Americas ETP News
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CME to buy rival Kansas City exchange, heading off ICE
October 17, 2012--CME Group Inc (CME.O) on Wednesday agreed to buy the Kansas City Board of Trade for $126 million in cash, cementing CME's dominance in world grain futures markets and keeping rival IntercontinentalExchange (ICE.N) from gaining an important foothold.
It is CME's first exchange purchase in five years since it wrapped up a buying spree that put the Chicago Mercantile Exchange, the Chicago Board of Trade and the energy-focused New York Mercantile Exchange all under its control.
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Source: Reuters
UBS launches ETN with high monthly income potential and leveraged exposure to mortgage REITs
ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN
October 17, 2012--UBS Investment Bank announced that today is the first day of trading on the NYSE
Arca for the ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (NYSE: MORL).
MORL is linked to the monthly compounded 2x leveraged performance of the Market Vectors(R) Global Mortgage REITs Index (the “Index”), reduced by investor fees.
MORL Profile
Income Potential Variable monthly coupon linked to 2 times the cash distributions, if any, of the Index constituents, less any withholding taxes
2x Index Yield* 24.82%
Underlying Index Market Vectors(R)Global Mortgage REITs Index
Leverage 2x Leverage with Monthly Reset
Based on 2 times the Index dividend yield calculated as of September 30, 2012 by Market Vectors. Investors are not guaranteed any coupon or distribution.
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Source: UBS
Fink says ETF price war a 'myth'
October 17, 2012--Larry Fink, chief executive of BlackRock, dismissed talk of a price war among exchange traded fund providers as the world's largest fund manager announced third quarter results on Wednesday.
“There is no price war. We have to move on from this myth about a price war,” said Mr Fink.
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Source: FT.com
Vanguard Files Final Prospectus to Broaden Low Cost ETF Line-Up
October 17, 2012--Vanguard Investments Canada Inc. announced today that a final prospectus for five new Canadian-domiciled exchange-traded funds (Vanguard ETFs) has been receipted by the securities regulatory authorities.
Vanguard expects to list the new ETFs on Toronto Stock Exchange (TSX) subject to meeting all regulatory and TSX requirements.
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Source: Vanguard
Invesco Study: ETF Usage Increasing Among RIAs
Risk Management Remains Top of Mind as Advisers Pursue Strategic Mix of Products
October 17, 2012--Registered Investment Advisers (RIAs) expect to see increased usage of Exchange-Traded Funds (ETFs) in client portfolios, while aversion to risk remains high, according to results of an Invesco market research study released today.
RIAs surveyed believe ETFs will make up 24 percent of portfolio allocations over the next 12 months and 33 percent over the next three years, representing a 10 percent increase over results reported in Invesco's survey of RIAs in 2011.
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Source: Invesco PowerShares
Knight CEO: Company forming risk committee
Knight's loss from Aug. 1 trading error came in at $461.1 million
Knight forms new risk committee at board level
Business momentum returning despite difficult climate, CEO says
(Updates with comments from Knight CEO.)
October 17, 2012--Knight Capital Group has formed a new risk committee of directors as the electronic trading firm continues to rebuild following a catastrophic trading error in August, Knight's top executive said Wednesday.
Technology staff at Knight continue to analyze the Aug. 1 trading mishap, which drove a $461.1 million loss for Knight and forced the Jersey City, N.J., firm to seek rescue funding from a group of customers and rivals.
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Source: MarketWatch
Van Eck files with the SEC
October 17, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Non-Agency RMBS ETF.
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Source: SEC.gov
ETF Spotlight: New Dividend ETFs Being Created, Just Not Equally
October 17, 2012--At the beginning of the year we reviewed an article from Dow Jones' MarketWatch titled, "10 money-making investment ideas for 2012," which shared a sentiment popular among nearly every strategist on Wall Street at the time-"
Stick with dividend-paying growth stocks". Their premise, similar to many, and plausible to even more, was that "U.S. corporate balance sheets — the fundamentals — are in excellent shape overall. Still, in a slow-growth climate the advantage goes to the best of the best. These companies tend to be in areas that are less economically sensitive. Typically they’re large-caps, with a 'wide moat' of business, strong cash flow and a history of using capital for productive purposes including acquisitions, share buybacks and consistently higher dividends." Dividend stocks were about the safest and easiest recommendation an advisor could make to clients early in 2012 as firms generally supported the concept and investors were at least more receptive to this segment of the market after seeing the S&P 500 Index [SPX] finish 2011 with 0% returns.
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Source: Dorsey, Wright & Associates
CFTC Issues Final Rule Amending Existing Commission Regulations To Incorporate Swaps
October 16, 2012--The Commodity Futures Trading Commission (CFTC) today approved a final rule that amends certain current regulations in order to implement aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Dodd-Frank Act amended the Commodity Exchange Act in numerous ways to give the Commission the authority to regulate swaps. Today’s final rule amends certain existing Commission regulations to integrate them with the statutory and regulatory framework established under the Dodd-Frank Act. The Commission voted 5 to 0 via seriatim to approve the final rule, which will become effective 60 days after publication in the Federal Register.
Specifically, the CFTC has amended certain definitions and recordkeeping regulations so that they apply to both futures and swaps. As an example, futures commission merchants and introducing brokers will now be required to follow recordkeeping rules for swap transactions that are equivalent to those rules they presently follow for futures transactions.
view the Final Rule-Adaptation of Regulations to Incorporate Swaps
Source: CFTC.gov
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite Index
October 16, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The TSX Venture Exchange has announced that, after the close of trading on Tuesday, October 16, 2012, Fortress Minerals Corp. (TSXVN:FST) will transfer to NEX to trade under the new ticker symbol FST.H.
At the same time the company will be removed from the S&P/TSX Venture Composite Index.
Source: S&P Dow Jones
