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FINRA Releases Notice on Complex Products and Options
March 11, 2022--On March 8, 2022, the Financial Industry Regulatory Authority, Inc. ("FINRA") issued Regulatory Notice 22-08 (Complex Products and Options) (the "Notice"). The Notice is FINRA's most significant statement on sales of complex products since 2012.
FINRA notes that the number of accounts trading in complex products and options has increased significantly in recent years and that important regulatory concerns arise when investors trade such products without understanding their unique characteristics and risks.
Further, these concerns may be heightened when retail customers access these products through self-directed platforms without the assistance of a financial professional. In light of these concerns, FINRA cautions that trading in complex products and options requires member firm scrutiny and supervision.
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Source: mayerbrown.com
Biden orders government to study digital dollar, other cryptocurrency risks
March 9, 2022-- U.S. President Joe Biden signed an executive order on Wednesday requiring the government to assess the risks and benefits of creating a central bank digital dollar, as well as other cryptocurrency issues, the White House said.
Bitcoin surged on the news as the administration's holistic and deliberative approach calmed market fears about an immediate regulatory crackdown on cryptocurrencies. In midday trading, bitcoin rose 9.1% to $42,280, on track for its largest percentage gain since Feb. 28.
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Source: reuters.com
VanEck Launches Digital Assets Mining ETF (DAM), Providing Access to the Builders of the Blockchain
March 9, 2022--Digital asset miners are integral to the digital asset economy and represent the largest-and a fast-growing-segment of the publicly traded digital asset ecosystem.
VanEck today announced the launch of the VanEck Digital Assets Mining ETF (DAM), expanding the firm's crypto and blockchain-focused investment offerings and providing investors access to companies essential to driving digital transformation.
DAM offers targeted exposure to digital assets mining companies, which validate and process blockchain transactions to create new units of cryptocurrency.
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Source: VanEck
ETFGI reports the ETFs industry in Canada gathered US$3.36 billion US dollars in February 2022
March 9, 2022- ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs listed in Canada gathered net inflows of US$3.36 billion during February, bringing year-to-date net inflows to US$7.77 billion.
At the end of the month, Canadian ETF assets increased by 0.4%, from US$269 billion at the end of January to US$270 billion but are below the record high of US$273 billion set at the end of 2021, according to ETFGI's February 2022 Canadian ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service.
Highlights
Assets of $270 Bn invested in ETFs listed in Canada at end of February are the 2nd highest on record.
Assets increased by 0.4%, from $269 billion at the end of January to $270 billion at end of February
Net inflows of $3.36 Bn gathered in February 2022.
$46.51 Bn in net inflows gathered in the past 12 months.
32nd month of consecutive net inflows.
Majority of net inflows have gone into Equity exposure in February and year to date.
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Source: ETFGI
Blue Tractor Group Announces Strategic Relationship with FLX Networks
March 9, 2022--Blue Tractor's Actively Managed ETF Wrapper is Now Available to FLX Members
Blue Tractor Group-a leader in the burgeoning semi-transparent actively managed ETF space-today announced that it has entered into a strategic relationship with FLX Networks, the innovative network revolutionizing the engagement experience between asset and wealth managers.
Founded in December 2019, FLX has seen exponential growth and welcomed respect from industry peers. Representing nearly 50 asset management firms with over $235 billion in combined AUM, FLX has evolved into a full-service front-office tech platform that provides modern sales, marketing, and service solutions for asset managers, delivering productivity, visibility, and savings, while simultaneously enhancing productivity for wealth managers and financial advisors.
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Source: Blue Tractor Group
Simplify Announces Launch of the Simplify Managed Futures Strategy ETF
March 8, 2022--New fund aims to provide investors with a systematic long/short managed futures strategy designed for absolute return and portfolio diversification; fund allocates across four underlying models designed by commodity trading veterans Altis Partners.
>Simplify Asset Management ("Simplify"), an innovative provider of Exchange Traded Funds ("ETFs") designed to solve today's most pressing portfolio construction challenges, is today launching its newest ETF, the Simplify Managed Futures Strategy ETF (NYSE Arca: CTA).
CTA seeks long-term capital appreciation by providing investors with a systematic long/short managed futures strategy, investing across U.S. and Canadian commodities and rates while excluding equity futures in order to ensure low correlations with equity-dominated portfolios.
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Source: Simplify Asset Management
CBO-Monthly Budget Review: February 2022
March 8, 2022--Summary
The federal budget deficit was $475 billion in the first five months of fiscal year 2022, CBO estimates. That amount is less than deficits recorded during the same period in the two prior fiscal years: It is less than half the shortfall recorded for the same months in fiscal year 2021 ($1,047 billion) and three-quarters of the deficit recorded in 2020 ($624 billion), just before the start of the coronavirus pandemic.
From October 2021 through February 2022, revenues were $371 billion (or 26 percent) higher and outlays were $201 billion (or 8 percent) lower than they were during the same period a year ago, CBO estimates.
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Source: CBO (Congressional Budget Office)
Innovator to List Buffer Step-Up Strategy ETFs BSTP and PSTP, New Managed Outcome ETFs Designed to Continuously Lock-in Stock Market Gains, Refresh Buffers Against Loss
March 7, 2022--In upward trending markets, Step-Up Strategy ETFs seek to provide tax-efficient strategies to lock-in SPY gains, reset upside participation and eliminate potential downside before buffer1
In downward markets, Step-Up Strategy ETFs seek to capture potential excess return relative to SPY, benefit from typically higher upside caps during volatility and refresh buffers against loss
Innovator Buffer Step-Up Strategy ETF (BSTP) will actively manage a portfolio of options to seek upside participation to SPY in rising markets and renewed buffers to hedge against SPY losses up to 9% in falling markets
Innovator Power Buffer Step-Up Strategy ETF (PSTP) will actively manage a portfolio of options to seek upside participation to SPY in rising markets and renewed buffers to hedge against SPY losses up to 15% in downward markets
Tax-efficient strategies for taxable accounts, Managed Outcome ETFsTM provide advisors single ticker managed portfolios to streamline Defined Outcome ETFTM investing.
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Source: Innovator Capital Management
Innovative Portfolios Converts Two Actively Managed Mutual Funds to ETFs
March 7, 2022--Innovative Portfolios, LLC, today has announced the conversion of two mutual funds to ETFs. The two ETFs-Dividend Performers Fund (IPDP) and Preferred-Plus Fund (IPPP)-have attractive 3-year track records and performance rankings in their Morningstar categories. The two ETFs are listed on Cboe BZX Exchange.
"As our investors' interests are a top priority, we recognize the benefits in converting our mutual funds to actively managed ETFs," said Dave Gilreath, Managing Director and Chief Investment Officer of Innovative Portfolios. "Exchange-traded funds offer greater transparency, tax efficiency, and lower fees for investors who are looking to add potential for greater income generation."
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Source: Innovative Portfolios
Thematic ETFs tend to launch just before a steep fall in returns
March 7, 2022--Research finds tailored funds have a poor record of returns despite their strategies' appeal
Any investors short selling shares in the most famous 'thematic' ETF - Cathie Wood's flagship Ark Innovation ETF (ARKK)-will have made a killing in recent months.
By mid-February, the exchange traded fund had lost more than half its value since its peak a year earlier. And there were no signs of an end to the sell-off, even though Wood has been insisting the innovation stocks it holds were "way undervalued".
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Source: ft.com