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BlackRock Launches The iShares COLCAP Exchange Traded Fund In Colombia - Firm Brings The First ETF To Colombian Investors
July 26, 2011--BLACKROCK ,the largest asset manager in the world, officially introduced to the Colombian market its first Exchange Traded Fund, iShares COLCAP, which invests in the 20 most liquid and largest stocks of the Colombian Stock Exchange that comprise the COLCAP index. The ETF was developed by BlackRock under its iShares brand, with the participation of CitiTRUST as the Fund’s Management Company. The Fund is based on the COLCAP index, developed and managed by the BVC
Daniel Gamba, CEO of BlackRock Latin America and Iberia and representatives of CitiTRUST and BVC introduced iShares COLCAP to the Colombian market with a traditional bell ringing at the beginning of the trading day (WHERE) . "iShares COLCAP is the first ETF listed on the BVC which represents a great opportunity to invest through a single transaction in the Colombian stock market which is one of the strongest and fastest growing economies in Latin America," said Gamba. "This demonstrates BlackRock's serious commitment towards the development of the Latin American markets and in particular to the Colombian market. "
The iShares COLCAP, which began trading in Colombia on July 6 on the Stock Exchange of Colombia (BVC, for its acronym in Spanish), seeks investment results that correspond generally to the price and yield performance of the COLCAP index.
With iShares COLCAP, BlackRock continues its business in Latin America, where it already has iShares ETFs authorized in countries such as Brazil, Mexico, Peru and Chile.
U.S. Regulators Seek Public Input for a Joint CFTC-SEC Study on International Swap Regulation
July 25, 2011--The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have approved for publication in the Federal Register a request for comment that is expected to assist in conducting a joint study on international swap regulation.
Section 719(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires that the CFTC and the SEC jointly study and then report to Congress on swap regulation and clearinghouse regulation in the United States, Asia, and Europe. The report to Congress must identify areas of regulation that are similar and other areas of regulation that could be harmonized. In addition, the report must identify major swap contracts, dealers, exchanges, clearinghouses, and regulators in each geographic area, and must describe the methods for clearing swaps and systems used for setting margin in each area.
Comments must be received on or before 60 days after publication in the Federal Register.
Morgan Stanley -ETF Weekly Update
July 25, 2011-Weekly Flows: $4.2 Billion Net Inflows
ETF Assets at $1.1 Trillion, Up 12% YTD
No ETF Launches
FaithShares to Close Christian Values ETF
US-Listed ETFs: Estimated Flows by Market Segment
ETFs rebounded last week generating net inflows of $4.2 bln
US Equity ETFs experienced aggregate net inflows of $3.7 bln last week
Conversely, EM Equity ETFs posted net outflows of $465 mln last week, but still exhibited net inflows of $1.2 bln
over the past 13 weeks
ETF assets stand at $1.1 trillion, up 12% YTD; we estimate from both net new money and market appreciation
13-week flows remained mostly positive among asset classes; combined $30.4 bln net inflows
Fixed Income up $10.5 bln versus Commodities down $1.9 bln over the past 13 weeks
We estimate ETFs have generated net inflows 18 out of 29 weeks YTD; YTD net inflows of $70.8 bln
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares Russell 2000 Fund (IWM) generated net inflows of $1.3 bln last week, the most of any ETF
Seven of the top 10 ETFs to post net inflows last week were US equity focused (four broad market ETFs, three
sector/industry ETFs)
Despite posting net outflows of $463 mln last week, the Vanguard MSCI Emerging Markets ETF (VWO) has
exhibited net inflows of $3.3 bln over the past 13 weeks (second largest of any ETF)
US-Listed ETFs: Change in Short Interest
Data Unchanged: Based on data as of 6/30/11
XLE exhibited the largest increase in USD short interest since last updated
Roughly $485 million in additional short interest
Highest level of shares short for XLE since 10/31/08
SPY exhibited the largest decline in USD short interest since last updated
Roughly $4.1 billion in reduced short interest
We note that two broad emerging market ETFs (EEM & VWO) exhibited $1.3 bln in reduced short interest
Fundamentals: Equity Allocations: Thinking Outside of the Box
July 25, 2011-Investors typically use one of three "standard" strategies to construct their equity portfolios. But none of them is optimal. In the July issue of Fundamentals, we suggest an alternative approach of achieving superior equity performance. But it requires some "out-of-the-box" type thinking.
The phrase “thinking outside of the box” has become so overused in recent years as to become trite. And yet, how many investors actually deviate from the
norm with their equity allocations?
Indeed, most investors follow the
pack, implementing one of three
“standard” strategies.
Faithshares Pulls Plug on Final Christian Values Fund
July 25, 2011--Faithshares is getting out of the Christian values exchange-traded fund business, confirming this week it will shutter its last remaining religious values-based ETF, the Christian Values Fund ETF (FOC), sometime next month.
Four other funds aimed at specific religious denominations -- including Catholics, Baptists, Lutherans and Methodists -- were closed in July.
“Partly it was a problem with a lack of marketing,” Faithshares CEO Garrett Stevens told On Wall Street. “We didn’t get out there as aggressively as we should have.”
ETF Securities Marks Two-Year Anniversary in the U.S
July 25, 2011--ETF Securities has offered U.S. physically-backed precious metal exchange traded products (ETPs) since July 2009. In two years, the firm has grown its U.S. assets under management (AUM) to $4.2 billion as of July 19, 2011.
ETF Securities (ETFS), the leading global provider of commodity ETFs, celebrates its two-year anniversary as a U.S. exchange traded product (ETP) provider in July 2011. Its first product listed on the NYSE Arca, ETFS Physical Silver Shares (SIVR), has seen assets grow to $725M as of July 19, 2011, and offers the lowest management fee of any physically-backed silver ETF in the market.
NYSE Liffe gains approval to offer direct access in Brazil
July 25, 2011--NYSE Liffe, the Europe-based derivatives business of NYSE Euronext (NYX), has received regulatory approval from Brazil’s Securities and Exchange Commission, the Comissão de Valores Mobiliários (CVM), to offer direct electronic access to its London market with immediate effect.
The CVM’s decision to grant approval enables enables customers in Brazil to benefit from direct access to NYSE Liffe’s Short Term Interest Rate, Bond, Swapnote, Equity and Commodities Futures and Options. Alternatively, Brazilian firms can continue to make use of non-direct (intermediated) access for the execution of their NYSE Liffe business.
Garry Jones, Group Executive Vice President and Head of Global Derivatives, NYSE Euronext, said: “I would like to thank the Comissão de Valores Mobiliários for giving us its approval. In Brazil NYSE Liffe is best-known for commodities. Now that we have gained approval from the CVM, we are delighted to have the opportunity to promote our wider product range: the array of global currency interest rates and blue chip European equity derivatives that we offer, as well as the range of commodity contracts with which many investors are already familiar.”
Collateral Rules Criticized
July 25, 2011--Some lawmakers and financial firms are resisting rules being written to implement last year's Dodd-Frank law that could require banks to set aside more collateral when they make certain trades in the derivatives market.
The law requires that much of the collateral be held in cash or high-quality government securities, such as Treasury bonds. But some critics claim such a requirement could steer more money into U.S. securities just when many investors are getting nervous about the nation's debt load.
AdvisorShares files with the SEC
July 25, 2011--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for the Accuvest Global Opportunities ETF
NYSE Arca Ticker: ACCU.
view filing
Van Eck files with the SEC
July 25, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors CEF Municipal Income ETF.
view filing
FINRA Warns Investors About Chasing Returns in Structured Products, High-Yield Bonds and Floating-Rate Loan Funds
July 25, 2011- The Financial Industry Regulatory Authority (FINRA) today issued an Investor Alert warning investors about putting their assets into riskier and sometimes complex products that promise higher returns than more traditional investments. With yields on many fixed-income investments at historically low levels and a volatile stock market, investors may be tempted to chase returns by investing in structured notes with principal protection, high-yield bonds, floating-rate loan funds and leveraged products.
FINRA's Investor Alert, The Grass Isn't Always Greener—Chasing Return in a Challenging Investment Environment, was prompted by significant recent inflows into investments like high-yield bond funds, floating-rate loan funds and structured retail products. High-yield bond funds had $75 billion in new sales in 2010. Floating-rate funds grew from $15 billion in 2008 to $60 billion in April 2011, and sales of structured products increased from $33 billion in 2009 to $54 billion in 2010.
view the The Grass Isn’t Always Greener—Chasing Return in a Challenging Investment Environment
Cost of Treasury futures set to rise
July 25, 2011--The cost of trading US Treasury futures was set to rise on Monday, as the CME Group adopted defensive measures given the impasse in Washington over raising the Federal debt ceiling.
The operator of the US’s largest futures exchange said it had raised margin requirements on US government debt futures and its other products linked to US Treasuries after a “normal review of market volatility to ensure adequate collateral coverage”.
FBR Report to the Congress on Credit Ratings
July 25, 2011--Executive Summary
Section 939A of the Dodd-FrankWall Street Reform and Consumer Protection Act (the act) requires each
federal agency to review its regulations and identify
(1) any regulation that requires the use of an assessment
of the creditworthiness of a security or money market instrument and (2) any references to or requirements in such regulations regarding credit ratings.
view report-Report to the Congress on Credit Ratings July 2011
UBS launches two internet IPO Exchange Traded Notes
TWO ETRACS LINKED TO THE UBS INTERNET IPO INDEX COMPRISED OF
TWENTY SOCIAL NETWORKING, INTERNET SOFTWARE AND INTERNET SERVICES STOCKS
July 25, 2011--UBS Investment Bank announced that today is the first day of trading on the NYSE Arca
for two ETRACS Exchange Traded Notes (the “Internet IPO ETNs”) linked to the performance of the UBS Internet
IPO Index (the “Index”).
Investors now have the ability to gain either unleveraged or leveraged exposure to a portfolio of Internet-related companies that have gone public within the last three years, all by way of two, convenient exchange-traded securities.
Both Internet IPO ETNS are linked to a unique benchmark index that currently consists of twenty holdings representing the latest generation of Internet-related stocks such as LinkedIn, HomeAway, Pandora Media and OpenTable. Innovative index construction allows for the addition of new Internet-related companies within weeks after their IPOs, and a monthly Index rebalancing feature and 3-year age limit ensure that the companies in the Index remain up-to-date and relevant.
The ETRACs Internet IPO ETN (Ticker: EIPO) provides exposure to the performance of the Index, while the Monthly 2xLeveraged ETRACS Internet IPO ETN (Ticker: EIPL) provides a monthly compounded two times leveraged exposure to the performance of the Index.
CFTC Announces First Public Meeting of the Technology Advisory Subcommittee on Data Standardization
July 25, 2011--Subcommittee will Look Into Public/Private Solutions for Creating Well-Accepted Standards for Describing, Communicating, and Storing Data on Complex Financial Products
Washington, DC – The Commodity Futures Trading Commission (CFTC) today announced that on August 5, 2011, the Subcommittee on Data Standardization, a new Subcommittee of the CFTC’s Technology Advisory Committee, will hold a public meeting.
This will be the first of at least three subcommittee public meetings to occur this year, with the other two public meetings tentatively scheduled for September 30, 2011, and November 4, 2011.
The Subcommittee meeting will begin at 1pm in the Conference Center at the CFTC’s Headquarters, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC. The discussion will be open to the public with seating on a first-come, first-served basis.
Members of the public also may listen by telephone and should be prepared to provide their first name, last name and affiliation.