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Citadel Steps Up Criticism of IEX's Plan to Start New Exchange
December 1, 2015--Firm sends second letter to SEC critiquing IEX''s proposal
IEX has vowed to diminish advantages held by speed traders
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Source: Bloomberg
DOL's fiduciary exemption is not a workable option for advisers
Too complex and cumbersome, provision would exclude investments such as alternatives
December 1, 2015--Despite months of media attention and frequent discussion within our industry, many financial advisers are only beginning to grasp the implications of the Labor Department's effort to expand its definition of fiduciary under ERISA.
The rule, as written, will deny millions of small and mid-sized investors access to quality, affordable retirement advice.
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Source: Investment News
Lew Says U.S. to Ensure Dollar Remains Top Reserve Currency
December 1, 2015--U.S. to hold China to its pledge to avoid unfair FX policies
Lew also cautions against rolling back Dodd-Frank regulations
Treasury Secretary Jacob J. Lew said the U.S. intends to ensure the dollar stays the world's leading reserve currency a day after the International Monetary Fund elevated the Chinese yuan into a basket alongside the dollar, euro, yen and pound.
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Source: Bloomberg
SEC Agrees to FINRA's BrokerCheck Change on Posting Firings
December 1, 2015--FINRA will reduce from 15 days to three the release of disclosure information filed on Form U5 The Securities and Exchange Commission approved Monday the Financial Industry Regulatory Authority's plan to reduce from 15 days to three
the release of disclosure information filed on Form U5 through Broker Check.
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Source: ThinkAdvisor
Nasdaq wins back TD Ameritrade in listings war with NYSE
December 1, 2015--TD Ameritrade Holding Corp., the No. 1 U.S. retail brokerage by trade executions, said on Tuesday it was moving its stock listing back to Nasdaq Inc from the New York Stock Exchange after a little over three and a half-years.
The move is a vindication of sorts for Nasdaq, which had lost the TD Ameritrade listing to the NYSE, now owned by Intercontinental Exchange Inc, in April 2012.
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Source: Reuters
UPDATE 1-Exchange operator BATS Global planning 2016 IPO-WSJ
November 30, 2015--BATS Global Markets Inc is expected to file a prospectus for an initial public offering as early as December, the Wall Street Journal reported, in what would be the exchange operator's second attempt at going public.
BATS is valued at more than $2 billion, including debt, according to the WSJ.
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Source: Reuters
First Asset Announces Completion of Acquisition by CI Financial Corp.
November 30, 2015--Further to its announcement on October 23, 2015, First Asset Capital Corp. ("First Asset") announces that CI Financial Corp. has completed its acquisition of First Asset.
The transaction resulted in a change of control of First Asset Investment Management Inc., the investment manager of the Funds listed below.
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Source: First Asset
AdvisorShares Weekly Market Update: Not As Quiet As It Seemed
November 30, 2015--Highlights of the Prior week-For the week of November 23 -November 27
Macro
Domestic equities were mostly quiet last week and although that is what you might expect, that wasn't necessarily a given based on the last couple of months of volatile trading.
The Dow Jones Industrial Average fell 13 basis points, the S&P 500 gained six basis points, the NASDAQ added 0.46% and
the Russell outperformed dramatically with a 2.31% gain.
In trying to explain why small caps have been outperforming of late Barron's cited Joe Mezrich from Nomura Securities who expects small caps to continue to do well thanks to attractive valuations relative to large cap and economic uncertainty but with expectations of growth as evidenced by (his interpretation of) the slope of the treasury yield curve.
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Source: AdvisorShares
CFTC.gov Commitments of Traders Reports Update
November 30, 2015--The current reports for the week of November 24, 2015 are now available.
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Source: CFTC.gov
Morgan Stanley-US ETF Weekly Update
November 30, 2015--US ETF Weekly Update
Weekly Flows: $7.4 Billion Net Inflows
Eighth Consecutive Week of Net Inflows, Totaling $59.5 Billion
High-conviction ETF Recommendations Slide: Add INDA
ETF Assets Stand at $2.1 Trillion, up 8% YTD
Three ETF Launches Last Week
State Street Makes Ticker Change.
US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net inflows of $7.4 bln last week; eighth consecutive week of net inflows, totaling $59.5 bln
Last week's net inflows were led by US Large-Cap ETFs at $3.5 bln; conversely, Leveraged/Inverse ETFs posted modest net outflows of $212 mln, the most of any category we measured-Eleven of the 15 categories we measured posted net inflows last week
ETFs have generated net inflows 35 of 48 weeks YTD-ETF assets stand at $2.1 tln, up 8% YTD
13-week flows remain positive among most asset classes; combined $75.3 bln in net inflows
US Large-Cap and Fixed Income ETFs generated a combined $43.9 bln in net inflows over the last 13 weeks, accounting for 58% of all ETF net inflows
International-Emerging, Commodity, and Global ETFs are the three categories to have exhibited net outflows over the last 13 weeks; the three areas posted a combined $746 mln in net outflows
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) posted net inflows of $2.6 bln last week, leading all ETFs
Over the last 13 weeks, SPY has generated net inflows of $5.1 bln; the fourth quarter of the year is typically a strong one for SPY as investors use the fund for tax management strategies and position portfolios for year-end
The Energy Select Sector SPDR (XLE) and the SPDR Oil & Gas Exploration & Production ETF (XOP) had a combined $508 mln in net inflows last week; despite the turbulence in energy prices, there appears to be some interest in energy equities
The iShares Russell 2000 ETF (IWM) had another strong week, posting net inflows of $204 mln; over the last 13 weeks, the US small-cap ETF has generated net inflows of $2.9 bln
Conversely, the PowerShares S&P 500 Low Volatility Portfolio (SPLV) had net outflows of $676 mln last week, essentially giving back the prior week's net inflows of $688 mln
US-Listed ETFs: ETF Dollar Volume
ETF monthly $ volume as a % of listed trading volume was down in October to 26% relative to September's 29% reading as market fear receded; over the last five years, ETF monthly $ volume as a % of listed trading volume averaged 27%
Over the last five years, ETF monthly $ volume as a % of listed trading volume peaked in August 2011 at 36%
ETF $ volume was down $163 bln last week amid a shortened trading week compared to the prior week
International-Emerging ETF volume accounted for 10% of ETF $ volume last week compared to its 13-week average of 8% and its 5% market cap share
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Source: Morgan Stanley