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SEC to Publish for Public Comment Proposed Rules for Clearly Erroneous Trades
June 17, 2010-- The Securities and Exchange Commission today announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) are filing proposed rules to clarify the process for breaking erroneous trades. The rules would make it clearer when, and at what prices, trades would be broken.
The proposed rules come in response to the market disruption of May 6 and complement last week's SEC approval of a uniform set of stock-by-stock circuit breakers. Those circuit breakers are now being implemented for S&P 500 stocks at every exchange and by FINRA.
The exchanges and FINRA are proposing a series of thresholds for breaking trades when prices diverge from the "reference price," typically the last sale before pricing was disrupted. On May 6, the exchanges only broke trades that were more than 60 percent away from the reference price in a process that was not transparent to market participants.
"Establishing clear and transparent standards for breaking trades helps provide certainty in advance as to which trades will be broken, and allows market participants to better manage their risks," said SEC Chairman Mary L. Schapiro.
Under current rules, there is not a clearly defined standard used for breaking erroneous trades. Exchanges may choose the specific percentage threshold away from the reference price where trades are broken. Today's rule proposals set forth clearer standards for breaking trades and curtail the exchanges' discretion to select a different percentage threshold at which they would break trades.
Huntington Asset Advisors files with the SEC
June 17, 2010--Huntington Asset Advisors, Inc. has filed an application for exemptive relief with the SEC for Actively Managed ETFs.
The initial funds are
Global Rotating Strategy Fund
EcoLogical Strategy Fund
U.S. Department of the Treasury Economic Statistics - Monthly Data Update
June 17, 2010--The Economic Statistics -Monthly Data for U.S. Department of the Treasury has recently been updated, and is now available
view update
BlackRock Announces Monthly Distributions for Select iShares(R) ETFs in Canada
June 17, 2010--BlackRock Asset Management Canada Limited, an indirect subsidiary of BlackRock, Inc. , today announced that, starting July 2010, 11 iShares(R) exchange traded funds will change from paying distributions on a quarterly basis to paying on a monthly basis.
"Income generation is a high priority for Canadian investors, and we believe these changes will greatly simplify investing for Canadians who need regular income from their portfolios," said Oliver McMahon, director of product management for iShares ETFs at BlackRock Asset Management Canada Limited.
The ETFs that will be changing to a monthly distribution frequency are:
Fixed Income
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iShares DEX All Corporate Bond Index Fund ("XCB")
iShares DEX Short Term Bond Index Fund ("XSB")
iShares DEX Universe Bond Index Fund ("XBB")
iShares DEX All Government Bond Index Fund ("XGB")
iShares DEX Long Term Bond Index Fund ("XLB")
iShares U.S. IG Corporate Bond Index Fund (CAD-Hedged) ("XIG")
iShares U.S. High Yield Bond Index Fund (CAD-Hedged) ("XHY")
Equity
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iShares Dow Jones Canada Select Dividend Index Fund ("XDV")
iShares S&P/TSX Capped REIT Index Fund ("XRE")
iShares S&P/TSX Capped Financials Index Fund ("XFN")
iShares S&P/TSX Income Trust Index Fund ("XTR")
"At iShares we are constantly looking at ways to better serve our clients," added McMahon.
"Given that these enhancements affect both fixed income and select equity products, investors can practice diversification and take advantage of income-generating opportunities according to their risk profile and investment philosophy."
There are no other changes to any of the funds' investment objectives or strategies. In addition, previously announced distribution dates for June, September, and December 2010 will remain unchanged, with additional dates for July, August, October and November added for the 11 funds changing to monthly distributions. Ex-dividend and payment dates for the rest of 2010 are as follows:
----------------------------------------------------------------------- ----- Month Ex Date Pay Date ---------------------------------------------------------------------------- June 25-Jun-2010 30-Jun-2010 ---------------------------------------------------------------------------- July 27-Jul-2010 30-Jul-2010 ---------------------------------------------------------------------------- August 26-Aug-2010 31-Aug-2010 ---------------------------------------------------------------------------- September 27-Sep-2010 30-Sep-2010 ---------------------------------------------------------------------------- October 26-Oct-2010 29-Oct-2010 ---------------------------------------------------------------------------- November 24-Nov-2010 30-Nov-2010 ---------------------------------------------------------------------------- December 24-Dec-2010 31-Dec-2010 ----------------------------------------------------------------------------
Global Equity Index & ETF Research -- US Weekly ETP Market Review
June 16, 2010--Highlights
New Listings and Delistings
Nine new ETPs were launched on NYSE Arca during the previous week.
Claymore Ad. launched one Equity fund and a suite of seven Fixed Income Corporate ETFs with fix maturity dates. The equity fund corresponds to the SEA fund, which was ‘brought back from the dead’ after it was liquidated because it couldn’t gathered enough voters to establish a quorum, while the bond funds intend to lessen the interest rate risk of the bond portfolio by offering ETFs with fix maturity date in line with the debt securities they hold.
The remaining ETP was launched by, new entrant, Teucrium Trading LLC, who brought to market the first Corn ETP in the US.
Net Cashflows
Overall the US ETP market experienced inflows for $3.3 bn. Equity, Fixed Income, and Commodity ETPs had inflows of $1.8 bn, $1.0 bn and $701 mm, respectively. Currency ETPs, in contrast, experienced outflows of $49 mm.
Within Equity ETPs, Large Cap ETPs received the largest inflows ($1.0 bn) followed by Emerging Markets Regional ETPs, while US Sector ETPs saw the largest outflows ($505 mm) followed by Style Growth ETPs.
Among Fixed Income ETPs, Sovereign ($504 mm), and Sovereign & Corporates ETPs ($169 mm) contributed the most to the positive flows within the asset class.
Within Commodity ETPs, Gold ETPs, although keeping the declining trend, led the inflows with $848 mm.
Turnover
Avg. Daily Turnover retreated for second week in a row, and decreased by 12.7% totaling $101 bn. However turnover still remains on the high levels.
Assets Under Management (AUM)
US ETPs AUM increased by 2.3% totaling $804 bn at the end of the week. Equity ETPs account for 72% of the assets with $580 bn, followed by Fixed Income funds with $130 bn and 16% of market share.
To request a copy of the report
Two New Members Join ISE’s Board of Directors
Andreas Preuss Elected ISE’s Vice Chairman
June 16, 2010--The International Securities Exchange today announced that two new members
have been elected to its Board of Directors. Joseph Sellitto, Chief Executive Officer of Global Execution Brokers, an affiliate of Susquehanna International Group (SIG), and Christianna Wood, Chairperson and member of the
Board of Directors for the International Corporate Governance Network, will join the ISE Board effective
immediately. Mr. Sellitto will serve as an industry director representing ISE’s Electronic Access Members (EAMs)
and Ms. Wood will serve as a non-industry director.
In addition to the two new Board members, Andreas Preuss, Chief Executive Officer of Eurex, Michael Juneman, Managing Director of Citadel Derivatives Group LLC, and Timothy Brennan, Head of Automated Market Making at Ronin Capital, were re-elected to the Board. Andreas Preuss was elected to serve as ISE’s new Vice Chairman.
Frank Jones, professor at San Jose State University, and Sarah Miller, Executive Director and General Counsel of the ABA Securities Association, are retiring from their roles on ISE’s Board due to term limits. Peter Bottini, Executive Vice President of Trading and Customer Service for optionsXpress, Inc., is also retiring from the Board.
“Joe Sellitto and Christy Wood are highly regarded industry professionals with vast expertise and proven track records in the securities and investment management business. We are confident that their contributions will strengthen ISE’s leadership going forward,” said Gary Katz, President and Chief Executive Officer of ISE. “We also would like to thank Frank Jones, Sally Miller, and Pete Bottini, who are retiring from the Board. We are truly grateful for their commitment and years of service.”
David Krell, Chairman of the ISE Board, added, “I would like to congratulate Andreas Preuss on assuming the role of Vice Chairman from Frank Jones. Andreas has been an integral member of the ISE Board for the past three years, and we look forward to his continued guidance as he takes on this leadership position on our Board. I would also like to express my sincere gratitude to Sally Miller, Pete Bottini and Frank Jones, who has been a member of the ISE Board since its inception and has served as both Vice Chairman and Chairman. Each of these dedicated individuals brought thoughtful insights and a unique perspective to ISE’s Board, and they will truly be missed.”
SEC Proposes New Measures to Help Investors in Target Date Funds
June 16, 2010-- The Securities and Exchange Commission today voted unanimously to propose rule amendments to help clarify the meaning of a date in a target date fund’s name and enhance the information provided to investors in these funds as they invest for retirement.
Target date funds are designed to make it easier for Americans to invest for retirement by providing the simplicity for which many investors yearn. They’ve been marketed as a “set it and forget it” approach to investing. The name of these funds usually includes a date that represents the year in which the investor intends to retire.
The rule changes proposed by the SEC would enable investors to better assess the anticipated investment glide path and risk profile of a target date fund by, for example, requiring graphic depictions of asset allocations in fund advertisements. The rules also would require an asset allocation “tag line” adjacent to a target date fund’s name in an advertisement.
“These proposed rule changes would help clarify the meaning of the date in a target date fund and improve the information provided when these funds are advertised and marketed to investors,” said SEC Chairman Mary L. Schapiro. “Together these rule amendments are designed to foster investor understanding of target date funds and reduce the possibility that investors will be confused or misled.”
Last month, as a first step to address potential investor misunderstanding of target date funds, the SEC issued an Investor Bulletin jointly with the Department of Labor explaining target date funds and various aspects that an investor should consider before investing in one.
The SEC is seeking public comment on the rule amendments proposed today for a period of 60 days following their publication in the Federal Register.
view Investor Bulletin: Target Date Retirement Funds
Global X files with the SEC.
June 16, 2010--Global X has filed a post-effective amendment, registration statement with the SEC for
Global X Brazil Consumer ETF
NYSE Arca: BRAQ
Global X Brazil Financials ETF
NYSE Arca: BRAF
Global X Brazil Industrials ETF
Global X Brazil Materials ETF
Global X Brazil Utilities ETF
NYSE Arca: BRAU
Global X Brazil Mid Cap ETF
NYSE Arca: BRAZ
Global X China Mid Cap ETF
NYSE Arca: CHIA
Further Additions to the Dow Jones-UBS Commodity Index Series
June 16, 2010--Dow Jones Indexes, a leading global index provider, further expanded the Dow Jones-UBS Commodity index series and launched five single commodity subindexes and three 3-month forward single commodity indexes. Each of the new Dow Jones-UBS single commodity indexes consists of a single commodity. The commodities are Brent crude, feeder cattle, gas oil, orange juice and soybean meal. The new Dow Jones-UBS 3 Month Forward Commodity Indexes comprise longer-dated futures contracts for tin, lead and cocoa.
“Along with rising trading volumes and liquidity, commodities futures markets have recently become much more diversified, sophisticated and international,” said Michael A. Petronella, president designate, Dow Jones Indexes. “By adding these new single commodity indexes to the popular Dow Jones-UBS Commodity index series we now offer market participants reliable and accurate measurement tools for up-and-coming commodities market segments and transparent access to previously opaque market data.”
The Dow Jones-UBS Feeder Cattle and the Dow Jones-UBS Soybean Meal Subindexes consist of futures contracts traded at the Chicago Mercantile Exchange (CMEG). The Dow Jones-UBS Brent Crude, Dow Jones-UBS Gas Oil and Dow Jones-UBS Orange Juice Subindexes comprise futures contracts traded on the IntercontinentalExchange (ICE).
The Dow Jones-UBS Commodity index series consist of the Dow Jones-UBS Commodity Index comprising 19 commodities, nine sector subindexes and 28 single commodity subindexes for aluminum, Brent crude, cocoa, coffee, copper, corn, cotton, crude oil, feeder cattle, gas oil, gold, heating oil, lead, lean hogs, live cattle, natural gas, nickel, orange juice, platinum, silver, soybeans, soybean meal, soybean oil, sugar, tin, unleaded gasoline, wheat and zinc.
The Dow Jones-UBS Commodity Forward Indexes consist of the DJ-UBS Commodity 1-Month Forward Index, the DJ-UBS Commodity 2-Month Forward Index and 3-month forward versions of the DJ-UBS Commodity Index, its 9 Dow Jones-UBS Commodity Sector Subindexes and 26 Dow Jones-UBS Single Commodity Subindexes.
Further information on the Dow Jones-UBS Commodity Indexes can be found at http://www.djindexes.com.
Brazil Mid-Cap ETF to Start NYSE Trading June 22, Global X
June 16, 2010--The Brazil Mid-Cap Exchange Traded Fund will start trading on the New York Stock Exchange on June 22, said the chief executive officer of Global X Management Company LLC, the asset manager overseeing the fund.
The ETF, which includes Natura Cosmeticos SA, Brazil’s biggest cosmetics maker, and Cyrela Brazil Realty SA Empreendimentos e Participacoes, the country’s largest homebuilder, will trade under the ticker BRAZ. The ETF, which tracks the Solactive Brazil Mid Cap Index, is the first to invest exclusively in companies with market values of $2 billion to $10 billion, Bruno del Ama, the CEO of New York-based Global X, said in a phone interview from Madrid.
“What you want when you invest in Brazil is to participate in the economy’s development and the country’s growth,” del Ama said. “We’re going to give investors access to local, well- established, less risky companies.”
CBOE Holdings, Inc., Parent of Chicago Board Options Exchange, Lists on the NASDAQ Stock Market
June 16, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest exchange company, announced that CBOE Holdings, Inc. (Nasdaq:CBOE), parent of the Chicago Board Options Exchange, the largest U.S. options exchange and creator of listed options, began trading on Tuesday, June 15 on The NASDAQ Stock Market (NASDAQ). CBOE Holdings will trade under the ticker symbol CBOE.
"We are pleased to welcome the CBOE to The NASDAQ Stock Market, the market of choice for public companies from a variety of sectors," said Bruce Aust, Executive Vice President, Corporate Client Group, NASDAQ OMX. "NASDAQ is thrilled to have the largest U.S. options exchange – which pioneered trading in exchange-traded options in 1973 – among our listed companies."
NASDAQ IPOs have raised roughly $2.6 billion in proceeds year to date. Notable NASDAQ IPOs for 2010 include companies QuinStreet (Nasdaq:QNST), which raised over $150,000,000 in proceeds, Mitel Networks, Inc. (Nasdaq:MITL), and SS&C Technologies (Nasdaq:SSNC).
Frank Announces House Offer on Financial Stability; Orderly Liquidation Authority; Payment, Clearing, and Settlement Supervision
June 16, 2010--Chairman Frank, on behalf of the House conferees, released the House offer on the titles listed below. The issues will be subject to debate when the House-Senate Conference Committee convenes tomorrow.
The issues for tomorrow’s offer:
Title 2: Orderly liquidation authority
Title 8: Payment, clearing, and settlement supervision
Title 1: Financial stability
Title 2: Orderly Liquidation Authority
The House proposes to accept Title II of the Base Text with the following amendments:
Strike Senate provision containing the definition of “financial company” and related text and replace with House provision (replace Senate bill § 201(a)(11), Page 130, line 19 – Page 132, line 8, with House bill § 1602(9), Page 328, line 7 – Page 330, line 3, and strike Senate bill §§ 201(a)(14)-(15), Page 132, line 21 – Page 133, line 3, and 201(b), Page 133, lines 6-20)).
U.S. Commodity Futures Trading Commission and Alberta Securities Commission Sign Memorandum of Understanding to Enhance Supervision of Cross-Border Clearing Organizations
June 16, 2010-- Leaders of the U.S. Commodity Futures Trading Commission (CFTC) and Alberta Securities Commission (ASC) signed a new Memorandum of Understanding (MOU), which took effect on June 10, 2010, to enhance cooperation and the exchange of information relating to the supervision of cross-border clearing organizations.
The MOU will help to ensure the sound oversight of clearinghouses providing services in both the United States and Alberta, Canada, and also will help to promote financial integrity and appropriate customer protection in the global derivatives markets.
The MOU was signed by CFTC Chairman Gary Gensler and ASC Chair and Chief Executive Officer Bill Rice.---
CFTC Denies OCC Rule Amendment
June 15, 2010-- The Commodity Futures Trading commission (CFTC) today issued a Notice of Non-Approval of a rule amendment submitted by the Options Clearing Corporation (OCC).
The OCC rule amendment would have treated foreign currency contracts where the exercise price is fixed at a nominal amount, such as one cent, as securities options, provided that the CFTC took the position that such contracts may be traded and cleared as such. The CFTC found that the contracts are the economic and functional equivalents of foreign currency futures contracts and are not bona fide options.
CFTC Issues Exemption and Approval of Rule Amendment Related to ETFS Physical Swiss Gold Shares and ETFS Physical Silver Shares
June 15, 2010--The Commodity Futures Trading Commission (CFTC) yesterday issued an exemption pursuant to authority granted under Section 4(c) of the Commodity Exchange Act, permitting options and futures on each of ETFS Physical Swiss Gold Shares and ETFS Physical Silver Shares to be traded and cleared as options on securities and security futures, respectively.
This exemption follows similar exemptions granted with respect to gold and silver ETF products issued by SPDR® (exemptions issued on June 5, 2008) and iShares® (exemptions issued on December 30, 2008). After granting the exemption, the CFTC approved a rule amendment submitted for approval by the Options Clearing Corporation permitting such options and futures to be cleared as options on securities and security futures, respectively.
