Americas ETP News
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BlackRock signals bond trading shake-up
May 14, 2014--BlackRock, the world's largest asset manager, is teaming up with electronic trading hub Tradeweb in a shake-up for US bond and derivatives markets, supported by Wall Street banks.
The alliance announced on Wednesday will focus on boosting trading...
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Source: FT.com
iShares Launches First Qatar & UAE Focused ETFs
May 14, 2014--The Middle East, the often ignored investment destination in the ETF world, finally has two single-country products focused on its equity markets.
iShares, the world's leading ETF provider, has recently launched two products that provide single country exposure to the Middle East.
The new funds-iShares MSCI Qatar Capped ETF-(QAT) and iShares MSCI UAE Capped ETF (UAE)-hit the market on May 1, 2014, and are solely dedicated to the securities focused on these nations.
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Source: Nasdaq
Buy Side Takes Issue With Maker-Taker Pricing
May 14, 2014--Maker-taker pricing is a sore point for some buy-side market participants, who believe it distorts market behavior to their detriment. The system, by which liquidity providers are paid a rebate by exchange and liquidity takers pay a fee, has historically been justified by exchanges as a way to attract more liquidity, but in the era of high-frequency trading that argument has come under scrutiny.
"There’s a big difference between liquidity and volume: if you start flat and go home flat, you’re not really providing liquidity," said Joseph Scafidi, director of trading at Brandes Investment Partners, which manages $27 billion. "It’s recently been announced that the SEC may take a look at some pilot programs for removing maker-taker. I am in strong support of such a program. There are a lot of incentives with the maker-taker model that many guys on my side of the fence have issues with."
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Source: Markets Media
NASDAQ to Begin Listing First Trust ETF on Thursday, May 15, 2014
May 13, 2014--Effective Thursday, May 15, 2014, The NASDAQ Stock Market(R)(NASDAQ(R)) will list one new ETF:
First Trust Managed Municipal ETF
The new ETF will be designated as NASDAQ Global MarketSM securities
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Source: NASDAQ OMX
Recon Capital launches white label ETF platform
Platform Includes Exclusive Distribution & Trading To Ensure Long Term Success
May 13, 2014--Recon Capital announced today, the immediate availability of its ETF Platform enabiling asset managers, hedge funds, and registered investment advisers (RIAs) to tap into the $1.7 trillion exchange traded fund industry with Recon Capital's comprehensive ETF infrastructure.
Recon's ETF Platform helps asset managers bring innovative investment solutions to the exchange traded fund and 1940 Act space. The Exchange Traded Platform focuses on providing better investment solutions in a liquid, transparent, and cost effective manner. Recon Capital launched it's first exchanged traded fund on the platform: the Recon Capital NASDAQ 100 Covered Call ETF (Nasdaq "QYLD") on December 12, 2013.
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Source: Recon Capital Partners
Potholes litter road to ETF investment by DC plans
May 12, 2014-With the very public launch of an ETF-only 401(k) plan option by Charles Schwab Corp., might some defined contribution plan executives finally be willing to give exchange-traded funds a try?
According to Steven Anderson, president of Schwab Retirement Plan Services Inc., for Charles Schwab in Cleveland, the company has already received commitments from several defined contribution plans to convert to all ETFs beginning in the fall, including a plan in excess of $100 million.
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Source: Pensions & Investments
iShares reassures advisers: 'We won’t compete with you'
May 12, 2014--BlackRock has been busy packaging its iShares exchange traded funds into asset allocation models, but iShares global chief Mark Wiedman says the firm is not looking to undermine a key distribution channel.
What we will not do is compete with you," Wiedman told an audience of third-party ETF strategists at its annual iShares Connect conference in New York last week.
Deutsche unit eyes US passive assets view more
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review-Fixed Income ETPs capture $1.3bn
The total US ETP flows from all products registered $1.4bn (-0.1% of AUM) of outflows during last week vs. $0.9bn (+0.1%) of inflows the previous week, setting the YTD weekly flows average at +$1.5bn (+$28.6bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of -$2.8bn (-0.2%), +$1.3bn (+0.5%) and +$0.1bn (+0.1%) last week vs. -$1.4bn (-0.1%), +$2.5bn (+0.9%) and -$0.2bn (-0.4%) in the previous week, respectively.
Among US sectors, Energy (+$0.1bn, +0.4%) and Industrials (+$0.1bn, +0.3%) received the top inflows, while Financials (-$0.4bn, -0.6%) and Utilities (-$0.3bn, -3.1%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: TLT (+$0.4bn), IVV (+$0.4bn), VEA (+$0.3bn)
Top 3 ETPs & ETNs by outflows: IWM (-$1.6bn), QQQ (-$1.2bn), SPY (-$1.1bn)
New Launch Calendar: two new smart beta funds reach the market
Assets under Management (AUM) Review: Assets decreased by $4.3bn view more Institutional Use of ETFs Has Transformed in Five Years
The study, "ETFs: An Evolving Toolset for U.S. Institutions," conducted by Greenwich Associates and sponsored by BlackRock, presents the ETF usage trends of institutions, including corporate and public pensions funds, foundations and endowments, asset managers, investment consultants, insurance companies, and Registered Investment Advisors (RIAs). view more
Source: FT.com
Deutsche Asset & Wealth Management, Europe's second-largest exchange-traded product provider, is making a push for assets in the US, bulking up its sales staff and plotting its growth strategy in a market where it ranks 12th.
The US is easily the richest global market for ETPs, with $1.8 trillion in assets from 57 providers. Deutsche's ETP assets in the US amount to less than 1% of this, at $11.7 billion, against $52.8 billion in assets in Europe.
Source: Financial News
May 12, 2014--Data in this report is as of Friday, May 09
Market and Net Cash Flows Review
The US (S&P 500) fell by 0.14%; while, outside the US, the MSCI EAFE (in USD) dropped by 0.33% and the MSCI EM (USD) rose by 0.38%. In the meantime, performance was mixed across US sectors; the Consumer Staples (+0.71%) and the Materials (+0.32%) sectors recorded the largest weekly gains; meanwhile, the Utilities (-0.68%) and the Consumer Discretionary (-0.67%) were the worst performing sectors. The DB Liquid Commodity Index fell by 0.57%; similarly, the Agriculture sector (DB Diversified Agriculture Index), Gold and Silver prices fell by 1.65%, 0.83% and 1.72%, respectively; while, the WTI Crude Oil rose by 0.23%.
Moving into other asset classes, the 10Y US Treasury Yield rose by 2bps ending at 2.62%. Last but not least, Volatility (VIX) slightly rose by 0.08% during the same period.
There were two new ETFs listed during last week. The new products offer exposure to European (EUDG) and international developed market (IHDG) companies with focus in dividend growth.
Turnover Review: Floor activity decreased by 13.7%
Total weekly turnover decreased by 13.7% to $271.4bn vs. $314.6bn from the previous week; furthermore, last week's turnover level was 5.2% below last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover decreased by $37.3bn (-13.2%), $3.6bn (-16.8%) and $2.6bn (-32.1%) during the same period, respectively.
US ETP assets dropped by $4.3bn (-0.2%) totaling $1.730 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of 3.1% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved -$6.3bn, +$1.7bn and +$0.3bn during last week, respectively.
Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
Research by Greenwich Associates shows ETFs have become essential strategic tools
May 12, 2014-ETFs have become a standard tool in institutions' investment toolkit, according to a study released today by Greenwich Associates.
Nearly half (46%) of institutional ETF investors surveyed allocate 10% or more of total assets to ETFs and 47% say they expect to expand their use in the next year.
Source: BlackRock
