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A Step Forward for New Active ETFs
January 22, 2014--For years, fund companies have been trying to convince regulators to let exchange-traded funds relax daily reporting requirements.
On Wednesday, the first proposed prospectus detailing how such a fund would work was filed with the Securities and Exchange Commission.
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Source: Wall Street Journal
Deutsche Bank-Synthetic Equity & Index Strategy -North America-US ETF+ Quarterly Directory - Q4 2013 ETPs
January 22, 2014--This document includes all US listed exchange-traded funds (ETFs) and exchange-traded vehicles (ETVs), plus a special section covering exchange-traded notes (ETNs).
The directory is organized by asset class and asset-class-related sub sections. Within each sub section it has also been sorted. For Equity and Fixed Income ETPs it is sorted by country (or sub region for regional products) in alphabetical order and by AUM in descending order, and for the other ETP asset classes it is sorted by sub sector in alphabetical order and by AUM in descending order. Numerous key information points per product have been included in order to give readers an overview of their respective areas of interest. Among the key numeric information we include average daily turnover, assets under management, and cash flows (all in $US).
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Source: DB-Synthetic Equity & Index Strategy -North America
Direxion Launches 3x Leveraged ETFs Tracking FTSE Developed Europe Index
New Products Provide Bull and Bear Traders with Exposure to Developed European Markets
January 22, 2014--Direxion, a leader in alternative investment solutions, has launched a pair of leveraged exchange-traded funds (ETFs) tracking the equity performance of mid- and large-capitalization companies in Europe's developed markets.
The Direxion Daily FTSE Europe Bull 3X Shares (EURL) seeks to generate daily investment results of 300 percent of the FTSE Developed Europe Index's performance, before fees and expenses. The Direxion Daily FTSE Europe Bear 3X Shares (EURZ) attempts to deliver daily investment results, before fees and expenses, of 300 percent of the inverse of the same composite's performance. The FTSE Developed Europe Index, created and managed by global index provider FTSE, is a free-float-adjusted composite designed to measure the equity market performance of mid- and large-cap segments of developed markets in Europe.
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Source: Direxion
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite And Venture Select Indices
January 22, 2014--S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of Novus Energy Inc. (TSXVN:NVS) have agreed to the terms of a Plan of Arrangement with Yanchang Petroleum International Limited (HKSE:0346).
Shareholders of Novus Energy will receive $CDN1.18 cash for each share held. The company will be removed from the S&P/TSX Venture Composite and Venture Select Indices after the close of trading on Thursday, January 23, 2014.
Source: S&P Dow Jones
CFTC.gov Swaps Report Update
January 22, 2014--CFTC's Weekly Swaps Report has been updated, and is now available.
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Source: CFTC.gov
PIMCO Appoints Leadership Team
January 21, 2014-- PIMCO, a leading global investment management firm, announced today that Chief Executive Officer and Co-Chief Investment Officer Mohamed A. El-Erian has decided to step down from his role and leave the firm in mid-March.
He will remain a member of the Allianz International Executive Committee and, as of mid-March, also advise the Board of Management of Allianz on global economic and policy issues. PIMCO's founder William H. Gross will continue to serve as the firm's Chief Investment Officer.
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Source:PIMCO
KCG's Susi Talks Electronic Trading and Execution
January 21, 2014--KCG is putting the pieces back together. And not missing a trade along the way.
Like the mythical phoenix, KCG Holdings has risen from the ashes of Knight Capital and Getco.
The rebirthed firm is taking the two separate market makers' electronic trading groups, technologies, algorithms and order routing technology and integrating them into a single trading platform, said Charles Susi, head of product development for the firm's client execution services group, in an interview with Traders.
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Source: Securities Technology Monitor
Deutsche Bank-Synthetic Equity & Index Strategy-US ETF Market Weekly Review-European focused ETPs led Equity inflows with $1.0bn in new cash
January 21, 2014--Data in this report is as of Fri,Jan 17
Market and Net Cash Flows Review
The US (S&P 500) fell by 0.20%; while,outside the US,the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 0.50% and 0.24%,respectively. In the meantime,performance was mixed across US sectors. The Technology (+1.31%) and Materials (+0.54%) sectors recorded the biggest weekly gains. The DB Liquid Commodity Index rose by 0.45%; in the meantime,the Agriculture sector (DB Diversified Agriculture Index) fell by 0.19%, while, the WTI Crude Oil,Gold and Silver prices rose by 1.78%,0.45% and 0.85%,respectively.
Moving into other asset classes,the 10Y US Treasury Yield dropped by 4 bps ending at 2.84%. Meanwhile on the FX side the USD weakened against all major currencies. The Euro,the British Pound,the Swiss Franc and the Japanese Yen appreciated 0.94%,0.36%,0.85% and 0.13%,respectively. Last but not least,Volatility (VIX) rose by 2.47% during the same period.
The total US ETP flows from all products registered $2.7bn (+0.2% of AUM) of inflows during last week vs. $0.9bn (-0.1%) of outflows the previous week,setting the YTD weekly flows average at +$1.0bn (+$3.1bn YTD in total cash flows). Equity,Fixed Income and Commodity ETPs experienced flows of +$2.3bn (+0.2%),+$0.5bn (+0.2%) and -$0.1bn (-0.2%) last week vs. -$1.2bn (-0.1%),+$22mn (+0.0%) and +$0.3bn (+0.5%) in the previous week,respectively.
Among US sectors,Financials (+$0.4bn,+0.7%) and Information Technology (+$0.4bn,+1.3%) received the top inflows,while Utilities (-$0.1bn,-1.5%) and Consumer Discretionary (-$0.1bn,-0.6%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: IWM (+$0.8bn),VGK (+$0.5bn),EZU (+$0.4bn)
New Launch Calendar: US,HY Municipals and IG debt
There were three new ETFs listed during the previous week. The new products offer thematic exposure to US equities,HY short duration municipals and an actively managed strategy focusing on short-term IG debt.
Turnover Review: Floor activity increased by 3.8%
Total weekly turnover increased by 3.8% to $297.2bn vs. $286.3bn from the previous week. Furthermore,last week's turnover level was 3.8% over last year's weekly average. Equity ETPs turnover increased by $12.0bn (+4.7%); While Fixed Income and Commodity ETPs turnover decreased by $0.7bn (-3.8%) and $0.8bn (-9.0%),respectively.
Assets under Management (AUM) Review: assets increased by $4.5bn
US ETP assets rose by $4.5bn (+0.3%) totaling $1.680 trillion at the end of the week. As of last Friday,US ETPs had accumulated an asset growth of +0.1% YTD. Assets for Equity,Fixed Income and Commodity ETPs increased by $3.4bn,$0.8bn and $0.3bn during last week,respectively.
visit https://eqindex.db.com/etf/ for more info.
Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
ETF Research Center-4Q13 Reporting Monitor, Week One: Fastest EPS Growth in a Year
January 21, 2014-HIGHLIGHTS:
At the outset of earnings season, S&P500 firms are expected to have posted EPS growth of 9.1% YoY in Q4, the fastest pace in a year. Financials (XLF) and Tech (XLK) were the largest contributors to index profit growth, while Energy (XLE) was a small drag..
Sales were dragged down by reporting conventions at Prudential in the Financial sector, absent which revenue for the sector would be off only 0.6%, and overall S&P revenues would have grown by 2.0% YoY, led by Consumer Discretionary (XLY). Margins were generally up versus year-earlier results, but Utilities (XLU) remain under pressure...
Financials have delivered the biggest upside surprises for both sales and earnings so far, while Tech and Industrials (XLI) have fallen somewhat short. And, retailers' poor holiday results have yet to show up in the form of negative surprises for the Consumer sector overall...view more
Source: AltaVista Research
Federal Reserve expected to cut QE by further $10bn
A number of Fed members have signalled they would vote in favour of another reduction if the US economic recovery remained on course
January 21, 2014-- The US Federal Reserve is on course to reduce its monthly bond-buying programme again next month, as it continues to wean the American economy off the fiscal stimulus that spurred its economic recovery.
The central bank has already reduced its monthly bond-buying from $85bn to $75bn, and is expected to cut it back by a further $10bn in February.
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Source: The Telegraph