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CFTC Designates Green Exchange, LLC as a Contract Market
July 23, 2010-- The Commodity Futures Trading Commission (CFTC) yesterday approved the application of Green Exchange, LLC (“GreenEx”) for designation as a contract market. GreenEx is organized as a Delaware Limited Liability company and is a wholly-owned subsidiary of Green Exchange Holdings, LLC (“GreenEx Holdings”). Chicago Mercantile Exchange, Inc. (“CME”) is the largest equity owner of GreenEx Holdings.
Other equity owners include Evolution Markets, Inc., Morgan Stanley Capital Group, Inc., Credit Suisse First Goldman, Sachs, & Co., as well as other brokers, dealers and commercial users.
GreenEx will list for trading a broad variety of contracts for environmental risk management that are currently traded on the New York Mercantile Exchange (“NYMEX”).
GreenEx will use CME’s Globex electronic trade-matching system. Clearing services for GreenEx will be provided by CME Clearing House. Regulatory services for GreenEx will also be provided by CME.
Global X Funds To Unveil World's First Lithium ETF
July 22, 2010--Global X Funds said Thursday it will unveil on Friday the world's first lithium exchange-traded fund in shares of the largest and most liquid lithium battery producing and mining and refining companies
"The Global X Lithium ETF is an efficient way to invest in what we refer to as a "green" commodity because of its direct correlation to the renewable energy market such as electric cars and energy storage," said Bruno del Ama, CEO of Global X Funds in a press release.
Lithium is expected to be in increasing demand as carmakers look to costly but more efficient lithium-ion batteries to power hybrid and electric vehicles.
ETFS Securities files with the SEC
July 22, 2010-ETF Securities, has filed a FORM S-1 for
ETFS Asian Gold Trust.
view filing
Wisdom Tree files with the SEC
July 22, 2010--Wisdom Tree has filed a post-effective amendment, registration statement with the SEC for
WisdomTree Managed Futures Strategy Fund
Total Annual Fund Operating Expenses: 0.95 %
Claymore files with the SEC
July 22, 2010--Claymore has filed a post-effective amendment, registration statement with the SEc for
Claymore/Beacon Global Exchanges,
Brokers & Asset Managers Index ETF-Ticker Symbol: EXB
Claymore/Robb Report Global Luxury Index ETF-Ticker Symbol: ROB
Claymore/Zacks Country Rotation ETF-Ticker Symbol: CRO
Claymore files with the SEC
July 22, 2010--Claymore has filed a post-effective amendment, registration statement with the SEC for
Claymore U.S. Capital Markets Bond ETF-Ticker Symbol: UBD
Claymore U.S. Capital Markets Micro-Term Fixed Income ETF-Ticker Symbol: ULQ
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ALPS files with the SEC
July 22, 2010--Alps has filed a post-effective amendment, registration statement with the SEC for
RiverFront Strategic Income Fund
Total annual Fund operating expenses after fee waiver
:0.24
SEC gives asset-backed deals 6 months' grace
July 22, 2010--Regulators on Thursday said companies selling securities backed by loans would have six months of breathing room to comply with new regulations that could have made selling such deals difficult.
The move by the Securities and Exchange Commission follows the refusal of credit rating agencies to allow ratings on new securities backed by auto loans and other consumer credits to be used in documents needed to sell bonds in the public markets.
CFTC Begins Publishing New Large-Trader Report for Financial Futures Markets
July 22, 2010--The U.S. Commodity Futures Trading Commission (CFTC) today announced that it will begin publishing a new report that adds further transparency to the financial futures markets. The report, entitled Traders in Financial Futures (TFF), builds on improvements to transparency implemented last year that disaggregated data in the CFTC’s weekly Commitments of Traders (COT) Reports.
“Promoting transparency is at the core of the CFTC’s mission,” CFTC Chairman Gary Gensler said. “The new Traders in Financial Futures reports will provide the public with a better view into the financial futures marketplace. This transparency effort builds upon prior improvements we made to the COT reports and will provide the market with much helpful information. I thank the CFTC staff for their hard work to prepare these new reports.”
For decades, the CFTC has provided the futures industry with COT reports consisting of aggregated large-trader position data to shed light on the changing composition of the markets. The reports are based on a request by Congress for an annual report, upon passage of original enabling legislation in the 1920’s, and have been intensified over time into weekly reports in several formats.
The new TFF report uses the same data that appears in the COT reports, but separates large traders in the financial futures markets into the following four categories: Dealer/Intermediary; Asset Manager/Institutional; Leveraged Funds; and Other Reportables. The “dealer/intermediary” category comprises the sell-side participants that earn commissions selling financial products, capturing bid/offer spreads and otherwise accommodating clients. The remaining three categories represent buy-side participants. These are generally clients of the sell-side participants who use the markets to invest, hedge, manage risk, speculate or change the term structure or duration of their assets.
Like the COT reports, the TFF report provides a breakdown of each Tuesday's open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. The report is published in futures-only and futures-and-options-combined formats. The TFF report will be published concurrently with the legacy COT. The TFF report, however, is not a disaggregation of the COT data for the financial markets. The traders classified into one of the four categories in the TFF report may be drawn from either the “commercial” or “noncommercial” categories of traders in the legacy COT reports. The CFTC also plans to soon release four years of historical data for the new report.
Global Equity Index & ETF Research -- US Weekly ETP Market Review
July 21, 2010--New Listings and Delistings
There were 13 new listings in the previous week, all of them listed on NYSE Arca. Direxionshares launched two sets of leverage ETFs offering Long and Short exposure to the Retail and Natural Gas sectors. While BlackRock launched a range of ETFs offering exposure to 9 Global ex-US sectors.
Net Cashflows
Total ETP inflows in the US add up to $1.0 bn during the previous week. Fixed Income had inflows of $1.6 bn. Equity, Commodity and Currency ETPs, on the other hand, experienced outflows of $587 mm, $3 mm and $17 mm, respectively
Within Equity ETPs, Emerging Markets Regional ETPs received the largest inflows ($0.8 bn) followed by Leveraged Short ETPs, while Small Cap ETPs saw the largest outflows ($1.0 bn).
The Fixed Income ETPs space saw strong inflows again this week, with Corporates ETPs ($734 mm) and Sovereign ETPs ($400 mm) leading the positive flows.
Commodity ETPs were almost neutral and no major trend was observed.
Turnover
After a couple of months of high turnover, Avg. Daily Turnover has dropped to pre-May levels. Turnover for this week was $71 bn, dropping 3.4% from the previous week.
Assets Under Management (AUM)
US ETPs AUM remained at around the same level totaling $792 bn at the end of the week. Equity ETPs account for 72% of the assets with $570 bn, followed by Fixed Income funds with $138 bn and 17% of market share..
To request a copy of the report
AdvisorShares Launches First Actively Managed International ETF
WCM/BNY Mellon Focused Growth ADR ETF (AADR)
July 21, 2010--AdvisorShares Investments, LLC, an investment adviser to actively managed exchange traded funds (ETFs), announced that it will begin trading in the industry's first actively managed international ETF, the WCM/BNY Mellon Focused Growth ADR ETF (NYSE: AADR) today, July 21st.
AADR is sub-advised by institutional money manager WCM Investment Management (WCM.) BNY Mellon is the world's largest depositary for American Depositary Receipts (ADRs) and will provide the primary benchmark to the Fund as well as expertise within the ADR industry to the portfolio management team. WCM will implement its investment strategy through the use of ADRs which may be attractive to U.S. investors for accessing international markets, but also provide convenience from a trading and settlement perspective.
"WCM Investment Management has experience with this strategy within other investment vehicles which follow this very thoughtful fundamental investment process to construct their portfolios. We are excited to bring investors special access to this unique, first of its kind strategy as well as to this institutional quality investment advisory firm," said Noah Hamman, CEO and Founder of AdvisorShares.
The investment objective of AADR is long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index and the MSCI EAFE Index. AADR strives to provide a high-quality, large-cap growth portfolio for the non-U.S. universe. The portfolio, which includes developed and emerging markets, is purposely very different from international benchmarks and other international funds. WCM achieves this differentiation by concentration (20-30 holdings) and an emphasis on traditional growth sectors such as technology, healthcare and consumer staples/discretionary. The AADR portfolio management team seeks to invest in businesses that appear likely to benefit from long-lasting global trends (tailwinds), growing competitive advantages (a widening economic moat) and a superior corporate culture (great people). Finally, WCM recognizes the role valuation plays in investment returns and therefore seeks to pay a reasonable price for companies.
WCM Investment Management President and Co-CEO Paul R. Black said, "At WCM, our investment strategy is driven by timeless principles that we believe are poised to outperform extremely inefficient international benchmarks." Black added, "In bringing AADR to market with AdvisorShares, we can now offer our investment philosophy via an exchange traded vehicle which will be available to those institutional as well as retail investors who ordinarily would not have access to our firm."
Horizons AlphaPro Launches Actively Managed Global Dividend ETF
July 21, 2010--AlphaPro Management Inc. ("AlphaPro"), the manager of the Horizons AlphaPro Exchange Traded Funds ("ETFs"), is pleased to announce the launch of the Horizons AlphaPro Global Dividend ETF (the "Global Dividend ETF"). The Global Dividend ETF will begin trading today on the Toronto Stock Exchange under the symbol HAZ.
The sub-advisor to the Global Dividend ETF is Guardian Capital LP ("Guardian Capital"), which has been managing private client and institutional money for more than 40 years and currently oversees more than $13.4 billion in assets under management.
The investment objective of the Global Dividend ETF is to seek long-term returns consisting of regular dividend income and modest long-term capital growth. The Global Dividend ETF invests primarily in equity and equity-related securities of companies with operations located anywhere in the world.
"Volatile market conditions over the past two years highlight the tremendous value of dividend-paying stocks. Dividends provide a strong cushion in times of market uncertainty," said Ken McCord, President of AlphaPro.
Mr. McCord points out that Canadian investors limit their dividend-stock buying opportunities if they only buy domestic dividend-paying stocks.
"Canadian companies represent only a small share of the world's companies. Having global exposure gives an investor the opportunity to buy the world's best dividend-paying stocks," Mr. McCord said.
Guardian Capital will select high-quality, dividend-paying companies located globally that, in its view, demonstrate a consistent pattern of growing dividends. The portfolio investments will be diversified among different companies and industry sectors.
The investment team at Guardian Capital will use a robust systematic research process to select companies for consideration. From those selected, the investment managers will conduct a bottom-up analysis to determine which companies should be added to the portfolio.
"Using a combination of fundamental, quantitative and technical research allows Guardian Capital to find those companies in the world, wherever they may be located, that offer the best prospects for consistently increasing dividend payments," Mr. McCord said.
Since it is designed specifically to meet the needs of Canadian investors, the Global Dividend ETF will initially seek to hedge 50% of its non-Canadian dollar currency exposure, and may continue to hedge such exposure at the discretion of Guardian Capital.
Guardian Capital will invest primarily in equity securities listed on North American exchanges, including American Deposit Receipts ("ADRs"), and may also from time to time invest in preferred and fixed-income securities such as government bonds, corporate bonds or treasury bills.
The Global Dividend ETF has closed the offering of its initial units and will begin trading on the Toronto Stock Exchange today when it opens this morning.
AdvisorShares Lists WCM / BNY Mellon Focused Growth ADR ETF on NYSE Arca
July 21, 2010-- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the WCM / BNY Mellon Focused Growth ADR ETF (Ticker: AADR). The ETF is sponsored by AdvisorShares, and sub-advised by WCM Investment Management (“WCM”).
The Fund’s investment goal is long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index, the Fund’s primary benchmark, and the MSCI EAFE Index, the Fund’s secondary benchmark. WCM seeks to achieve the Fund’s investment objective by selecting a portfolio of U.S. traded securities of non-U.S. organizations, most often American Depositary Receipts (ADRs), included in the BNY Mellon Classic ADR Index. The Fund’s investment focus follows WCM’s core philosophy of investing in what it believes are industry-leading non-U.S. organizations, led by visionary management teams with sound business strategies.
Dow Jones Indexes Mid-Year Commodities Outlook Media Summary
July 21, 2010--The Dow Jones-UBS Commodity Index is down 9.66% so far this year. In terms of sectors, the Dow Jones-UBS Precious Metals Sub-index has the strongest year-to-date gain of 12.80%. Leading commodity analysts provided their market outlook for the remainder of 2010 this morning at the ninth annual Dow Jones Indexes Mid-Year Commodity Outlook.
Oil prices will eventually see a down-turn
“Oil has been a pawn in the economic recovery story and is being artificially supported by historic economic stimulus and economic puffery,” said Phil Flynn, senior energy and general market analyst, PFG Best Research. “Because of that, oil prices are in a range that will eventually see a down-turn, most likely breaking into the $40 range,” said Mr. Flynn. “Gasoline is back to $1.80 per gallon and Heating Oil is at $1.84 per gallon,” he added.
Grains prices have held steady for now
“Grains and oilseed prices have been testing the low end of their projected ranges but have held steady for now,” said Jack Scoville, vice president, Price Futures Group. “Right now, we are in the process of establishing low pricing areas that might hold for many years to come,” he added.
Sovereign debt issues to be a primary driver behind gold prices next year
“Sovereign debt issues and flight to safety bid to be primary drivers behind gold prices in 2011 as investors seek currency alternatives and chase returns,” said Matthew J. Zeman, Commodity Futures Broker, La Salle Futures Group.
BM&FBOVESPA Announces Reduction in the Round Lot for ETFs
July 21, 2010-- BM&FBOVESPA has announced that as of August 2, 2010 the round lot for index funds or ETFs (Exchange Traded Funds) will be reduced from 100 units to 10 units, which means that the minimum value needed to invest in this product will be ten times less than it was. For example, a round lot for the ETF BOVA11, which mirrors the Bovespa Index, based on its closing price on July 19, would be reduced from BRL6,280.00 to BRL628.00.
The objective of this round lot reduction is to increase the trading potential of these funds especially for individual investors.
ETFs are funds which mirror indexes and their units are traded on the Exchange just like shares. When investors buy the units of any given ETF, they become holders of all the component shares of the index which that ETF replicates without having to buy the shares of each company in the index separately. As a result, ETFs provide investors with a fast, efficient and practical investment opportunity which also facilitates their ability to closely follow the performance of their investment in the respective index.
There are currently seven index funds (ETFs) trading at BM&FBOVESPA. Six are managed by BLACKROCK BRASIL and they are: BOVA11 (iShares Ibovespa Fundo de Indice), SMAL11 (iShares BM&FBOVESPA Small Cap Fundo de Indice), MILA11 (iShares BM&FBOVESPA MidLarge Cap Fundo de Indice), BRAX (iShares Indice Brasil IBrX-100 Fundo de Indice); CSMO (iShares Indice BM&FBOVESPA de Consumo Fundo de Indice); and MOBI (iShares Indice BM&FBOVESPA Imobiliario Fundo de Indice). The seventh, PIBB11 (PIBB Fundo de Indice Brasil - 50 - Brasil Tracker), is managed by Banco Itau.
