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PowerShares files with the SEC
May 6, 2011--PowerShares has filed a post-effective amendment, registration statement with the SEC for the PowerShares S&P 500 High Beta Portfolio
and the PowerShares S&P 500 Low Volatility Portfolio.
view filing
Mexican central bank buys 100 tonnes of gold
May 5, 2011-Mexico has quietly purchased nearly 100 tonnes of gold bullion, as central banks embark on their biggest bullion buying spree in 40 years.
The purchase, reported in monthly data published by Mexico’s central bank, is the latest in a series of large gold buys by emerging market economies intent on diversifying reserves away from the faltering US dollar.
Equity and bond bulls prepare for life after QE2
April 5, 2011--As investors prepare for an end to the Federal Reserve’s soothing monetary balm, US equities and bonds speak to very different prognoses for the economy.
The stock market bull run sits at odds with sustained falls in yields on benchmark Treasury bonds, setting the stage for what could be a turbulent summer when the Fed pulls the plug on its second phase of quantitative easing, “QE2”.
FlexShares files with the SEC
May 5, 2011--FlexShares has filed a registration statement with the SEC.
read more
Made in the USA, Again: Manufacturing Is Expected to Return to America as China’s Rising Labor Costs Erase Most Savings from Offshoring
Reinvestment During the Next Five Years Could Usher in a ‘Manufacturing Renaissance’ as the U.S. Becomes a Low-Cost Country Among Developed Nations, According to Analysis by The Boston Consulting Group
May 5, 2011--Within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain U.S. states become some of the cheapest locations for manufacturing in the developed world, according to a new analysis by The Boston Consulting Group (BCG).
With Chinese wages rising at about 17 percent per year and the value of the yuan continuing to increase, the gap between U.S. and Chinese wages is narrowing rapidly. Meanwhile, flexible work rules and a host of government incentives are making many states—including Mississippi, South Carolina, and Alabama—increasingly competitive as low-cost bases for supplying the U.S. market.
Fears linger of new ‘flash crash’
May 5, 2011--In the space of just 20 minutes a year ago on Friday, Wall Street tumbled hundreds of points, dumbfounding dealers, only to rebound sharply. The extraordinary gyration in stocks, dubbed the “flash crash”, stunned investors and revealed gaping holes in the equity market’s structure.
Such a chronic breakdown in the operation of the world’s largest stock market sparked an investigation by regulators, scrutiny from Washington and a flurry of new rules.
“Avoidable” Speech of Commissioner Bart Chilton at the University of Chicago, Chicago, IL
May 5, 2011--Thank you. It’s good to be with you today. I especially want to thank my friend Richard Sandor for the invitation to spend some time here. You know, he’s pretty modest but he has been a leader in markets and trading for a long time now.
He’s not called the “Father of Carbon Trading” and the “Father of Financial Futures” for nothing. He has truly been an innovator and you are lucky to have him. I try to steal his time as much as possible, and always feel smarter after those times.
It’s also good to be in Chicago. It’s my favorite city in the world and if you look across Lake Michigan from here, you can almost see where I grew up in Indiana. On clear nights, we could see the lights of Chicago from our neighborhood. So, for that reason and others, I share with many people a great fondness for this city. Even when the Cubs and the White Sox are doing poorly—like, umm, so far this season—I’m still a fan. Being closer to Comiskey Park when I was a kid, I went to more Sox games, but I followed both teams, even though there has always been a competition between the two. Stop me if you’ve heard this one: A first grade teacher explains to her class that she is a Cubs fan. She asks the class to raise their hands if they are Cubs fans too. Only one little girl didn't raise her hand, so the teacher asked her why. “I'm proud to be a Chicago White Sox fan," she boasts. The teacher is a little perturbed now, her face slightly red. She asks the girl why she is a Sox fan. "Well, my Dad and Mom are Sox fans, and I'm a Sox fan too." The teacher is now angry. "That's no reason," she says loudly. "What if your mom was a moron and your dad was a moron? What would you be then?" A pause and a smile. "Then," says the girl, "I'd be a Cubs fan."
Invesco PowerShares Lists Low Volatility and High Beta, S&P 500 based ETFs
May 5, 2011--Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), announced that the PowerShares S&P 500® Low Volatility Portfolio (SPLV) andPowerShares S&P 500® High Beta Portfolio (SPHB) began trading today on the NYSE Arca. The portfolios are the first ETFs to provide investors access to low volatility and high beta versions of the widely followed S&P 500® Index.
“We believe the PowerShares S&P 500 Low Volatility Portfolio is an attractive tool for advisors seeking lower volatility for the portfolio core, and may offer a measure of protection in down cycles while still potentially participating in upward trending cycles,” said Ben Fulton, Invesco PowerShares managing director of global ETFs.
“For advisors and investors seeking cost-effective ways to add a bullish tactical portfolio tilt, we believe the PowerShares S&P 500 High Beta Portfolio allows investors to increase their exposure to the equity market without using leverage,” added Ben Fulton.
The PowerShares S&P 500® Low Volatility Portfolio (SPLV) is the first volatility-weighted ETF and seeks investment results that correspond (before fees and expenses) generally to the price and yield of the S&P 500® Low Volatility Index (the Underlying Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Underlying Index, which consists of the 100 stocks from the S&P 500® Index, with the lowest realized volatility over the past 12 months as determined by Standard & Poor's. Index constituents are rebalanced quarterly.
The PowerShares S&P 500® High Beta Portfolio (SPHB) is the first beta-weighted ETF and seeks investment results that correspond (before fees and expenses) generally to the price and yield of the S&P 500® High Beta Index (the Underlying Index). The Fund will invest at least 90% of its assets in common stocks that comprise the Underlying Index, which consists of the 100 stocks from the S&P 500 Index with the highest sensitivity to market movements, or beta, over the past 12 months as determined by Standard & Poor's. Index constituents are rebalanced quarterly.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 140 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $60 billion as of March 31, 2011, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at invescopowershares.comor follow us on Twitter @PowerShares.
Global X Funds Launches First Mexico Small-Cap ETF (MEXS)
May 5, 2011--Global X Funds, the New York based provider of exchange traded funds, today launched the Global X Mexico Small-Cap ETF (Ticker: MEXS). The fund is the latest expansion in the ETF issuer’s Latin America fund suite and the first ETF globally to focus on Mexico’s small-cap companies.
Small-cap stocks generally receive the majority of their revenues from the domestic economy in which they are located. The Global X Mexico Small-Cap ETF is designed to give investors exposure to Mexico’s domestic growth story, with an emerging middle class and positive developments in manufacturing and service industries.
IndexIQ Launches First Global Oil Small Cap ETF (IOIL)
IQ Global Oil Small Cap ETF (IOIL) is the first global oil small cap ETF;
Taps into the dynamic small cap segment of the market
May 5, 2011--IndexIQ, a leading developer of index-based liquid alternative investment solutions, is introducing the IQ Global Oil Small Cap ETF, it was announced today.
IOIL is the first global small-cap Exchange-Traded Fund (ETF), designed to provide pure play exposure to companies that are primarily engaged in the oil industry. This includes firms involved in exploration and production (E&P); refining and marketing; and equipment, services and drilling. It seeks to track, before fees and expenses, the performance of the IQ Global Oil Small Cap Index (Bloomberg Index Ticker IQSMOIL).
The price of oil has risen 23 percent this year and gasoline has climbed to a 33-month high, spurred by a number of factors including the still unfolding unrest that has swept across the Middle East. This dramatic price appreciation has driven the price of crude oil over $100 a barrel, which is having a significant impact on industries and consumers who are trying to keep pace with rising prices at the pump.
Exchange-Traded Funds : ETFs Take in $25.0 Billion Net New Money in 1Q11-Morgan Stanley
May 5, 2011--There have been 86 new ETFs listed in the US so far in 2011, of which 63 were issued in the
first quarter. So far this year, no ETFs have been liquidated. As of May 3, 2011, there were 35 issuers with 1,053 ETFs listed in the US.
Net inflows into US-listed ETFs were $25.0 billion during the first quarter of 2011. While the $25.0 billion in net inflows is below the average
quarterly net cash inflows of $33.0 billion over the past three years, it is above the first quarter
average net cash inflows of $10.0 billion from the previous three years.
The largest net cash inflows this past quarter went into international developed market and US sector and industry equity ETFs. These asset classes had net cash inflows of $9.2 billion and $7.5 billion, respectively, in the first quarter of 2011. The fixed income ETFs also rebounded with net cash inflows of $6.4 billion this past quarter after posting outflows in 4Q10. ETFs providing exposure to emerging markets equities had the largest net cash outflows at $7.6 billion.
US ETF industry assets of $1,108 billion are 11% higher than their level at the end of 2010. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 79% and 47% of industry assets, respectively.
Chairman Ben S. Bernanke -At the 47th Annual Conference on Bank Structure and Competition, Chicago, Illinois
May 5, 2011 --Implementing a Macroprudential Approach to Supervision and Regulation
The recent financial crisis revealed critical gaps and weaknesses in the U.S. financial system and the financial regulatory framework. The Congress and the Administration last year provided a roadmap for addressing many of these problems, in the form of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)--the topic of this year's conference.
Legislative reforms in any complex area always face the risk of fighting the last war, responding to the causes of the last crisis without sufficient attention to where new problems may arise. To their credit, the authors of the Dodd-Frank Act attempted to reduce this risk by building in a number of features aimed at helping our system of financial oversight adapt over time to changes in the financial environment. Notably, a central element of the legislation is the requirement that the Federal Reserve and other financial regulatory agencies adopt a so-called macroprudential approach--that is, an approach that supplements traditional supervision and regulation of individual firms or markets with explicit consideration of threats to the stability of the financial system as a whole. The act also created a new Financial Stability Oversight Council, whose membership comprises a diverse group of federal and state financial regulators, to coordinate the government's efforts to identify and respond to systemic risks.
BM&FBOVESPA announces opening of the bidding process to select the manager for three new ETFs
The products will track the Dividend, Basic Materials and Public Utilities Indices
May 5, 2011--- BM&FBOVESPA hereby announces the opening of the bidding process to select a securities portfolio manager entitled to an exclusive one-year license for the use of the Dividend Index (IDIV), Basic Materials Index (IMAT) and Public Utilities Index (UTIL).
This is for the creation, respectively, of the Dividend Index Exchange-Traded Fund (IDIV ETF), the Basic Materials Index Exchange-Traded Fund (IMAT ETF), and the Public Utilities Index Exchange Traded Fund (UTIL ETF). The new products will have their units traded on the BOVESPA segment exchange market.
BM&FBOVESPA will receive documentation from the interested institutions up to June 13, 2011. The winning institution for each of the ETFs will be that which presents the greatest commitment of volume for the 12 months as of the date on which the units are admitted for trading, in the form of a proposal of minimum guaranteed Exchange fees. This is defined as the sum total of trading, settlement and registration fees for cash, options and forward transactions involving IDIV ETF, IMAT ETF and UTIL ETF units carried out in the BOVESPA market segment. The announcement of the result of the bidding process shall be held in a session restricted to those participants that send proposals on June 28, 2011, as of 10.00 am at BM&FBOVESPA headquarters.
Testimony Before the Senate Committee on Appropriations Subcommittee on Financial Services and General Government
Chairman Gary Gensler
May 4, 2011--Good morning Chairman Durbin, Ranking Member Moran and members of the Subcommittee. I thank you for inviting me to today’s hearing on the Commodity Futures Trading Commission’s (CFTC) fiscal year (FY) 2012 budget request. I am pleased to testify on behalf of the Commission.
CFTC Mission
The CFTC is a good investment for the American public, overseeing vast markets with a relatively small staff. At its core, the mission of the CFTC is to ensure the integrity and transparency of derivatives markets so that hedgers and investors may use them with confidence. Derivatives emerged as tools to allow producers and merchants to be certain of the prices of commodities that they planned to use or sell in the future. Derivatives markets are used to hedge risk and discover prices and work best when they are transparent and free from fraud and manipulation.
SEC Seeks Public Comment on Short Sale Disclosure
May 4, 2011 – The Securities and Exchange Commission today published on its website a request for public comment on the feasibility, benefits, and costs of two short selling disclosure regimes as a part of a study mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Section 417 of the Dodd-Frank Act directs the SEC’s Division of Risk, Strategy and Financial Innovation to study two short sale disclosure regimes. A transactions reporting regime would add short sale-related marks to the consolidated tape in a voluntary pilot program. A position reporting regime would entail real time reporting of investors’ short positions either to the public or to regulators only. The Commission is required to submit a report on the study to Congress by July 21, 2011.
To better inform the study, the request seeks public comment on both the existing uses of short selling in securities markets and the adequacy or inadequacy of the information regarding short sales available today. The request also seeks public comment on the likely effect of these possible future reporting regimes on the securities markets, including their feasibility, benefits, and costs.
