United States 12 Month Natural Gas Fund, LP Lists Units on NYSE Arca
November 18, 2009 –- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading units of the United States 12 Month Natural Gas Fund, LP (Ticker: UNL), a commodity pool sponsored by United States Commodity Funds, LLC.
The investment objective of the pool is to have the changes in percentage terms of the units’ net asset value reflect the changes in percentage terms of the spot price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the average of the prices of 12 benchmark futures contracts on natural gas traded on the New York Mercantile Exchange, less the pool’s expenses. For more details, see the pool’s prospectus and other information at www.unitedstatescommodityfunds.com.
Barclays Bank PLC Lists Five New Long and Short Exchange Traded Notes (ETNs) Linked to S&P Indices on NYSE Arca
November 18, 2009 –- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading five new ETNs linked to the performance of the S&P 500® Total Return IndexSM. The ETNs are issued by Barclays Bank PLC.
Name and Ticker Symbol of theFive New Long and Short Exchange Traded Notes:
Barclays ETN+ Short B Leveraged Exchange Traded Notes Linked to the Inverse Performance of the S&P 500® Total Return IndexSM – Ticker Symbol “BXDB”
Barclays ETN+ Short C Leveraged Exchange Traded Notes Linked to the Inverse Performance of the S&P 500® Total Return IndexSM – Ticker Symbol “BXDC”
Barclays ETN+ Short D Leveraged Exchange Traded Notes Linked to the Inverse Performance of the S&P 500® Total Return IndexSM – Ticker Symbol “BXDD”
Barclays ETN+ Long B Leveraged Exchange Traded Notes Linked to the S&P 500® Total Return IndexSM – Ticker Symbol “BXUB”
Barclays ETN+ Long C Leveraged Exchange Traded Notes Linked to the S&P 500® Total Return IndexSM – Ticker Symbol “BXUC”
The five new long and short ETNs are designed to provide access to either the direct or inverse leveraged performance of the S&P 500® Total Return IndexSM. There are two ‘long’ notes and three ‘short’ notes, each with a different ratio between the purchase price of the securities and the value of the underlying equity exposure. The ETNs each have a different initial leverage (up to three times index performance), with an issue price set between $50 and $100. Each of the notes has a 5 year maturity, although if the value of any of the notes falls to or below $10 a ‘stop-loss’ feature causes an earlier termination.
Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their holdings consistent with their strategies, as frequently as daily. The prospectuses describe correlation, leverage and other risks.
SPDR® Gold Shares Reaches Five Year Anniversary
November 18, 2009--World Gold Trust Services, LLC, a wholly-owned subsidiary of the World Gold Council (WGC) and State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today marked the fifth anniversary of SPDR® Gold Shares (NYSE Arca: GLD).
With assets under management in the trust with more than $40 billion (as of November 16, 2009) SPDR® Gold Shares has become one of the largest exchange traded funds in existence and is the fastest growing ETF, by assets, in the world.
SPDR® Gold Shares is considered one of the industry’s most innovative and influential ETFs, having made gold’s unique investment properties accessible for a broader investor base,” said James Ross, senior managing director at State Street Global Advisors. “The commodities market is vastly different today than it was five years ago due in part to the creation of SPDR® Gold Shares. As the first ETF to be backed by a physical asset, it has been a trailblazer for exchange traded commodities overall. Following the unprecedented success of GLD in 2004, 21 commodity ETFs have entered the market, which underscores the growing popularity of these products.”
“GLD has removed the barriers that previously prevented some investors from making an investment in gold. By increasing investor understanding of the role gold plays within the portfolio, GLD has enabled us to change the way the world looks at gold as an asset class,” said Jason Toussaint, managing director, Exchange Traded Gold, World Gold Council. “Most recently, the global financial crisis has placed gold attributes as a preserver of wealth center stage, but over the course of the last five years, GLD made gold relevant and accessible to an even broader range of investors, irrespective of the prevailing economic cycle. Investors around the world continue to use GLD to help diversify their portfolio, and potentially protect their assets from the ravages of long term inflation and as a hedge against dollar fluctuations.”
The five year anniversary was commemorated by representatives from both State Street Global Advisors and the World Gold Council ringing the opening bell at the New York Stock Exchange.
SPDR® Gold Shares Key Facts:
Launched in November 2004, GLD was the first US traded gold ETF and the first commodity ETF.
GLD was the first ETF to be backed by a physical asset.
GLD was one of the fastest growing ETFs in history, reaching over $1 billion in assets in just three trading days. GLD has more assets than the next 5 ETFs launched in this timeframe combined.
2009 YTD (as of Oct. 30/09) net asset value in the trust has increased by $15.97 billion.
GLD is listed on the NYSE Arca, the Bolsa Mexicana de Valores and the Singapore, Tokyo and Hong Kong Stock Exchanges.
KANJORSKI AMENDMENT TO ADDRESS COMPANIES THAT ARE “TOO BIG TO FAIL” PASSES IN FINANCIAL SERVICES COMMITTEE
November 18, 2009--Today, the House Financial Services Committee passed an amendment offered by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, to the Financial Stability Improvement Act by a vote of 38-29. The Kanjorski amendment would empower federal regulators to rein in and dismantle financial firms that are so large, inter-connected, or risky that their collapse would put at risk the entire American economic system, even if those firms currently appear to be well-capitalized and healthy.
Therefore, American taxpayers should no longer be on the hook for bailouts, as financial companies would not be able to become “too big to fail.” The Kanjorski amendment outlines clear and objective standards for regulators to examine financial companies and reduce the level of risk their activities pose to our financial stability and our economy.
“Today’s passage of my amendment marks a crucial step for the American people and for the protection of our financial system,” said Chairman Kanjorski. “I remember the dire situation we faced last fall, and we want to do everything we can to avoid such a situation in the future. Looking forward, we have the capabilities to try to act in a preventative manner for the sake of every American and our economy. Most of us yearn for the day when the phrase ‘too big to fail’ is no longer a part of our vocabulary. Through responsible action advocated in this amendment, we can make that a reality.”
The Kanjorski amendment expands on a segment of the Financial Stability Improvement Act, by enabling federal action to address financial companies that are deemed “too big to fail” before resolution authority is needed. The amendment transfers such mitigatory action from the Federal Reserve to the Financial Services Oversight Council and establishes objective standards for the Council to effectively evaluate companies to determine whether they are systemically risky. Additionally, the amendment provides clear checks and balances by requiring the Council to consult with the President before taking extraordinary mitigatory actions. A financial company also has the right to appeal any actions.
A summary of the Kanjorski amendment follows:
Objective Standards. Size is by no means the only factor to determine if a financial company is “too big to fail.” The recent financial crisis has shown that many other factors can also cause a company to become a systemic risk. Rather, the amendment considers a variety of objective standards to determine if financial firms pose a threat to our financial stability, including the scope, scale, exposure, leverage, interconnectedness of financial activities, as well as size of the financial company. The Kanjorski amendment does not cap the size of financial institutions.
Mitigatory Actions. If a financial company is deemed systemically risky, the Kanjorski amendment provides responsible preventative actions to protect our financial system and curtail those risks. These include modifying existing prudential standards, imposing conditions on or terminating activities, limiting mergers and acquisitions, and in the most extreme cases, breaking up the company.
Protects American Competitiveness. We have learned from this financial crisis that we are all connected. The Kanjorski amendment addresses the concern that our regulatory system works in conjunction with those around the globe. Currently, the European Union is considering similar action, and harmonized regulations would benefit both economies.
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|
|||
|
November 13, 2009 |
|||
A. Official reserve assets (in US millions unless otherwise specified) 1 |
Euro |
Yen |
Total |
|
(1) Foreign currency reserves (in convertible foreign currencies) |
|
|
136,019 |
|
(a) Securities |
10,564 |
14,504 |
25,068 |
|
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 |
15,331 |
7,074 |
22,405 |
|
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 |
13,670 |
|||
(3) SDRs 2 |
58,454 |
|||
(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) |
5,380 |
|||
--financial derivatives |
|
|||
--loans to nonbank nonresidents |
|
|||
--other (foreign currency assets invested through reverse repurchase agreements) |
5,380 |
|||
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 |
|
|
|
|
CBOE Options Update - Weeklys, Quarterlys, Implied Correlation Index, VIX, SPX, Symbology, Risk Mgt. Conference
November 17, 2009--WEEKLYS(SM) OPTIONS – record volume for one-week options
-- S&P 500(R) (SPX) weeklys options had record average daily volume of 17,118 in October 2009.
-- S&P 100(R) (OEX) weeklys options had record average daily volume of 16,211 in October 2009.
http://www.cboe.com/weeklys
QUARTERLYS OPTIONS - options with end-of-quarter expiration S&P 500 (SPX) Quarterlys options had average daily volume of 6,710 contracts in September 2009 http://www.cboe.com/quarterlys
CBOE S&P 500 IMPLIED CORRELATION INDEX
-- The first widely disseminated, market-based estimate of the average correlation of the stocks that comprise the S&P 500 Index (SPX)
-- Offers insight into the relative cost of SPX options compared to the price of options on individual stocks that comprise the S&P 500
http://www.cboe.com/impliedcorrelation
VIX(R) - FUTURES AND OPTIONS on the CBOE Volatility Index(R)
-- In October VIX options average daily volume was 156,001, and open interest was 2,586,794.
-- In October VIX futures volume set a new all-time high with 187,628 contracts traded, besting the previous record of 173,864 contracts in November 2007.
-- Researchers at the University of Massachusetts have published a study entitled "VIX Futures and Options—A Case Study of Portfolio Diversification During the 2008 Financial Crisis", which found that certain investments in VIX futures and options could have reduced downside risk for a typical institutional investment portfolio during the 2008 financial crisis.
http://www.cboe.com/VIX
S&P 500(R) (SPX) OPTIONS
In October the SPX options experienced --
- 5,472,039 call option volume
- 9,620,593 put option volume- 686,029 average daily volume
- 14,114,414 open interest
http://www.cboe.com/SPX
OPTIONS SYMBOLOGY INITIATIVE
The Options Symbology Initiative is an industry-led project designed to modernize how U.S. listed options are identified.
There are three main components of OSI:
1. Shift from fractional strike prices to decimal strike prices
2. Elimination of the OPRA code (the last two letters of the current options symbol)
3. Consolidation of standard options symbols to match the underlying root symbol
http://www.optionsclearing.com/symbology
26TH ANNUAL RISK MANAGEMENT CONFERENCE
-- The Risk Management Conference, hosted by the Chicago Board Options Exchange (CBOE) and the CBOE Futures Exchange (CFE), is an educational forum where institutional users of equity derivatives come to learn about new products, policies and strategies to manage risk exposures and enhance yields.
-- The conference will be held Sunday through Tuesday, March 7-9, 2010 at the Ritz-Carlton Golf Resort at Naples, Florida.
http://www.cboeRMC.com
Invesco PowerShares Lists Build America Bond ETF (BAB) on NYSE ARCA
November 17, 2009--Invesco PowerShares, a leading provider of exchange-traded funds (ETFs), announced the PowerShares Build America Bond Portfolio began trading today on the NYSE Arca under the ticker symbol BAB. The portfolio is the first ETF designed to provide investors access to the Build America Bond program developed as part of the federal stimulus plan enacted in February 2009.
“With more than $48 billion in Build America Bonds being issued thus far, we have seen a great deal of interest in the program; however, retail investors for the most part have had limited access to this important market,” said Ben Fulton, executive vice president – global product development of Invesco PowerShares. “We believe the PowerShares Build America Bond Portfolio provides a convenient, cost effective way to invest in taxable, investment grade municipal bonds, which tend to have yields commensurate with similarly rated corporate bonds. Furthermore, we believe the fund will bring much-needed liquidity to a market that will be pivotal in the rebuilding of America’s infrastructure.” Since 1997, 10-year AAA-rated taxable municipal bonds have, on average, yielded just five basis points less than 10-year AAA-rated corporate bonds.1
The PowerShares Build America Bond Portfolio is based on the BofA Merrill Lynch Build America Bond Index. The Fund will normally invest at least 80% of its total assets in the securities that comprise the index. The index is designed to track the performance of U.S. dollar-denominated investment grade taxable municipal debt publicly issued under the Build America Bond program in the U.S. domestic market.
Qualifying securities must have an investment grade rating, a fixed coupon schedule and a minimum amount outstanding of $1 million. In addition, qualifying securities must be “direct pay” (i.e., a direct federal subsidy is paid to the issuer). Securities included in the index are capitalization-weighted based on their current amount outstanding, and the index is rebalanced on a monthly basis.
The Build America Bond program was created under the American Recovery and Reinvestment Act of 2009, which provides for the issuance of taxable municipal securities on which the issuer receives federal support of the interest paid. Unlike most other municipal obligations, interest received on Build America Bonds is subject to federal income tax. Issuers of “direct pay” Build America Bonds (i.e., taxable municipal bonds issued to provide funds for qualified capital expenditures) are entitled to receive payments from the U.S. Treasury over the life of the bond equal to 35% (or 45% in the case of Recovery Zone Economic Development Bonds) of the interest paid. The federal interest subsidy continues for the life of the bonds.
Build America Bonds offer an alternative form of financing to state and local governments whose primary means for accessing the capital markets has been through issuance of tax-free municipal bonds. Issuance of Build America Bonds will cease on Dec. 31, 2010, unless the relevant provisions of the American Recovery and Reinvestment Act of 2009 are extended. In the event that the Build America Bond program is not extended, the portfolio anticipates changing its investment strategy to invest in an index composed of taxable municipal securities.
Invesco PowerShares Capital Management LLC is leading the intelligent ETF revolution® through its family of more than 110 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 of $41 billion as of Sept. 30, 2009, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.co
First Trust Launches New Exchange Traded Fund (GRID) Based on NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index
First Investment Product Based on the Index
November 17, 2009--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), Clean Edge,
Inc., and First Trust Advisors L.P. have announced the launch of a new
exchange traded fund (ETF) - the First Trust NASDAQ(R) Clean Edge(R)
Smart Grid Infrastructure Index Fund (Nasdaq:GRID). It is based on the
NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index(SM)
(Nasdaq:QGRD), a benchmark for the smart grid and electric
infrastructure sector. The ETF is managed by First Trust Advisors L.P.
and listed on NASDAQ.
GRD is a modified market-capitalization index and includes companies
that are primarily involved in electric grid; electric meters, devices
and networks; energy storage and management; and enabling software used
by the smart grid and electric infrastructure sector.
First Trust's ETF, GRID, is designed to correspond to the price and yield performance of the index on which it is based. ETFs are financial products that trade like shares of stock and can be bought and sold throughout the trading day.
"First Trust has filled the need for an investment product based on an index that has brought sharper focus to an industry that is transforming our nation's energy grid," said NASDAQ OMX Executive Vice President John Jacobs. "This ETF reflects First Trust's commitment to extending its suite of products to broaden investor choice."
"This is the first ETF to track a smart grid and electric infrastructure index," said Ron Pernick, Clean Edge Co-Founder and Managing Director. "First Trust continues to demonstrate leadership and to build a strong presence in the clean-energy sector."
"With a growing demand for electricity and the increasingly inefficient infrastructure, the current power grid is unable to keep up with the twenty first century technology," according to Ryan Issakainen, Vice President, Exchange-Traded Fund Strategist for First Trust Portfolios. "There's a growing movement towards a next generation power grid - Smart Grid. Electricity is one of the largest and most capital intensive sectors in our economy and we are tremendously excited about the potential that this industry represents."
The NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index is calculated in real-time across the combined exchanges and is disseminated by NASDAQ OMX in U.S. Dollars. The Index commenced calculation on September 22, 2009 with a value of 250.00.
The NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index is
comprised of companies that are screened by Clean Edge. To view the
companies in the NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure
Index, visit www.nasdaqomx.com/indexes.