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U.S. CFTC to vote on Dodd-Frank compliance proposals
September 8, 2011--CFTC issues compliance, implementation timelines
Schedules begin only after other rules are finalized
Sommers: A good first step, but a missed chance for CFTC
The U.S. futures regulator will vote on
Thursday on a pair of proposals that would outline when the market would
have to comply with new steps designed to bring more oversight to the swaps
market--measures that are unlikely to ease concerns of the some officials
at the agency.
S&P downgrades Fannie Mae and Freddie Mac
September 8, 2011-- In connection with its downgrading of the U.S. government, ratings service Standard & Poor's early Monday likewise downgraded the senior issue ratings on Fannie Mae to 'AA+' from 'AAA'. S&P added it was maintaining its 'A' subordinated debt rating and 'C' rating on the preferred stock for the government-backed entities, and affirmed their short-term issue ratings at 'A-1+'.
The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government. Fannie Mae and Freddie Mac were placed into conservatorship in September 2008 and their ability to fund operations relies heavily on the U.S. government," S&P said, in a statement
DB Global Equity Research: US ETF Market Weekly Review :ETP AUM gains $13bn, but risk appetite remains weak
September 8, 2011--Looking for safety beyond gold
Markets continue to be overwhelmed by news coming from both sides of the Atlantic. Following the previous week’s brief return to risk, the European financial crisis and the sluggish US Economy continued to weigh on risky assets during last week prompting the markets to resume their underlying risk off trend. Equity markets in the US (S&P 500) ended the week down by 0.24%.
The total US ETP flows from all products were $434m of inflows last week vs $8.2bn of inflows the previous week, setting the YTD weekly flow avg. at +$1.9bn.
Long only ETP flows resumed the risk off mode during last week. Equity ETPs experienced $2.7bn of outflows following the previous week’s massive inflows (near $11.0bn); while fixed income funds gathered $2.1bn of inflows and commodity products remained practically flat. (Figure 1)
Digging deeper into our flows data we found that there were a handful of very interesting trends suggesting that investors’ risk appetite remain low or even lower. Short equity ETP flows (a universe we don’t usually include in the commentary section) recorded inflows of $1.2bn, while long eq. dividend and long eq. non dividend ETPs recorded flows of +$515m and -$3.3bn, respectively. These figures suggest that investors remain overall bearish towards equities, with some degree of interest in high dividend-paying stocks as a result of the current low interest rate environment. In addition, the $1.1bn inflow received by short term fixed income ETFs (mostly by BIL, a fund which invest in 1-3 month T-Bills) and the nearly flat flows attracted by Gold ETPs suggest a whole new dimension of risk off trade where investors don’t find the safety they desire in the common safe haven and end up parking their assets in cash. (Figure 2)
The last sign of risk aversion which we would like to highlight this week comes in the form of US sectors ETP flow trends aggregated by business cycle sensitivity. Last week domestic and globalcyclicals experienced significant outflows of $1.5bn and $858m, respectively; while defensives received inflows of $158m during the same period. Thus, these flow trends suggest that investors’ confidence with regards to the recovery of either the domestic or global economy remains low, or pessimistic. (Figure 3)
New Launch Calendar:
No new listings
In the midst of volatile markets, the US ETP new launch calendar remains quiet.
Turnover Review:
floor activity keeps decreasing on lower volatility
Total weekly turnover decreased by 16.1% to $411bn vs. $490bn in the previous week. The largest decrease was on Equity ETP turnover, which fell by $46bn or 11.3% to $361bn. Fixed Income ETP turnover increased by $833m to $18.3bn last week. Finally, Commodity ETPs products turnover decreased by 52.9%, totaling $29.3bn at the end of last Friday.
Assets Under Management (AUM) Review:
ex-US markets drive ETP AUM
Driven by good performance on almost every market outside US equities, US ETP AUM gained $13bn or 1.3% compared to the previous week and closed at $1.02 trillion or 2.8% up YTD.
Dow Jones Indexes to Develop, Co-Brand U.S. Business Cycle Index With Pring Research
New Index Will Track Acclaimed Market Pioneer Martin J. Pring's Proprietary Investment Strategy
September 8, 2011---- Dow Jones Indexes, a leading global index provider, and Pring Research today announced plans to develop and co-brand a U.S. business cycle gauge designed to closely track Pring Research's proprietary investment strategy.
Pring Research's Principal and President, Martin J. Pring, is an award-winning leader in the global investment community who has developed a rules-based methodology that identifies the current stage of the economic business cycle. His "Pring Barometers' Signals" then determine the asset classes and equity sectors that historically outperform during those particular stages.
"In joining with Martin Pring, we plan to produce an innovative index meant to accurately and effectively measure this unique methodology," said Michael A. Petronella, President, Dow Jones Indexes. "Further, the new index's transparent and investable multi-asset portfolio will be well-suited to serve as the basis for ETFs, mutual funds, separately managed accounts and a wide variety of investment products."
J.P. Morgan to Sponsor 21 ETFs Advised by First Trust on the Mexican Stock Exchange
September 8, 2011--J.P. Morgan announced today that it has been appointed to sponsor the listing of twenty-one exchange-traded index funds (“ETFs”) advised by First Trust Advisors L.P. (“First Trust”), an SEC-registered investment advisor, on the international segment of the Mexican Stock Exchange, Bolsa Mexicana de Valores (BMV). The cross-listed ETFs will be listed on the BMV in pesos and trades can be initiated through a local broker.
J.P. Morgan’s Depositary Receipts (DR) business will service the ETFs and handle all corporate actions. J.P. Morgan will disseminate relevant shareholder and corporate actions information in the Mexican market via BMV. Additionally, a dedicated J.P. Morgan representative will be available in Mexico City to provide local expertise and guidance to investors.
“Given the firm’s relevant experience and expertise in the ETF space, J.P. Morgan was the clear choice for servicing these ETFs. First Trust believes that our relationship with J.P. Morgan will bring better service and pricing to this expanding marketplace,” said Ron McAlister, Managing Director at First Trust.
Yorkville ETF Advisors, LLC Announces the Hiring of Jay Baker to Spearhead Business Development
September 8, 2011-Yorkville ETF Advisors, LLC, a member of the Yorkville ETF Holdings family, announces the appointment of ETF industry veteran, Jay Baker, to its executive team. Baker, who previously served as Vice President of ETF Business Development with Goldman Sachs’ Electronic Trading Group, brings over 15 years of ETF industry experience to his role heading up Yorkville’s business growth initiatives.
Baker will direct business development efforts and lead market making responsibilities for Yorkville’s ETF business. He will also provide guidance to Exchange Traded Concepts, a new platform for bringing ETFs to market in which Yorkville ETF Holdings is the lead investor.
“No one understands the inner workings of the ETF business better than Jay and we believe his presence on our team allows us to maximize the potential of our ETF initiatives,” states Richard Hogan, partner at Yorkville ETF Advisors. “Jay will put a heavy emphasis on working with Exchange Traded Concepts to revolutionize the way ETFs are brought to market.”
Emerging Global Advisors files with the SEC
September 8, 2011--Emerging Global Advisors has filed an application for exemptive relief with the SEC.
view filing
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
September 7, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Thursday, September 8, 2011:
Allana Potash Corp. (TSXVN:AAA) will be removed from the index as well as the S&P/TSX Venture Select Index.
The company will graduate to trade on TSX under the same ticker symbol. Allana Potash will remain a constituent of the S&P/TSX Venture 30 Index until the next index rebalancing at the end of January, 2012.
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.
TD Ameritrade plays down idea of E*Trade bid
September 7, 2011--TD Ameritrade Holding Corp can't see obvious merit in buying smaller rival E*Trade Financial, given the current "optimistic" price and doubts about E*Trade assets, the head of the U.S. online discount brokerage said on Wednesday.
Both TD Ameritrade and Charles Schwab Corp have been tipped as possible buyers for E*Trade, which agreed in July to review its options, perhaps including putting itself up for sale, at the insistence of its biggest investor, hedge fund Citadel LLC.
Chile mantém posto de economia mais competitiva da América Latina e do Caribe e México, Peru, Brasil e Panamá avançam significantemente
September 7, 2011--O Chile (31º) mantém o posto de economia mais competitiva da América Latina e do Caribe, seguido por Puerto Rico (35º) Barbados (42º) e Panamá (49º), que estão entre os primeiros 50 colocados do Relatório de Competitividade Global 201-2012, divulgado hoje pelo World Economic Forum. A competitividade das duas maiores economias da região também cresce: o Brasil (53º), devido em grande parte ao seu ambiente empresarial robusto, e o México (58º), devido a políticas macroeconômicas corretas.
Os países da região devem focar mais atenção no desafio de inovação com o crescimento contínuo das suas economias e patamares mais altos de desenvolvimento. A competitividade da America Central sofre com a falta de segurança, aumentando o custo para se fazer negócios.
A Suíça lidera o ranking e Cingapura passa a Suécia e assume o 2º lugar. As primeiras 10 colocações são dominadas por países do Norte e Oeste da Europa: Suécia (3ª), Finlândia (4ª), Alemanha (6ª), Holanda (7ª), Dinamarca (8ª) e o Reino Unido (10ª). O Japão mantém a segunda colocação na Ásia em 9º lugar, apesar de cair três posições.
QuantShares, New Market-Neutral ETFs, Isolate Factors like Beta and Momentum
Among First ETFs to Hold Short Positions, They Offer Hedging and Diversification for
Institutions and Individuals
September 7, 2011—QuantShares, a family of seven market-neutral exchangetraded funds based on specific factors—momentum, quality, size, value and beta—is being introduced by FFCM LLC.
The Momentum, Anti-Momentum, Quality and Size ETFs were launched today. FFCM expects the Value, Beta and Anti-Beta Funds will be available within a week.
QuantShares are among the first ETFs to hold short equity positions, according to FFCM. They are market-neutral and dollar-neutral, holding long and short positions in equal dollar amounts.
The ETFs offer investors strategies that are uncorrelated to the performance of the overall equity market. They are the first products from FFCM, an investment advisor formed in 2010 that specializes in quantitative market-neutral strategies.
BMO ETFs Pass $3 Billion in Assets Under Management in Less Than Two and a Half Years
First introduced in June 2009, BMO ETFs currently stand at $3 billion in AUM - BMO's ETF business has doubled in 2011 alone - 40 ETFs now in line-up, including several industry firsts in fixed income, target maturity, ETF portfolios and covered call
September 7, 2011-- BMO Financial Group today announced that its Exchange Traded Funds (ETF)(i) business has passed $3 billion in assets under management (AUM) less than two and a half years after the business was initially launched. BMO Financial Group's ETF business has doubled in 2011 alone.
"We are very proud of the success BMO ETFs have had in this short period of time," said Kevin Gopaul, Vice President and CIO, BMO Asset Management Inc. (BMO AM). "Since we started in June 2009 as the only bank affiliate in Canada to offer its own line-up of ETFs, we've achieved a number of market firsts and have developed a diverse and extensive product portfolio."
Key BMO ETF Business Milestones
June 2009 - BMO Financial Group launches its ETF business through BMO AM. The initial launch is comprised of four funds and includes the BMO Dow Jones Canada Titans 60 Index ETF and the BMO US Equity Index ETF.
October 2009 - BMO AM adds nine funds to its ETF business. New entrants include the BMO Short Federal Bond Index ETF, the BMO High Yield US Corporate Bond Hedged to CAD ETF and the BMO Emerging Markets Equity Index ETF.
Dow Jones Indexes To License Seven Market-Neutral Indexes For Seven New ETFs
Dow Jones U.S. Thematic Market Neutral Indexes Family To Reflect Performance of Long/Short Strategies
September 7, 2011--Dow Jones Indexes, a leading global index provider, today announced that FFCM LLC’s QuantShares family of seven exchange-traded funds (ETFs) has licensed all seven indexes from the Dow Jones U.S. Thematic Market Neutral Indexes series.
The new family of quantitative-strategy indexes — all launched today — reflect the performance of long/short strategies and are designed to be both market and sector neutral. Below, is a list of the indexes licensed to underlie QuantShares ETFs:
The Dow Jones U.S. Thematic Market Neutral Beta Index reflects the performance of an investment strategy that is long high beta companies and short low beta companies;
The Dow Jones U.S. Thematic Market Neutral Anti-Beta Index reflects the performance of an investment strategy that is short on high beta companies and long on low beta companies;
The Dow Jones U.S. Thematic Market Neutral Momentum Index reflects the performance of an investment strategy that is long on high momentum companies and short on low momentum companies;
MSCI Launches New Overseas China Indices
New indices cover US and Singapore listed Chinese securities
September 7, 2011 – MSCI Inc., a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced today the launch of the MSCI Overseas China Indices.
The new indices cover over 60 Chinese securities listed in the US and Singapore with a market capitalization of USD 68 billion, none of which are currently included in the existing MSCI China Indices.
“The launch of the MSCI Overseas China Indices provides investors with a more complete view of the China equity market by capturing Chinese securities listed outside Greater China,” said Deborah Yang, Managing Director and Head of Asia Pacific ex Japan for MSCI. “The creation of the MSCI Overseas China Indices has been driven by strong interest from institutional investors, particularly QDII managers in China, as they search for the most appropriate index for benchmarking or for the creation of index-linked investment products.”
The MSCI Overseas China Indices are designed to capture the investable universe of Chinese securities outside Greater China, covering Chinese securities listed on the NYSE Euronext - New York, NASDAQ, New York AMEX and the Singapore Exchange.
SEC ponders whether ETFs added to market volatility
September 7, 2011--U.S. securities regulators are looking into whether turbocharged exchange-traded funds amplified August's topsy-turvy swings in the stock market.
Securities and Exchange Commission officials have had discussions with firms that trade ETFs, asking questions about whether they added to the market's volatility, according to people familiar with the talks.
ETFs, which typically track market indexes, trade on exchanges like stocks. Exchange-traded funds have surged in popularity and now generate 35% to 40% of exchange trading volume, according to Morningstar Inc. Such funds sometimes are used by high-frequency traders, who buy and sell stocks and other assets at a rapid clip, making
