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ProShares UltraShort Dow 30 Fund (Symbol: DXD) Class Action Filed By Murray, Frank & Sailer LLP
November 2, 2009--Murray, Frank & Sailer LLP has filed a class action complaint, in the Southern District of New York on behalf of all individuals and institutions who purchased shares in the UltraShort Dow 30 Fund (the “DXD Fund”) offered by ProShares Trust (“ProShares”), pursuant or traceable to ProShares’s false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the “Registration Statement”) issued in connection with shares of the DXD Fund (the “Class”). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”).
The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, “Defendants”). The DXD Fund is one of ProShares’s UltraShort ETFs, which ProShares claims are designed to go up when markets go down. Specifically, the DXD Fund seeks investment results that correspond to twice the inverse of the daily performance of the Dow Jones Industrial Average (“DJIA”). However, although the DJIA fell approximately 34 percent from January 2, 2008 through December 31, 2008, the DXD Fund rose only 7 percent during this period, falling far short of ProShares’s claims.
The complaint alleges that Defendants violated the Securities Act by failing to disclose that if DXD Fund shares are held for a time period longer than one day, the performance of those shares does not track the performance of the DJIA. In addition, the complaint alleges that if DXD Fund shares are held for a time period longer than one day, there is a significant likelihood of catastrophic losses.
Murray, Frank & Sailer LLP is also investigating claims on behalf of investors in all other ProShares leveraged funds (the “Funds”), including:
| Fund | Ticker | |||
| UltraShort QQQ | NYSE: QID | |||
| UltraShort Dow30 | NYSE: DXD |
Source: Business Wire
S&P: Fewer Active Funds Beat their Benchmark in Q3 2009
November 2, 2009--S&P Releases Q3 2009 Index Versus Active Fund Scorecard (SPIVA) for Canada
Fewer active funds posted higher returns than their benchmarks in the third quarter of 2009, according to the latest results for the Standard & Poor's Indices Versus Active Funds Scorecard (SPIVA) for Canada released today. SPIVA is produced by Standard & Poor's, the world's leading index provider.
Between July and September 2009, only 36.0 per cent of Canadian Equity active funds and 31.8 per cent of active funds in the Canadian Small/Mid Cap Equity category beat the S&P/TSX Composite Index.
This quarter has been challenging for active funds with exposure to markets outside of Canada. Almost 70 per cent of the Canadian Focused Equity funds that outperformed the blended S&P/TSX Composite Index in Q2 posted returns below the index in Q3. While 61.0 per cent of U.S. Equity funds were able to outstrip the S&P 500 in Q2, results diminished in Q3 with less than half, 40.3 per cent, posting returns above the index.
"More and more Canadians have shown interest in passive investment and the index funds and ETF products available to them," says Jasmit Bhandal, director at Standard & Poor's Canada. "Every investment decision comes with an element of risk and SPIVA is designed to help investors do their homework."
As the average holding period for most investors is well beyond three months, a look at SPIVA's long term numbers will be most relevant for Canadians. Across all categories, the majority of active funds have been unable to exceed the returns of their respective benchmark. In three-year and five-year periods, only 12.1 per cent and 5.9 per cent, respectively, of actively-managed Canadian Equity funds have outperformed the S&P/TSX Composite Index.
SPIVA reports the performance of actively managed Canadian mutual funds corrected for survivorship bias, and shows equal- and asset-weighted peer averages.
SOURCE: Standard & Poor's Canadian Index Operations
ISE Reports Monthly Volume for October 2009
November 2, 2009--The International Securities Exchange (ISE) today reported
average daily volume of 4.0 million contracts in October 2009.
Average daily trading volume for all options contracts decreased 10.5% to 4.0 million contracts in
October as compared to 4.4 million contracts during the same period in 2008. Total options
volume for the month decreased 14.4% to 87.2 million contracts from 102.0 million contracts in
the same year-ago period.
On a year-to-date basis, average daily trading volume of all options decreased 4.1% to 4.0 million
contracts traded. Total year-to-date options volume through October 2009 decreased 5.0% to
839.3 million contracts from 883.9 million contracts in the same period last year.
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Source: International Securities Exchange (ISE)
ELX Futures Reports Record Volume for October 2009
November 2, 2009--ELX Futures, L.P. (ELX Futures) announced today record trading volumes in the month of October for its four U.S. Treasury futures products. Since its launch on July 10th, ELX Futures has been gaining volume and market share, and October has turned out to be a breakout month for the new fully regulated electronic exchange.
October Highlights:
• Total volume exceeded 1mm contracts
• October ADV exceeded 50K contracts, up 30% from September ADV
• ELX market share in 2 Year Note futures was over 4% for October and over 5% for the second half of month
• ELX market share in 5 Year Note futures was 5% for October and nearly 5 ½% for the second half of the month
• ELX total market share was 2.8% for October and over 3% for the second half of the month
• For the last 4 trading days of October a new volume record was set each day, of these the first three days were over 65K and the final day was over 75K
• All four Treasury products: 2, 5 and 10 Year Notes, and 30 Year Bonds, had record volume trading days in October
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, “October has been a remarkable month for ELX. We reported record trading volumes in all our Treasury products and we have made great strides in capturing market share, and attracting new customers. We continue to push forward and build momentum and I am confident that ELX’s compelling pricing model and modern rule set will attract more market participants to take a look at our business.”
SOURCE: ELX Futures, L.P.
CBOE Oct avg daily volume falls 21 pct from yr ago
CBOE Oct trading volume dips 24 percent from year earlier
* CBOE posts record-setting volume in October 2008
* Year-to-date avg daily volume falls 6 pct from year ago
November 2, 2009-- - The Chicago Board Options Exchange said on Monday that average daily trading volume last month fell 21 percent to 4.6 million contracts from an average 5.8 million contracts per day in October 2008.
Overall October volume dropped 24 percent to 101.8 million contracts versus the record-setting 134.2 million contracts exchanged in October 2008, said CBOE, the largest U.S. options exchange.
When compared to September 2009, October total volume rose 3 percent, while average daily volume was off 2 percent, the exchange said in a statement.
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Source: Reuters
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
Novemeber 2, 2009--Standard & Poor's Canadian Index Operations announces the following index changes:
The shareholders of Petro Andina Resources Inc. (TSX:PAR) have approved the Plan of Arrangement transaction with Pluspetrol Resources Corporation N.V. Petro Andina will be removed from the S&P/TSX SmallCap
and Equity SmallCap indices effective after the close of Thursday, November 5, 2009.
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.
Source: Standard & Poors
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
November 2, 2009--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Monday, November 2, 2009:
The shares of Kenrich-Eskay Mining Corp. (TSXVN:KRE) will trade under the new name Eskay Mining Corp.
The new ticker symbol will be "ESK" and the new CUSIP number 296437 10 6. There is no consolidation of capital.
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.
Source: Standard & Poors
Jefferies files with the SEC
November 2, 2009--Jefferies Asset Management, LLC has files for exemptive relief with the SEC.
read more
Source: SEC.gov
Exchange-Traded Funds-ETF Assets and Net Cash-Morgan Stanley
October 30, 2009-Highlights:
There were 27 new ETFs listed in the US and three providers entered the market in the third quarter of 2009. There was only one liquidation this past quarter bringing the total number of US-listed ETF liquidations to 92 since 1/01/08. In 2009, 74 ETFs have been launched and 48 have been closed resulting in net new issuance of 26 ETFs. As of October 26, 2009, there were 789 ETFs listed in the US. Six providers have exited the business as the challenging market environment has limited traction for many of the newer, more narrowlyfocused ETFs based on less well-known indices.
Inflows into US-listed ETFs were $26.4 billion during the third quarter of 2009. While this was down from
the $37.8 billion in net inflows in the second quarter, it remains in line with the average quarterly net cash
inflows of $24.5 billion from 2004–3Q09.
The largest net cash inflows occurred into ETFs tracking fixed income and international indices as well as Sector & Industry ETFs.
We note that Leveraged/Inverse ETFs had net cash outflows of $1.9 billion in the third quarter, some of which may have occurred in response to recent regulatory commentary.
US ETF industry assets have recently touched an all time high and are currently $718.8 billion. US ETF assets have rebounded by roughly 33% so far this year and by 53% since the end of the first quarter of 2009.
This is a result of a strong rally in global markets and a rebound in ETF net cash inflows after a weak first quarter of the year. Two providers and 20 ETFs still account for roughly 68% and over 51% of industry assets, respectively.
Request report
Source: Morgan Stanley
CME Group Announces the Launch of ASCI OTC Futures
October 30, 2009--CME Group, the world's largest and most diverse derivatives marketplace, today announced the launch of trading and clearing services for cash-settled trade-month swap futures on the Argus Sour Crude Index (ASCI) as published by Argus Media. Under a licensing agreement with Argus Media, CME Group can develop futures, options and over-the-counter (OTC) offerings on a broad range of Argus products. Trading for the ASCI product is scheduled to begin November 23 on the New York trading floor. Clearing services will be available through CME ClearPort, a set of flexible clearing services open to OTC market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes.
The ASCI tracks the price in the physical market of a basket of US Gulf Coast crude oils, including Mars, Poseidon and Southern Green Canyon, which are priced at a differential to the NYMEX Light Sweet Crude Oil (WTI), the world's most liquid, leading crude oil benchmark. The ASCI OTC contract will provide producers, commercials and others an essential tool for pricing spreads on these grades with NYMEX WTI.
In addition, CME Group plans to launch a new physically delivered US Gulf Coast Sour Crude Oil futures contract, which will be listed on CME Globex and CME ClearPort by the end of January 2010. The sour crude futures contract has main delivery grades that closely mirror the ASCI, enabling an efficient tool for hedging opportunities and to meet the evolving needs of the energy industry. The contracts will be listed by and subject to the rules and regulations of NYMEX.
"We are pleased to offer OTC futures contracts on the ASCI, which complement our WTI futures," said CME Group Executive Chairman Terry Duffy. "This week, Saudi Arabia announced that they will begin using the ASCI to price their substantial oil exports. This further strengthens the benchmark status of our WTI contract as ASCI components are priced as differentials to the WTI settlement price."
"The ASCI OTC futures contract, in concert with the WTI contract, will enable our customers to hedge price exposure to the global crude market with greater precision," said CME Group Chief Executive Officer Craig Donohue. "Additionally, Saudi Arabia's adoption of ASCI could spur demand for our new sour crude futures contract, which will provide an additional pivot point for price determination and risk management in the world oil market."
The vendor code for the ASCI contract is 29. The first listed month will be the January 2010 contract month. The contract will be listed for 36 consecutive contract months.
For more information please visit www.cmegroup.com/clearport
Source: CME Group