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Fidelity Is Said to Plan Jump Into ETFs With Active Funds
August 3, 2012--Fidelity Investments, the asset manager that watched from the sidelines as exchange-traded funds went from zero to $1.5 trillion over the past 20 years, is finally preparing to jump into the business, according to a person familiar with the matter.
Fidelity, based in Boston, aims to become the first major mutual-fund company to introduce ETFs run by active stock pickers by opening a series of products based on its “Select” line of industry-focused equity funds, said the person, who asked not to be named because the plan isn’t public. The Denver- based unit that would run the ETFs is headed by Anthony Rochte, who was hired from State Street Corp. (STT) (STT) in March, the person said.
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Source: Bloomberg BusinessWeek
Direxion Closing Nine Daily 3x Shares ETFs
RAFFERTY ASSET MANAGEMENT CLOSING
NINE DIREXION DAILY 3X SHARES FUNDS
August 3, 2012--The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and shutter nine exchange-traded funds ("Funds") based on the recommendation of Rafferty Asset Management, LLC, the Trust's advisor.
Due to the Funds’ inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and shuttering the Funds would be in the best interests of the Funds and their shareholders.
The Trust will close the following Funds: Direxion Daily Agribusiness Bull 3X Shares (COWL), Direxion Daily Agribusiness Bear 3X Shares (COWS), Direxion Daily Basic Materials Bear 3X Shares (MATS), Direxion Daily BRIC Bull 3X Shares (BRIL), Direxion Daily BRIC Bear 3X Shares (BRIS), Direxion Daily Healthcare Bear 3X Shares (SICK), Direxion Daily India Bear 3X Shares (INDZ), Direxion Daily Latin America Bear 3X Shares (LHB) and Direxion Daily Retail Bear 3X Shares (RETS).
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Source: Direxion
IMF Country Report-United States: Selected Issues
August 2, 2012--I. U.S. HOUSEHOLD WEALTH AND SAVING: THE MICRO STORY BEHIND THE MACRO DYNAMICS1
Aggregate savings statistics reveal little about the types of households that drove down the U.S. saving rate before the 2008 crisis and its subsequent recovery. Using PSID micro data, this paper demonstrates that households with consistently lower income growth in the years
prior to the crisis experienced larger declines in their saving rates and a larger rise in their indebtedness before the crisis, contributing significantly to the dynamics of the mean saving rate.
Households with a larger share of total assets in housing and higher debt-to-income ratios raised their saving rates more sharply after the crisis, from depressed levels. The findings indicate that groups whose balance sheets were more adversely affected by theth through active savings, suggesting that in the absence of asset price appreciation these households may wish to save
more in the future.
A. Introduction
1. Households’ consumption-saving
housing bust have made limited progress in rebuilding their net wordecisions have an important bearing on the U.S. economic outlook. In the years leading up to the 2008–09 recession, U.S. households played an important role in supporting U.S. and global growth by sustaining high levels of
consumption.
view the IMF Country report-United States: Selected Issues
Source: IMF
ETF Industry Association Releases July 2012 ETF Data Reports
August 2, 2012--Key highlights from the July 2012 ETF Data report include:
Assets in US listed Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN) totaled approximately $1.21 trillion at July 2012 month-end, an increase of 9% over July 2011 month-end, when assets totaled $1.11 trillion.
ETF/ETN net cash inflows totaled approximately $17.1 billion for the month of July 2012, bringing year-to-date net cash inflows to $93.0 billion.
At July 2012 month-end, there were 1,486 U.S. listed products, an increase of 15% compared to the 1,295 U.S. listed products at the same time last year.
Equities led all categories for July with $17.1 billion in net inflows
Visit www.etf-ia.com for more info
Source: ETF Industry Association
Knight Capital Says Trading Glitch Cost It $440 Million
August 2, 2012--$10 million a minute.
That's about how much the trading problem that set off turmoil on the stock market on Wednesday morning is already costing the trading firm.
The Knight Capital Group announced on Thursday that it lost $440 million when it sold all the stocks it accidentally bought Wednesday morning because a computer glitch.
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Source: NY Times
Knight Capital Group Provides Update Regarding August 1st Disruption To Routing In NYSE-listed Securities
August 2, 2012--Knight Capital Group, Inc. today provided an update on the August 1, 2012 disruption to routing in NYSE-listed securities.
As previously disclosed, Knight experienced a technology issue at the open of trading at the NYSE yesterday, August 1st. This issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. This software has been removed from the company's systems.
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Source: Knight Capital Group
Federal Reserve Board announces final rule establishing risk-management standards for financial market utilities (FMUs)
designated as systemically important by the Financial Stability Oversight Council
July 7, 2012--The Federal Reserve Board on Monday announced the approval of a final rule establishing risk-management standards for certain financial market utilities (FMUs) designated as systemically important by the Financial Stability Oversight Council.
The final rule also establishes requirements for advance notice of proposed material changes to the rules, procedures, or operations of certain designated FMUs. FMUs, such as payment systems, central securities depositories, and central counterparties, provide the infrastructure to clear and settle payments and other financial transactions.
The final rule (Regulation HH) implements two provisions of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). It establishes risk-management standards governing the operations related to the payment, clearing, and settlement activities of designated FMUs, except those registered as clearing agencies with the Securities and Exchange Commission or as derivatives clearing organizations with the Commodity Futures Trading Commission. The risk-management standards are based on the recognized international standards developed by the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) that were in existence at the time of the proposed rulemaking, which were incorporated previously into the Board's Policy on Payment System Risk.1
view final rule
Source: Federal Reserve Board
July VIX Futures Trading Volume Rises 64% From July 2011
Year-To-Date Volume 80% Ahead of Same Period One Year Ago
July 1, 2012--The CBOE Futures Exchange, LLC (CFE(R)) today announced that trading volume in futures on the CBOE Volatility Index(R)(the VIX(R) Index) during July 2012 totaled nearly two million contracts, well ahead of July 2011 and down from a record June 2012.
Trading volume in VIX futures totaled 1,913,951 contracts during July 2012, an increase of 64 percent from 1,169,064 contracts traded in July 2011. When compared to the record 2,154,325 VIX futures contracts traded during June, July volume decreased by 11 percent.
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Source: CBOE
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Weight Change For TMX Group Inc. In The S&P/TSX Composite Index
August 1, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
Maple Group Acquisition Corporation has completed the first stage of the proposed acquisition of TMX Group Inc. (TSX:X).
Eighty percent of the shares of TMX Group will be acquired for $CDN50.00 cash per share and the bid will be extended until after the close of trading on Friday, August 10, 2012. As part of the transaction, the relative weight of TMX Group will decrease in the S&P/TSX Composite and Capped Composite, the S&P/TSX Completion and Equity Completion, the S&P/TSX Equity and Capped Equity, the S&P/TSX Capped Financials and the S&P/TSX Composite Dividend Indices to reflect the 80% reduction in the number of shares. There will be no weight change effective in the S&P/TSX Composite Equal Weight Index or the S&P/TSX Composite Low Volatility Index. These changes will be effective after close on Friday, August 3, 2012.
Source: Standard & Poors
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Weight Change For TMX Group Inc. In The S&P/TSX Composite Index
August 1, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
Maple Group Acquisition Corporation has completed the first stage of the proposed acquisition of TMX Group Inc. (TSX:X).
Eighty percent of the shares of TMX Group will be acquired for $CDN50.00 cash per share and the bid will be extended until after the close of trading on Friday, August 10, 2012. As part of the transaction, the relative weight of TMX Group will decrease in the S&P/TSX Composite and Capped Composite, the S&P/TSX Completion and Equity Completion, the S&P/TSX Equity and Capped Equity, the S&P/TSX Capped Financials and the S&P/TSX Composite Dividend Indices to reflect the 80% reduction in the number of shares. There will be no weight change effective in the S&P/TSX Composite Equal Weight Index or the S&P/TSX Composite Low Volatility Index. These changes will be effective after close on Friday, August 3, 2012.
Source: Standard & Poors
