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Key points of US debt deal
August 2, 2011--PRESIDENT Barack Obama announced on Sunday that Republican and Democratic leaders have greed on a last-ditch deal to raise the US borrowing limit and avoid a catastrophic default, and urged lawmakers to "do the right thing" and approve the agreement
Here is a summary of the deal, based on documents provided by both parties, as well as interviews with lawmakers and aides:
The deal will allow Obama to raise the debt ceiling by at least $2.1 trillion in three steps.
Congress will have the chance to register its disapproval on two of these, but will not be able to block them unless it musters a two-thirds vote in both the House and the Senate - an unlikely prospect.
It envisions spending cuts of roughly $2.4 trillion over 10 years, which Congress will approve in two steps - an initial $917bn when the deal passes Congress, and another $1.5 trillion by the end of the year.
BNY Mellon Asset Servicing Launches Workbench(SM) Mobile for the iPad®
First global custodian to provide reports and information to clients via mobile app
Company's second iPad service to be launched through BNY Mellon Connect(SM) Mobile portal
August 2, 2011--On July 25, 2011 BNY Mellon, the global leader in investment management and investment services, announced the launch of Workbench(SM) Mobile, a new app enabling the firm's institutional clients to authorize instructions and securely access key reports and account information from their iPad®.
Workbench Mobile is available now for download to registered Workbench users at the App Store through BNY Mellon Connect(SM) Mobile. The new app will be accessible by more than 30,000 client users.
With Workbench Mobile, clients of BNY Mellon Asset Servicing will be able to easily view and monitor a wide range of account investment and performance data, industry news updates, and more. Available features include:
Recent Reports – view Workbench reports run over the past 10 days in PDF format
BNY Mellon Regulatory News – updates on industry regulations and thought leadership
Valuation Dashboard(1) – drill-down into account valuation changes and chart by manager, asset type, currency, country or security
Lookup Exposure to Issuers(1) – view portfolio exposure across accounts and asset classes
Authorize Cash Instructions(2) – for custody clients who manage cash through Workbench
iShares files with the SEC
August 2, 2011--iShares has filed a post-effective amendment, registration statement with the SEC for the
iShares S&P Target Date Series
iShares S&P Target Date Retirement Income Index Fund • TGR •
iShares S&P Target Date 2010 Index Fund • TZD •
iShares S&P Target Date 2015 Index Fund • TZE •
iShares S&P Target Date 2020 Index Fund • TZG •
iShares S&P Target Date 2025 Index Fund • TZI •
iShares S&P Target Date 2030 Index Fund • TZL •
iShares S&P Target Date 2035 Index Fund • TZO •
iShares S&P Target Date 2040 Index Fund • TZV •
iShares S&P Target Date 2045 Index Fund • TZW •
iShares S&P Target Date 2050 Index Fund • TZY •
FlexShares files with the SEC
August 2, 2011--FlexShares has filed a Second Amended and Restated Application for exemptive relief with the SEC
view filing
Brazil enjoys success amid global ‘insanity’
August 2, 2011--Once no strangers to economic crisis themselves, Brazilians in recent months have suddenly landed in the enviable position of being spectators to the follies of the developed world.
Current affairs chat shows on Brazilian television have been abuzz for weeks with discussion of the problems sweeping Europe and the US, from the Washington debt-ceiling standoff to the Greek financial crisis and the News of the World scandal in the UK.
Morgan Stanley -ETF Weekly Update
August 1, 2011--US ETF Weekly Update
Weekly Flows: $1.9 Billion Net Outflows
ETF Assets at $1.1 Trillion, Up 10% YTD
No ETF Launches
Guggenheim Changes Shipping ETF Index
US-Listed ETFs: Estimated Flows by Market Segment
In the midst of choppy markets, ETFs posted net outflows of $1.9 bln last week
Net outflows were primarily driven by US Equity ETFs last week (posted aggregate net outflows of $3.6 bln)
Conversely, commodity ETFs, particularly those holding gold, generated net inflows last week
ETF assets stand at $1.1 trillion, up 10% YTD; we estimate from both net new money and market appreciation
13-week flows remained mostly positive among asset classes; combined $20.7 bln net inflows
Fixed Income up $10.4 bln versus US Small- & Micro-Cap down $4.6 bln over the past 13 weeks
We estimate ETFs have generated net inflows 18 out of 30 weeks YTD; YTD net inflows of $68.9 bln
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR Gold Trust (GLD) generated net inflows of $1.1 bln last week, the most of any ETF
Amid market volatility and fears of a US default, GLD has taken in $3.0 bln of net new money the past 4 weeks
iShares Russell 2000 Index Fund (IWM) has exhibited the largest net outflows of any ETF over the past 1-, 4- and 13-week periods; over each of these time periods, IWM has posted negative market total returns
US-Listed ETFs: Change in Short Interest
Data Updated: Based on data as of 7/15/11
QQQ exhibited the largest increase in USD short interest since last updated
Roughly $1.2 billion in additional short interest
Highest level of shares short for QQQ since 9/15/10
EEM exhibited the largest decline in USD short interest since last updated
Roughly $566 million in reduced short interest
Lowest level of shares short for EEM since 11/30/10
Unforeseen Events Wait Lurking: Estimating Policy Spillovers From U.S. To Foreign Asset Prices-IMF Working paper
August 1, 2011--Summary: Event studies are used to analyze the impact of U.S. financial, fiscal, and monetary policies from US to foreign asset prices across a range of G20 countries and Switzerland.
The initial announcement that the Administration supported tighter regulation of banks led to a generalized fall in advanced economy bank shares compared to local equity markets. For later Dodd-Frank announcements, however, falls in U.S. bank equity prices were accompanied by increases in U.K. and Swiss valuations, implying a potential for regulatory arbitrage. Turning to macro policies, the 2008/9 fiscal and monetary stimulus packages generally supported foreign activity, while the impact of similar stimulus in 2010 is less clear.
July Average Daily Volume At CBOE Futures Exchange Sets Record For Third Consecutive Month Volume In VIX Futures Tops One Million Contracts
August 1, 2011-- The CBOE Futures Exchange, LLC (CFE) today announced that record monthly average daily volume (ADV) was achieved during July, the second busiest trading month ever at the exchange.
For futures on the CBOE Volatility Index (VIX), July trading activity remained brisk as monthly ADV reached a new all-time high and total volume topped one million contracts for the third time this year.
ELX Announces July Results With Year-Over-Year Gain In ADV In U.S. Treasuries And Eurodollar Futures
August 1, 2011--ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today solid July results with strong year-over-year average daily volume (ADV) performances in U.S. Treasury and Eurodollar futures contracts. ELX traded 1.2M contracts in July and celebrated its second-year anniversary as an electronic futures exchange on July 10.
Year-over-year ADV for the month of July increased 69% for ELX’s combined futures products in July. Eurodollar futures gained momentum with market share and open interest rising in the contract in July from the prior month. Year-over-year growth in market share for the month of July in Eurodollar futures was up 397%. The 30-year bond also saw strong year-over-year growth in market share for the month of July, up 807%.
CME Group and the Mexican Derivatives Exchange Announce Launch of North-to-South Order Routing Agreement
July 1, 2011-- CME Group, the world's leading and most diverse derivatives marketplace, and the Mexican Derivatives Exchange (MexDer), the derivatives subsidiary of the BMV Group and second largest exchange in Latin America, today announced the successful launch of their north-to-south order routing agreement, giving customers in the U.S. access to MexDer's benchmark derivatives contracts, including Mexican Stock Exchange Index Futures, Bond Futures and MXN Peso / US Dollar Futures Contracts.
The first phase of CME Group’s strategic partnership with MexDer went live April 4, 2011 and gave Mexican investors access to CME Group’s benchmark derivatives contracts including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities.
ISE Reports Business Activity for July 2011
August 1, 2011--Dividend trades made up 4.2% of industry volume in July 2011.
ISE is the third largest equity options exchange in July with market share of 18.4%, excluding dividend trades.
The International Securities Exchange (ISE) today reported average daily volume of 2.9 million contracts
in July 2011. This represents an increase of 13.6% compared to July 2010. Total options volume for the
month was 57.3 million contracts. ISE was the third-largest U.S. equity options exchange in July with
market share of 18.4%*.
Business highlights for the month of July include:
On July 6, 2011, ISE announced that First Trust Advisors L.P. launched the First Trust ISE Cloud
Computing Index Fund (Ticker: SKYY), based on the ISE Cloud ComputingTM Index (Ticker: CPQ). This new benchmark includes companies that are direct service providers for the “cloud,”
firms that provide goods and services in support of the cloud computing space, and technology
conglomerates whose business model uses or supports cloud computing technology.
On July 15, 2011, ISE enhanced its Price Improvement Mechanism (PIM) to accept multi-legged option orders. This feature represents one of the first value-added attributes of the new OptimiseTM technology that will directly benefit options customers.
On July 25, 2011, ISE successfully completed the rollout of its new trading system based on Deutsche Börse Group’s Optimise trading architecture, concluding ISE’s three-month migration to the new system.
Treasury ETFs Fly Despite Likely U.S. Debt Downgrade
July 29, 2011--ETFs holding U.S. government debt surged Friday as GDP figures were revised downward and Washington remained deadlocked over raising the debt ceiling.
As the 10-year Treasury yield tumbled to a 2011 low, the Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) rose 2.8% to 73.82, surpassing the performance of all but two ETFs in the nonleveraged ETF universe. It yields 4.5%. IShares Barclays 20+ Year Treasury Bond(TLT) — the most widely traded fixed-income ETF — jumped 1.8% to 97.83. It yields 4.34%.
CBOE to Begin Publishing Values for CBOE VIX Tail Hedge Index
New CBOE Volatility Strategy Index to Help Investors Manage Extreme Downward Movements in a Portfolio
July 29, 2011-The Chicago Board Options Exchange (CBOE) today began publishing values for the CBOE VIX Tail Hedge Index(SM) (ticker symbol: VXTH(SM)), the latest addition to a suite of CBOE strategy indexes designed to manage equity risk.
VXTH, which tracks the performance of a hypothetical S&P 500 investment portfolio protected against tail risk by using VIX calls, provides investors with a benchmark for VIX-based "tail risk" hedge strategies. Tail risk is the risk of a sudden and steep drop in the S&P index.
"CBOE continues to leverage its research and development expertise to further develop the volatility frontier," CBOE Chairman and CEO William J. Brodsky said. "The CBOE VIX Tail Hedge Index was created by our research team in order to help investors control portfolio risk when unusual, high-impact events are on the horizon. The index also can be used by CBOE and/or licensed to others to create tradable products aimed at hedging tail risk."
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
July 29, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, July 29, 2011:
Culane Energy Corp. (TSXVN:CLN) will be removed from the index. The shares of the company have been acquired by Killam Acquisition Company Ltd. for $C2.32 cash per share.
Goldminco Corporation (TSXVN:GCP) will be removed from the index. The shares of the company have been acquired by Straits Resources Limited for $C0.10 cash per share.
The shares of EIS Capital Corp. (TSXVN:EIE) will trade under the new name Entrec Transportation Services Ltd. The new ticker symbol will be "ENT" and the new CUSIP number will be 29382D 10 8. 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.
SEC Staff Issues Summary Report of Sweep Examination of Structured Products Sold to Retail Investors
July 27, 2011 — The Securities and Exchange Commission staff today issued a report identifying common weaknesses seen in sales of structured securities products and describing measures by broker-dealers to better protect retail investors from fraud and abusive sales practices.
The report summarizes the results of a sweep examination of the retail structured securities products business of 11 broker-dealers, covering a cross-section of the industry. Structured securities products generally do not represent ownership of a particular asset (such as stock in a manufacturing company); instead, the products promise returns to investors based on the performance of one or more underlying assets.
Among other things, the staff observed that broker-dealers might have:
recommended unsuitable structured securities products to retail investors;
traded at prices disadvantageous to retail investors;
omitted material facts about structured securities products offered to retail investors;
engaged in questionable sales practices with customers.
