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Volcker Rule Conformance Period Clarified
April 19, 2012--The Federal Reserve Board on Thursday announced its approval of a statement clarifying that an entity covered by section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the so-called Volcker Rule, has the full two-year period provided by the statute to fully conform its activities and investments, unless the Board extends the conformance period.
Section 619 generally requires banking entities to conform their activities and investments to the prohibitions and restrictions included in the statute on proprietary trading activities and on hedge fund and private equity fund activities and investments.
Section 619 required the Board to adopt rules governing the conformance periods for activities and investments restricted by that section, which the Board did on February 9, 2011. Subsequently, the Board received a number of requests for clarification of the manner in which this conformance period would apply and how the prohibitions will be enforced. The Board is issuing this statement to address this question.
The Board’s conformance rule provides entities covered by section 619 of the Dodd-Frank Act a period of two years after the statutory effective date, which would be until July 21, 2014, to fully conform their activities and investments to the requirements of section 619 of the Dodd-Frank Act and any implementing rules adopted in final under that section, unless that period is extended by the Board.
The Montreal Exchange's S&P/TSX 60 Index Mini Futures Contract has been Deemed Certified and may be Offered to U.S. persons through Direct Access
Effective April 19, 2012
April 18, 2012--On March 28, 2012, the Montreal Exchange (MX) requested expedited Commodity Futures Trading Commission (CFTC) review of the MX's S&P/TSX 60 Index Mini futures contract so that it may be offered to U.S. persons.
MX also requested that the contract may be made available through direct access terminals in the United States.
The CFTC’s Division of Market Oversight reviewed the contract and determined that it satisfied the requirements of the Commodity Exchange Act (Act) and the Commission’s Regulations. Accordingly, the S&P/TSX 60 Index Mini futures contract is deemed to be in conformance with the Act and therefore may be offered or sold to persons in the U.S. MX may make the contract available for trading through its direct access terminals in the U.S.
World Bank-Mexico: Well Equipped to Cope with Global Risks
April 19, 2012--In an increasingly globalized and intertwined world, countries face uncertainties and risks and no single economy can be completely immune to shocks. More integration with international markets, while bringing advantages, often also means higher exposure to risks.
The new World Bank report "Latin America copes with volatility, the dark side of globalization" highlights such perils but also countries' capacity to deal with uncertainty.
Take Mexico for example. Although its economy is highly exposed to certain external shocks, it is relatively well prepared to respond to them, compared to other countries in the region, the report finds.
view Word Bank Report-Latin America Copes with Volatility,
The Dark Side of Globalization
Canadian Exchange Trade Fund assets up 18% year over year, may soon top $50B
April 18, 2012--Assets of exchange traded funds in Canada continue to surge in the past year, reaching $49 billion in March, the Canadian ETF Association said Wednesday.
"If assets continue to grow at their current pace, the ETF industry could surpass $50 billion in the very near future," the association said in a release.
It said ETF assets have grown by 18.1 per cent since last March when they hovered at just over $41.5 billion.
Each month, the association compiles sales data for the entire Canadian ETF industry with the help of Investor Economics.
To bring cases over leveraged, inverse ETFs
April 18, 2012--The Financial Industry Regulatory Authority will bring enforcement cases against certain brokerages for selling exchange-traded funds that were not appropriate for their customers, the Wall Street regulator's enforcement chief said Wednesday.
FINRA enforcement chief Bradley Bennett told Reuters that the cases will be related to unsuitable sales of leveraged and inverse exchange-traded funds. The cases will also involve allegations of improper or inadequate training for brokers who sell ETFs, he said.
Standard & Poor's Announces Changes In The S&P/TSX Canadian
April 18, 2012--Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices:
NovaGold Resources Inc. (TSX:NG) has announced the implementation schedule for the previously announced spinoff of its copper assets in Alaska.
Shareholders of NovaGold will receive one share of NovaCopper Inc. (TSX:NCQ) for every 6 common shares of NovaGold held.
The S&P/TSX indices that are affected by this spinout are:
S&P/TSX Composite and Capped Composite Index
S&P/TSX Equity and Capped Equity Index
S&P/TSX Completion and Equity Completion Index
S&P/TSX Capped Materials Index
S&P/TSX Composite Equal Weight Index
S&P/TSX Global Mining and Global Gold Index
After the close of trading on Monday, April 30, 2012, the close price of NovaGold will be adjusted downward by 1/6th of the close price of NovaCopper in the when-issued market on TSX. New divisors will be generated for all indices.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Claymore files with the SEC
April 18, 2012--Claymore has filed a post-effective amendment, registration statement with the SEC for the Guggenheim BulletShares 2016 High Yield Corporate Bond ETF
Guggenheim BulletShares 2017 High Yield Corporate Bond ETF
Guggenheim BulletShares 2018 High Yield Corporate Bond ETF
SEC Adopts Rule Defining Swaps-Related Terms for Regulating Derivatives
April 18, 2012--The Securities and Exchange Commission today unanimously adopted a new rule to define a series of terms related to the over-the-counter swaps market.
The rules, written jointly with the Commodity Futures Trading Commission (CFTC), implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that established a comprehensive framework for regulating derivatives.
"Adopting these entity definitions is a foundational step in the establishment of the new regime to regulate trading in this significant market," said SEC Chairman Mary L. Schapiro. “These rules clarify for market participants whether their current activities will subject them to comprehensive oversight in the coming months.”
The final rule will become effective 60 days after the date of publication in the Federal Register.
Opening Statement on Commission Meeting for Consideration of Rules Implementing the Dodd-Frank Act
Chairman Gary Gensler
April 18, 2012--Good morning. This meeting will come to order. This is a public meeting of the Commodity Futures Trading Commission (CFTC) to consider final rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). I'd like to welcome members of the public, market participants and members of the media, as well as those listening to the meeting on the phone or watching the webcast.
Today is the 26th open meeting on Dodd-Frank rules. We will consider two final rules:
Entity definitions, which is a joint rule with the Securities and Exchange Commission (SEC); and
Commodity Options
Regulators to Ease a Rule on Derivatives Dealers
April 18, 2012--As federal regulators put the finishing touches on an overhaul of the $700 trillion derivatives market, a major provision has been tempered in the face of industry pressure.
On Wednesday, the Securities and Exchange Commission and the Commodity Futures Trading Commission are expected to approve a rule that would exempt broad swaths of energy companies, hedge funds [cnbc explains] and banks from oversight. Firms would not face scrutiny if they annually arrange less than $8 billion worth of swaps, the derivative contracts tied to interest rates and commodities like oil and gas.
NYSE move sparks hope for JP Morgan copper fund
April 18, 2012--JP Morgan's 18-month wait to sell a physically-backed copper ETF could be coming to an end after NYSE Euronext took steps with the US securities regulator to list the fund.
JP Morgan first sought approval to list the fund from the US Securities and Exchange Commission in 2010 and has been waiting since.
However, NYSE Euronext confirmed this week that it has made a filing with the regulator to list the exchnage-traded fund, suggesting the product may now be near the approval stage.
CFTC's Division of Swap Dealer and Intermediary Oversight Provides Financial Reporting Guidance to Futures Commission Merchants
April 18, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) has issued a letter providing guidance to registered futures commission merchants (FCMs).
The letter is intended to assist FCMs in understanding the requirements for preparing and filing financial statements with particular focus on amended financial filings.
view the FCM Guidance for Preparation and Filing of Financial Reports
Knight Capital results top estimates
April 18, 2012--Knight Capital Group Inc's (KCG.N) first-quarter earnings beat analysts' expectations, helped by growth at its institutional sales and trading segment.
The electronic trader earned $33.1 million, or 36 cents per share, in the quarter.
Analysts on average expected the Jersey City, New Jersey-based company to earn 30 cents per share, according to Thomson Reuters I/B/E/S.
Knight Capital's revenue from continuing operations rose 3 percent to $349.1 million. Analysts expected $300.5 million.
ALPS ETF Trust to Liquidate One ETF
April 18, 2012--ALPS ETF Trust announced today the scheduled liquidation of the Jefferies | TR/J CRB Wildcatters Exploration & Production Equity ETF (WCAT) (the "Fund"). The Fund will close to new investors on April 27, 2012 and will liquidate on May 2, 2012.
ALPS ETF Trust’s Board of Trustees decision was made after consultation with ALPS Advisors, Inc. the investment advisor to the Fund. The Board considered current market conditions as well as prospects for growth in the Fund’s assets in the foreseeable future. The board determined that it was advisable and in the best interests of the Fund and its shareholders to liquidate the Fund, which is listed for trading on NYSE Arca, Inc. (the “NYSE Arca”). Friday, April 27, 2012, is scheduled to be the last day of trading for the shares of the Fund on NYSE Arca. Beginning immediately through May 1, 2012, the Fund will be in the process of closing down and liquidating its portfolio. The process will result in the Fund not tracking its underlying index and its cash holdings increasing, which may be inconsistent with the Fund’s investment objectives and strategies.
Statement on President Obama's Oil Market Proposal, Washington, DC
April 17, 2012--"I commend the President and certainly welcome additions to our regulatory tool box."
His plan will make those contemplating push'n ‘round our energy markets think again. Anybody who fills up a tank gas knows that some relief from unfair prices is sorely needed. Consumers are saying: ‘I'm tired of Wall Street making a meal outta me at the pump.’
I appreciate the President’s effort to boost our agency’s market surveillance and enforcement efforts through staffing and technology and to increase the penalties on those caught engaging in market manipulation.
It is critically important that we kick-start the bureaucracy and get speculative position limits in place, now. We have been turning procrastination into an art form by not doing what Congress and the President clearly told us to do. They mandated that we curb excessive speculation by implementing limits on the amount of a market any one trader can control. That is one problem: the bureaucracy has been slow, but another major problemo is that Wall Street has taken the government to court to stop the new rules from being put in place.
We continue to see excessive speculation in these markets and what the President has called for can help reduce some of the pump price pain on consumers and businesses alike.”
