Americas ETP News
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CBOE Holdings' C2 Options Exchange To Launch In Late October
Trading Access And Initial Rollout Details Announced
August 31, 2010-- CBOE Holdings, Inc. (NASDAQ: CBOE) today announced that C2 Options Exchange, Incorporated (C2), the company's new all-electronic exchange, will launch in late October 2010. Details on C2 trading access, connectivity and an overview of the market model were also announced.
C2 will operate under a separate exchange license, with its own board of directors, rules, connectivity, systems architecture and access structure. The new Exchange will employ a "maker-taker" fee schedule and a modified price/time matching algorithm for multiply-listed classes.
"The launch of C2 marks a significant milestone in the continued evolution of our company, and the prospects that C2 provide are exciting. As a complementary market to CBOE, we believe C2 will appeal to a wide variety of customers and have the potential to expand our customer base," commented William J. Brodsky, Chairman and CEO, CBOE Holdings.
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Source: CBOE
Vanguard Surpasses iShares in ETF Advisor Loyalty
August 31, 2010--anguard now ranks first among ETF providers in advisor loyalty displacing the long-standing industry leader iShares. This reversal was driven not only by an increase in ETF producers’ loyalty to Vanguard, but compounded by a decrease in ETF producers’ loyalty to iShares. This and other findings are contained in the new 2010 Advisor Brandscape™ report that was released earlier this month by Cogent Research.
According to the report, which is based on a nationally representative survey of 1,560 investment advisors, Vanguard achieves a Net Promoter® Score (NPSSM) of 33% compared to iShares’ 20%. NPSSM is a standardized loyalty metric developed by Bain & Company and deployed across many industries. These results represent a ten-point gain for Vanguard since last year, and a corresponding eight-point drop for iShares. State Street/Spiders ranked third overall, while PIMCO, finishing its freshman year as an ETF provider, rounds out the list of top-four providers.
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Source: Cogent Research
SEC Issues Report Cautioning Credit Rating Agencies
August 31, 2010--The Securities and Exchange Commission today issued a report cautioning credit rating agencies about deceptive ratings conduct and the importance of sufficient internal controls over the policies, procedures, and methodologies the firms use to determine credit ratings.
The SEC's Report of Investigation stems from an Enforcement Division inquiry into whether Moody's Investors Service, Inc. (MIS) — the credit rating business segment of Moody's Corporation — violated the registration provisions or the antifraud provisions of the federal securities laws.
The Report says that because of uncertainty regarding a jurisdictional nexus between the United States and the relevant ratings conduct, the Commission declined to pursue a fraud enforcement action in this matter. The Report notes that the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act provided expressly that federal district courts have jurisdiction over SEC enforcement actions alleging violations of the antifraud provisions of the securities laws when conduct includes significant steps, or a foreseeable substantial effect, within the United States. The Report also notes that the Dodd-Frank Act amended the securities laws to require nationally recognized statistical rating organizations (NRSROs) to "establish, maintain, enforce, and document an effective internal control structure governing the implementation of and adherence to policies, procedures, and methodologies for determining credit ratings."
view SEC's Report of Investigation
Source: SEC.gov
Nuveen files with the SEC
August 31, 2010--Nuveen has filed a pre-effective amendment No. 7 to Form S-1 with the SEC for
Nuveen Diversified Commodity Fund.
view filing
Source: SEC.gov
Vanguard files with the SEC
August 31, 2010--Vanguard has filed a post-effective amendment, registration statement with the SEC for
Vanguard S&P 500 ETF.
view filing
Source: SEC.gov
Vanguard files with the SEC
August 31, 2010--Vanguard has filed a post-effective amendment, registration statement with the SEC for
Vanguard S&P 500 Value Index Fund - ETF Shares
Vanguard S&P 500 Growth Index Fund - ETF Shares
Vanguard S&P Mid-Cap 400 Index Fund - ETF Shares
Vanguard S&P Mid-Cap 400 Value Index Fund - ETF Shares
Vanguard S&P Mid-Cap 400 Growth Index Fund - ETF Shares
Vanguard S&P Small-Cap 600 Index Fund - ETF Shares
Vanguard S&P Small-Cap 600 Value Index Fund - ETF Shares
Vanguard S&P Small-Cap 600 Growth Index Fund - ETF Shares
view filing
Source: SEC.gov
CFTC to Begin Releasing Index Investment Data on a Monthly Basis
August 30, 2010-- The Commodity Futures Trading Commission (CFTC) today announced that it would begin releasing data on index investment in commodity futures markets on a monthly basis. The CFTC has been releasing the data on a quarterly basis since September 2009.
“Promoting the transparency of markets is at the core of the CFTC’s mission,” CFTC Chairman Gary Gensler said. “Releasing index investment data 12 times per year rather than on the previous quarterly basis enhances the public’s ability follow the overall participation of index accounts in futures markets. We will continue to look for ways to improve both agency and market transparency.”
The first monthly release of index investment data will occur on Tuesday, August 31, 2010, for data as of July 30, 2010.
Please refer to the Index Investment Data Explanatory Notes under Related Documents for additional information.
Source: CFC.gov
SLCG Issues Leveraged ETF Report
August 30, 2010-- Securities Litigation and Consulting Group, Inc. ("SLCG") has issued an investment management study into leveraged and inverse exchange traded funds ("ETFs"), "Leveraged ETFs, Holding Periods and Investment Shortfalls". The report's primary authors are Ilan Guedj, Guohua Li and Craig McCann. Dr. McCann and Dr. Guedj are Principals of SLCG and Dr. Li is a Senior Financial Economist. Dr. McCann and Dr. Guedj are former university professors. Dr. McCann is a former Securities and Exchange Commission economist.
The SLCG study explains that investors who hold leveraged and inverse ETFs for periods longer than a day expose themselves to substantial risk that the holding period returns will deviate from the returns to a leveraged or inverse investment in the index. The study reports estimated distributions of holding periods for investors in actual leveraged and inverse ETFs using standard stock trading models found in the literature.
The report estimates the investment shortfall incurred by investors who hold leveraged and inverse compared to investing in a simple margin account to generate the same leveraged or short investment strategy to be as much as 3% of their investment in less than 3 weeks, an annualized cost of 50%. The study also discusses the viability of leveraged and inverse leveraged ETFs that rebalance less often than daily and calculate their costs to investors.
view Leveraged ETFs, Holding Periods and Investment Shortfalls paper
Source: Securities Litigation and Consulting Group, Inc.
New Commodity ETF Touts Academic Pedigree
August 30, 2010--A new commodity exchange-traded fund carries an endorsement from a high-profile name from academia. But its complex mechanics and scanty track record means potential buyers will want to study it carefully.
Commodities have been taking a role in more portfolios as investors come to believe that a sliver of exposure to assets like gold and oil can smooth out investment returns.
More than $8 billion has poured into broad-based commodity ETFs since they first appeared in 2006. Even more money has gone into ETFs that track single commodities like gold and broad-based actively managed funds like Pimco Commodity Real Return fun
Now SummerHaven Investment Managament LLC is trying to get into the game with a new ETF, U.S. Commodity Index Fund (trading symbol USCI). The firm's partners include Yale Management School Professor Geert Rouwenhorst, whose research helped spur small-investor interest in commodities.
The fund's pitch: Its computer-driven investment strategy favors commodities with low inventories, which are more prone to price spikes, and thus will produce better returns than conventional commodity indexes whose holdings reflect production or trading volumes.
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Source: WSJ.com
CME Group To Offer Customers Exposure To Benchmark U.S. Treasury Securities
August 30, 2010--- CME Group, the world's leading and most diverse derivatives marketplace, announced the launch of On-the-Run U.S. Treasury futures beginning Monday, October 25, 2010. These new futures contracts will provide market participants with efficient and cost-effective price exposure to 2-Year, 5-Year, and 10-Year U.S. Treasury on-the-run yields. The new contracts will be listed with, and subject to, the rules and regulations of the CBOT.
"This new suite of cash-settled On-the-Run futures will complement our existing suite of physically-delivered U.S. Treasury futures and create new trading opportunities for our clients," said Robin Ross, CME Group's Managing Director of Interest Rate Products. "The On-the-Run U.S. Treasury futures contracts will offer clients an easy way to trade synthetic Treasury yield curve and swap spread strategies, with the added benefit of cross-margining against CME Group benchmark interest rate products."
"At a time when U.S. Treasury bond traders are facing increasing margin requirements and balance sheet regulation, it just seems logical to offer synthetic 'on-the-run' futures," said John Brosnan, XR Trading LLC's Head of Fixed Income Trading. "In addition to cross-margining, there are other subtleties that make these products attractive, such as the opportunity for broader market participation during the 'When Issued' period leading up to the auction. These products should also help firms optimize their hedging precision and more effectively manage tail-risk. I think regardless of usage, these products will create opportunity for a variety of end-users.".
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Source: CME Group
