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Direxion Shares Announces Reverse Share Split of Six ETFs
February 2, 2011--Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, announced today it will execute a 1-for-5 reverse split of the shares of the Direxion Daily Financial Bear 3x Shares (FAZ), Direxion Daily Large Cap Bear 3x Shares (BGZ), Direxion Daily Mid Cap Bear 3x Shares (MWN), Direxion Daily Developed Markets Bear 3x Shares (DPK) and Direxion Daily Semiconductor Bear 3x Shares (SOXS) for shareholders of record after the close of the markets on Wednesday, Feb. 23, 2011.
Additionally, the firm announced it will execute a 1-for-3 reverse split of the shares of the Direxion Daily Small Cap Bear 3x Shares (TZA) for shareholders of record after the close of the markets on Wednesday, Feb. 23, 2011.
The CUSIPs for the six ETFs will change as follows:read more
Morgan Stanley Exchange-TradedFunds: ETF Net Cash Inflows of $37.9 Billion for 4Q10 and $110.2 Billion for FY 2010
February 2, 2011--There were 179 new ETFs listed in the US in
2010, of which 26 were issued in the fourth quarter. However, 49 ETFs were liquidated in 2010, resulting in net new issuance of 130. As of
January 28, 2011, there were 33 issuers with 987 ETFs listed in the US.
Net inflows into US-listed ETFs were $37.9 billion during the fourth quarter of 2010, bringing FY 2010 net cash inflows to $110.2 billion. While the $37.9 billion in net inflows in the
fourth quarter is well above the average quarterly net cash inflows of $26.1 billion over the past six
years, it is below the fourth quarter average net cash inflows of $45.7 billion from the previous six
years.
The largest net cash inflows in 2010 went into emerging market equity and fixed income ETFs. These asset classes had net cash inflows of $30.5 billion and $28.0 billion, respectively, in 2010. Commodity and US Sector and Industry ETFs had the next highest net cash flows in 2010 at $10.7 billion and $10.4 billion, respectively.
US ETF industry assets of $1,003 billion are 28% higher than their level at the end of 2009. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 80% and 50% of industry assets, respectively.
Many newer listings have struggled to gain meaningful traction. The 485 ETFs launched since the start of 2008 (excluding liquidations) have an average market cap of $147 million but a median market cap of just $27 million. While some of the products offer unique exposure, many of the newer ETFs, particularly those with a narrower focus and those based on less well-known indices, have struggled to gain traction.
NSX Releases January 2011 ETF Data Reports; Assets Reach New Month End Record
February 2, 2011--Highlights from the January 2011 reports include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) totaled a new record of approximately $1.02 trillion at January 2011 month-end, an increase of approximately 37% over January 2010 month-end when assets totaled $744.7 billion.
ETF net cash inflows for the month totaled over $10.3 billion, with U.S. Equity leading all product categories with over $10.1 billion in net cash flow.
ETF/ETN notional trading volume during January 2011 totaled almost $1.3 trillion, representing 29% of all U.S. equity trading volume.
At the end of January 2011, the number of listed products totaled 1,121 compared to 947 listed products at the same time last year.
Visit http://www.nsx.com for more info.
SEC Proposes Rules for Security-Based Swap Execution Facilities
February 2, 2011--The Securities and Exchange Commission today voted unanimously to propose rules defining security-based swap execution facilities (SEFs) and establishing their registration requirements, as well as their duties and core principles.
The Dodd-Frank Wall Street Reform and Consumer Protection Act authorized the SEC to implement a regulatory framework for security-based swaps, which currently trade exclusively in the over-the-counter markets with little transparency or oversight.
The Dodd-Frank Act sought to move the trading of security-based swaps onto regulated trading markets, and therefore created security-based SEFs as a new category of market intended to provide more transparency and reduce systemic risk.
"Our objective here is to provide a framework that allows the security-based swap market to continue to develop in a more transparent, efficient, and competitive manner," said SEC Chairman Mary L. Schapiro. "This is an important and complex undertaking that adds a significant new component to the regulatory framework for over-the-counter derivatives."
The Commission's proposed rules:
Interpret the definition of "security-based SEFs" as set forth in Dodd-Frank.
Claymore files with the SEC
January 31, 2011--Claymore has filed a post effective amendment, registration statement with the SEC for
Guggenheim BulletShares 2012 High Yield Corporate Bond ETF
Guggenheim BulletShares 2013 High Yield Corporate Bond ETF
Guggenheim BulletShares 2014 High Yield Corporate Bond ETF
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF
ISE Reports Business Activity for January 2011
Average daily volume in January 2011 up 29.9% over December 2010.
Dividend trades made up 5.1% of industry volume in January 2011.
ISE is third largest equity options exchange in January with market share of 19.5%, excluding
dividend trades.
February 1, 2011-The International Securities Exchange (ISE) today reported average daily volume of 3.3 million contracts
in January 2011, a decrease of 11.8% over January 2010.
Total options volume for the month was 66.1 million contracts. ISE was the third-largest U.S. equity options exchange in January with market share of
19.5%*. Business highlights for the month of January include:
Aggregate assets under management for ETFs based on ISE’s proprietary indexes was $1.1 billion as of January 31, 2011.
Charles Schwab: Commodity ETFs: Spot and Futures Prices
Key points
Knowing whether an ETF tracks spot or futures prices will help you better understand its performance.
Futures-based ETFs, the most common structure for commodity ETFs, are subject to contango and backwardation. We'll explain what that means.
Designed for ETF investors.
February 1, 2011--One feature many investors like about exchange-traded funds (ETFs) is the ability to access parts of the market that were previously very hard to reach.
An example is the commodities asset class—hard to access in the past, but easier now with ETFs. Commodities have their own risks and aren't for everyone, but may be appropriate for investors looking for the opportunity to diversify beyond stocks and bonds.
Commodity ETFs work a bit differently from traditional stock and bond ETFs, though, and it's important to understand the difference before diving in. In order to understand how a commodity ETF works, you'll need to know whether it tracks spot prices or futures prices.
OIC Announces January Options Trading Volume Increased 21.5%
February 1, 2011--The Options Industry Council (OIC) announced today that 378,480,506 total options contracts changed hands in January, a 21.48 percent increase from the 311,561,541 contracts traded in January 2010.
January's trading volume was the second highest monthly total ever recorded, following only May 2010 when nearly 406 million changed hands. Average daily trading volume for January was 18,942,025 contracts, up 15.4 percent from the 16,397,976 contracts in January 2010.
Equity options volume (options on individual stocks and ETFs) in January saw 354,795,514 contracts change hands, 22.8 percent more than in January 2010 when 288,939,483 contracts were traded. On average, 17,739,776 contracts were traded each day throughout January compared to January of last year when an average of 15,207,341 contracts were traded daily, representing a 16.7 percent increase.
ETF Securities Asian Gold Trust (AGOL) takes in $50M in AUM
February 1, 2011--ETF Securities USA LLC (ETFS) announced today that the newly launched ETFS Asian Gold Trust (AGOL) Exchange Traded Product (ETP) has gathered $50M in AUM.
AGOL is designed for investors who want a cost-effective(1) and convenient way to invest in gold held outside of the United States or Europe. The gold bars are allocated and held in a secure vault in Singapore.
Investors have further choice in gold holdings and can now diversify from gold epicenters like London and the U.S. into Asia using AGOL or into Switzerland using existing SGOL. Both offered at 0.39%. (1)
Singapore is the gateway to Asia, and like Switzerland, is widely considered a neutral country. Singapore welcomes free market trade and is a country that is poised for tremendous growth and free of sovereign debt (2) concerns.
ETFS’ Physical Asian Gold Shares ETP is the first U.S. precious metals product to be vaulted in Asia.
With AGOL, ETFS now offers seven precious metal ETPs in the U.S. – solidifying our position as market leader in issuance of physically-backed precious metal ETPs.
Each vault is audited bi-annually and the bar numbers of all the metal holdings are listed on the ETF Securities website, providing investors with insurance that they are, in fact, purchasing the underlying physical metal.
Commenting on this milestone for ETF Securities in the US, Fred Jheon, Head of Product & Business Development for ETFS Marketing LLC, commented:
“We are delighted with the immediate success of AGOL and look forward to broader investor adoption of our physically-backed precious metal products.”
Teucrium Trading, LLC to follow Launch of First Single Ag Commodity ETP with Two New Energy Funds
February 1, 2011--Teucrium Trading, LLC (Teucrium), the first company to introduce a single agricultural commodity Exchange Traded Product (“ETP”) in the United States, today announced the introduction of two new single commodity ETPs for the energy space – the Teucrium Natural Gas Fund (NYSE: NAGS) and the Teucrium WTI Crude Oil Fund (NYSE: CRUD).
The funds join the Teucrium Corn Fund (NYSE: CORN), which was successfully launched in June, as the latest additions to the growing Teucrium family of single-commodity ETPs.
Sal Gilbertie, President of Teucrium Trading, LLC, said that, like the Teucrium Corn Fund, the new funds have been designed to allow Registered Investment Advisors, pension funds, hedge funds, institutional and individual investors the opportunity to invest in single commodities through an easily traded, liquid and transparent New York Stock Exchange Arca-listed security.
The Teucrium Natural Gas Fund began trading on February 1, 2011 and the Teucrium WTI Crude Oil Fund is expected to begin trading in February 2011, pending final regulatory approval.
“With global growth and the increasing stress emerging markets are putting on commodities as pervasive as corn, oil and gas, it’s clear that commodities have become a valid asset class, although until now, access to single commodities for most investors has been very limited,” Gilbertie said.
CBOE Holdings Reports January 2011 Trading Volumes:
CBOE Holdings Averages 5.3 Million Options Contracts Per Day in January, Up 9% Over January 2010; Increase of 22% from December 2010;
CFE/VIX Futures Post All-Time Record Monthly Volume
February 1, 2011--CBOE Holdings, Inc. (Nasdaq: CBOE) today announced that January trading volume for options on the Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2), the company's new alternative all-electronic market, combined, totaled 105.8 million contracts, an average daily volume (ADV) of 5.3 million contracts.
Futures trading on CBOE Futures Exchange (CFE) set a new monthly volume record of over 778,000 contracts in January, an ADV of 39,000 contracts
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
February 1, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Tuesday, February 1, 2011:
Western Lithium USA Corporation (TSXVN:WLC) will be removed from the index. The company will graduate to trade on the TSX under the same ticker symbol.
The shares of PCI-1 Capital Corp. (TSXVN:ICC) will trade under the new name Curis Resources Ltd. The new ticker symbol will be "CUV" and the new CUSIP number will be 23127B 10 5. 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
Fed passes China in Treasury holdings
February 1, 2011--The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.
Based on weekly data released on Thursday, the New York Fed’s holdings of Treasuries in its System Open Market Account, known as Soma, total $1,108bn, made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips.
New Species: How Market Participants Have Evolved in Financial Ecosystems"
Speech of Commissioner Bart Chilton to the American Public Gas Association Winter Conference, Fort Myers, Florida
February 1, 2011--Introduction
Thank you for the opportunity to be with you today. In October of 2007, I met with and spoke with APGA's board in Memphis. Laura Campbell, who was with APGA at the time, took me to Memphis Light, Gas & Water and I met with traders there. The speech I gave in Memphis was my first as a Commissioner and I found the experience to be very useful. So, thanks for the great working relationship. Thanks also to your Executive Vice President Dave Schryver who I’ve worked with over the years and who represents you well in Washington.
The Importance of Markets
Futures markets are an important component of our nation's economy. These markets impact just about everyone in our country because they help discover prices for everything from a home mortgage to a gallon of gas, milk or importantly here in Florida, orange juice. For commercial businesses, they have provided important risk management tools.
The markets have also served as a vehicle for speculators, not only an important, but critical, component of these markets. So, these markets are vital to consumers and businesses and are a key part of the economic engine of our democracy. They need to remain so, but markets have morphed over the years and market participants have evolved and there are actually new species of market participants. Today I want to discuss how these new species are impacting markets and ask the question: how do we ensure that these markets remain viable and how do we ensure they are efficient and effective and devoid of fraud, abuse and manipulation?
Emerging Markets Week in Review -1/24/2011 - 1/28/2011
January 31, 2011-The Dow Jones Emerging Markets Sector Titans Composite Index fell 2.09% last week, the largest weekly decline since November. Technology and Telecom were the best performing sectors for the week, declining 0.55% and 0.87% respectively. Materials and Industrials were down the most, falling 3.23% and 2.98% respectively.
Concerns over civilian protests in Egypt rattled markets and pushed oil prices higher. Investors continue to closely watch moves by central banks as many developing economies deal with recent spikes in food prices.
