Americas ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
Presentation by Andrei Kirilenko, Senior Financial Economist, CFTC Office of the Chief Economist on High Frequency Traders and Asset Prices
July 13, 2010--Committee Meeting to Discuss Best Practices for HFT/ALGO.
view presentation
CFTC Announces Members of the CFTC’s Technology Advisory Committee – Committee to Meet on July 14, 2010 to Discuss Best Practices for HFT/ALGO
July 12, 2010--The first meeting of the CFTC’s Technology Advisory Committee (TAC), titled “Technological Trading in the Markets,” will be held on July 14, 2010 at 1:00 p.m., at the CFTC’s Washington, DC headquarters’ Hearing Room. The meeting will address the topics of algorithmic (Algo) and high frequency trading (HFT). Andrei Kirilenko, a Senior Financial Economist in the CFTC’s Office of the Chief Economist, will present his paper, High Frequency Traders and Asset Prices; Richard Gorelick of RGM Advisors, LLC, will present a high frequency trading firm’s perspective on HFT; and a representative from FIA will present the paper Market Access Risk Management Recommendations regarding standards on direct market access.
Commissioner Scott D. O’Malia, Chairman of the TAC, has requested that members come to the first meeting prepared to debate the impacts Algo and HFT have on the market and whether or not best practices and/or regulatory standards related to Algo and HFT should be implemented by the Commission.
“The new TAC includes members with a wide range of technology expertise in the financial markets and will be charged with keeping the TAC abreast of new technological advances. With the depth of knowledge of the various TAC members, this new committee can play a vital role assisting the Commission’s efforts to better oversee the evolution of the derivatives markets,” stated Commissioner O’Malia.
NYSE Liffe U.S. to Become Sole U.S. Exchange for MSCI-Based Futures
For Futures on MSCI’s Emerging Markets and EAFE Indices, No Later Than June 2011, New Products Coming
July 12, 2010--NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced that it will coordinate with its global customer base to complete the orderly transition of trading and open interest of all existing MSCI-linked stock index futures in the U.S. to its platform no later than June 17, 2011. Earlier today, MSCI announced that other contracts listed in the US under its existing licenses are expected to cease trading on that date. To ensure the transition is effective, NYSE Liffe U.S. will begin working with market participants immediately.
“Listing of futures based on MSCI EAFE and EM Indices is part of our plan to be the premier venue for customers to access a diverse global equity product offering based on the well-known MSCI family of indices. In the coming months, we will continue to expand our offering by introducing additional contracts based on MSCI indices,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “We anticipate that customers who need to move open interest onto our exchange will want to begin that process well in advance of the June 2011 deadline and we’ll be working closely with these firms to support them throughout the process. Our goal is to build a unique exchange with exceptional liquidity, technology and service to our global customers.”
In May 2009, NYSE Liffe U.S. signed a license agreement with MSCI to offer a broad suite of domestic and international index futures products built on a range of MSCI equity indices. These indices include style and sector exposures as well as flagship MSCI indices like the MSCI Emerging Markets (EM), MSCI EAFE and MSCI BRIC Indices. MSCI calculates over 120,000 equity indices daily as part of a diverse index portfolio including broad and efficient market coverage of U.S. and European equity markets. MSCI indices are recognized and used by leading asset managers around the world.
A unit of NYSE Euronext, NYSE Liffe U.S. recently sold a substantial minority ownership stake to six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley, and UBS. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched more than 3 million contracts per day in 2010 year-to-date on the NYSE Liffe European markets. NYSE Liffe U.S. offers a wide variety of global connectivity options allowing members to efficiently transact on the platform in a highly cost-effective manner.
For more information on licenses for these indices please see MSCI’s announcement at http://www.mscibarra.com/products/indices/licd/changes_to_licensees_for_futures_contracts.html
and the NYSE Liffe U.S. website at www.nyse.com/nyseliffeus
Emerging Markets Week in Review -7/5/2010 - 7/9/2010
July 12, 2010--The Dow Jones Emerging Markets Sector Titans Composite Index was up a strong 3.71% last week, its largest weekly increase since April. Financials and Consumer Services led the market up, increasing 4.74% and 4.39% respectively, while Utilities were up the least with a 1.23% return.
As markets continue to be driven by weak economic data from the United States, focus will shift this week to China as it releases its latest figures for GDP, inflation and production.
RYDEX|SGI Becomes Industry's Largest Provider of Alternative Investment Mutual Funds With the Launch of Four Funds (2)
Rydex|SGI Combines Quality Investor Education With a Broad Alternative Investments Lineup, Including 12 Alternative Mutual Funds and 9 Exchange Traded Products
July 12, 2010--Rydex|SGI continues to build on its reputation as a leading provider of alternative investments with the introduction of four mutual funds that may help investors weather the ups and downs of challenging market environments. The firm today announced the launch of the following funds:
Rydex|SGI Event Driven and Distressed Strategies Fund (RYDSX, H-Share Class)
Rydex|SGI Long Short Interest Rate Strategy Fund (RYBUX, H-Share Class)
Rydex|SGI Long Short Equity Fund (RYJLX, H-Share Class)
Rydex|SGI Alternative Strategies Fund (RYETX, H-Share Class)
With the addition of these new funds, the company's alternatives lineup includes 12 mutual funds and nine exchange-traded products, making Rydex|SGI the industry's leading provider of alternative investment mutual funds as measured by the number of product offerings.
IQ Hedge Macro Tracker ETF (MCRO) Marks One-Year Anniversary
The Global Allocation Index ETF Posts Strong Results During Turbulent Period
July 12, 2010--The IQ Hedge Macro Tracker ETF , a global allocation index Exchange-Traded Fund (ETF), marked its one-year anniversary on June 9th, the fund’s sponsor, IndexIQ, announced today.
MCRO seeks to replicate, before fees and expenses, the returns of the IQ Hedge Macro Index. IndexIQ launched MCRO as a vehicle for investors seeking to help reduce the volatility of their portfolios by hedging their equity exposure, while simultaneously participating in upside potential. As a hedged strategy, MCRO has the ability to generate positive returns while the equity markets are negative, and MCRO’s performance since inception, which period was one of the most turbulent periods in our markets’ history, underscores this key attribute of the MCRO ETF.
U.S. International Reserve Position
July 12, 2010--The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $126,723 million as of the end of that week, compared to $126,620 million as of the end of the prior week.
I. Official reserve assets and other foreign currency assets (approximate market value, in US millions)
|
|
|
|||
|
|
July 9, 2010 |
|||
|
A. Official reserve assets (in US millions unless otherwise specified) 1 |
|
|
126,723 |
|
|
(1) Foreign currency reserves (in convertible foreign currencies) |
Euro |
Yen |
Total |
|
|
(a) Securities |
8,951 |
14,683 |
23,634 |
|
|
of which: issuer headquartered in reporting country but located abroad |
|
|
0 |
|
|
(b) total currency and deposits with: |
|
|
|
|
|
(i) other national central banks, BIS and IMF |
13,187 |
7,211 |
20,398 |
|
|
ii) banks headquartered in the reporting country |
|
|
0 |
|
|
of which: located abroad |
|
|
0 |
|
|
(iii) banks headquartered outside the reporting country |
|
|
0 |
|
|
of which: located in the reporting country |
|
|
0 |
|
|
|
|
|||
|
(2) IMF reserve position 2 |
11,765 |
|||
|
|
|
|||
|
(3) SDRs 2 |
55,183 |
|||
|
|
|
|||
|
(4) gold (including gold deposits and, if appropriate, gold swapped) 3 |
11,041 |
|||
|
--volume in millions of fine troy ounces |
261.499 |
|||
|
|
|
|||
|
(5) other reserve assets (specify) |
4,701 |
|||
|
--financial derivatives |
|
|||
|
--loans to nonbank nonresidents |
|
|||
|
--other (foreign currency assets invested through reverse repurchase agreements) |
4,701 |
|||
|
B. Other foreign currency assets (specify) |
|
|||
|
--securities not included in official reserve assets |
|
|||
|
--deposits not included in official reserve assets |
|
|||
|
--loans not included in official reserve assets |
|
|||
|
--financial derivatives not included in official reserve assets |
|
|||
|
--gold not included in official reserve assets |
|
|||
|
--other |
|
|
|
|
Exchange-Traded Funds: US ETF Weekly Update-Morgan Stanley
July 12, 2010--Weekly Flows: $4.8 Billion Net Inflows
Launches: 3 New ETFs
Deutsche Bank Acquires XSharesAs
ETFs had net cash inflows of $4.8 blnlast week, bouncing back from prior-week outflows
Weekly flows driven by US Large-Cap ETFs; specifically SPY, which had net inflows of $5.1 billion-EM Equity has experienced stronger flows vs. International Developed Equity on a 1-, 4-, and 13-week basis
Over 4-and 13-week period, Fixed Income had strongest inflows-$26.7 bln net inflows into ETFs over past 13 weeks; total assets rebounding toward $800 billion
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPY had the largest net inflows for US ETFs at $5.1 billion lastweek-Despite uneven flows in 2010, SPY still the largest US-listed ETF with 40% more assets vs. #2 (GLD)
Over a 1-week period, since the 0.15% fee cut, IAU was the only physical gold ETF with net inflows
Largest increase in short positions in QQQQ
Roughly $500 million in additional short interest
Largest decline in short interest in GLD
Roughly $800 million in reduced short interest
Direxion files with the SEC
July 12, 2010--Direxion has filed a post-effective amendment, registration statement with the SEC for
Direxion Daily S&P 500 Bull 3X Shares, Direxion Daily S&P 500 Bear 3X Shares, Direxion Daily Basic Materials Bull 3X Shares, Direxion Daily Basic Materials Bear 3X Shares, Direxion Daily Consumer Discretionary Bull 3X Shares, Direxion Daily Consumer Discretionary Bear 3X Shares,
Direxion Daily Consumer Staples Bull 3X Shares, Direxion Daily Consumer Staples Bear 3X Shares, Direxion Daily Healthcare Bull 3X Shares, Direxion Daily Healthcare Bear 3X Shares, Direxion Daily Retail Bull 2X Shares, Direxion Daily Retail Bear 2X Shares, Direxion Daily Semiconductor Bull 3X Shares, Direxion Daily Semiconductor Bear 3X Shares, Direxion Daily Utilities Bull 3X Shares and Direxion Daily Utilities Bear 3X Shares
The combined prospectus can be viewed read more
Securities sector seeks to fend off SEC drive
July 12, 2010--Proposals to narrow the pool of investors allowed in the US to buy complex asset-backed securities in private markets are being drawn up by the securitisation industry in an attempt to fend off a push by regulators to ban such deals outright.
In an attempt to avoid a repeat of a key problem that led to the financial crisis, the Securities and Exchange Commission is planning to scrap rules that allow “sophisticated investors” to buy asset-backed securities in private markets where disclosure requirements are not as rigorous as public markets.
In an attempt to avoid a repeat of a key problem that led to the financial crisis, the Securities and Exchange Commission is planning to scrap rules that allow “sophisticated investors” to buy asset-backed securities in private markets where disclosure requirements are not as rigorous as public markets.
BMO Investments Inc. Launches New Mutual Fund Portfolios of Exchange Traded Funds, Providing Investors More Access to the ETF Market
Strategic ETF portfolios combine many of the benefits of ETFs with mutual funds in a simple, easy to use investment option.
July 12, 2010--
BMO Investments Inc., today announced the launch of a new series of four mutual fund portfolios that invest primarily in exchange traded funds (ETFs), giving investors broader choice and greater access to the growing ETF market.
The new offering from BMO Mutual Funds consists of four strategically managed risk-differentiated portfolios. Each ETF mutual fund portfolio is a class of BMO Global Tax Advantage Funds Inc., a mutual fund corporation, which allows for switching among the other BMO Global Tax Advantage Funds without incurring a taxable event.
These portfolios complement two previously introduced tactical ETF mutual fund portfolios launched in May.
Available BMO Mutual Funds ETF Portfolios now include:
BMO Tactical ETF Mutual Fund Classes
BMO Canadian Tactical ETF Class
BMO Global Tactical ETF Class
BMO Security ETF Portfolio
BMO Balanced ETF Portfolio
BMO Growth ETF Portfolio
BMO Aggressive Growth ETF Portfolio
"With the ever growing popularity of ETFs, BMO has been looking at ways to make this investment vehicle available to a wider range of clients, through products offered directly in our BMO branches. These new portfolios allow retail investment clients access to this market, in a mutual fund structure they are familiar with, simply by coming in and talking to an investment professional," said Serge Pepin, Head of Investments at BMO Investments Inc. "Essentially, investors can now get professionally managed exposure to ETFs, through an all-in-one, solution."
CFTC Issues Proposed Rulemaking to Improve Account Ownership and Control Data
July 12, 2010--The Commodity Futures Trading Commission (CFTC) today approved for publication in the Federal Register a Notice of Proposed Rulemaking that calls for the collection of certain ownership, control and other information for all trading accounts active on U.S. futures exchanges and other reporting entities. The information will be collected via an account ownership and control report (OCR) submitted periodically to the CFTC by reporting entities.
Specifically, OCR data will include trading account numbers, the names and addresses of accounts’ owners and controllers, owners’ and controllers’ dates of birth and other information necessary to uniquely identify owners and controllers to identify related trading accounts.
AdvisorShares Lists Mars Hill Global Relative Value ETF on NYSE Arca
July 9, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, began trading Mars Hill Global Relative Value ETF(Ticker: GRV). The ETF is sponsored by AdvisorShares, and sub-advised by Mars Hill Partners LLC.
The Fund’s investment objective is to generate average annual returns in excess of the total return of the MSCI World Index (the “Index”), with comparable volatility and little to no correlation with the Index. The Fund is considered a “fund-of-funds” that seeks to achieve its investment objective by primarily investing in both long and short positions in other exchange-traded funds that offer diversified exposure to global regions, countries, styles (market capitalization, value, growth, etc.) or sectors, and other exchange-traded products, including but not limited to exchange-traded notes, exchange-traded currency trusts and closed-end funds. In addition, the Fund may use liquid futures contracts, swaps and other derivatives tied to broad market indices when establishing net long or net short exposure on top of the core long/short portfolio.
AdvisorShares files with the SEC
July 9, 2010--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for
The Active Bear ETF
NYSE Ticker: HDGE
The fund will be managed by Ranger Alternative Management L.P>
PRINCIPAL INVESTMENT STRATEGIES
The Sub-Advisor seeks to achieve the Fund’s investment objective by selecting a portfolio, on a short basis only, of liquid U.S. exchange-traded equities, exchange-traded funds (ETFs) and exchange-traded products. The Sub-Advisor implements a bottom-up, fundamental, research driven security selection process that seeks to identify securities with low earnings quality or aggressive accounting that may be intended, on the part of company management, to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition to these issues, the Sub-Advisor seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance. On a day-to-day basis the Fund may hold U.S. Government securities, short term high quality fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and cash equivalents with maturities of one year or less for collateral purposes.
AdvisorShares Set to Launch First Actively Managed Long/Short ETF- Mars Hill Global Relative Value ETF (GRV)
July 9, 2010--AdvisorShares Investments, LLC, an innovator of actively managed ETFs, today announced that it will begin trading in the industry's first actively managed long/short ETF, the Mars Hill Global Relative Value ETF (NYSE: GRV) tomorrow, July 9th. GRV is sub-advised by Mars Hill Partners, LLC, an SEC-registered Investment Adviser and an affiliate of private wealth manager Huntley Thatcher Ellsworth, Ltd.
GRV employs a "Relative Value" approach created and managed by Mars Hill Partners, which combines long positions in the most attractive country, sector and industry ETFs, with an equal dollar amount short in the least attractive country, sector and industry ETFs. This core long/short portfolio construction is designed to reduce downside volatility and drawdown risk caused by the directional influence of the global equity markets and instead strives to profit from the performance spread between its long and short positions. These relative value spreads are prevalent throughout both rising and falling market environments, enabling GRV to potentially generate more consistent returns over time than a conventional long-only approach.
"GRV has an institutional-caliber investment strategy that is designed to pursue consistent positive absolute returns regardless of the direction of the stock market or interest rates. We are excited to bring investors access to this compelling investment strategy through an actively managed ETF," said Noah Hamman, CEO and Founder of AdvisorShares.
Founder and Chief Investment Officer of Mars Hill Partners, Jason Huntley said, "We are very excited to partner with AdvisorShares to package and launch GRV given the underlying merits of our long/short investment strategy when combined with the daily liquidity, fully transparent and tax efficiency benefits of an NYSE-listed ETF. Historically, strategies like ours have been accessible primarily through separate accounts or private hedge funds, neither of which offers anywhere near the potential benefits of the ETF structure which includes transparency."
