Americas ETP News
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CBOE Futures Exchange Hit With Data Glitch
System Recovers After Temporary Delay of Quotes
August 27, 2013--CBOE Holdings Inc., operator of the largest U.S. options exchange by trading volume, alerted traders to problems with some market-data services early Tuesday, according to notices on the exchange operator's website, before all issues were fully resolved by about 1 p.m. Eastern time.
The Chicago Board Options Exchange parent warned that "some users may see delays in complex order entry," according to an alert at 11:16 a.m., while earlier in the session, the exchange operator said that its futures platform had problems with a "limited number" of canceled trades on its futures platform being executed early Tuesday, according to a separate notice sent to traders. Another notice said some orders from Monday were still appearing as "active" in the futures exchange's order book.
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Source: Wall Street Journal
ISE GeminiTM is the Fastest New Exchange to Surpass Two Percent Market Share in Equity Options
Successful Product Rollout Completed on an Accelerated Basis
August 27, 2013--The International Securities Exchange (ISE) announced that ISE GeminiTM surpassed two percent market share yesterday in equity options, the fastest exchange to reach that milestone since ISE introduced electronic trading to the options market in 2000.
ISE Gemini also successfully concluded its product listing plan on an accelerated basis, less than a month after launching on August 5.
"Since ISE's inception, one of our core values has been a dedication to growth through innovation and the record market share milestone is a testament to that," said Boris Ilyevsky, Managing Director of ISE. "The pricing structure, market model and listings plan we developed were meant to ensure a methodical introduction to ISE Gemini, and the extremely smooth rollout has surpassed our expectations. We are gratified that ISE Gemini continues to be well received and look forward to continued growth of our new exchange."
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Source: ISE.com
National Bank Direct Brokerage Extending Promotional Offer to Trade Exchange-Traded Funds Free of Charge
August 27, 2013--National Bank Direct Brokerage (NBDB) is announcing that it is extending its promotional offer to trade Canadian exchange-traded funds (ETFs) without charging any commission fees until October 31.
This promotion-which was launched in April-is being held in a context where all NBDB activities are experiencing rapid growth: client transactions increased by 9% during the six-month period from February 1 to July 31, 2013 compared to the year-earlier period.
This promotion's success shows that self-directed investors are receptive to National Bank Direct Brokerage's offers, which make investing easier and that ETFs also meet an actual need. It is the perfect time for clients to build a portfolio at a low cost, and take advantage of the benefits of ETFs: they are easy to trade, the portfolio is diversified, and the management fees and securities in the portfolio are transparent," pointed out Nancy Paquet, President of National Bank Direct Brokerage.
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Source: National Bank of Canada
FSB Report-Peer Review of the United States
August 27, 2013--The Financial Stability Board(FSB) published today its peer review of the United States.
The report examines the progress made in the US on three topics that are important for financial stability and relevant for the broader FSB membership: systemic risk oversight arrangements; supervision and oversight of financial market infrastructures (FMIs); and insurance supervision.
To a large extent, the reforms analysed in this review focus on the need to ensure effective and efficient coordination and information sharing arrangements and to address any overlaps or gaps in the roles and responsibilities of the relevant US agencies, given the complex and fragmented US regulatory and supervisory structure.
Good overall progress has been made by the US authorities in following up on the recommendations made by the International Monetary Fund under the 2010 Financial Sector Assessment Program (FSAP) on the above three topics, particularly as regards systemic risk oversight arrangements and the supervision and oversight of FMIs. Progress in implementing the FSAP recommendations has been less advanced in the case of insurance supervision.
view the FSB Report-Peer Review of the United States
Source: Financial Stability Board(FSB)
TMX Group launches Canadian implied volatility and Greeks analytics feed
TMX Datalinx to offer new data feed for MX options
August 27, 2013--TMX Group today announced the launch of a new analytics feed for options traded on Montréal Exchange Inc. (MX), a wholly-owned subsidiary of TMX Group Limited and Canada's derivatives exchange.
TMX Datalinx, the information services division of TMX Group, will make the new feed available to the options trading community through the TMX Atrium global network and other content distributors.
The Canadian implied volatility and Greeks analytics feed, is a low latency, real-time market data feed designed to provide clients with the necessary analytics to effectively evaluate potential trading opportunities and assess portfolio risk.
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Source: TMX Group
Exclusive: Nasdaq, NYSE at odds on outage cause as SEC seeks facts
August 27, 2013--U.S. regulators have asked Nasdaq OMX Group (NDAQ) and NYSE Euronext (NYX) to come up with a timeline of Thursday's three-hour trading disruption, but the rival exchange operators have been unable to agree on the details, according to several sources familiar with the situation on Monday.
Five days after a glitch that paralyzed Nasdaq-listed stocks for three hours on all U.S. markets, Nasdaq and NYSE have a different understanding of what happened in the period preceding and during the blackout, with each side blaming the other for the outage, according to the sources.
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Source: Reuters
Morgan Stanley-US ETF Weekly Update
August 26, 2013--US ETF Weekly Update
Weekly Flows: $8.2 Billion Net Outflows
Second Consecutive Week of Net Outflows
ETF Assets Stand at $1.5 Trillion, up 12% YTD
One ETF Launch Last Week
US-Listed ETFs: Estimated Flows by Market Segment
ETFs exhibited net outflows of $8.2 bln last week, the second consecutive week of net outflows
For the second straight week net outflows were driven by US Large-Cap ETFs; the SPDR S&P 500 ETF (SPY) accounted for 80% of the
net outflows in the category
Nine of the 15 categories we measure posted net outflows last week
ETF assets stand at $1.5 tln, up 12% YTD; $96.9 bln net inflows YTD
13-week flows remain mostly positive among asset classes; combined $14.4 bln in net inflows
International - Developed ETFs have generated $8.9 bln in net inflows over the last 13 weeks, the most of any category; net inflows into
international markets have been led by European ETFs or ETFs with significant European exposure
Fixed Income ETFs have posted net outflows for four consecutive weeks and over the last 13 weeks have exhibited net outflows of $11.7
bln, the most of any measured category
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares U.S. Real Estate ETF (IYR) posted net inflows of $882 mln this past week, the most of any ETF
The iShares Russell 2000 ETF (IWM) generated net inflows of $874 mln last week and over the last 13 weeks has posted net inflows of
$3.5 bln, the most of any ETF; over the last 13 weeks small-cap stocks have significantly outperformed their large-cap counterparts from
a performance standpoint
The SPDR Gold Trust (GLD) posted its first back-to-back week of net inflows since December 2012
Fixed Income ETFs exhibited $2.7 bln in net outflows last week, including five of the top 10 net outflows; while the segment as a whole
has experienced net outflows over the last 13 weeks, notably, short duration fixed income ETFs have posted meaningful net inflows
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 7/31/13
SPDR S&P 500 ETF (SPY) had the largest increase in USD short interest at $1.3 bln
SPY’s shares short are at their highest level since 3/28/13 and nearly 10% above their one-year average
The Vanguard FTSE Emerging Markets ETF (VWO) is coming off its highest level of shares short ever last period; VWO’s
short interest declined $845 mln and its shares short were down 22 mln
Aggregate ETF USD short interest increased by $187 mln over the period ended 7/31/13
The average shares short/shares outstanding for ETFs is currently 4.3%- For the third consecutive period, three of the 10 most heavily shorted ETFs as a % of shares outstanding have been currency based - Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only six ETFs exhibited shares short as a % of shares outstanding greater than 100%)
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Data estimated as of 8/23/13 based on daily change in share counts and daily NAVs.
$8.3 bln in total market cap of ETFs less than 1-year old
International Equity ETFs account for 46% of market capitalization of ETFs launched over the past year and make up 40% of net
inflows over the last 13 weeks of recently launched ETFs
Over the last 13 weeks, the only category of the recently launched ETFs to post net outflows was the Leveraged/Inverse area ($4 mln in
net outflows)
91 new ETF listings and 30 closures/delistings YTD
The top 10 most successful launches make up 68% of the market cap of ETFs launched over the past year
Five ETF sponsors and two asset classes represented in top 10 most successful launches; we note that the representation of funds with an
income orientation is currently six
Increasing interest rates and fears of long-term interest rates moving up have spurred demand for floating rate senior loans; specifically,
the SPDR BlackStone/GSO Senior Loan ETF (SRLN) generated net inflows of $27 mln last week and $279 mln over the last 13 weeks
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Source: Morgan Stanley
DB-Synthetic Equity & Index Strategy-North America- US ETPs experienced $8.4bn outflows led by Equity products
August 26, 2013--Data in this report is as of Fri, Aug 23
Market and Net Cash Flows Review
Markets were mixed during last week. The US (S&P 500) edged higher by 0.46%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) dropped by 0.54% and 2.61%, respectively.
In the meantime, performance was mostly positive across US sectors. Real Estate (+2.39%) and Materials (+1.05%) recorded the biggest gains; The DB Liquid Commodity Index rose by 0.43%. In the meantime, the Agriculture sector (DB Diversified Agriculture Index) and the WTI Crude Oil fell by 0.91% and 0.97%, respectively; while Gold and Silver prices rose by 1.52% and 3.50%, respectively. Moving into other asset classes, the 10Y US Treasury Yield dropped 2bps ending at 2.82%. Last but not least, Volatility (VIX) dropped by 2.71% during the same period.
The total US ETP flows from all products registered $8.4bn (-0.6% of AUM) of outflows during last week vs. $6.5bn (-0.4%) of outflows the previous week, setting the YTD weekly flows average at +$2.9bn (+$98.8bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of -$6.0bn (-0.5%), -$2.6bn (-1.0%) and +$0.3bn (+0.4%) last week vs. -$5.6bn (-0.5%), -$1.1bn (-0.4%) and +$0.2bn (+0.3%) in the previous week, respectively.
Among US sectors, Financials (+$0.6bn, +1.1%) and Materials (+$0.2bn, +2.0%) received the top inflows, while Energy (-$1.1bn, -4.7%) and Consumer Discretionary (-$0.1bn, -1.3%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: IYR (+$0.9bn), IWM (+$0.9bn), VGK (+$0.5bn)
Top 3 ETPs & ETNs by outflows: SPY (-$5.3bn), XLE (-$1.1bn), SHV (-$0.8bn)
New Launch Calendar: Income and Diversification
There was one new ETF listed during the previous week on the NASDAQ. The new product offers international exposure to a mix of asset classes with focus on income generation and diversification.
Turnover Review: Floor activity decreased by 1.3%
Total weekly turnover decreased by 1.3% to $270.7bn vs. $274.2bn from the previous week. However, last week's turnover level was 0.4% over last year's weekly average. Fixed Income ETPs turnover increased by $1.9bn (+8.6%); while Equity and Commodity ETPs turnover decreased by $2.8bn (-1.2%) and $2.3bn (-18.5%), respectively.
Assets under Management (AUM) Review: assets dropped by $6.4bn
US ETP assets dropped by $6.4bn (-0.4%) totaling $1.495 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +12.1% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved -$4.1bn, -$2.9bn and +$0.7bn during last week, respectively.
Visit https://eqindex.db.com/etf/ for report
Source: Deutsche Bank-Synthetic Equity & Index Strategy-North America
ETF Securities Precious Metals Weekly-Have Gold and Silver Prices Already Discounted
August 26, 2013--Fed Tapering?
Gold and silver rise despite spike in US bond yields and stronger dollar.
The silver price rose 1.0% last week, bringing gains over the past 8 weeks to
27%. The gold price also rose, bringing the total increase to 14% since its 5 July low.
While the spike in US bond yields is pressuring many financial assets,
precious metals took the latest release of the Fed's FOMC minutes in stride,
ignoring the Fed's statement that it is “broadly comfortable” with moving ahead with reductions in bond buying in the near future. The fact that both gold and silver prices ended the week higher indicates that the start of Fed tapering has largely been priced in to precious metals prices. U.S. 10yr yields and the gold
price are now trading more or less around the same levels they were in November of 2010, when QEII was first announced.
The 2013 correction in precious metals prices has attracted substantial physical demand, notably strategic buying by China. This demand surge, combined with a sharp decline in recycled gold supply and diminishing mining productivity, appears to be forming a solid foundation for the gold price.
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Source: ETF Securities Research
Horizons ETFs announces new name for HAF
August 26, 2013--Horizons ETFs Management ( Canada ) Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. (the "Manager") announced today that it will change the name of the Horizons Active Advantage Yield ETF ("HAF" or the "ETF") to the Horizons Active Yield Matched Duration ETF.
This name change is intended to emphasize the risk-mitigation strategy employed by the ETF to attempt to limit the negative impact that future interest rate increases could have on the value of the ETF. The name change is expected to take effect on September 6, 2013 .
HAF's investment objective and sub-advisor, Fiera Capital Corporation ("Fiera"), will remain the same.
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Source: Horizons ETFs Management (Canada) Inc.
