Americas ETP News
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Next ETFs Files Exemptive Relief Application for New ETFs
September 1, 2010--Next ETFs LLC, a wholly-owned subsidiary of Next Investments, announced its intention to sponsor a new series of ETFs and filed, through its counsel Katten Muchin Rosenman LLP, an application with the SEC for exemptive relief under the 1940 Act earlier today.
Next ETFs LLC intends that its first fund will be based on the Nikkei 225 Index, the foremost Japanese equity benchmark, comprising 225 liquid stocks in the 1st section of the Tokyo Stock Exchange. This index has been recognized around the globe as the premier index of Japanese stocks for the last 60 years.
Next Investments, through an arrangement with Mitsubishi UFJ Asset Management Co., Ltd., has been granted an exclusive license to establish the only U.S. Nikkei 225 ETF. A copy of the application can be found on www.nextinvestments.com.
Source: Next Investments
iShares files with the SEC
August 31, 2010-iShares has filed a post-effective amendment, registration statement with the SEC for the MSCI New Zealand Investable Market Index Fund.
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Source: SEC.gov
JPMorgan to close 'prop' trading division
August 31, 2010--JPMorgan Chase is to close the commodity unit that trades with the bank’s own money as Wall Street moves to comply with new US financial services rules banning proprietary trading.
A person familiar with the matter said that the traders in the unit were told on Friday their jobs were on the line because of the bank’s decision to stop trading commodities on its own account.
The unit has fewer than 20 traders, most of them in London, with one in New York.
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Source: FT.com
Statement on the Release of New Retail Forex Rules, “Rules to Rein in a Racket”
August 31, 2010--Statement by Commissioner Bart Chilton on the Release of New Retail Forex Rules
August 31, 2010
In recent years, mini-Madoff ponzi scams have proliferated, targeting unsuspecting investors with good hearts and limited incomes.
Many of these fraudulent schemes have involved "forex" trading, that is, derivatives trading foreign currency. Operating in the shadows of the legitimate forex market, regulators have focused on the types of illegal trading in this area that targets unsuspecting consumers, and bilks them out of millions of dollars annually. New rules will rein in this racket.
Toward that end, the CFTC has worked to craft rules that will protect American investors, and at the same time provide for the operation of legitimate business activity. With these new rules, the agency is ensuring that people investing in forex are protected from fraud and abuse. These rules put the sidelines on the field so that traders know the boundaries and investors can be more assured that their money is not being traded out of bounds.
Source: U.S. Department of the Treasury
DB Global Equity Index & ETF Research : US ETP Market Weekly Review
August 31, 2010--New Listings and Delistings
There were two products launched during the previous week. Alerian, the MLP index provider, launched the first ETF tracking Master Limited Partnerships through ALPS Fund Services Inc. Although there are another 5 ETNs tracking MLPs in the US, this new ETF removes the inherent credit risk associated with ETNs and provides a tax structure which may allow investors to benefit from their MLP holdings in a more efficient way. Similarly, Van Eck Funds launched an equity ETF tracking the Indian Small-Cap sector. Both ETFs are listed in NYSE Arca
Net Cashflows
Total ETP outflows in the US added up to $142 mm during the previous week. Fixed Income and Commodity ETPs had inflows of $1.6 bn and $256 mm, respectively. Equity and Currency ETPs, on the other hand, experienced outflows of $2.0 bn and $14 mm, respectively.
Within Equity ETPs, Small Cap ETPs received the largest inflows ($1.0 bn) followed by Leveraged ETPs, while Large Cap ETPs saw the largest outflows ($1.2 bn).
The Fixed Income ETPs inflows were led by Sovereign ETPs ($573 mm), while no significant outflows were recorded on a sub segment level.
Commodity ETPs experienced a quiet week in terms of flows, with Crude Oil ($151 mm) and Natural Gas ($88) leading the shy inflows.
Turnover
Avg. Daily Turnover remained at about the same level and totaled $60 bn at the end of the week.
Assets Under Management (AUM)
US ETPs AUM along with an almost-flat market, remained at about the same level at the end of last week, totaling $813 bn. Among all asset classes, Fixed Income has accumulated the largest increase in AUM with $72 bn YTD, almost twice as much AUM as they held at the end of last year.
To request a copy of the report
Source: Deutsche Bank Global Equity Index & ETF Research
Preliminary Annual Report on U.S. Holding of Foreign Securities
August 31, 200--Preliminary data from an annual survey of U.S. portfolio holdings of foreign securities at year-end 2009 were released today. Final survey results, which will include additional detail as well as revisions to the data, will be reported on October 29, 2010.
The survey was undertaken jointly by the U.S. Department of the Treasury, the Federal Reserve Bank of New York and the Board of Governors of the Federal Reserve System.
A complementary survey measuring foreign holdings of U.S. securities also is conducted annually. Data from the most recent such survey, which reports on securities held on June 30, 2010, are currently being processed. Preliminary results are expected to be reported on February 28, 2011.
Overall Preliminary Results
The survey measured U.S. holdings at year-end 2009 of approximately $6.0 trillion, with $4.0 trillion held in foreign equities, $1.6 trillion in foreign long-term debt securities (original term-to-maturity in excess of one year), and $0.4 trillion held in foreign short-term debt securities. The previous such survey, conducted as of year-end 2008, measured U.S. holdings of $4.3 trillion, with $2.7 trillion held in foreign equities, $1.3 trillion in foreign long-term debt securities and $0.3 trillion held in foreign short-term debt securities.
Table 1. U.S. holdings of foreign securities, by type of security, as of survey dates[1]
(Billions of dollars)
|
Type of Security |
Dec. 31, 2008 |
Dec. 31, 2009 |
|
|
|
|
|
Long-term Securities |
4,009 |
5,589 |
|
Equity |
2,748 |
3,995 |
|
Long-term debt |
1,261 |
1,594 |
|
Short-term debt securities |
282 |
387 |
|
|
|
|
|
Total |
4,291 |
5,977 |
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Source: U.S. Department of the Treasury
Minutes of the Federal Open Market Committee-August 10, 2010
August 31, 2010--The Federal Reserve Board and the Federal Open Market Committee on Tuesday released the attached minutes of the Committee meeting held on August 10, 2010.
The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report.
The descriptions of economic and financial conditions contained in these minutes are based solely on the information that was available to the Committee at the time of the meeting.
view the Minutes of the Federal Open Market Committee
August 10, 2010
Source: Federal Reserve Board
Federal Reserve Board:Approval Of Proposal By China Investment Corporation To Acquire Indirectly Up To 10 Percent Of The Voting Shares Of Morgan Stanley
August 31, 2010--The Federal Reserve Board on Tuesday announced its approval of the application by China Investment Corporation, Beijing, People's Republic of China, to acquire indirectly up to 10 percent of the voting shares of Morgan Stanley, New York, New York.
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Source: Federal Reserve Board
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
