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As popularity of ETF products grows so does the need for more sophisticated trading tools. In recognition of this, Bank of America Merrill Lynch today unveiled its premium algorithm, ETF-aX. This new ETF-specific algorithm analyzes market depth and price
July 26, 2010--As popularity of ETF products grows so does the need for more sophisticated trading tools. In recognition of this, Bank of America Merrill Lynch today unveiled its premium algorithm, ETF-aX. This new ETF-specific algorithm analyzes market depth and price data across an ETF's underlying portfolio to identify the most efficient combination of ETF, stock, and futures and then automatically trades them to source liquidity and find the best prices.
"The primary challenge with trading ETFs is market fragmentation; liquidity is limited outside of the top-ranked ETFs," said Charlie Whitlock, an execution consultant at BofA Merrill. "By using ETF-aX, clients are able to leverage our in-house ability to trade a combination of the component parts in different markets, gaining liquidity at more efficient pricing."
Upon receiving a client's order to trade an ETF, the engine analyzes inside pricing and depth of book across the ETF, stock, and futures markets to compile a picture of available liquidity. Once ETF-aX determines the optimal way to transact, balancing a desire for the best pricing against a need to capture the most liquidity, slices are simultaneously sent out to all market centers. A composite ETF price is assembled from the different executions and provided to clients.
"This technology has a proven and successful track record within our high-touch business," said Michael J. Lynch, head of Americas Execution Services. "It's a premium product that we think our electronic clients can greatly benefit from once integrated into their algo trading suite."
Bank of America Merrill Lynch is a leading global provider of equity and options trading, sales and research services to mutual funds, hedge funds, broker-dealers, pensions, endowments and other institutions. Its award-winning algorithmic trading platform was ranked as one of the top three providers of algorithmic trading, (1) and as having one of the top three market share positions of daily global algorithmic trading volumes in 2009. (2) Bank of America Merrill Lynch is also ranked No. 2 in the World's Best Broker by Bloomberg Markets. (3)
Source: Bank of America
CFTC Designates Green Exchange, LLC as a Contract Market
July 26, 2010--The Commodity Futures Trading Commission (CFTC) yesterday approved the application of Green Exchange, LLC (“GreenEx”) for designation as a contract market. GreenEx is organized as a Delaware Limited Liability company and is a wholly-owned subsidiary of Green Exchange Holdings, LLC (“GreenEx Holdings”).
Chicago Mercantile Exchange, Inc. (“CME”) is the largest equity owner of GreenEx Holdings. Other equity owners include Evolution Markets, Inc., Morgan Stanley Capital Group, Inc., Credit Suisse First Boston, Goldman Sachs, as well as other brokers, dealers and commercial users.
GreenEx will list for trading a broad variety of contracts for environmental risk management that are currently traded on the New York Mercantile Exchange (“NYMEX”).
GreenEx will use CME’s Globex electronic trade-matching system. Clearing services for GreenEx will be provided by CME Clearing House. Regulatory services for GreenEx will also be provided by CME.
Source: CFTC.gov
New Lithium ETF Powers the Green Movement
July 23, 2010--July 23, 2010 - Global X Funds, the New York-based provider of exchange-traded funds, launched today the world’s first Lithium ETF (NYSE Arca: LIT). This is the first ETF to offer investors targeted access to a resource industry critical for the renewable energy and green movement.
“The Global X Lithium ETF is an efficient way to invest in what we refer to as a “green” commodity because of its direct correlation to the renewable energy market such as electric cars and energy storage,” said Bruno del Ama, CEO of Global X Funds.
The ETF tracks the Solactive Global Lithium Index, which is designed to reflect performance of the largest and most liquid lithium battery producing and mining and refining companies in the world. As of July 13, 2010, the three largest components of the ETF are lithium producers SQM from Chile, and FMC Corporation and Rockwood Holdings from the US.
The basket of lithium-related equities will give investors access to the complete lithium value chain, from mining and refining through lithium battery production. As of July 13, 2010, 51% of the index includes lithium battery manufacturers, while 49% of the index consists of lithium mining and refining companies.
“Lithium is the lightest metal” said Jose C. Gonzalez, COO of Global X Funds. “When processed it has the capacity to store electric energy more efficiently than any other material. Efficient electric energy storage is necessary for all green energy products and the computer systems that control them – like electric cars, solar, wind and water power.”
Source: Global X
Global X Funds Lists Global X Lithium ETF on NYSE Arca
July 23, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the Global X Lithium ETF (Ticker: LIT). The ETF is sponsored by Global X Funds.
The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index, which is designed to reflect the performance of the lithium industry. It is comprised of common stocks, American Depositary Receipts and Global Depository Receipts of selected companies globally that are primarily engaged in some aspect of the lithium industry, such as lithium mining, exploration, investing and lithium-ion battery production. The stocks are screened for liquidity and weighted according to free-float market capitalization. A specific capping methodology is applied at the semi-annual index review to facilitate compliance with the rules governing the listing of financial products on exchanges in the United States. The index is maintained by Structured Solutions AG.
Source: NYSE Arca
CFTC.gov Commitments of Traders Reports Update
July 23, 2010--The CFTC.gov Commitments of Traders Reports Update for the week of July 20, 2010 are now available.
view reports
Source: CFTC.gov
Van Eck Associates Corporation Lists Market Vectors Emerging Markets Local Currency Bond ETF on NYSE Arca
July 23, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the Market Vectors Emerging Markets Local Currency Bond ETF (Ticker: EMLC). The ETF is sponsored by Van Eck Associates Corporation.
Market Vectors Emerging Markets Local Currency Bond ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan Government Bond Index - Emerging Markets Global Core, which is designed to track the performance of bonds issued by emerging market governments and denominated in the local currency of the issuer.
Source: NYSE Arca
ETF Securities USA files with the SEC
July 23, 2010--ETF Securities USA has filed a pre-effective amendment No, 1, FORM S-1 with the SEC for
ETFS Collateralized Commodities Trust.
The initial 18 Funds are
Long Collateralized Exchange Traded Commodity Funds:
ETFS ex-U.S. Oil
ETFS Natural Gas
ETFS Copper
ETFS Wheat
ETFS Composite Agriculture
ETFS Composite Industrial Metals
ETFS Composite Energy
ETFS All Commodities
Short Collateralized Exchange Traded Commodity Funds:
ETFS Short ex-U.S. Oil
ETFS Short Natural Gas
ETFS Short Copper
ETFS Short Wheat
ETFS Short Gold
Leveraged Collateralized Exchange Traded Commodity Funds:
ETFS Leveraged ex-U.S. Oil
ETFS Leveraged Natural Gas
ETFS Leveraged Copper
ETFS Leveraged Wheat
ETFS Leveraged Gold
read more
Source: SEC.gov
United States Commodity Funds files with the SEC
July 23, 2010--United States Commodity Funds has filed a Form S-1 with the SEC for
United States Commodity Index Fund.
view filing
Source: SEC.gov
Georgetown Investment Management LLC files with the SEC
July 23, 2010--Georgetown Investment Management LLC has filed an application for exemptive relief with the SEC.
read more
Source: SEC.gov
Georgetown Investment Management LLC files for exemptive relief with the SEC
July 23, 2010--Georgetown Investment Management LLC has filed for exemptive relief with the SEC to issue actively-managed ETFs. The Initial Funds are as follows:
Georgetown Small-Mid Cap Equity ETF
The Georgetown Prime Limited Maturity Bond ETF
view filing
Source: SEC.gov
