Americas ETP News
If your looking for specific news, using the search function will narrow down the results
Derivatives Rules Have Swaps Users Eyeing Shift to Futures
June 27, 2012--Regulators' push to make derivatives markets safer is having an unexpected side effect: it is encouraging some financial institutions to rethink how they manage risk and consider experimenting with alternatives to privately traded derivatives called "swaps."
Any migration from the existing $600 trillion-plus market for swaps into more cost-effective and transparent futures contracts threatens to put pressure on banks' profits at a time when their trading revenue is already falling, thanks to weaker trading in credit derivatives.
read more
Source: Fox Business News
CFTC Orders Barclays to pay $200 Million Penalty for Attempted Manipulation of and False Reporting concerning LIBOR and Euribor Benchmark Interest Rates
June 27, 2012--The Order finds that Barclays attempted to manipulate interest rates and made related false reports to benefit its derivatives trading positions
The Order also finds that Barclays made false LIBOR reports at the direction of members of senior management to protect its reputation during the global financial crisis
The U.S. Commodity Futures Trading Commission (CFTC) issued an Order today filing and settling charges against Barclays PLC, Barclays Bank PLC (Barclays Bank) and Barclays Capital Inc. (Barclays Capital) (collectively Barclays or the Bank). The Order finds that Barclays attempted to manipulate and made false reports concerning two global benchmark interest rates, LIBOR and Euribor, on numerous occasions and sometimes on a daily basis over a four-year period, commencing as early as 2005.
According to the Order, Barclays, through its traders and employees responsible for determining the Bank’s LIBOR and Euribor submissions (submitters), attempted to manipulate and made false reports concerning both benchmark interest rates to benefit the Bank’s derivatives trading positions by either increasing its profits or minimizing its losses. This conduct occurred regularly and was pervasive. In addition, the attempts to manipulate included Barclays’ traders asking other banks to assist in manipulating Euribor, as well as Barclays aiding attempts by other banks to manipulate U.S. Dollar LIBOR and Euribor.
read more
Source: CFTC.gov
S&P Indices Announces Changes In The S&P/TSX Canadian Indices - A Deletion From The S&P/TSX Venture Composite And Venture Select Indices
June 27, 2012--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of Lithium One Inc. (TSXVN:LI) have approved the Plan of Arrangement whereby the company will be acquired by Galaxy Resources Limited (ASX:GXY) in a share exchange.
Lithium One will be removed from the S&P/TSX Venture Composite and Venture Select Indices after the close of trading on Friday, June 29, 2012.
Source: Standard & Poor's
Chile 65, the First Chilean ETF, is Now Listed on the Chilean Electronic Stock Exchange (BEC)
Comprised of the 65 largest cap stocks in the Chilean market
June 27, 2012--The CHILE 65 index of the Chilean Electronic Stock Exchange (BEC), the first all-Chilean ETF, started trading in the local market last week by initiative of IM Trust S.A.
The CHILE 65 index of the Chilean Electronic Stock Exchange (BEC) is the first all-Chilean ETF. It started trading in the local market last week by initiative of IM Trust, according to reports from the BEC.
read more
Source: Funds America
Van Eck files with the SEC
June 26, 2012--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Nigeria-Focused West Africa ETF.
view filing
Source: SEC.gov
Alps files with the SEC
June 26, 2012--ALps has filed a post-effective amendment, registration statement with the SEC for the ALPS Sector Dividend Dogs ETF.
view filing
Source: SEC.gov
Dow Jones RBP Index Family Expands To Include Gauge That Allocates Among Indexes With Bullish, Bearish And Neutral Viewpoints
New Index Methodology Automatically Reallocates Index Weights
Based on Economic and Market Indicators
June 26, 2012--Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones RBP U.S. Directional Allocation Index, a unique gauge that automatically allocates weights among other indexes that reflect distinct viewpoints on the U.S. market.
Constructed as an “index of indexes,” the new gauge reallocates among an “aggressive” index, a “defensive” index and a “market” index—while also allowing the possibility to allocate fully to a cash component—based on an automated system that uses economic and market indicators as inputs.
The Dow Jones U.S. RBP Directional Allocation Index is the latest addition to the Dow Jones RBP Index series offered by Dow Jones Indexes and Transparent Value LLC, a New York-based asset management and financial information services company. The Dow Jones RBP Indexes are built upon a methodology using proprietary, rules-based analytics supplied by Transparent Value.
read more
Source: Dow Jones Indexes
Manning & Napier Launches Actively Managed, ETF-Based Target Date Solutions
June 26, 2012--Manning & Napier recently announced the launch of the Manning & Napier Goal Collective Investment Trust (CIT) Funds, a suite of ten actively managed target date funds which will invest in a variety of exchange-traded funds (ETFs).
The Manning & Napier Goal CIT Funds provide an opportunity for active management at a lower cost structure while maintaining diversification of asset classes, market sectors, and securities through ETFs.
The Manning & Napier Goal CIT Funds range from an Income fund to a 2055 fund and will be built using the same active asset allocation approach the Company has implemented for more than 40 years. The active approach allows for flexibility to shift portfolio assets away from over-valued sectors and towards areas of lower risk. Utilizing a team-based investment strategy, the Goal CIT Funds will be overseen by the Company's Senior Research Group.
read more
Source: Manning & Napier
DB-Equity Research-US ETF Market Weekly Review : Market pullback removed $12bn from ETP assets
June 26, 2012--Net Cash Flows Review
Following a two-week relief rally, markets pulled back again during last week. The US (S&P 500) dropped by 0.56%. While, outside the US, the MSCI EAFE (in USD) advanced by 0.36% and the MSCI EM (USD) lost 0.82%. Moving on to other asset classes, the 10Y US Treasury yield rose by 9bps last week; while the DB Liquid Commodity Index was down by 2.29%. Similarly, the WTI Crude Oil, the Gold, and the Silver prices retreated by 5.08%, 3.36% and 6.20%, respectively; while the Agriculture sector (DB Diversified Agriculture Index) rose by 1.90%. Last but not least, Volatility (VIX) dropped by 14.21% and crossed the 20 level downwards during the same period.
The total US ETP flows from all products registered $1.3bn of outflows during last week vs $12.1bn of inflows the previous week, setting the YTD weekly flows average at +$2.9bn (+$72.1bn YTD in total cash flows). Equity, Fixed Income, and Commodity ETPs experienced flows of -$2.5bn, +$0.7bn, and +$0.4bn last week vs. +$9.4bn, +$2.3bn, and +$0.4bn the previous week, respectively.
Within Equity ETPs, emerging markets regional products experienced the largest inflows (+$0.8bn); while large cap and mid cap vehicles experienced the largest outflows (-$3.6bn, -$0.6bn, respectively). Within Fixed Income ETPs, Corporates products recorded the largest inflows (+$0.6bn), followed by broad benchmarked products (+$0.2bn); while Sovereign experienced outflows of $0.3bn. Within Commodity ETPs, Precious Metals products experienced the largest inflows ($0.3bn).
Top 3 ETPs & ETNs by inflows: VWO (+$0.6bn), AMJ (+$0.4bn), VXX (+$0.3bn) Top 3 ETPs & ETNs by outflows: SPY (-$3.8bn), IWR (-$0.5bn), XLI (-$0.4bn)
New Launch Calendar: fixed income, commodity, and active equity ETFs
There were 5 new ETPs listed on the NYSE Arca during the previous week. Two of them offer access to US crossover and emerging market corporate debt, the next one provides a one-stop vehicle to invest in the industrial and precious metal segments, and the last two ETPs offer access to equity strategies employing an active investing approach.
Turnover Review: floor activity dropped by 5%
Total weekly turnover dropped by 5.0% to $300bn vs. $316bn in the previous week. Last week’s turnover level was 20% below last year’s weekly average. Equity ETPs experienced a drop of $19.3bn or 20.4% to $263bn. In the meantime, Fixed Income and Commodity ETP turnover rose by 11.8% (+$1.9bn) and 9.2% (+$1.3bn), respectively.
Assets Under Management (AUM) Review: a small pullback
ETP assets dropped by 1.1% during last week and ended the week at $1.14 trillion. Last week’s $12.1bn drop put the ETP YTD assets growth back to the single digit area with 9.1%. Assets for equity, fixed income and commodity ETPs moved -$9.4bn, +$0.9bn, and -$3.6bn during last week, respectively.
to request report
Source: Deutsche Bank-Equity Research-North America
Russell completes annual global index reconstitution process to reflect today's global markets
Notable decline in global market capitalization and correlation
Strong performance for U.S. large-cap stocks, with technology sector leading the way
Emerging Markets decline in capitalization relative to Developed Markets
June 25, 2012--Today marks the first day of the newly reconstituted Russell Global Indexes following the completion of Russell.s annual index reconstitution on June 22nd.
Final membership lists for the Russell Global, Russell 3000®, Russell 1000®, Russell 2000®, Russell Midcap® and Russell Microcap® Indexes, accounting for approximately $3.9 trillion in assets benchmarked, were confirmed after Friday's market close. Final lists of additions and deletions are available on the Russell reconstitution website.
Market Capitalization
Global market capitalization, as reflected in the post-reconstitution Russell Global Index, had a notable decline, decreasing from $52.2 trillion on May 31, 2011 to $44.2 trillion on May 31, 2012. U.S. market cap, as illustrated by the Russell 3000 Index, declined from $16.7 trillion to $15.8 trillion during this same period.
"The strong performance of the global markets in the first quarter of 2012, led by large-cap stocks in the U.S., showed in the all-time high of the Russell 1000 Index on April 2," said Stephen Wood, chief market strategist for North America at Russell Investments. "However, international turmoil over the last few months has contributed to a decline in the global equity market and a resulting drop in market capitalization of the Russell global index family, as shown during the annual rebalancing process."
read more
Source: Russell Investments
