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ISE Partners with Structured Solutions to Launch Family of Brazilian-Based Sector Indexes
NEW YORK, December 7, 2010 – The International Securities Exchange (ISE) announced today that it has partnered with Structured Solutions AG, a leading global index service provider and creator of the Solactive index platform, to launch a family of five Brazilian sector indexes. The indexes will track the performance of Brazilian public companies that are active in the consumer products, utilities, financial
services, industrial and materials industries.
The Solactive-ISE Brazilian indexes hold securities that are
domiciled in Brazil and traded on BM&F Bovespa. ISE and Structured Solutions are focused on working
with exchange-traded product issuers in Brazil and around the globe to launch innovative Exchange Traded Funds (ETFs) and structured products on the new family of indexes.
“We are incredibly pleased to partner with Structured Solutions to expand the global reach of ISE’s index business with the launch of this family of unique Brazilian-based sector indexes,” said Kris Monaco, ISE’s Director of New Product Development. “Brazil is one of the most closely followed emerging markets, and the new Solactive-ISE indexes will provide international and Brazilian-based investors alike with local benchmarks for the largest sectors in the Brazilian economy.”
“We are very glad to enter into a cooperation with ISE. With our new partner we will expand our international presence and offer valuable index concepts for global investors. Brazil is one of the most dynamic countries in the world and is a perfect starting point for our collaboration,” adds Steffen Scheuble, CEO of Structured Solutions.
Regulators push for ‘strict’ prop definition
December 6, 2010--US regulators are pressing for strict definitions of proprietary trading activities to be banned under the Dodd-Frank financial reform law in a move that could anger bankers and some of their toughest critics.
The question facing regulators is whether detailed descriptions of forbidden activities would lead to stricter enforcement or would help sophisticated Wall Street traders find ways round the ban on banks trading on their own account.
CME Group Announces the Launch of Three Additional E-Micro Forex Futures Contracts
December 6, 2010--CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of three new E-micro Forex futures contracts scheduled for Sunday, December 19, for trade date Monday, December 20. These contracts will be listed with, and subject to, the rules and regulations of CME.
"These three new currency pairs will complement our existing suite of E-micro Forex contracts and provide our retail customers with a product that has the right risk/reward ratio for their financial risk management needs," said Derek Sammann, CME Group's Managing Director of FX and Interest Rate Products. "We continue to see strong growth in our existing E-micro contracts with average daily volume up 115 percent versus last year. The main reasons for this growth are CME Group's highly liquid and transparent markets, better customer awareness of the benefits of counterparty risk mitigation and our recent shift to physical delivery, which makes it easier to offset risk with our standard FX futures contracts."
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
December 6, 2010--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Monday, December 6, 2010:
Evolving Gold Corp. (TSXV:EVG) will be removed from the index.
The company will graduate to TSX to trade under the same ticker symbol
.
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.
CFTC Releases History of “Traders in Financial Futures” COT Data
December 6, 2010--The Commodity Futures Trading Commission (CFTC) on Friday, December 3, 2010, made available more than four years of history of “Traders in Financial Futures” data included in the weekly
Commitments of Traders (COT) reports. History for these commodity futures markets is available at www.cftc.gov.
The reports disclose, on a weekly basis, the futures and options positions in financial futures markets held by the following categories of large traders: Dealer/Intermediary, Asset Manager/Institutional, Leveraged Funds and Other Reportables.
“Promoting market transparency is at the core of the CFTC’s mission,” CFTC Chairman Gary Gensler said. “Releasing four years of history for the Traders in Financial Futures will provide regulators, market participants and the public with additional transparency and a historical context for the several months of reports already published.
CFTC, SEC Staff to Host Joint Public Roundtable to Discuss Issues Related to Capital and Margin for Swaps and Security-Based Swaps
December 6, 2010-- Staff from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will hold a public roundtable on Friday, December 10, 2010, from 1:00 p.m. to 5:00 p.m., to discuss issues related to capital and margin requirements for swap dealers, security-based swap dealers, major swap participants and major security-based swap participants.
dealers, security-based swap dealers, major swap participants and major security-based swap participants. The roundtable will assist the agencies in the rulemaking process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition to CFTC and SEC staff, roundtable participants will include staff from the Federal Reserve Board and other prudential regulators.
CFTC Seeks Public Input for a Joint CFTC-SEC Study on the Feasibility of Requiring the Adoption of Standardized Computer-Readable Descriptions of Complex and Standardized Derivatives
December 6, 2010--The Commodity Futures Trading Commission (CFTC) has approved for publication in the Federal Register a request for comment that is expected to assist in the preparation of a study on the feasibility of requiring the derivatives industry to adopt standardized computer-readable algorithmic descriptions that may be used to describe complex and standardized derivatives and calculate net exposures.
These algorithmic descriptions are intended to facilitate computerized analysis of individual derivative contracts and to calculate net exposures to complex derivatives.
The study also will consider the extent to which the algorithmic descriptions, together with standardized and extensible legal definitions, may serve as the binding legal definition of derivative contracts.
Section 719(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act establishes an interagency working group comprised of the CFTC and the Securities and Exchange Commission to conduct this study.
Morgan Stanley EXCHANGE-TRADED FUNDS: US ETF WEEKLY UPDATE
December 6, 2010--Weekly Flows: $216 Million Net Inflows
ETFs Traded $346 Billion Last Week
Launches: 7 New ETFs
Two Direxion ETFs Close
US-Listed ETFs: Estimated Flows by Market Segment
For the second straight week, ETFs generated net inflows ($216 million last week)
Net inflows in US Sector & Industry ETFs were offset by net outflows in US equity size segments (Large, Mid,
Small, Micro)
ETF assets stand at $969 bln; up 24% YTD
13-week flows were mostly positive among asset classes
$47.8 bln net inflows into ETFs over past 13 weeks (56% into EM & US Large-Cap Equity)
We estimate ETFs have posted net inflows 35 out of 48 weeks YTD
US-Listed ETFs: Estimated Largest Flows by Individual ETF
Energy Select Sector SPDR (XLE) posted net inflows of $1.1 bln last week, the most of any ETF
Amid a spike in oil prices, XLE generated large net inflows last week; YTD XLE’s flows have been volatile
For the third straight week, SPY posted net outflows; but over 13-wk period has taken in most new money
US-Listed ETFs: ETF Dollar Volume
Market share of monthly ETF volume as % of listed volume has nearly tripled over 5 yrs
Leveraged/Inverse accounts for 11% weekly ETF volume, but only has 3% of market cap
Fixed Income accounts for only 3% weekly ETF volume, but has 15% of market cap
Impact investing could reach $1 trillion in 10 years: JP Morgan report
Investing in ‘bottom-of-the-pyramid’ could yield profits of hundreds of billions while focusing on social and environmental improvement.
December 6, 2010--Impact investing, which prioritises positive social and environmental impact over investment returns, could see new capital inflows ranging from $400bn to nearly $1 trillion in the next ten years as the ‘emerging asset class’ targets segments of the economy typically under-served by traditional business. A report by JP Morgan, the US bank, said impact investing merited the status of new asset class and estimated that it could generate potential profits ranging from $183bn to $667bn over the next ten years by investing in sub-sectors including agriculture, water, housing, education, health, energy and financial services (microfinance), notably in countries where people earn less than $3,000 annually.
This is referred to as the ‘bottom-of-the-pyramid’ approach (BoP), a phrase popularised in a 2004 book by Indian business professor C.K. Prahalad. The report was prepared for the Rockefeller Foundation, which supports the development of impact investing. JP Morgan looked at expected and realized returns from more than 1,000 investments collected by the Global Impact Investing Network, a lobby group, as the basis for its estimates.
view report-JP Morgan Impact Investments: An emerging asset class
NSX Releases November 2010 ETF Data Reports; Assets Reach New Month End Record
December 3, 2010--Highlights from the November report include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) reached a record of $947 billion at November 2010 month-end. This is an increase of approximately 26% over November 2009 month-end when assets totaled $752 billion.
ETF net cash inflows for the month totaled over $11 billion, bringing the year to date total to approximately $99.7 billion.
Total U.S. Equities and Total Global/Int'l Equities led all product categories with approximately $5.5 billion and $3.7 billion, respectively, in net cash inflows.
At November month-end, 482 ETFs/ETNs posted net cash inflows while 231 ETFs/ETNs posted net cash outflows
ETF/ETN notional trading volume during November 2010 totaled $1.46 trillion, representing 29% of all U.S. equity trading volume.
At the end of November 2010, there were 1092 listed products.
Visit http://www.nsx.com for more info.
CFTC.gov Commitments of Traders Reports Update
December 3, 2010--The CFTC.gov Commitments of Traders Reports for the for the week of November 30, 2010 have been updated and are now available.
view updates
Innealta Capital's Tactical ETF Portfolios Added to the Ameriprise Financial Active Portfolios® Investments Platform
December 3, 2010--Innealta Capital, a leading asset manager specializing in the active management of Exchange Traded Funds (ETFs), announced today that its solutions will be included as part of Ameriprise Financial's Active Opportunity ETF Portfolios(SM) investment platform.
"Our solutions are rapidly being adopted by sophisticated financial advisors and high net worth clientele. Receiving the mandate from Ameriprise is another step forward in our plan for building a boutique provider of active investment management solutions for the needs of advisors and individual investors," said Jeff Montgomery, Chief Executive Officer of AFAM | Innealta Capital. "There has been a fundamental shift in what advisors and investors are demanding from professional money management firms in terms of growing and preserving wealth. Through the use of ETFs, our quantitative portfolios provide international and domestic exposure to fixed income and equities. Our solutions allow advisors and investors to think globally, and act tactically."
ETF Securities Launches New Physical White Metals Basket (WITE)
December 3 2010-- ETF Securities announced today that ETFS Physical White Metals Basket Shares will list on the NYSE Arca on December 3, 2010 trading under the ticker symbol WITE “White”.
Key highlights of WITE:
Unique offering: ETFS Physical WM Basket Shares (Ticker: WITE) will be the first US physically-backed ETP to exclusively hold silver, platinum and palladium in fixed weights. WITE complements the existing suite of products provided by ETF Securities, which continues to offer the broadest range of physically-backed precious metal ETPs in the US market.
White metals Basket: It is expected that WITE will appeal to those investors looking for a “one trade solution” to invest in all three precious metals as well as diversify their existing gold holdings.
Industrial Metal Play: It is expected that WITE may appeal to investors looking for a precious metals play more geared to the economic growth cycle.
Cost effective: The Sponsor’s Fee for WITE will be 0.60%(3). It is expected that the transaction costs for buying and selling the shares will be lower than purchasing, storing and insuring physical silver, platinum and palladium.
Liquid(6): The shares will trade on the NYSE Arca. The Trust structure allows for shares to be created and redeemed according to supply and demand in the market.
Brazil raises reserve requirements to avert bubble
December 3, 2010--Brazil on Friday moved to cool its economy and fight inflation by raising bank reserve requirements in a step designed to help it fight back in the global currency wars by curbing a local lending boom without hiking local interest rates already among the highest in the world.
The policy change, which follows similar moves by China last month, aims to contain the growth in Brazilian credit, which is expanding 20 per cent a year. Along with a spike in global food prices, the lending boom has helped push inflation above the government’s target of 4.5 per cent a year.
iShares Launches Short-Term TIPS Exchange Traded Fund
Builds on iShares' Strong Fixed Income Offerings, Which Have Received the Most Net Flows of Any ETF Family Year-to-Date
December 3, 2010-- BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, is launching the iShares Barclays 0-5 Year TIPS Bond Fund (NYSE Arca: STIP) on the NYSE Arca. The fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security (TIPS) curve through TIPS with less than five years to maturity. The new fund is the only ETF that offers access to the very shortest end of the curve (zero to one year), and is intended to help investors seek protection against realized inflation, achieve additional portfolio diversification, or express a view on yields.
The new iShares Barclays 0-5 Year TIPS Bond Fund expands the iShares fixed income offering to 33 ETFs, which have seen a high level of interest in 2010 as investors seek income, a hedge against inflation and more precise fixed income exposure in the U.S. and internationally. According to FactSet, Bloomberg and BlackRock, iShares has the most fixed income ETFs and has received double the net flows into its fixed income offerings versus other ETF providers in 2010. iShares fixed income ETFs have brought in $14 billion this year, as of November 30th, and currently have a total of $93 billion under management.
"iShares has long been the fixed income ETF leader, and we have continued to see strong interest in our fixed income products this year, as investors look for protection from inflation and further diversification in their portfolios," said Matt Tucker, Head of Fixed Income Investment Strategy for iShares at BlackRock. "The new iShares Barclays 0-5 Year TIPS Bond Fund offers investors these same attributes along with a low sensitivity to interest rates. For example, a STIP investor would receive higher distributions if inflation increases over time, but would see less impact if interest rates rise than would an investor in a longer maturity TIPS fund."
