market index.
The Global Relative Value fund invests in 30 to 50 other exchange traded funds using a strategy that balances buying shares in funds it believes represent the best value and taking a short position in funds it believes represent the worst value, Houle said.
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Read more: http://www.gazette.com/articles/funds-106042-traded-fund.html#ixzz11qSK01ba
Source: gazette.com
Latin America's Growth Expected to Reach 5-6 Percent in 2010
October 8, 2010-- Latin America’s new face following the global financial crisis is tough and almost impervious to shocks but also soft and kind to the most vulnerable.
A World Bank report argues that the region’s economic demeanor is resilient, globalized, and dynamic as it zips towards 5-6 percent growth for 2010 and shows that its investments in social protection managed to shield the most vulnerable from the worst effects of the downturn.
Presented as part of the World Bank Annual Meetings, Latin America’s semiannual economic report also reveals that the region’s recovery is ahead of the rich nation’s and compares well with the Asian Tigers’ expected growth of over 7 percent. All in all, the crisis in Latin America & Caribbean (LAC) was short lived, as compared to other parts of the globe, thanks in part to solid macroeconomic and fiscal frameworks set in place well before the crisis struck.
Individually, Brazil, Peru and Argentina lead the pack with 7.5 percent projected growth while Uruguay and Paraguay are expected to largely surpass the regional average. Chile, Colombia, Dominican Republic, Mexico and Panama, in the meantime, will likely post a robust 4-5 percent growth, according to ‘Resilient, globalized, dynamic: The new face of Latin America’.
view the report-Resilient, globalized, dynamic: The new face of Latin America’
Source: World Bank
Treasury Announces State-By-State Funding Allocations
State Small Business Credit Initiative Critical Component of
Small Business Jobs Act President Obama Signed into Law This Week;
All 50 States, DC, and the U.S. Territories Now Eligible for Funds to
Help Local Entrepreneurs Expand Their Businesses and Put More Americans Back to Work;
October 8, 2010--Today, the U.S. Department of the Treasury announced individual State Small Business Credit Initiative (SSBCI) funding allocations for all 50 states, the District of Columbia, and the U.S. territories, which will support $15 billion in new small business lending through innovative local programs that help entrepreneurs expand their businesses and create new jobs.
These SSBCI funds are a critical component of the Small Business Jobs Act President Obama signed into law last week to help unlock credit and provide targeted tax cuts for small businesses. (A full listing of the state-by-state allocations announced today is included below.)
view full lsiting
Source: U.S. Department of the Treasury
CFTC Commitments of Traders Reports Update
October 8, 2010--The CFTC.gov Commitments of Traders Reports has been updated for the week of October 5, 2010 and are now available.
view updates
Source: CFTC.gov
ETFS Physical Swiss Gold Shares (SGOL) breaks $1bn in AUM
October 8, 2010--ETF Securities USA LLC (ETFS) announced today that the total assets under management of its ETFS Physical Swiss Gold Shares (SGOL) passed the $1 billion mark as of Sept 29th, 2010. In the opinion of ETF Securities, recent flows into SGOL have largely been driven by investor’s desire to hold gold in Switzerland and to position portfolio’s for possible inflationary pressures resulting from currency debasement.
ETFS Gold Trust
The objective of the ETFS Gold Trust’s (SGOL) shares reflect the performance of the price of Gold, less the Trust’s expenses. The Trust is open ended and is designed for investors who want a cost-effective (1) and convenient (2) way to invest in gold as well as diversify their precious metal holdings. SGOL has an expense ratio of 0.39% (3) per annum.
ETFS Gold Trust (SGOL) is backed by allocated gold bullion and stored in secure vaults in Switzerland by the Custodian, JPMorgan Chase Bank, N.A, one of the world's leading Custodians for precious metals. The Shares represent an interest in physical gold owned by the Trust. The physical gold of the Trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives.
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Source: ETFS Securities
TD Ameritrade Launches Commission-Free ETF Market Center
October 8, 2010--Long-term investors now have access to more than 100 commission-free ETFs, TD Ameritrade, Inc., a subsidiary of TD Ameritrade Holding Corporation announced today. The new ETF Market Center, available to both retail investors and independent registered investment advisors (RIAs), includes a list of ETFs--from a variety of well-known providers--that have been evaluated and selected by investment consultants at Morningstar Associates, LLC, a registered investment advisor and unit of Morningstar.
"We worked with independent experts to create an objective list of ETFs focused on long-term investing. Morningstar Associates considered all ETF providers, and neither TD Ameritrade nor Morningstar Associates will receive any incentive from those firms, for inclusion on the list," said Fred Tomczyk, president and chief executive officer of TD Ameritrade. "We're taking a better and more client-focused approach to helping our clients build long-term portfolios."
TD Ameritrade was among the first in its industry to make tools, content and educational information about ETFs available to retail investors in 2004. Since that time investor adoption of ETFs has grown considerably. While ETFs have been popular among active traders for some time, since early 2007 the firm has seen a 44 percent increase in the number of long-term investors who hold an ETF. Advisor usage of ETFs in client portfolios is on the rise as well. Nearly 80 percent of RIAs on the TD Ameritrade Platform actively use ETFs today, up 5 percent from just a year ago.
TD Ameritrade's new ETF Market Center includes a number of online ETF-focused enhancements, including a powerful ETF screener, ETF data and independent research and commentary from Morningstar, Inc. to help investors learn more about ETFs, determine whether ETFs fit their needs and create well-diversified, long-term portfolios.
"We want to help investors build long-term portfolios more cost effectively," Tomczyk continued. "We have a very popular no-transaction fee mutual fund offering, and as ETFs continue to grow in popularity and diversity, this was a natural progression for us. It's an incredible opportunity to help educate long-term investors about ETFs and portfolio diversification."
Once enrolled in the program, clients can buy and sell shares of the ETFs on the list commission-free. Should a client sell an ETF purchased under the program and held less than 30 days, a short-term trading fee will be assessed.
For more information about TD Ameritrade's new ETF Market Center, visit www.tdameritrade.com.
Source: TD Ameritrade
