Americas ETP News
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MF Global Dodged Capital Requirements, Report Says
June 5, 2012-Under pressure from regulators last summer to increase its capital cushion, MF Global moved some of its risky European debt holdings to an unregulated entity in an effort to avoid having to raise extra money, according to a new report.
The revelation raises new questions about MF Global’s actions in its last months, in particular, how it responded to regulators. The brokerage firm had previously disclosed that it had met the capital requirements, but never mentioned that it had transferred some bonds rather than raising additional money.
The shift was detailed in a report by Louis J. Freeh, the trustee overseeing the bankruptcy of MF Global.
view the FIRST REPORT OF LOUIS J. FREEH, CHAPTER 11 TRUSTEE OF MF GLOBAL HOLDINGS LTD., et al.,
FOR THE PERIOD OCTOBER 31, 2011 THROUGH JUNE 4, 2012
Source: NY Times
KraneShares files with the SEC
June 5, 2012--KraneShares has filed a amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
CFTC's Division of Market Oversight Issues Updated Guidebook for Part 20 Reports
Guidebook Provides Detailed Instructions for Submitting Large Swaps Trader Reports to the Commission
June 5, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight (Division) today issued an updated version of the Guidebook for Part 20 Reports, which provides additional guidance and detailed instructions for submitting large swaps trader reports to the Commission.
On July 22, 2011, the Commission published Part 20 of the Commission’s Regulations requiring large trader reports for certain physical commodity swaps. Clearing organizations and clearing members are currently reporting on both cleared and uncleared swaps. In addition, for entities filing less than fully compliant reports pursuant to Division no-action relief available until July 2, 2012, the Division requires month-end open interest reports to be submitted to the Commission through June 2012.
The Guidebook includes a data dictionary for mapping data elements to a record layout, interim and final reporting formats and record layouts for the submission of reports and 102S filings, and multiple examples for converting and reporting swaps in futures equivalent units. The updated version contains non-substantive edits as well as providing the specifics of reporting in the FIXML format. In addition, the updated Guidebook includes a description of common reporting scenarios.
S&P Indices Launches Enhanced Yield North American Preferred Index
June 5, 2012--S&P Indices announced today the launch of the S&P Enhanced Yield North American Preferred Index which tracks 50 of the highest yielding securities in the North American preferred stock market. The Index has been licensed to Global X Funds to serve as the basis for a planned ETF.
The S&P Enhanced Yield North American Preferred Index is comprised of 50 of the highest yielding U.S. and Canada traded preferred stocks that meet criteria relating to size, liquidity and exchange listings. The underlying universe for the Index is all preferred securities in the S&P/TSX Preferred Share Index and S&P U.S. Preferred Stock Index.
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Source: New york TImes
ETFs Are Duking It Out Over Fees
Two similar funds, two very different prices: Does it make sense to switch? Sometimes, but not always
June 4, 2012--Exchange-traded funds have lured many investors away from mutual funds by offering lower fees. But increasingly, some ETFs are also using fees to compete with other ETFs.
In a handful of high-profile cases, particularly in commodities and stocks, investors can choose between two ETFs that are virtually identical except for their fees. Gold bugs, for instance, can buy into a bar of bullion by holding shares in either SPDR Gold Shares GLD +0.15%or iShares Gold Trust IAU +0.26%. But the SPDR fund charges 0.4% of assets a year in fees, compared with the iShares fund's 0.25%.
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Source: Wall Street Journal
ETF Industry Association Releases May 2012 ETF Data Reports
June 4, 2012--Some of the key highlights from the May 2012 ETF Data report include:
Assets in US listed Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN) totaled approximately $1.14 trillion at May 2012 month-end, an increase of 2% over May 2011 month-end, when assets totaled $1.11 trillion.
ETF/ETN net cash inflows totaled approximately $4.2 billion for the month of May 2012, bringing year-to-date net cash inflows to $63.1 billion.
At May 2012 month-end, there were 1,465 U.S. listed products, an increase of 17% compared to the 1,254 U.S. listed products at the same time last year.
Fixed Income led all categories for May with $8.9 billion in net inflows bringing the YTD total to over $30.2 billion.
visit www.etf-ia.com for report
Source: ETFIA
Genworth MI Canada Added To Dow Jones Canada High Dividend 50 Index
June 4, 2012--Genworth MI Canada Inc., will be added to the Dow Jones Canada High Dividend 50 Index, Dow Jones Indexes announced today.
The addition of Genworth MI Canada Inc. follows the removal of NAL Energy Corp. due to its acquisition by Pengrowth Energy Corp.
Genworth MI Canada Inc. engages in the mortgage insurance business. The company was incorporated in 2009 and is headquartered in Oakville,Canada.
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Source: Dow Jones Index
Diversity of active managers is a waste of time and money
June 4, 2012--Giving up on active management can often come as a relief for institutional investors, given the simplicity and affordability of the index-tracking they use in its place.
Investors should not fool themselves, according to Patrick Rudden, head of blend strategies at fund manager AllianceBernstein.
If they follow the well-worn path of putting all their money with just one passive manager, they will be taking unnecessary risks. They ought to split the passive mandate between several index-trackers.
read more
Source: Financial News
Launch of BNP Paribas STREAM S&P Dynamic Roll Global Commodities Fund
June 4, 2012--NYSE Euronext is pleased to announce that on Wednesday, June 06, 2012, the following ETV will be listed on NYSE Arca and will begin trading as a new issue:
Name: STREAM S&P Dynamic Roll Global Commodities Fund
Cusip: 86324B 10 3
Trading Symbol: BNPC
Expense ratio:0.65%
The Consolidated Tape Association (CTA) will disseminate real time trade and quote information for the ETV to Tape B. All ETP-Related Indexes will be disseminated via the NYSE Euronext Global Index Feed.
Source: Online News
Morgan Stanley-US ETF Weekly Update
June 4, 2012--Weekly Flows: $943 Million Net Outflows
ETF Assets Stand at $1.1 Trillion, up 5% YTD
One ETF Launch Last Week
Agriculture ETF to Reduce Management Fee
US-Listed ETFs: Estimated Flows by Market Segment
After generating net inflows for three consecutive weeks, ETFs posted net outflows last week
Last week’s net outflows of $943 mln were primarily driven by US Small- & Micro-Cap ETFs
ETF assets stand at $1.1 tln, up 5% YTD; ETFs have posted net inflows 17 out of 22 weeks YTD ($56.9 bln in net inflows)
13-week flows were mostly positive among asset classes; combined $20.2 bln net inflows
Fixed Income ETFs have consistently generated weekly net inflows (42 straight weeks of net inflows); make up 20% of ETF
market cap, up from 14% just a year ago (combination of relative performance and flows)
Emerging Market Equity ETFs exhibited net outflows of $3.9 bln, the most out of any category over the last 13 weeks
US-Listed ETFs: Estimated Largest Flows by Individual ETF
Energy Select Sector SPDR (XLE) generated net inflows of $930 mln last week, the most of any ETF
XLE posted large net inflows despite oil declining more than 8% last week
Six out of 10 ETFs to post largest net inflows last week provide exposure to US investment grade debt
The six Vanguard ETFs to post large net outflows last week were the same six to generate similar sized net inflows the prior week
US-Listed ETFs: Short Interest
Data Unchanged: Based on data as of 5/15/12
SPDR S&P 500 ETF (SPY) posted the largest increase in USD short interest
Despite an increase in short interest, SPY’s 275 mln shares short is well below its all-time high of 536 mln shares short on 9/15/11
iShares S&P 100 Index Fund (OEF) exhibited the largest decrease in USD short interest (lowest level of shares short since
7/15/11)
The average shares short/shares outstanding for ETFs is currently 5%
Retail continues to be a heavily shorted industry with the SPDR Retail ETF (XRT) leading the way
Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100%
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Smith Barney Research. Data estimated as of 6/1/12 based on daily change in share counts and daily NAVs.
$6.5 billion in total market cap of ETFs less than 1-year old
Over the past 13 weeks, newly launched Active ETFs generated most net inflows at $1.2 bln (specifically the PIMCO Total
Return ETF-BOND)
100 new ETF listings and 17 closures YTD
Over the past year, many of the successful launches have an income/dividend orientation
Five different ETF sponsors and three asset classes represented in top 10 most successful launches
Only three recently launched ETFs posted net outflows last week
Top 10 most successful launches account for 60% of market cap of ETFs launched over the past year
request report
Source: Morgan Stanley
