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SEC Statement on Status of Stock-by-Stock Circuit Breaker Rule Proposals
June 4, 2010--Securities and Exchange Commission spokesman John Nester today issued the following statement:
"Two weeks ago, in response to the market disruption of May 6, the SEC sought public comment on proposed rules that would require the national securities exchanges and FINRA to pause trading in certain individual stocks if the price moves 10 percent or more in a five-minute period. The rules were proposed by the national securities exchanges and FINRA.
"The SEC staff is now reviewing and analyzing the comments that were received over the course of a public comment period that ended yesterday.
"The staff expects to present the proposals to the Commission next week. If approved, the staff anticipates full implementation within a week thereafter."
DB-Global Equity Index & ETF Research -- Weekly US ETP Market Review
June 4, 2010--Highlights
The financial roller coaster triggered by the Greek sovereign debt crisis is still in the middle of the ride. After a steep fall, global markets made a reversal and most of them end up the week with positive returns. The major benchmark in Europe, the Euro Stoxx 50 Index, rose by 1.55% and Gold Spot prices rose by 3.17%, however the relative flat performance of other major markets such as the US (S&P 500, 0.16%) and the Japanese (Nikkei 225, -0.22%) markets, suggests that the impact of the Greek crisis in other major non-European economies is yet to be determined and that measures taken in Europe which have been seen positively by local market participants are not necessarily seen in the same way by other global market players.
Under the current scenario, the overall US ETP market experienced an increase of $12.9 bn in assets, fueled by inflows of $3.8 bn, with Gold and Emerging Markets Regional ETPs leading the flows for the week. Inflows of $1.8 bn into GLD demonstrate that, in spite of high Gold spot prices, investors still believe that the golden metal is the safe haven to dodge the crisis and that Gold ETPs is a good way to gain access to this asset. GLD, with almost $50 bn in assets, is the second largest ETP by assets in the world, only behind SPY, which tracks the S&P 500 Index.
New Listings and Delistings
There was only 1 listing in the previous week. BlackRock launched an ETF tracking the MSCI Poland IMI index on NYSE Arca
Net Cashflows
Equity, Fixed Income and Commodity ETPs had inflows of $1.7 bn, $541 mm and $2.2 bn, respectively. Currency ETPs, on the other hand, experienced outflows of $46 mm.
Within Equity ETPs, Emerging Markets Regional ETPs received the largest inflows ($1.78 bn), while Small Cap ETPs saw the largest outflows ($1.4 bn).
Within Commodity ETPs, Gold ETPs led the inflows with $2.2 bn.
Turnover
Avg. Daily Turnover remained high and increased by 2.6% totaling $116 bn.
Assets Under Management (AUM)
US ETPs AUM rose by 1.6% totaling $799 bn at the end of the week. Equity ETPs account for 73% of the assets with $580 bn, followed by Fixed Income funds with $128 bn and 16% of market share.
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New ETF Weekly options launched at CBOE today, Friday, June 4
June 4, 2010--Today CBOE launched trading in Weekly options on four exchange traded funds (ETFs) –
S&P Depositary Receipts (SPY)
iShares Russell 2000 Index Fund (IWM)
Nasdaq-100 Index Tracking Stock (QQQQ)
DIAMONDS Trust, Series 1 (DIA)
New series for Weekly options are listed each Friday and expire the following Friday except that no Weeklys will be listed that would expire during the expiration week for standard options.
Volume in Weeklys has increased since CBOE introduced them in 2005. Average daily volume in SPX Weeklys year-to-date through May was 16,031 contracts or 2.0 percent of standard SPX ADV. Average daily volume for OEX Weeklys for the same period totaled 15,489 contracts or 31.0 percent of standard OEX trading.
CFTC.gov Commitments of Traders Reports Update
June 4, 2010--The CFTC.gov Commitments of Traders Reports has been updated. The current reports for the week of June 1, 2010 are now available.
view reports
U.S. Department of the Treasury Economic Statistics - Monthly Data Update
June 4, 2010-The U.S. Department of the Treasury Economic Statistics - Monthly update is now available.
view report
NSX Releases May 2010 ETF/ETN Data Report
June 4, 2010--Highlights from the May report include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) totaled approximately $798 billion at May 2010 month-end, an increase of almost 34% over May 2009 month-end when assets totaled $594.3 billion.
At the end of May 2010, the number of listed products totaled 995, compared to 829 listed products at the end of May 2009.
May 2010 net cash inflows from all ETFs/ETNs totaled approximately $6.3 billion, with year-to-date net cash inflows reaching $27.6 billion.
AdvisorShares files with the SEC
June 4, 2010--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for
Emerald Rock Low-Priced Focused Growth ETF
NYSE Ticker: LOWP
Emerald Rock Dividend Growth ETF
NYSE Ticker: DIVI
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DTCC Begins Aggregating Broker-to-Broker Trade-For-Trade Obligations to Reduce Costs and Enhance Efficiencies for the Industry
Service Reduces the Number of Trade-for-Trade Transactions Requiring Financial Settlement
June 4, 2010--The Depository Trust & Clearing Corporation (DTCC) has begun aggregating each side of certain broker-to-broker equities transactions that settle outside its systems into one receive and one deliver order to eliminate the need for financial firms to manually settle multiple transactions each day.
Through DTCC's clearing agency subsidiary, National Securities Clearing Corporation (NSCC) aggregates only those broker-to-broker "trade-for-trade" transactions that are executed between the same trading parties and in the same security. In addition, only transactions that NSCC designates to settle on a trade-for-trade basis are eligible for aggregation. NSCC typically designates these broker-to-broker transactions to settle trade-for-trade if they involve securities that have been chilled or globally locked for operational, risk management, or regulatory or compliance reasons.
For the week of May 17, NSCC successfully aggregated 67% of the 64,650 trade-for-trade transactions in its systems, reducing the number of trades requiring financial settlement to 20,834.
Program Trading Averaged 29.5 Percent of NYSE Volume during May 24-28
June 4, 2010--The New York Stock Exchange, a subsidiary of NYSE Euronext (NYX), today released its weekly program-trading data compiled from member firms’ executed volume from NYSE’s orders database. The report includes trading on the NYSE for May 24-28.
The data indicated that during May 24-28, program trading amounted to 29.5 percent of NYSE average daily volume of 3,310.5 million shares1, or 976.8 million program shares traded per day.
Program trading encompasses a wide range of portfolio-trading strategies involving the purchase or sale of a basket of at least 15 stocks.
BNY Mellon ADR Index Monthly Performance Review is Now Available
June 4, 2010--The BNY Mellon ADR Index Monthly Performance Review is Now Available.
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NASDAQ OMX Announces Intent to Modify Existing Rules on "Stub" Quotes
June 4, 2010--The NASDAQ OMX Group (Nasdaq:NDAQ) today announced that it intends to propose detailed rules to modify existing rules surrounding "stub" quotes within the Nasdaq Stock Market's market-maker and select market-maker programs to more effectively serve market participants, investors and listed companies. The decision is in response to some of the market events that occurred on May 6th that led to the use of "stub" quotes being executed against due to liquidity that was absorbed by selling pressure.
NASDAQ OMX also took the lead this week by announcing the NASDAQ Volatility Guard focused on safeguarding investors during times of high trading stress and remains committed to working with the Commission on protecting investors.
For more information on the NASDAQ Volatility Guard including a video message from Bob Greifeld, the SEC filing and the Wall Street Journal announcement please visit: http://www.nasdaqomx.com/volatilityguard
Invesco PowerShares Lists International Corporate Bond Portfolio on NYSE Arca
June 3, 2010--Invesco PowerShares, a leading provider of exchange-traded funds (ETFs), announced the PowerShares International Corporate Bond Portfolio began trading today on the NYSE Arca under the ticker symbol PICB. The fund is expected to issue monthly distributions.
“The PowerShares International Corporate Bond Portfolio broadens our innovative family of fixed-income ETFs by providing unique access to investment-grade corporate bonds issued in developed markets outside the United States," said Ben Fulton, Invesco PowerShares managing director of global ETFs. “International corporate bonds tend to perform differently than domestic bonds and historically have exhibited a low correlation with major asset classes. We believe PICB significantly improves access to this previously difficult to reach segment of the bond market providing investors an important new tool to meet their investment objectives.”
The PowerShares International Corporate Bond Portfolio (PICB) is based on the S&P International Corporate Bond Index. The fund will normally invest at least 80% of its total assets in the securities that comprise the Index. This Index measures the performance of investment-grade corporate bonds issued by non-U.S. issuers in the following G-10 currencies: Australia dollar (AUD), British pound (GBP), Canadian dollar (CAD), Euro (EUR), Japanese yen (JPY), Swiss franc (CHF), Danish krone (DKK), New Zealand dollar (NZD), Norwegian krone (NOK) and Swedish krona (SEK).
For inclusion in the index, each bond must be rated investment grade by Standard & Poor’s or Moody’s Investors Service, Inc. with the lower of the two ratings used to determine eligibility.1 Each bond must also have a minimum threshold outstanding, respective to the currency in which it is issued. The weighting of each bond in the index is based on its outstanding market value, but the aggregate weight of the bonds in a single currency may not exceed 50%.
The index uses a modified market-capitalization weighted methodology and is reconstituted and rebalanced monthly. The index methodology also includes a yield enhancement feature. At each monthly rebalance, any currency with more than 10 eligible bonds will have the lowest yielding quartile of bonds removed from that currency’s eligible universe.
Invesco PowerShares Capital Management LLC is Leading the Intelligent ETF Revolution® through its family of more than 120 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 $47 billion as of March 31, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
Invesco PowerShares is part of Invesco Ltd., a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
1 A classification given to a bond when its credit rating is BBB- or higher from Standard & Poor’s or Baa3 or higher from Moody’s. Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying securities. The ratings range from AAA (highest) to D (lowest).
PowerShares files with the SEC
June 3, 2010--PowerShares has filed a post-effective, registration statement with the SEC for
PowerShares Intermediate Build America Bond Portfolio (NYSE Arca, Inc. - BABI)
view filing
iShares files with SEC
June 3, 2010--iShares has filed a registration statement with the SEC for
iShares MSCI Russia Capped Index Fund
The fund seeks investment results
that correspond generally to the price and yield performance, before fees and
expenses, of the MSCI Russia 25/50 Index.
CBOE To Launch New ETF Weeklys On Friday, June 4
June 3, 2010--The Chicago Board Options Exchange (CBOE) today announced that on Friday, June 4, 2010, it will begin trading new Weekly options on four exchange traded funds (ETFs) - Standard and Poor's Depositary Receipts (SPY), Nasdaq-100 Index Tracking Stock (QQQQ), DIAMONDS Trust, Series 1 (DIA), and iShares Russell 2000 Index Fund (IWM).
Weekly options, first introduced by CBOE in October 2005, are one-week options as opposed to traditional options that have a life of months or years before expiration. New series for Weekly options are listed each Friday and expire the following Friday except that no Weeklys will be listed that would expire during the expiration week for standard options (the third Friday of each month).
