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CFTC Approves Proposed Interpretive Guidance on Cross-Border Application of the Swaps Provisions of the Dodd-Frank Act
June 29, 2012--The Commodity Futures Trading Commission (Commission) today approved for public comment proposed interpretive guidance regarding the cross-border application of the swaps provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") and the Commission's regulations.
The proposed guidance interprets Section 2(i) of the Commodity Exchange Act (CEA), which states that the swaps provisions of the CEA shall not apply to activities outside the United States unless those activities have a direct and significant connection with activities in, or effect on, commerce of the United States. The vote was conducted via seriatim, which was approved by all five commissioners. The guidance will be open for public comment for 45days after publication in the Federal Register.
Under the proposed guidance, the Commission:
Proposes an interpretation of the term “U.S. person”.
Proposes guidance to determine: (1) whether a non-U.S. person’s swap dealing activities are sufficient to require registration as a “swap dealer”; (2) whether a non-U.S. person’s swap positions are sufficient to require registration as a “major swap participant”; and (3) the treatment for registration purposes of foreign branches, agencies, affiliates, and subsidiaries of U.S. swap dealers and of U.S. branches of non-U.S. swap dealers.
view the Federal Register: Cross-Border Application of Certain Swaps Provisions of the Commodity Exchange Act
Source: CFTC.gov
Direxion files with the SEC
June 29, 2012--Direxion has filed a post-effective amendment, registration statement with the SEC.
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Source: SEC.gov
IMF Working paper-The Impact of Longevity Improvements on U.S. Corporate Defined Benefit Pension Plans
June 29, 2012--Summary: This paper provides the first empirical assessment of the impact of life expectancy assumptions on the liabilities of private U.S. defined benefit (DB) pension plans.
Using detailed actuarial and financial information provided by the U.S. Department of Labor, we construct a longevity variable for each pension plan and then measure the impact of varying life expectancy assumptions across plans and over time on pension plan liabilities. The results indicate that each additional year of life expectancy increases pension liabilities by about 3 to 4 percent. This effect is not only statistically highly significant but also economically: each year of additional life expectancy would increase private U.S. DB pension plan liabilities by as much as $84 billion.
ALPS Launches High-Dividend Equity ETF: Teaching an Old Dog a New Trick
June 29, 2012--ALPS-- A DST Company announced today the launch of the ALPS Sector Dividend Dogs ETF
(Exchanged-Traded Fund) (NYSE Arca: SDOG) an ETF that applies the ‘Dogs of the Dow Theory' (an investment strategy
which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is
the highest fraction of their price) on a sector-by-sector basis using the S&P 500 as its starting universe of eligible securities.
“ALPS is thrilled to add a high-yield large-cap equity income ETF to our suite of portfolio solutions” said Tom Carter, Executive Vice President of ALPS Holdings. “We believe SDOG offers investors a product with attractive differentiating factors from other large-cap dividend ETFS including higher yield and sector diversification.”
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Source: ALPS
Well-paid FINRA Lobbyist Departs as Losses Mount
June 29, 2012--FINRA announced the departure of another key executive Friday. Howard Schloss, who is head of corporate communications and government relations for the broker/dealer regulator and has been a key figure in lobbying efforts to grant FINRA oversight of investment advisers, will leave in September after 12 years with the organization.
The announcement came on the same day that the regulator released its annual report showing a loss of $84 million and coincides with an SEC review of FINRA’s executive compensation practices and other matters prompted by a Government Accountability Report released in May. Schloss earned over $1 million in 2010 and took a pay cut in 2011 to $732,000, according to FINRA’s annual report.
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Source: Wealth Management
SEC Adopts New Procedures for Reviewing Clearing Submissions Under Dodd-Frank Act
June 28, 2012--The Securities and Exchange Commission has adopted rules that establish procedures for its review of certain clearing agency actions. The rules were required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which called for a new regulatory framework for trading in over-the-counter derivatives, including swap agreements.
The rules detail how clearing agencies will provide information to the SEC about security-based swaps that the clearing agencies plan to accept for clearing. The information is intended to aid the SEC in determining whether such security-based swaps are required to be cleared.
view the Process for Submissions for Review of Security-Based Swaps for Mandatory Clearing and Notice Filing Requirements for Clearing Agencies
Source: SEC.gov
Horizons ETFs Announces Final Valuations for Terminated ETFs
June 28, 2012--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate Horizons ETFs Management ( Canada ) Inc. (the "Manager") have previously announced, by way of a press release dated April 27, 2012 , that certain exchange traded funds ("ETFs") will be terminated effective upon the close of business on Friday June 29, 2012.
The ETFs being terminated (collectively, the "Terminated ETFs"), with their respective final net asset values ("Final NAV") per unit,
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Source: Horizons Exchange Traded Funds Inc.
CFTC Approves Notice of Proposed Rulemaking to Enhance its Identification of Futures and Swap Market Participants
June 28, 2012--The Commodity Futures Trading Commission (CFTC or Commission) has approved for publication in the Federal Register proposed rules and related forms to enhance its identification of participants in Commission-regulated futures and swaps markets.
The proposed rules would enhance and automate the Commission’s existing position and transaction reporting programs by requiring the electronic submission of expanded trader identification and market participant data.
In addition, the proposed rules would strengthen the Commission’s existing trade practice and market surveillance programs for futures and options on futures, and facilitate surveillance programs for swaps. In the aggregate, the proposed rules would help the Commission to better deter and prevent market manipulation; deter and detect abusive or disruptive trading practices; and better perform risk-based monitoring and surveillance between related accounts. The proposed rules would also significantly enhance the Commission’s ability to identify participants in the derivatives markets and to understand relationships between trading accounts, special accounts, reportable positions, and market activity.
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Source: CFTC.gov
.....Canadian Securities Regulators Establish Regulatory Framework to Manage Electronic Trading Risks
June 28, 2012--The Canadian Securities Administrators (CSA) announced today it is proceeding with the implementation of NI 23-103 Electronic Trading, which establishes a regulatory framework for the oversight and management of the risks associated with the use of electronic trading on Canadian marketplaces.
The framework is designed to address certain risks to Canadian markets related to the speed and automation of electronic trading, and ensure that marketplaces and marketplace participants are actively monitoring and managing these risks. Specifically, the framework will require, among other things, marketplace participants who enter orders electronically to maintain policies, procedures and controls to manage the risks associated with accessing the markets in this manner.
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Source: Canadian Securities Administrators (CSA)
Thomson Reuters and Sabrient Launch Low Volatility Indices for ETF Distributors
Indices supported by a 10-year track record of outperforming the market
June 28, 2012--Sabrient Systems, LLC, an independent equity research firm that specializes in alpha extraction through quantitative and qualitative analysis, announced today that it has collaborated with Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, to provide two alpha generating, low volatility indices for license by ETF distributors, mutual funds, and asset managers;
the Thomson Reuters/Sabrient Sensible Growth Low Volatility Index and the Thomson Reuters/Sabrient Sensible Growth Index.
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Source: Sabrient Systems, LLC
