Americas ETP News Older Than 1 year
If your looking for specific news, using the search function will narrow down the results
Fact Sheet: Financial Crisis Responsibility Fee
January 14, 2010--Today, the President announced his intention to propose a Financial Crisis Responsibility Fee that would require the largest and most highly levered Wall Street firms to pay back taxpayers for the extraordinary assistance provided so that the TARP program does not add to the deficit. The fee the President is proposing would:
Require the Financial Sector to Pay Back For the Extraordinary Benefits Received:
Many of the largest financial firms contributed to the financial crisis through the risks they took, and all of the largest firms benefitted enormously from the extraordinary actions taken to stabilize the financial system. It is our responsibility to ensure that the taxpayer dollars that supported these actions are reimbursed by the financial sector so that the deficit is not increased.
Responsibility Fee Would Remain in Place for 10 Years or Longer if Necessary to Fully Pay Back TARP:
The fee – which would go into effect on June 30, 2010 – would last at least 10 years. If the costs have not been recouped after 10 years, the fee would remain in place until they are paid back in full. In addition, the Treasury Department would be asked to report after five years on the effectiveness of the fee as well as its progress in repaying projected TARP losses.
Raise Up to $117 Billion to Repay Projected Cost of TARP:
As a result of prudent management and the stabilization of the financial system, the expected cost of the TARP program has dropped dramatically. While the Administration projected a cost of $341 billion as recently as August, it now estimates, under very conservative assumptions, that the cost will be $117 billion--reflecting the $224 billion reduction in the expected cost to the deficit. The proposed fee is expected to raise $117 billion over about 12 years, and $90 billion over the next 10 years.
President Obama is Fulfilling His Commitment to Provide a Plan for Taxpayer Repayment Three Years Earlier Than Required:
The EESA statute that created the TARP requires that by 2013 the President put forward a plan "that recoups from the financial industry an amount equal to the shortfall in order to ensure that the Troubled Asset Relief Program does not add to the deficit or national debt." The President has no intention of waiting that long. Instead, the President is fulfilling three years early his commitment to put forward a proposal that would – at a minimum – ensure that taxpayers are fully repaid for the support they provided.
Apply to the Largest and Most Highly Levered Firms:
The fee the President is proposing would be levied on the debts of financial firms with more than $50 billion in consolidated assets, providing a deterrent against excessive leverage for the largest financial firms. By levying a fee on the liabilities of the largest firms – excluding FDIC-assessed deposits and insurance policy reserves, as appropriate – the Financial Crisis Responsibility Fee will place its heaviest burden on the largest firms that have taken on the most debt. Over sixty percent of revenues will most likely be paid by the 10 largest financial institutions.
How the Fee Would Work
While more complete details of the proposed Financial Crisis Responsibility Fee will be released in conjunction with the President's budget, the basic outline of the fee is as follows:
Levied on Only the Largest Financial Firms with the Most Leverage
Applied Only to Firms with More Than $50 Billion in Consolidated Assets: The fee would only be applied to firms with more than $50 billion in consolidated assets. No small or community bank would be covered by the fee.
Fee Would Cover Banks and Thrifts, Insurance and Other Companies That Own Insured Depository Institutions, and Broker-Dealers:
Covered institutions would include firms that were insured depository institutions, bank holding companies, thrift holding companies, insurance or other companies that owned insured depository institutions, or securities broker-dealers as of January 14, 2010, or that become one of these types of firms after January 14, 2010.. These institutions were recipients and/or indirect beneficiaries of aid provided through the TARP, the Temporary Liquidity Guarantee Program, and other programs that provided emergency assistance to limit the impact of the financial crisis.
view example for Bank X
Source: U.S. Department of the Treasury
Two Schwab Equity ETFs List on NYSE Arca
January 14, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the Schwab International Small-Cap Equity ETF (Ticker: SCHC) and the Schwab Emerging Markets Equity ETF (Ticker: SCHE). The funds are advised by Charles Schwab Investment Management.
Schwab International Small-Cap Equity ETF
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index, which is comprised of small capitalization companies in developed countries outside the United States , as defined by the index provider. The index defines the small capitalization universe as approximately the bottom 10% of the eligible universe with a minimum free float capitalization of $150 million. As of June 30, 2009, the index was composed of 1,820 stocks in 23 developed market countries.
Schwab Emerging Markets Equity ETF
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE All-Emerging Index, which is comprised of large and mid capitalization companies in emerging market countries, as defined by the index provider. The index defines the large and mid capitalization universe as approximately the top 90% of the eligible universe. As of June 30, 2009, the index was composed of 824 stocks in 23 emerging market countries.
Source: NYSE Arca
Global X Funds Lists Global X China Materials ETF on NYSE Arca
January 14, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the Global X China Materials ETF (Ticker: CHIM). 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 S-BOX China Materials Index. The Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure performance of the investable universe of companies in the Materials sector of the Chinese economy, as defined by Structured Solutions AG, which generally includes companies whose businesses involve: chemicals; metals and mining; and forestry and paper products.
Source: NYSE Euronext
PowerShares files with the SEC
January 14, 2010--PowerShares has filed a registration statement with the SEC.
read more
Source: SEC.gov
ProShares files with SEC
January 14, 2010-ProShares has filed a registration statement, post-effective amendment with the SEC.
read more
Source: SEC.gov
Investor governance chiefs write to US Senators calling for SEC self-funding
January 13, 2010--A group of senior institutional investment figures, including Mark Anson, the former CalPERS and Hermes chief, now president of Nuveen Investments, and Hye-Won Choi, head of corporate governance at TIAA-CREF, is writing to US senators calling for the Securities and Exchange Commission (SEC) to become self funding to protect investors. They argue that the SEC’s funding has not kept pace with the explosive growth of US securities markets over the past two decades.
The letter will shortly be sent to the Senate’s Committee on Banking, Housing, and Urban Affairs. It is being co-ordinated by the SEC’s Investor as Owner Subcommittee, which was formed in June 2009 in the wake of the financial crisis. Its members are calling for other institutional investors to sign the letter. The letter says: “In order to safeguard investors and US capital markets, the SEC must have stable, independent self-funding that meets its needs.
read more
Source: Responsible Investor
SEC Issues Concept Release Seeking Comment on Structure of Equity Markets
January 13, 2010--The Securities and Exchange Commission today moved forward with a broad review of the equity market structure, voting unanimously to issue a concept release seeking public comment on such issues as high frequency trading, co-locating trading terminals, and markets that do not publicly display price quotations.
The U.S. equity markets have undergone significant change in recent years from a market structure that relies on people shouting on the exchange floors to one that relies on advanced computer technology. The speed of trading has accelerated from seconds to milliseconds to microseconds. Trading volume has expanded, and new trading centers have entered the markets and captured a significant share of volume. Liquidity is now dispersed among many different venues, and these venues offer a complex array of order types and other trading services.
In conducting this review, the Commission seeks to ensure that the current market structure serves the interests of long-term investors who are willing to accept the risk of equity ownership over time and are essential for capital formation. These investors include individuals who invest directly in equities, as well as retirement plans and other institutional investors that invest on behalf of many individuals.
"At the Commission, we must continually assess how changes in the market are affecting investors," said SEC Chairman Mary L. Schapiro. "We must try to understand how these changes may impact the markets in the future, so we can steer clear of any unnecessary risks to investors."
view concept release
Soure: SEC.gov
SEC Proposes New Rule to Effectively Prohibit Unfiltered Access and Maintain Market Access Controls
January 13, 2010--The Securities and Exchange Commission today voted unanimously to propose a new rule that would effectively prohibit broker-dealers from providing customers with "unfiltered" or "naked" access to an exchange or alternative trading system (ATS).
The SEC's proposed rule would require brokers with market access, including those who sponsor customers' access to an exchange, to put in place risk management controls and supervisory procedures. Among other things, the procedures would help prevent erroneous orders, ensure compliance with regulatory requirements, and enforce pre-set credit or capital thresholds.
"Unfiltered access is similar to giving your car keys to a friend who doesn't have a license and letting him drive unaccompanied," said SEC Chairman Mary L. Schapiro. "Today's proposal would require that if a broker-dealer is going to loan his keys, he must not only remain in the car, but he must also see to it that the person driving observes the rules before the car is ever put into drive."
Broker-dealers use a 'special pass' known as their market participant identifier (MPID) to electronically access an exchange or ATS and place an order for a customer. Broker-dealers are subject to the federal securities laws as well as the rules of the self-regulatory organizations that regulate their operation.
read more
Source: SEC.gov
TABB Group Pinpoints the OTC Derivatives Regulatory Impact of The Wall Street Reform and Consumer Protection Act of 2009 - H.R. 4173
January 12, 2010--New Study Analyzes the Bill’s 200-Plus Pages Covering Derivatives, Outlines Potential Industry Impact and Gives a Timeline Leading to US Senate Passage
Says New Competition Lies Ahead for Dominant Major Dealers from New Group of Smaller, Nimble Tech-Savvy Dealers
The global financial markets were watching closely in December 2009 when the US House of Representatives passed The Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173) that, if made law, would bring with it the most sweeping changes to the derivatives market since its inception.
“The 200-plus pages of derivatives-focused legislation leaves many questions unanswered,” says Kevin McPartland, senior analyst at TABB and author of a new study published today, “OTC Derivatives U.S. Regulatory Update,” adding, “The road ahead will continue to be long and bumpy as the U.S. Senate takes up the debate when back in session on January 20th.”
read more
Source: TABB Group
Former Janus CEO Joins Grail Advisors Advisory Board
January 13, 2010--Grail Advisors, an innovator in the development and distribution of active-managed exchange traded funds (ETFs), today announced that Gary Black, former CEO of Janus Capital Group, is joining the firm's Advisory Board.
Grail Advisors launched the industry's first true, actively-managed equity ETFs earlier this year, including a suite of single-manager ETFs using traditional active management -- RP Growth ETF (NYSE: RPQ), RP Focused Large Cap Growth ETF (NYSE: RWG), RP Technology ETF (NYSE: RPX), and RP Financials ETF (NYSE: RFF) -- and the Grail American Beacon Large Cap Value ETF (NYSE: GVT). The firm will unveil a series of actively-managed fixed-income ETFs in early 2010.
"Having an experienced executive like Gary Black join our team is a solid validation of the Grail Advisors business strategy," said William M. Thomas, CEO of Grail Advisors LLC. "We are changing the face of managed investments and Gary's presence will help us build momentum."
Mr. Black spent five years at Janus, joining the firm in April 2004 as President and Chief Investment Officer, and was named CEO in January 2006. Prior to Janus, Black was Chief Investment Officer of Global Equities and a partner at Goldman Sachs in its asset management division. Previously, he served as Executive Vice President and global head of the institutional business for Alliance Bernstein. Black started his investment career as a senior research analyst in 1992 at Sanford C. Bernstein & Co.
In October, Mr. Black launched a new money management firm, Black Capital Management, an SEC-registered company that will offer traditional long-only as well as absolute-return strategies to both retail and institutional investors.
"It's clear to me that Grail Advisors is out in front of the fund industry with its actively-managed ETF product," said Black. "I'm keenly interested in helping the firm stay on the leading edge of this product evolution."
San Francisco-based Grail Advisors will add new funds throughout 2010. Mr. Thomas says Grail Advisors is currently in discussions with a number of leading financial institutions and asset managers, and expects to launch a number of customized, actively-managed ETFs that will provide full, daily disclosure on all holdings
Source:Grail Advisors