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Markit and Virtu race for New York IPOs
February 24, 2014--Two unique financial technology companies are preparing multibillion dollar initial public offerings, with both Markit and Virtu Financial seeking New York listings in the coming months.
Markit, the UK-based data provider, is aiming to raise at least $500m and seek a valuation of more than $5bn as early as the second quarter of this year, people familiar with its plans said.
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Source: FT.com
SEC Approves New Rule On 529 Plan Disclosures
February 24, 2014--The Securities and Exchange Commission has approved a new rule that will require underwriters of 529 college savings plans to submit more in-depth financial information to the Municipal Securities Rulemaking Board twice a year.
New Rule G-45 on reporting of information on municipal fund securities will require primary distributors or underwriters of 529 plans to submit information including assets, contributions, distributions, fees and expenses, and performance data to the board within 60 days of June 30 and December 31 each year.
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Source: The Bond Buyer
DB-Synthetic Equity & Index Strategy -North America-Equity ETPs gathered $6.5bn in new cash
February 24, 2014--Data in this report is as of Friday, Feb 21
Market and Net Cash Flows Review
The US (S&P 500) fell by 0.13%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 1.57% and 0.24%, respectively. In the meantime, performance was mixed across US sectors. The Healthcare (+0.96%) and Utilities (+0.68%) sectors recorded the biggest weekly gains; while, Financials (-0.86%) and Consumer Staples (-0.58%) were the worst performing sectors. The DB Liquid Commodity Index rose by 1.49%; similarly, the Agriculture sector (DB Diversified Agriculture Index), the WTI Crude Oil, Gold and Silver prices rose by 4.09%, 1.89%, 0.42% and 1.72%, respectively. Moving into other asset classes, the 10Y US Treasury Yield dropped 2bps ending at 2.73%. Last but not least, Volatility (VIX) rose by 8.18% during the same period.
The total US ETP flows from all products registered $6.3bn (+0.4% of AUM) of inflows during last week vs. $16.0bn (+1.0%) of inflows the previous week, setting the YTD weekly flows average at -$0.2bn (-$2.0bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of +$6.5bn (+0.5%), -$0.2bn (-0.1%) and -$14mn (-0.0%) last week vs. +$14.5bn (+1.1%), +$1.4bn (+0.5%) and +$45mn (+0.1%) in the previous week, respectively.
Among US sectors, Energy (+$1.0bn, +3.8%) and Healthcare (+$0.8bn, +2.5%) received the top inflows, while Industrials (-$0.2bn, -1.7%) and Consumer Discretionary (-$0.2bn, -2.3%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: QQQ (+$1.3bn), XLE (+$0.8bn), EFA (+$0.6bn)
Top 3 ETPs & ETNs by outflows: BND (-$0.3bn), KRE (-$0.3bn), IJR (-$0.3bn)
New Launch Calendar: No new listings
There were no new listings during the previous week.
Turnover Review: Floor activity decreased by 18.7%
Total weekly turnover decreased by 18.7% to $251.9bn vs. $309.9bn from the previous week. Furthermore, last week's turnover level was 12.0% below last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover decreased by $51.5bn (-18.5%), $4.7bn (-27.7%) and $1.3bn (-11.2%) during the same period, respectively.
Assets under Management (AUM) Review: assets increased by 13.2bn
US ETP assets rose by $13.2bn (+0.8%) totaling $1.683 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +0.3% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$12.4bn, +$0.2bn and +$0.6bn during last week, respectively.
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Source: Deutsche Bank- Synthetic Equity & Index Strategy -North America
ETF Securities and E Fund License the MSCI China A Index for New UCITS ETF
February 23, 2014--MSCI Inc (NYSE: MSCI), a leading provider of investment decision support tools worldwide, announced today that ETF Securities Limited and E Fund Management (HK) Co., Ltd, have licensed the MSCI China A Index as the basis for a proposed exchange traded fund (ETF).
"The attractive China A shares market is gaining much ground with global investors. E Fund is pleased to be working on a new product for Europe with ETF Securities that, once launched, will give a clear measure and representation of this segment"
“We are delighted to be able to license the MSCI China A Index. We expect our product to be the first UCITS ETF listed in London tracking the MSCI China A Index which provides better diversification and sectorial coverage than other indices we have reviewed,” said Matt Johnson, Head of Distribution EMEA, ETF Securities.
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Source: MSCI
ETF roundup: BAML reports big rise in high-yield ETF inflows
February 21, 2014--9.8% increase in flows year on year; equity redemptions hit ETPs in January; North American ETFs suffer worst quarter for five years; iShares lists Europe's first fund to use international security structure
Inflows into credit funds through the exchange-traded funds (ETFs) route have risen dramatically this year, according to Bank of America Merrill Lynch. With a weekly combined average inflow of $240 million for high-grade and high-yield funds, total inflows for 2014 are now in excess of $1.4 billion, driven by a 9.8% year-on-year increase in money going into high-yield ETFs, with 3.3% finding its way into investment grade ETFs.
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Source: Risk.net
Invesco PowerShares Announces a Special Dividend for PowerShares QQQ
February 21, 2014--Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), announced today that PowerShares QQQ expects to issue a special dividend payment on Friday, March, 7,, 2014.
The special dividend is due to a corporate action event by Vodafone Group PLC ADR which is held by PowerShares QQQ. As of February 20, 2014 Vodafone represented 0.93% of total holdings in PowerShares QQQ.
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Source:Invesco PowerShares Capital Management LLC
U.S. SEC reviewing if some high-speed traders should register
February 21, 2014--U.S. securities regulators are studying whether more proprietary high-speed trading firms should register as broker-dealers, which would subject them to greater oversight, a U.S. Securities and Exchange Commission official said on Friday.
Speaking at the Practising Law Institute's annual SEC Speaks conference, John Ramsay, the outgoing acting director of the SEC's Trading and Markets Division, said that whether certain high-speed proprietary trading firms should be formally registered as brokers "is something we are looking at carefully."
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Source: Reuters
CBOE to close stock-trading venue
January 21, 2014--The Wall Street Journal is reporting: CBOE Holdings plans to shut a stock-trading venue because the small exchange doesn't fit into its long-term business plan.
The exchange, CBSX, accounts less than a half-percent of U.S. equity market trading volume, the newspaper reported.
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Source: Chicago Tribune
NYSE Euronext 1 ETF Launch Alps
February 21, 2014--NYSE Euronext
is pleased to announce that on Tuesday, February 25, 2014, the following
ETF will be listed on NYSE Arca and will begin trading as a new issue
Security Name: Workplace Equality Portfolio
CUSIP: 00162Q 65 0
Trading Symbol: EQLT
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Source: NYSE Arca
CFTC.gov Commitments of Traders Reports Update
February 21, 2014--The current reports for the week of February 18, 2014 are now available.
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Source: CFTC.gov