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Commission Announces a Roundtable Discussion Regarding Money Market Funds and Systemic Risk
April 8, 2011 - The Securities and Exchange Commission announced today that it will host a roundtable discussion in May on money market funds and systemic risk. The roundtable will include participants from the Financial Stability Oversight Council (FSOC).
The roundtable will take place on May 10, 2011, and will provide a forum for various stakeholders in money market funds to exchange views on the potential effectiveness of certain options in mitigating systemic risks associated with money market funds. These will include, but are not limited to, options raised in the President’s Working Group report on possible money market fund reforms that was issued in October 2010 (http://www.treasury.gov/press-center/press-releases/Documents/10.21%20PWG%20Report%20Final.pdf).
Roundtable panelists are expected to include sponsors of money market funds, short-term debt issuers, investors, and the academic community. A list of participants will be published closer to the date of the roundtable.
Nasdaq plays cost-cutting card
April 7, 2011--Nasdaq OMX believes that it has a significant advantage over its rivals in its attempt to win the favour of NYSE Euronext – a proven ability to cut costs.
Nasdaq, which along with the Intercontinental Exchange bid $11.3bn for NYSE Euronext believes that it can cut the costs of running NYSE by $710m by combining like-for-like US stock exchanges.
State Street Global Advisors Debuts SPDR® Barclays Capital Issuer Scored Corporate Bond Exchange Traded Fund
State Street Global Advisors to Launch Issuer Scored Corporate Index Strategy
April 7, 2011--State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR® Barclays Capital Issuer Scored Corporate Bond Exchange Traded Fund (ETF) (Symbol: CBND). The new ETF provides access to a new corporate bond indexing methodology. SSgA will soon launch its Issuer Scored Corporate Index Strategy to further enhance the firm’s fixed income offering, which includes more than $3811 billion in assets globally.
Designed to provide an alternative to market value weighted index strategies, the SPDR Barclays Capital Issuer Scored Corporate Bond ETF (Symbol: CBND) seeks to track the performance of the Barclays Capital Issuer Scored Corporate Index. The Index includes publicly issued US dollar-denominated corporate issues that are rated investment grade and have $250 million or more of par amount outstanding. Individual issuers in the Index are weighted using the following quantitative measures: return on assets, interest coverage and current ratio. Rebalancing based on these ratios occurs every six months on the last business day of March and September.
“Despite some compression in spreads over the past year, corporate credit remains a very attractive asset class for investors,” said Kevin Anderson, global chief investment officer for Fixed Income and Currency at State Street Global Advisors. “The SPDR Barclays Capital Issuer Scored Corporate Bond ETF and forthcoming SSgA Issuer Scored Corporate Index Strategy strengthen our fixed income offering by providing investors and advisors with solutions that address the concerns some have with the allocation of capital in existing corporate credit index strategies.”
The SPDR Barclays Capital Issuer Scored Corporate Bond ETF began trading on the NYSE Arca on April 7, 2011, and the SSgA Issuer Scored Corporate Index Strategy will soon be available to eligible institutional investors.
“The launch of the SPDR Barclays Capital Issuer Scored Corporate Bond ETF marks the start of a new chapter in fixed income investing,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “A testament to our commitment to developing innovative SPDR ETFs, CBND can help investors diversify their fixed income holdings with an indexing strategy that provides an effective, transparent means of capturing the sources of corporate bond returns.”
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
April 7, 2011--Standard & Poor's Canadian Index Operations announces the following index changes:
The 5-Year rate reset 1st Preferred shares, Series 24, of National Bank of Canada (TSX:NA.PR.O) are the subject of a $C28.03 cash per share offer and will be removed from the S&P/TSX North American Preferred Stock Index
and the S&P/TSX Preferred Share Index after the close of Monday, April 11, 2011.
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.
BNY Mellon ADR Index Monthly Performance Review is Now Available
April 7, 2011--The BNY Mellon ADR Index Monthly Performance Review is now available.
Managing Abundance to Avoid a Bust in Latin America
April 7, 2011-EXECUTIVE SUMMARY
Exceptional global circumstances have produced a double bonanza of easy foreign financing and high terms of trade for Latin America (LA), particularly for commodity exporters—favorable conditions that will not last forever. Managing this abundance will be critical to avoiding a
boom-bust cycle. This note explores the sources of these double tailwinds, the problems and vulnerabilities they can engender in LA, and how to build an appropriate policy response.
Persistent double tailwinds, with risks of an abrupt end. A Global Liquidity Flood: Building on capital flow “pull” factors associated with improved fundamentals in emerging markets (EMs) and a likely sustained shift in investors’ portfolios, the combination of low interest rates in advanced
economies (AEs) and investors’ higher risk tolerance is a strong “push” factor that will continue for
some time, but could revert hastily once AEs’ recovery gains footing. Economic and political constraints in AEs have led them to lean strongly on easy monetary policy. At the same time, some key EMs are limiting the adjustment of their current account balances—by maintaining broad capital
account restrictions and heavy exchange rate intervention—leaving others to receive higher capital inflows and contribute more to the restoration and rebalancing of global demand. A Terms of Trade Bonanza: As demand by systemic EMs has pushed up commodity prices, LA is enjoying strong terms of trade, raising issues in many ways similar to easy foreign financing. A key risk for the region is a sharp reversal of these two favorable external conditions following, e.g., a large oil price shock, rapid monetary tightening in AEs, or a global slowdown coupled with heightened risk aversion.
view Managing Abundance to Avoid a Bust in Latin America paper
Dow Jones Indexes, UBS Add Eight Commodity Indexes to Dow Jones-UBS Commodity Index Family
New Subindexes to Offer Investors Opportunity To Exclude Specific Individual Commodities
April 7, 2011–Dow Jones Indexes and UBS Investment Bank today announced they are adding eight commodity subindexes to the Dow Jones-UBS Commodity Index family that measure an opportunity set excluding commodities such as agriculture, livestock or grains.
Also launching as subindexes of the Dow Jones-UBS Commodity Indexessm family are indexes that exclude the other major commodity sectors within the broad index: industrial metals, precious metals, soft commodities, petroleum products and agriculture/livestock.
“These new subindexes measure commodity markets from the perspective of investors that want zero exposure to certain sectors,” said Michael A. Petronella, President, Dow Jones Indexes.
Crime and Violence: A Staggering Toll on Central American Development
April 7, 2011 – Growing crime and violence in Central America not only have an immediate human and social toll, they also pose a tremendous threat to development potential in the region. Today, it is estimated that these sources of instability may decrease regional Gross Domestic Product (GDP) by 8 percent, once health, institutional, private security, and material expenses are accounted for.
According to “Crime and Violence in Central America: A Development Challenge,” a World Bank report released today at the Woodrow Wilson Center, a 10 percent reduction in homicide rates could boost annual economic growth per capita by as much as one full percentage point of GDP, in those Central American countries with the most homicides.
As it stands now, however, much of the region is headed in the opposite direction. Conditions in some areas of El Salvador, Guatemala and Honduras are so extreme -- with nearly 1 homicides per 1000 inhabitants – they have undermined the prospects of peace and stability that emerged following the resolution of the region‘s civil wars. Meanwhile in Costa Rica, Nicaragua, and Panama, crime and violence levels are significantly lower, but their steady rise in recent years emerges as a serious concern.
ETF Securities Cross-Lists Four Physically-Backed Exchange Traded Products (ETPs) in Mexico
April 6, 2011--)--ETF Securities (ETFS) announced it has cross-listed four of its popular physically-backed precious metal products on the Mexican Stock Exchange, the Bolsa Mexicana de Valores (BMV).
ETFS Physical Platinum Shares (Ticker: PPLT)
ETFS Physical Palladium Shares (Ticker: PALL)
ETFS Physical Precious Metal Basket Shares (Ticker: GLTR)
ETFS Physical White Metal Basket Shares (Ticker: WITE)
The four “first to market products,” all with an expense ratio of 0.60% (1), gained momentum since launch on the NYSE Arca gathering almost $2.0B in less than two years. The cross listing to the Mexican Stock Exchange, BMV is part of a global expansion initiative for ETFS and the four cross-listed products will be the first of their kind available to Mexican investors.
These new listings of commodity-related ETPs are complementary to the approximately 600 international securities and exchange traded funds (ETFs) already cross-listed and may enhance the overall offering on the international segment of the Mexican Exchange.
NAFTRAC is largest ETF in Latin America
April 6, 2011--iShares NAFTRAC, the first exchange traded fund to launch in Latin America, is now the largest ETF in the region with USD6.0bn in assets under management (AUM), at end February 2011.
Launched in in 2002 and designed to track the Mexican IPC Index, iShares acquired the ETF from Nacional Financiera on 14 May 2009, and it has since been renamed iShares NAFTRAC.
At the end of February 2011, there were 422 ETF/ETP listings in Latin America, of which 26 are locally domiciled ETFs/ETPs with assets of USD10.2bn from four providers on two exchanges (BM&F Bovespa, Mexican Stock Exchange), while 396 are cross listings from fifteen providers on two exchanges (Mexican Stock Exchange, Bolsa Comercio Santiago). At the end of February 2011, there were 363 ETFs/ETPs listed in Mexico, 52 ETFs/ETPs listed in Chile, 313 ETFs registered for sale in Chile and 296 ETFs/ETPs registered for sale in Peru.
Millington Securities, Inc. files with the SEC
April 6, 2011--Millington Securities, Inc. has filed an application for exemptive relief with the SEC.
view filing
Millington Securities, Inc. files with the SEC Direxion files with the SEC Dow Jones Indexes, Credit Suisse Announce Launch of Dow Jones Credit Suisse Core Hedge Fund Index The Dow Jones Credit Suisse Core Hedge Fund Index is the first and only hedge fund index designed to reflect the performance of managed accounts and other regulated fund structures sourced from multiple best-in-class managed account platforms, creating an unparalleled view
of the liquid, investable hedge fund universe. This truly innovative approach represents a significant advantage over other indexes which are limited to the funds available on single managed account platforms and is designed to reflect the broadest representation of the liquid hedge fund universe with limited platform bias.
Morgan Stanley ETF Fund Flows Vanguard had net cash inflows of $10.5 billion in
1Q 2011, the largest of any provider. BlackRock had the second highest net cash inflows at $5.0 billion.
As of 4/2/11, BlackRock, State Street Global Advisors and Vanguard accounted for 79% of ETF assets. World Gold Trust Services had the largest net cash
outflows of $3.0 billion in the first quarter. There were 63 new ETFs launched in the US during
1Q 2011. Of the 63 ETFs launched, 23 provide exposure to US equities. As of March 31, 2011, there were 34 issuers with 1,030 ETFs listed in the US.
Almost $11 billion in the total market cap of ETFs is from ETFs issued over the past year. The most (successful of these (by total market cap) track US
equity and MLPs. Recent commodity and commodityrelated ETF launches have also gained traction.
April 6, 2011-Millington Securities, Inc. has filed an application for exemptive relief with the SEC.
view filing
April 6, 2011-Direxion has filed a post-efective amendment, registration statement with the SEC.
view filing
April 6, 2011--Dow Jones Indexes and Credit Suisse today announced the launch of the Dow Jones Credit Suisse Core Hedge Fund Index, the newest addition to their marketleading hedge fund index family.
The Dow Jones Credit Suisse Core Hedge Fund Index is the first index of its kind to utilize multiple managed account platforms to track the liquid, investable hedge fund universe. Following the market events of 2008, increased attention has been focused on liquid hedge fund structures, including managed accounts, which tend to offer superior liquidity and transparency. The enhanced risk management capabilities of these flexible investment vehicles has led to a resurgence of interest in the space, and the launch of the Dow Jones Credit Suisse Core Hedge Fund Index marks a revolutionary step toward measuring the performance of this rapidly growing industry segment.
Preliminary 1Q 2011 ETF
Net Cash Flows Estimates
April 6, 2011--Net inflows into US-listed ETFs were $25.9 billion during the first quarter of 2011. The $25.9 billion in
net cash inflows is in-line with the average quarterly rate of $26.0 billion over the past seven years. Total
US-listed ETF assets are now over $1 trillion, which represents an increase of roughly 7% year to date.
The largest net cash inflows went into ETFs tracking international developed equity market indices. This asset class had net cash inflows of $9.3
billion in 1Q 2011. US sector and industry equity ETFs had the next highest net cash inflows at $7.8 billion. Emerging markets ETFs had the highest net cash outflows this past quarter at $7.1 billion.
