Americas ETP News
If your looking for specific news, using the search function will narrow down the results
CFTC's Division of Market Oversight Issues Advisory Reminding Market Participants of Certain Swap Data Reporting Requirements
March 8, 2013--The Division of Market Oversight (DMO) of the Commodity Futures Trading Commission (CFTC) today issued an Advisory reminding market participants that swap dealers were required to begin reporting data regarding equity, foreign exchange and other commodity swaps, under Parts 43 and 45 of the CFTC's regulations, on February 28, 2013.
Swap dealers must be in compliance with their reporting obligations with respect to historical swaps in these three asset classes by March 30, 2013.
The Advisory also reminds market participants that Parts 43, 45 and 46 apply to the reporting of data regarding swaps, and not data regarding futures contracts, and that parties with reporting obligations under the swap data reporting rules remain fully responsible for the timely and accurate fulfillment of their reporting obligations, even if they contract with a third party service provider to facilitate reporting.
view more
Source: CFTC.gov
SEC Proposes Rules to Improve Systems Compliance and Integrity
March 7, 2013--The Securities and Exchange Commission today unanimously proposed new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technological systems.
The SEC’s proposal called Regulation SCI would replace the current voluntary compliance program with enforceable rules designed to better insulate the markets from vulnerabilities posed by systems technology issues.
Self-regulatory organizations, certain alternative trading systems, plan processors, and certain exempt clearing agencies would be required to carefully design, develop, test, maintain, and surveil systems that are integral to their operations. The proposed rules would require them to ensure their core technology meets certain standards, conduct business continuity testing, and provide certain notifications in the event of systems disruptions and other events.
view more
Source: SEC.gov
Pimcoo's bond ETF outperforms flagship mutual fund
March 7, 2013--The Pimco Total Return exchange-traded fund has outperformed the firm's flagship mutual fund managed by Bill Gross and become the world' largest actively managed ETF in the first year since its launch.
Other big players are preparing to launch their own actively managed ETFs in the wake of Pimco's success.
Pimco’s ETF, which has the ticker BOND, was launched on February 29 last year with $100m of assets, and has grown to $4.3bn, according to Timothy Strauts, an ETF analyst at research firm Morningstar.
view more
Source: Financial News
CFTC Provides Operational Guidance Concerning Maintenance of CICIs Issued Through Assisted Registration
March 7, 2013--The Utility designated by the Commodity Futures Trading Commission (CFTC) to issue legal entity identifiers or LEIs (currently known as CFTC interim compliant identifiers or CICIs) has requested operational guidance from the CFTC concerning maintenance of CICIs issued through assisted registration with explicit permission from the entity registered.
The Commission has provided the following operational guidance to the Utility.
As the Commission made clear in its Q & A on Start of Swap Data Reporting issued on October 10, 2012, under the Commission’s swap data recordkeeping and reporting rules:
view more
Source: CFTC.gov
CBO-Monthly Budget Review
March 7, 2013--The federal budget deficit was $495 billion for the first five months of fiscal year 2013, $86 billion less than the shortfall recorded for the same period last year, CBO estimates.
If lawmakers enacted no further legislation affecting
spending or revenues, the federal government would end fiscal year 2013 with a deficit of $845 billion, by CBO’s
estimate, about $240 billion less than the 2012 deficit.
view the CBO-Monthly Budget Review
Source: CBO (Congressional Budget Office)
Federal Reserve Releases Summary Results Of Bank Stress Tests
March 7, 2013--The nation's largest bank holding companies have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are collectively in a much stronger capital position than before the financial crisis, according to the summary results of bank stress tests announced by the Federal Reserve on Thursday.
Reflecting the severity of the stress scenario--which includes a peak unemployment rate of 12.1 percent, a drop in equity prices of more than 50 percent, a decline in housing prices of more than 20 percent, and a sharp market shock for the largest trading firms--projected losses at the 18 bank holding companies would total $462 billion during the nine quarters of the hypothetical stress scenario. The aggregate tier 1 common capital ratio, which compares high-quality capital to risk-weighted assets, would fall from an actual 11.1 percent in the third quarter of 2012 to 7.7 percent in the fourth quarter of 2014 in the hypothetical stress scenario.
view Stress Test Methodology and Results
Source: Federal Reserve Bamk
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Monthly Review-Risk-on trade continued despite headwinds, ETP AUM added $4bn
March 6, 2013--US ETP assets slightly higher by $4bn
ETP assets in the US rose by $3.8bn to $1.409 trillion (YTD ↑5.7%) last month. Global ETP industry assets closed at $1.927 trillion (YTD ↑4.8%)
Flows Review: risk-on continued, but finding resistance
US ETP flows experienced inflows of $7.7bn during February (2.8% of last year’s AUM).
Within long-only ETPs, total flows were +$6.3bn in February vs. +$28.6bn in January. Equity, Fixed Income, and Commodity long-only ETPs experienced cash flows of +$8.2bn, +$1.6bn, and -$3.8bn, respectively.
Flows and markets support the prevalence of the risk-on trade, but some mixed readings raise warning signs.
Interest in equities continued in February, but it became more selective. US (+$3.4bn) and international DM (+$3.5) ETPs dominated the flows. Within DM products, Japan had an outstanding month (+$2.2bn); while the EM counterparts lost some momentum (-$0.2bn).
Fixed income ETPs also experienced positive flows (+$1.6bn), with flows favoring credit over rates and a clear focus on short duration (+$2.2bn) and quality (IG +$1.2bn)
Finally, commodity products flows had their worst month on-record (-$3.8bn) driven mostly by Gold (-$4.1bn) ETPs which continued to show weakness.
New Launch Calendar: income, currency, private equity, and low volatility
There were twelve new ETPs listed during the previous month. Ten of them were listed in the NYSE Arca, one on the Nasdaq and the remaining one was listed in BATS. The new products offer exposure to currencies, private equity, low volatility strategies and access to income through MLPs, BDCs, high yield debt and preferred shares
Turnover Review: Floor activity decreased by 3% in February
ETP turnover totaled $1.087 trillion last month, down 3.0% (-$33.7bn) from the previous month figure of $1.121 trillion, and 7.0% below last year’s monthly average of $1.168 trillion.
ETP trading made up 25.2% of all US cash equity trading in February, down from last year’s peak of 28.8% in June, and still below its 3-year monthly average of 29.8%request report
Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
CFTC Approves Request from the Chicago Mercantile Exchange Inc. to Adopt New Chapter 10 ("Regulatory Reporting of Swap Data") and New Rule 1001 ("Regulatory Reporting of Swap Data") of CME's Rulebook
March 6, 2013--The Commodity Futures Trading Commission (Commission) has approved a request from the Chicago Mercantile Exchange Inc. (CME) to adopt new Chapter 10 and new Rule 1001 of CME's rulebook.
view more
Source: CFTC.gov
Morgan Stanley-Quarterly Report: $1.4 Trillion in 1,235 ETFs
March 6, 2013--The following publication is our quarterly report on US-listed ETFs. It includes a summary of investment applications, excerpts
from our strategy reports, our outlook for related markets, index
data, and individual profiles for the 317 ETFs in our coverage
universe, which represents 92% of US-listed ETF assets.
ETFs attracted $192.8 billion in net new money during 2012, the biggest year on record. There are currently $1.4 trillion in ETF assets spread among 1,235 products. In 2012, 155 ETFs were issued and four new providers entered the market. Notably, 82 ETFs
liquidated in 2012. Despite strong growth and flows, the ETF
market remains concentrated with three providers and 20 ETFs,
accounting for almost 80% and 47% of industry assets, respectively.
ETFs provide access to favored market segments. Morgan Stanley & Co.’s global strategy team favors the Asia/Pacific region for equities and the firm maintains an overweight recommendation to credit. We believe long-term structural challenges in the G10 economies will lead to a muddle-through growth scenario in 2013, while structural reforms are necessary to move emerging markets from export-led to domestic demand driven growth models. We list favored areas in the report and ways to implement these ideas via ETFs.
request report
Source: Morgan Stanley
8.7 billion net inflows into ETFs and ETPs listed in the United States in February 2013 show a continuation of the rotation into equities
March 6, 2013--In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) listed in the United States had net inflows of $8.7 billion, according to new research published in the latest ETFGI Global ETF and ETP industry insights.
ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with $9.9 billion, followed by leveraged inverse ETFs and ETPs with $989 million, and active ETFs and ETPs with $656 million, while commodity ETFs and ETPs experienced net outflows with $3.6 billion.
Year to date through end of February 2013, ETFs and ETPs have seen net inflows of $37.9 billion. Equity ETFs and ETPs gathered the largest net inflows year to date with $38.1 billion, followed by leveraged inverse ETFs and ETPs with $2.1 billion, and active ETFs and ETPs with $1.7 billion, while commodity ETFs and ETPs experienced net outflows year to date of $4.2 billion.
“The flows into equity ETFs and ETPs show investors are rotating out of cash and fixed income into equities as investor confidence continues to improve,” says Deborah Fuhr, Managing Partner at London-based ETFGI.
view more
Source: ETFGI
