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Fee Rate Advisory #3 for Fiscal Year 2011
December 3, 2010--The President and Congress are expected to extend the continuing resolution funding the Securities and Exchange Commission through Dec. 18, 2010. During this period, fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g) and 31 of the Securities Exchange Act of 1934 will remain at their current rates.
As previously announced, 30 days after the date of enactment of the Commission’s regular fiscal year 2011 appropriation, the Section 31 fee rate applicable to securities transactions on the exchanges and in the over-the-counter markets will increase from their current rate of $16.90 per million dollars to a new rate of $19.20 per million dollars. The assessment on security futures transactions under Section 31(d) will remain unchanged at $0.0042 for each round turn transaction.
In addition, five days after the date of enactment of the Commission’s regular appropriation, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will increase from their current rate of $71.30 per million dollars to a new rate of $116.10 per million dollars.
Standard & Poor’s Announces Changes in the S&P/TSX Canadian Indices
December 3, 2010--Standard & Poor’s Canadian Index Operations announces the following index changes:
The shareholders of Andean Resources Limited (TSX:AND) have approved the Merger Implementation Agreement whereby the company will merge with Goldcorp Inc. (TSX:G).
Assuming receipt of Australian court approval, expected on December 8, 2010, Andean Resources will be removed from the S&P/TSX Global Gold and Global Mining Indices. The relative weight of Goldcorp will increase in the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX 60, 60 Capped and Equity 60, the S&P/TSX Global Gold and Global Mining the S&P/TSX Capped Materials and the S&P/TSX MegaCap indices. There will be no change to Goldcorp in the S&P/TSX 60 Equal Weight or the S&P/TSX 60 130/30 indices. These changes will all be effective after the close of trading on Thursday, December 9, 2010.
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.
Invesco PowerShares Lists Four Financial Sector ETFs Based on KBW Indexes on NYSE Arca
December 2, 2010--Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $50 billion in franchise assets, announced that four new ETF portfolios, based on Keefe, Bruyette & Woods, Inc. (KBW) indexes, began trading today on the NYSE Arca. The portfolios provide investors with access to the real estate investment trust (REIT), financial services, and property & casualty insurance market sectors. The portfolio names and ticker symbols are listed below.
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)
PowerShares KBW International Financial Portfolio (KBWX)
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)
“KBW is highly regarded for producing industry-leading research on the financial services sector," said Ben Fulton, Invesco PowerShares managing director of global ETFs. “We believe the breadth and depth of their global research provides a unique perspective and ability to deliver institutional-caliber indexing strategies for investors looking to access specific sub-sectors. We are very excited to partner with KBW to provide investors four compelling ETFs based on the KBW family of financial sector indexes.”
“KBW Indexes are designed to replicate specific industry and market segments, offering retail and institutional investors access to hard-to-reach financial sub-sectors both domestically and abroad,” said John Howard, co-head of research at KBW. “The launch of these new PowerShares KBW ETFs allows investors to access a broad array of financial sectors, while providing an effective hedge against risk associated with market volatility.”
The PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY) is based on the KBW Premium Yield Equity REIT Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States.
The PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) is based on the KBW Financial Sector Dividend Yield Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 publicly listed financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The Index may also include securities of business development companies (BDCs) and equity and mortgage REITs.
The PowerShares KBW International Financial Portfolio (KBWX) is based on the KBW Global ex-U.S. Financial Sector Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is currently comprised primarily of American Depository Receipts (ADRs). The Underlying Index is a modified market capitalization weighted index that seeks to reflect the performance of approximately 60 non-U.S. financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services.
The PowerShares KBW Property & Casualty Insurance Portfolio (KBWP) is based on the KBW Property & Casualty Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is a modified market capitalization weighted index that seeks to reflect the performance of approximately 24 property and casualty insurance companies.
KBW operates in the U.S., Europe and Asia through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and Keefe, Bruyette & Woods Asia Limited. It also offers asset management services through KBW Asset Management, Inc. Founded in 1962, the firm is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading for financial services companies.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 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 $50 billion as of Sept. 30, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
BNY Mellon ADR Index Monthly Performance Review is Now Available
December 2, 2010--The BNY Mellon ADR Index Monthly Performance Review is now available.
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BM&FBOVESPA and BNDES launch the Carbon Efficient Index
Index presented today in São Paulo seeks to develop environmental management practices that emphasize climate change
December 2, 2010--BM&FBOVESPA and the BNDES launched on Thursday the Carbon Efficient Index (ICO2), which measures the return on a theoretical portfolio made up of those companies in the IBrX-50 index (constituted by the 50 most liquid shares on the Exchange) that adhered to the new initiative. The ICO2 index is calculated according to companies’ free float and their greenhouse gas (GHG) emissions coefficient.
In addition to the companies that are currently listed on IBr-X 50 and which joined ICO2, there were other firms considered that have highly liquid shares on the Exchange and the potential to join IBrX-50 at a later date. Of the 58 companies approached in all, 51 opted for voluntary adherence to the ICO2. The first portfolio, which comes into effect Thursday (December 2), will be made up of 42 companies.
CME Group Volume Averaged 14.2 Million Contracts per Day in November 2010, Up 31 Percent, and Up 24 Percent Sequentially
December 2, 2010--Highest monthly average daily volume since September 2008, excluding May 2010
Record agricultural commodities average daily volume of 1.3 million contracts, up 47 percent
Record metals average daily volume of 500,000 contracts, up 34 percent
CME Group, the world's leading and most diverse derivatives marketplace, today announced that November volume averaged 14.2 million contracts per day, up 31 percent from November 2009, and up 24 percent compared with October 2010. November represents the highest monthly average daily volume since September 2008, outside of the 16.8 million contracts averaged in May 2010.
Total volume for November was 297 million contracts, of which 83 percent was traded electronically.
In November 2010, CME Group interest rate volume averaged 7.0 million contracts per day, up 46 percent compared with the prior November, and up 48 percent sequentially. Treasury futures volume averaged 3.0 million contracts per day, up 37 percent compared with the same period in 2009, and Treasury options volume averaged 444,000 contracts per day, up 106 percent. Eurodollar futures volume averaged 2.6 million contracts per day, up 61 percent versus November 2009, and Eurodollar options volume averaged 838,000 contracts per day, up 24 percent.
Direxion files with the SEC
December 2, 2010--Direxion has filed a post effective amendment, registraion statement with the SEC.
view filing
Crisis-Hit Banks Flooded Fed with Junk
December 2, 2010--Banks flooded the Federal Reserve with billions of dollars in “junk bonds” and other low-grade collateral in exchange for much-needed liquidity during the crisis, as the financial sector struggled under a crippling credit crunch, new data show.
More than 36 percent of the cumulative collateral pledged to the US central bank in return for overnight funding under the Primary Dealer Credit Facility was equities or bonds ranked below investment grade. A further 17 percent was unrated credit or loans, according to a Financial Times analysis of Fed data released this week.
Lessons in a $3,300bn surprise from the Fed
December 2, 2010--When the US Congress passed the monstrously large Dodd-Frank financial reform bill last summer, it was clear that surprises were lurking in those 2,300 pages. This week one has cropped up.
Federal Reserve released the details of the liquidity measures and loans it extended during the financial crisis, totalling an eye-popping $3,300bn. Previously, the Fed fiercely resisted publishing this. And it is easy to see why: this release names individual institutions in a potentially embarrassing way – and shows that the Fed has supported foreign banks, ranging from Barclays Capital to Dexia, to a striking degree.
Barclays Expands iPath® Exchange Traded Notes Platform in Canada
Lists Two iPath® ETNs Linked to US Treasury Futures Indices on Toronto Stock Exchange
December 2, 2010--Barclays Bank PLC announced today the cross-listing of two iPath® Exchange Traded Notes (ETNs) on the Toronto Stock Exchange. The iPath ETNs are linked to US Treasury futures indices and provide exposure to fixed income strategies. The iPath ETNs are:
iPath® US Treasury Steepener ETN (Ticker Symbol: SST)
iPath® US Treasury Flattener ETN (Ticker Symbol: FFL)
“We are pleased to continue the expansion of our iPath ETN platform in Canada and to provide investors with innovative investment solutions. The ETNs allow investors to express their views on the shape of the US Treasury yield curve,” said Philippe El-Asmar, Managing Director, Head of Investor Solutions at Barclays Capital.
Barclays listed seven iPath ETNs on the Toronto Stock Exchange in December 2009
The ETNs are designed to provide investors with convenient access to the returns of market benchmarks, less applicable costs and investor fees. The ETNs are senior, unsecured, unsubordinated debt securities that trade in the secondary market during trading hours at market prices, and may typically be redeemed in at least 50,000 units on a daily basis directly to Barclays1. Currently, there are 70 ETNs listed globally with over US$8.4 billion assets under management.
Barclays PLC has a growing presence in Canada through Barclays Capital, its investment banking division. Barclays Capital has offices in Toronto and Calgary, providing investment products and services to corporate, government and institutional clients. The firm also operates a growing commodities trading business in the region. In 2009, Barclays Bank PLC successfully secured a bank license from the Canadian banking regulator to commence and carry on business as a foreign bank branch under the name Barclays Bank PLC, Canada Branch.
Statement on Position Limits, “Keeping Promises”
Commissioner Bart Chilton
December 2, 2010--Yesterday the Commission held the sixth in a series of open meetings to address rules implementing the Wall Street Reform and Consumer Protection Act of 2010. I commend the CFTC’s staff for working diligently on the myriad rules mandated by the Act, even now in the face of a pay freeze. The staff of the CFTC truly exemplifies the meaning of “service” in the performance of their roles as dedicated public servants.
am concerned, however, with regard to the potential derailment of what I consider to be one of the most important rules required by the Reform Act: implementation of speculative position limits. Congress put special emphasis on this provision, to protect markets and consumers from excessive speculation in commodities markets. Indeed, we were given a specific implementation date for position limits on energy and metals contracts—January 17, 2011—well in advance of the majority of other Reform Act rules. We have a commitment to enact this rule on time, a “promise to keep,” with the American consumer who is affected daily by the prices discovered on commodities markets.
CFTC to Hold Open Meeting on Seventh Series of Proposed Rules under the Dodd-Frank Act
December 2, 2010--The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, December 9, 2010, at 9:30 a.m. to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Core principles and other requirements for swap execution facilities;
End-user exception to mandatory clearing of swaps;
Business conduct standards with counterparties; and
Governance requirements for derivatives clearing organizations, designated contract markets and swap execution facilities, and additional requirements regarding the mitigation of conflicts of interest.
In addition to these proposed rulemakings, the Commission will consider the issuance of an interim final rule for reporting certain post-enactment swap transactions.
ELX Starts Month of December with Record-Breaking Open Interest and Volume in Eurodollar Futures
December 2, 2010--ELX Futures, L.P. (ELX) announced today that it has set new records in open interest (OI) and volume in its Eurodollar futures contract during the first trading session of December. OI for Eurodollar futures hit 198K contracts on December 1, with OI surging almost 80% since October.
The Eurodollar futures contract also kicked off December by setting a new volume record, with over 56K contracts traded, an increase of 38% from its previous record on November 30. Eurodollar futures continued to gain market share, hitting 2% on December 1, another new record, and continuing to build on November's 88% improvement in Average Daily Volume over October.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, “We continue to achieve new milestones with our Eurodollar futures contract, which was launched in June 2010. In the past six months the Eurodollar futures contract has established itself as an attractive new contract that has captured the interest of the futures marketplace. ELX remains committed to driving competition in a consolidated exchange environment of interest rate futures trading and the Eurodollar futures contract is a great testament to our efforts.”
Component Changes Made to Dow Jones Sector Titans Indexes
Changes Are The Result of The Regular Quarterly Review
December 2, 2010--Dow Jones Indexes, a leading global index provider, today announced results of the regular quarterly review of the Dow Jones Sector Titans and Dow Jones Emerging Markets Sector Titans Indexes. All changes will be effective after the close of trading on Friday, December 17, 2010.
In the Dow Jones Financial Services Titans 30 Index, Mega Financial Holding Co. Ltd. (Taiwan, Financial Services, 2886.TW) will be replaced by BlackRock Inc. (United States, Financial Services, BLK). Mega Financial Holding Co. Ltd. is being removed due to a change in its Supersector classification from Financial Services to Banks, according to the Industry Classification Benchmark (ICB). The free-float market capitalization of the reconstituted Dow Jones Financial Services Titans 30 Index increased to US$572.62 billion from US$563.87 billion.
In the Dow Jones Emerging Markets Utilities Titans 30 Index, Lanco Infratech Ltd. (India, Utilities, 532278.BY) will be replaced by Tauron Polska Energia S.A. (Poland, Utilities, TPE.WA). Lanco Infratech Ltd. is being removed due to failure to meet index requirements. The free-float market capitalization of the reconstituted Dow Jones Emerging Markets Utilities Titans 30 Index increased to US$101.11 billion from US$90.78 billion.
SEC Proposes Joint Rules with CFTC to Define Swap Related Terms
November 3, 2010--The Securities and Exchange Commission today voted unanimously to propose joint rules with the Commodity Futures Trading Commission (CFTC) that would further define a series of terms related to the security-based swaps market, including “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.”
The rules seek to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which among other things established a comprehensive framework for regulating the over-the counter swaps market.
SEC Chairman Mary L. Schapiro said, “Today’s proposals lay out objective criteria, but they are just a first step, as we seek public comment to help us appropriately address the market impacts and potential risks posed by these entities.”
The SEC is seeking public comment on the proposed rules for a period of 60 days following their publication in the Federal Register.
