Americas ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
MSCI Launches Micro Cap and All Cap Indices for Developed Markets
December 2, 2010--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced
today that it has launched the MSCI Micro Cap Indices for all Developed Markets countries and regions covered by
MSCI. MSCI is the first major index provider to offer consistent micro cap coverage across these markets.
The MSCI Micro Cap Indices add 4,862 new securities to the number covered by the MSCI Global Equity Indices, led
by constituents from Japan (1,318 securities) and the US (964 securities)1. The indices include companies with
market capitalizations as low as USD 29.5 million1.
In conjunction with the MSCI Micro Cap Indices, MSCI is also launching the MSCI All Cap Indices today, which aim to provide comprehensive coverage of all capitalization segments and approximately 99.8% of the Developed Markets equity universe. The MSCI All Cap Indices extend and complement the existing MSCI Investable Market Indices (IMI) which include large, mid and small cap companies.
Theodore Niggli, Managing Director and Head of MSCI Indices, said “With the launch of these new indices we now offer an effective alternative to existing domestic micro cap indices, and provide a deeper all cap equity opportunity set for Developed Markets, with large, mid, small and micro cap representation.”
Both the MSCI Micro Cap Indices and the MSCI All Cap Indices follow the principles of the MSCI Global Investable Market Indices Methodology and are constructed with a focus on data quality, and index transparency and consistency across all size segments and geographies.
MSCI’s extension of coverage into the micro cap segment demonstrates the company’s ongoing commitment to address the evolving needs of its clients, and represents yet another landmark in the company’s 40-year history of index development.
MSCI also announced today that it has extended its Frontier Markets universe to include small cap coverage. The new MSCI Frontier Markets Small Cap Indices cover 26 countries and 242 securities1.
Performance data for all the new indices will be available on www.msci.com at market close today, and will be included in the applicable end of day index products for MSCI index clients.
1 All index statistics cited use pro forma index data as of October 21, 2010.
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
Commissioner Michael V. Dunn
December 1, 2010--
Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding:
Core principles and other requirements for designated contract markets;
General regulations for derivatives clearing organizations;
Information management requirements for derivatives clearing organizations;
Reporting, recordkeeping and daily trading records requirements for swap dealers and major swap participants; and
The definition of “swap dealer,” “security-based swap dealer,” “major swap participant” and “eligible contract participant.
I will support publishing these proposed rules in their current form, but I am concerned that the rules addressing DCM core principles, as currently drafted, may be too prescriptive.
OCC Announces Total Contract Volume in November Increased 33%
December 1, 2010--The Options Clearing Corporation (OCC) announced today that total OCC volume reached 354,897,569 contracts in November. This represents a 33% percent increase over the November 2009 volume of 266,989,810 contracts. OCC year-to-date total volume is up 8% with 3,581,480,630 contracts, only 43,540,423 contracts away from last year's annual total.
As of the end of November, OCC's year-to-date cleared futures volume is 23,619,380, nearly double the 2009 annual total of 12,383,935 contracts.
Options: Exchange-listed options trading in the U.S for the month of November was up 33% from the previous year. Index options trading increased 5% over the previous November with 23,247,409 contracts. Equity options trading volume rose 35% compared to the same month last year with 328,797,894 contracts in November.
Volume Records Propel November Trading At CBOE Futures Exchange To All-Time High
December 1, 2010--The CBOE Futures Exchange, LLC (CFE) today announced that November 2010 was the most-active trading month in CFE history.
The record 751,481 contracts that changed hands during the month surpassed the previous high of 481,650 contracts in May 2010. November volume exceeded the 184,558 contracts traded during November 2009 and gained 57 percent from the 479,304 contracts that traded during October 2010. November marked the fourteenth consecutive month in which total volume registered an increase when comparing year-over-year trading activity.
Fed reveals global extent of its backing
December 1, 2010-- Rivers of ink have been spilt on the crisis that gripped the world’s financial system between 2007 and 2009.
Wednesday’s huge release of data by the US Federal Reserve chronicles a similar story, but in numbers. A lot of numbers.
Wikileaks puts focus on banks’ data security
December 1, 2010--The news that Wikileaks may be planning to release a trove of internal documents from a big US bank added to the list of woes facing an industry that still appears under attack from all sides.
Bank of America shares dropped 3 per cent on Tuesday on speculation that it will be the next high-profile target of Julian Assange’s whistle-blowing website.
European banks took big slice of Fed aid
December 1, 2010--Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system.
The revelation of the scale of overseas lenders’ borrowing underlines the global nature of the turmoil and the crucial role of the Fed as the lender of last resort for the world’s banking sector.
Turkey Soup Opening Statement of Commissioner Bart Chilton Before the Open Meeting on the Sixth Series of Proposed Rulemakings Under the Wall Street Reform and Consumer Protection Act
December 1, 2010--Thank you, Mr. Chairman. I hope that everyone had a good Thanksgiving. I was thinking of how my mother used to take what was left of the Thanksgiving turkey carcass and make it into a delicious turkey soup sometime later. As the carcass simmered, the meat that was left would fall off the bones and the aroma and the flavor were both terrific.
The flavor of what we’re doing here, I suppose, is just the opposite. We’re putting meat on the bones of this new law. ‘Course, we don’t want to wind up with a turkey when we’re done and I don’t think we will both because of the great work the staff is doing and the public input we’ve received.
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
December 1, 2010--Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding:
Core principles and other requirements for designated contract markets;
General regulations for derivatives clearing organizations;
Information management requirements for derivatives clearing organizations;
Reporting, recordkeeping and daily trading records requirements for swap dealers and major swap participants; and
The definition of “swap dealer,” “security-based swap dealer,” “major swap participant” and “eligible contract participant.
I will support publishing these proposed rules in their current form, but I am concerned that the rules addressing DCM core principles, as currently drafted, may be too prescriptive. If this rule was before us today as a final rule, I would have reservations voting for its release based on my firm belief that the CFTC should remain a principles based regulator, and not a prescriptive regulator. However, after meeting with our staff, it is my understanding that many of the provisions of the proposed DCM core principles are actually already being followed by industry or have become best practices over time. In essence, my understanding is that this proposed rule simply codifies what is already being done. It is my understanding that many in the industry desire the establishment of a safe harbor that will ensure that they are in fact meeting the intent of the core principle. However, I do not know this to be true and will look to the public comments on this proposed rule to guide my decision making process in regard to the final rule. Comments indicating that we are indeed merely codifying the best practices already in use and a safe harbor is needed for legal certainty, will influence my vote on a final rule.
Barclays Launches Leveraged iPath
New ETNS provide investors with access to leveraged returns on equity indices
November 30, 2010– Barclays Bank PLC announced today the launch of eleven leveraged iPath ® Exchange Traded Notes (ETNs) on the NYSE Arca stock exchange. The new iPath
ETNs provide investors with a way to access leveraged returns based on the performance or inverse performance of equity market benchmarks or strategies. The ETNs offer both long and short leveraged exposure to index provider indices from S&P, Russell and MSCI.
The new iPath ETNs are:
iPath® Long Extended Russell 1000
®TR Index ETN (ROLA)
iPath® Short Extended Russell 1000 ® TR Index ETN (ROSA)
iPath ® Long Extended Russell 2000 ® TR Index ETN (RTLA)
iPath ® Short Extended Russell 2000 ®TR Index ETN (RTSA)
iPath ® Long Extended S&P 500 ® TR Index ETN (SFLA)
iPath ® Short Extended S&P 500 ® TR Index ETN (SFSA)
iPath ® Long Enhanced MSCI EAFE ® Index ETN (MFLA)
iPath ® Short Enhanced MSCI EAFE ® Index ETN (MFSA)
iPath ® Long Enhanced MSCI Emerging Markets Index ETN (EMLB)
iPath ® Short Enhanced MSCI Emerging Markets Index ETN (EMSA) iPath ® Long Enhanced S&P 500 VIX Mid-Term Futures ETN (VZZ)
“We are delighted to expand the iPath platform with a comprehensive suite of products that provides our clients with leveraged and inverse exposure to the equity and volatility markets,” said Philippe El-Asmar, Managing Director, Head of Investor Solutions at Barclays Capital. “The leveraged iPath ETNs offer a new way to manage capital across the equity markets and we believe these investment tools will be useful for investors wishing to tailor the risk/return profile of a global equities portfolio.”
iPath ETNs are senior, unsecured, unsubordinated debt securities issued by Barclays Bank PLC. The ETNs are designed to provide investors with a way to access leveraged returns of a market or strategy, less certain costs and fees. The primary features of the ETNs are a return based on a leveraged participation in the performance or inverse performance of the applicable underlying index, a fixed maturity date, an automatic redemption mechanic and an optional redemption
feature for holders. The ETNs track a fixed multiple of the performance of the underlying index over the term of the ETNs, before the deduction of certain costs and fees as described in the applicable prospectus.
The prospectuses can be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product website at www.iPathETN.com.
Barclays Bank PLC is the issuer of iPath ETNs and Barclays Capital Inc. is the issuer’s agent. BlackRock’s broker dealer affiliate, BlackRock Fund Distribution Company, engages in the
promotion of iPath ETNs to intermediaries.
UBS Announces the UBS E-TRACS Daily Long-Short VIX ETN
December 1, 2010--UBS Investment Bank announced today that it has once again added to its suite of UBS E-TRACS Exchange Traded Notes (ETNs) with the new UBS E-TRACS Daily Long-Short VIX ETN. It began trading today on NYSE Arca under the ticker symbol, XVIX. UBS E-TRACS Daily Long-Short VIX ETN offers access to an innovative trading strategy in a single exchange traded security.
“We believe in the UBS E-TRACS platform and in the ETN as a structure that can efficiently respond to investor needs,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “Today’s launch marks our 18th ETN, giving investors a cost-efficient way to capitalize on the steepness of the short-end of the volatility market.”
UBS E-TRACS Daily Long-Short VIX ETN is linked to the S&P 500 VIX Futures Term-Structure Index ER (ticker: SPVXTSER). The Index is a composite index that measures the return from taking a long position in the S&P 500 VIX Mid-Term Futures™ Index Excess Return with 100% weight, and taking a short, or inverse, position in the S&P 500 VIX Short-Term Futures™ Index Excess Return with 50% weight, and rebalancing the weights of the long and short positions daily.
UBS E-TRACS belong to an innovative class of investment products offering access to markets and strategies that had not previously been readily available to investors, and offer unique diversification opportunities in a number of different sectors.
Horizons BetaPro launches an S&P 500 Index ETF for Savvy Canadian Investors
December 1, 2010--Jovian Capital Corporation ("Jovian") and its subsidiary BetaPro Management Inc. ("BetaPro"), the manager of the Horizons BetaPro exchange traded funds, are pleased to announce the launch of the Horizons BetaPro S&P 500® Index (C$ Hedged) ETF (the "BetaPro S&P 500® ETF" or "HXS"). The BetaPro S&P 500® ETF will begin trading on the Toronto Stock Exchange on December 1, 2010, under the symbol HXS.
In September 2010, BetaPro launched the Horizons BetaPro S&P/TSX 60(TM) Index ETF (HXT:TSX), the lowest cost ETF in Canada, tracking the S&P/TSX 60(TM) Index. Following in HXT's footsteps, HXS is the second ETF launched by BetaPro that will track an index already available to Canadian investors through another TSX listed index-tracking ETF.
"HXS represents another milestone for Canadian ETF investors and continues the new era of competition in the Canadian ETF industry, which we started with the launch of the Horizons BetaPro S&P/TSX 60(TM) Index ETF." said Howard Atkinson, president of BetaPro Management Inc. "In our view, the S&P 500® Index is the most important U.S. equity benchmark and we're offering an ETF solution designed to meet the unique tax and investment needs of Canadian investors who buy U.S. stocks.".
DB Global Equity Index & ETF Research: US ETP Market Weekly Review:Mid & small cap save the flows amidst bearish markets
December 1, 2010--Market Review
Although last week was a short week for the US market with the Thanksgiving holiday on Thursday and the early market close on Friday, it definitely didn’t fall short in market activity and money flows. The week started with a bearish tone in the US, but quickly shifted across both the Atlantic and the Pacific as discussions on the Irish bailout and the North Korean attack to South Korean Island news seized the market attention, respectively.
Global instability threats and financial concerns in the Eurozone brought the safe haven issue back to the mind of investors which in turn put their focus in Gold and the US. Helped by better-than-expected economic data released last Wednesday, our ETP flows data suggest that investors finally leaned towards the US for shelter fueling a brief market recovery, although not enough to offset the week’s losses. The S&P 500 was down by 0.86%, the MSCI World decreased by 2.02% and the MSCI EM pulled back by 2.78%. At the same time, Gold price in USD was up by 0.80% and the USD appreciated 3.15% against the EUR. Total US ETP flows reflected the market flight to the US with $4.1 bn in new money vs $3.7 bn outflows the previous week. The weekly average ETP flows stands at $2.2 bn year to date.
Equity ETP flows attracted by US-focused and Mid & Small Cap products
Equity ETPs received $4.5 bn in inflows vs $3.5 bn in outflows in the previous week. Money poured into US-focused Long Equity ETPs ($4.4 bn) after jobless claims data surprised on the upside putting the US on a relatively stronger economic position than its peers overseas, Figure 1.
A closer look at the Long Equity daily flows reveals that besides the geographic reallocation of money to the US, investors also looked for size reallocation into the mid and small cap segments. Small and mid cap segments are more resilient to global economic turmoil and more sensitive to domestic economic developments than large cap companies because of the nature of their respective businesses. Last week, this logic was clearly supported by the market and ETP flows. The S&P Mid Cap 400 and the S&P Small Cap 600 were up by 1.07% and 1.48%, respectively. In addition, mid and small cap ETPs received $4.1 bn in inflows while large cap ETPs recorded $0.4 bn inflows only, Figure 2.
Active ETPs: the only ones moving within Fixed Income
Fixed Income ETP flows remained flat (+$22 mm) vs $910 mm outflows in the previous week. Active ETPs were the only segment receiving significant inflows with $156 mm, while other major categories such as Corporates (+$3 mm) and Sovereign (-$144 mm) received flat or negative flows.
Are all Commodities running out of steam?
Commodity ETPs recorded $205 mm in outflows last week vs $544 mm in the previous week. Year to date, they have gathered $10.9 bn, most of which came during Q2. Broad Exposure (+$32 mm) and Agriculture (+$29 mm) ETPs received the largest among the overall small inflows, while Gold (-$128 mm) and Silver (-$84 mm) ETPs contributed with the largest outflows.
New Launch Calendar
The ETP launch calendar was mute last week, for second week in a row. No new listings in the US.
Turnover Review
In spite of market and flows activity, the short week was felt on the trading side where we didn’t see much change. Avg. Daily Turnover remained at about the same level and totaled $65 bn at the end of the week.
Assets Under Management (AUM) Review
Inflows were not enough to stop the market drop which finally removed $4.0 bn from the US ETP market assets. US ETPs AUM decreased slightly by 0.4%, retreating to $943 bn at the end of the week. Year to date US ETPs AUM has increased $162 bn or 20.7%.
To request a copy of the report
ISE Reports Monthly Volume for November 2010
December 1, 2010--The International Securities Exchange (ISE) today reported average daily volume of 3.0 million contracts in November 2010.
Average daily trading volume for all options contracts decreased 2.3% to 3.0 million contracts in November as compared to 3.1 million contracts during the same period in 2009.
Total options volume for the month increased 2.6% to 62.7 million contracts from 61. 1 million contracts in the same year-ago
period.
On a year-to-date basis, average daily trading volume of all options decreased 23.5% to 3.0 million contracts traded. Total year-to-date options volume through November 2010 decreased 23.5% to 689.2 million contracts from 900.4 million contracts in the same period last year.
AdvisorShares Launches the Peritus High Yield ETF (NYSE: HYLD)
HYLD is the first actively managed high yield bond ETF
December 1, 2010--December 1, 2010 - AdvisorShares Investments, LLC, an innovator of actively managed Exchange Traded Funds (ETFs), today announced that the Peritus High Yield ETF (HYLD) successfully began trading on the NYSE. HYLD is managed by Peritus Asset Management ("Peritus"), a Santa Barbara, California-based investment manager.
Peritus is a unique value focused, active credit manager capitalizing on opportunities in the corporate bond market. They place limited value on the rating agencies and their methodologies, believing the agencies lag the market perception of risk and often ignore critical components of a company's credit profile. Instead, Peritus views credit as either "AAA" or "D;" either the credit is expected to pay its coupon and principal obligations or it isn't. By avoiding arbitrary restrictions on aspects such as ratings and subordination and not being forced to take the one-of-everything approach as in the index products, Peritus is able to focus exclusively on the credits where they see the best risk reward.
Noah Hamman, CEO and Founder of AdvisorShares said, "We are very excited to be the first Firm to offer an actively managed high yield bond ETF to investors, and as identified by an active ETF panel at this year's Morningstar ETF conference, high yield is one of the top asset classes that benefits from professional active management." Hamman added, "The Peritus team averages over 15 years of experience specializing in high yield corporate bonds. In addition they have extensive trading experience and the relationships to find the best opportunities."
Tim Gramatovich, Chief Investment Officer of Peritus said, "We are very excited to have launched HYLD with AdvisorShares as we believe many investors have begun to realize the benefits of yield in their portfolios. Delivering this via an ETF brings both transparency and liquidity to a much misunderstood asset class. Given the massive size of the marketplace, we believe that we have the tools to manage this portfolio through any and all environments and as such view HYLD as an active credit fund with all season tires."
