Americas ETP News
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CFTC Announces Process to Designate the Provider of CFTC Interim Compliant Identifiers
March 9, 2012--The Commodity Futures Trading Commission (CFTC) is requesting submissions from industry participants who wish to be considered for designation by the Commission as the source for identifiers to be used for identification of swap counterparties in swap recordkeeping and swap data reporting under the jurisdiction of the Commission beginning on July 16, 2012.
Background. The CFTC’s final swap data recordkeeping and reporting rule, 77 FR 2136, requires swap counterparties to be identified in recordkeeping and swap data reporting pursuant to the rule by a legal entity identifier. The rule sets out both technical and governance principles that the identifier used in such reporting must follow. The rule provides that the Commission will determine, prior to the start of swap data reporting on July 16, 2012, based on factors set forth in the rule, whether an identifier system satisfying the requirements of the rule is available to provide identifiers to swap market participants required to comply with the rule. If the Commission determines that an appropriate identifier source is available, the rule calls for the Commission to designate the system as the provider of identifiers to be used in complying with the rule, by means of a Commission order.
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Source: CFTC.gov
CFTC.gov Commitments of Traders Reports Update
March 9, 2012--The current reports for the week of March 6, 2012 are now available.
view update
Source: CFTC.gov
IIF Releases Latin America Regional Economic Overview
March 8, 2012--The Institute of International Finance today released its Latin American Regional Economic Overview which stresses that Latin America has grown increasingly resilient to global disturbances.
The policy response to external shocks has relied heavily on exchange rate flexibility and monetary easing.
The report noted that the regional economy is in the midst of a soft patch due to global headwinds and it underscored that growing exposure to China’s business cycle calls for reinforcement of defenses against terms of trade losses.
The report highlighted the fact that the region’s improved standing is appreciating local currencies, highlighting the need for productivity-enhancing reforms
view the Latin America Regional Overview
Source: The Institute of International Finance (IIF)
WisdomTree Launches Emerging Markets Corporate Bond Fund (EMCB)
EMCB Offers Broad-based Exposure to Emerging Market Corporate Credit;
Growing Market with Attractive Yield Potential and Improving Credit Quality
ETF Employs Actively Managed Investment Process; Sub-advised by Western Asset Management Company
March 8, 2012--WisdomTree (NASDAQ: WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Emerging Markets Corporate Bond Fund (EMCB).
EMCB provides broad-based exposure to corporate bonds of emerging market issuers across Asia, Latin America, Eastern Europe, Africa and the Middle East. EMCB is listed on the NASDAQ Stock Market with an expense ratio of 0.60%.
“WisdomTree is pleased to offer the first Corporate Bond ETF that offers access to a rapidly growing asset class, the debt of a broad array of quality corporate issuers in the emerging markets. These bonds are supported by the same favorable growth rates, attractive demographics, and improving fundamentals which have driven strong relative returns in emerging market assets in general,” said Bruce Lavine, President & COO, WisdomTree. “We are equally pleased to tap the expertise of Western Asset Management Company, one of the world’s leading fixed income managers, as sub-advisor to the Fund,” Mr. Lavine added. Western Asset is a subsidiary of Legg Mason (NYSE: LM).
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Source: Wisdom Tree
ETF selling behind overall US equity fund outflows-Lipper
March 8, 2012--March 8, 2012--Institutional selling overpowered retail investor purchases of U.S. equity funds resulting in a net outflow of $3.8 billion from the sector in the week ended March 8, data from Thomson Reuters' Lipper
service showed on Thursday.
Excluding exchange traded funds, which are anecdotally
believed to represent professional investor behavior, U.S.
equity funds pulled in a net $1.3 billion for the week.
Concerns that Greece's private sector debt swap and China's economic slowdown would impact global growth took some of the wind out of the market, which year-to-date is up 8.6 percent.
The Greek concerns have since been allayed as a minimum threshold of bondholders on Thursday agreed to accept a 53.5 percent loss on the face value of their bonds. The real loss is closer to 74 percent when including lost future interest payments.
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Source: Reuters
Largest ETF providers in price war
March 8, 2012--The three largest providers of US exchange-traded funds are aggressively slashing their management fees, fuelling a price war among asset managers for market share in the fast-growing investment business.
BlackRock, Vanguard and State Street, which collectively manage 84 per cent of the $1.2tn in assets in exchanged-traded products, have cut fees on 75 funds so far this year, while raising fees on just two, according to XTF, a data provider.
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Source: FT.com
Global X files with the SEC
March 7, 2012--Global X has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
Deutsche Bank - Equity Research - North America :US ETF Market Monthly Review : ETP assets at all-time highs with 13.3% YTD growth
March 7, 2012--US ETP assets recorded 4.4% MoM and 13.3% YTD growth in February
ETP assets in the US rose by $50.2bn to $1.19 trillion last month, accumulating an increase of 13.3% YTD after the first two months of the year.
Global ETP industry assets rose to $1.62 trillion, or 13.3% up YTD.
Investors ride the bull, but keep a hand on their wallets
US ETP flows experienced sturdy inflows of $12.3bn during February, recording a strong +$40.4bn (3.9% of last year’s AUM) on a year to date basis.
Within long-only ETPs, total flows were +$11.6bn in Feb. vs. +$27.0bn in Jan.
Equity, Fixed Income, and Commodity long-only ETPs received similar inflows of $4.4bn, $4.4bn, and $3.1bn, respectively.
Overall, the flows breakdown suggest that investors are bullish about the equity market (and risk in general), but remain cautious at the same time due to the, still, fragile economic environment.
This month we highlight the following long-only ETP flow trends: Eq. EM broad (+$5.0bn), FI Corporates (+$4.6bn), Eq. US Large Cap (-$4.4bn), Cmdty. Precious Metals (+$2.1bn), FI Sovereign (-$2.0bn), and Eq. Dividend (+$1.8bn).
Among US equity sectors, Global and Domestic Cyclicals ETPs recorded inflows of $2.0bn and $1.1bn, respectively; while Defensives had outflows of $0.5bn. In terms of size allocations, US Large Caps had $4.4bn in outflows; however this should not be taken as an outright sign of bearish sentiment.
Within fixed income long-only ETPs, inflows continued to be strong, again tilted towards the corporate segment with flows of +$4.6bn. Credit quality was balanced between investment grade (+$1.6bn) and high yield (+$2.3bn) debt.
ETFs continued to grow faster than Mutual Funds. At the end of January, ETF inflows ($27bn) contributed 2.9% to the YTD ETF AUM growth; while only 0.4% ($36bn) of the YTD Mutual Fund AUM growth was attributable to new cash.
New Launch Calendar: strongest month ever
There were 40 new ETFs and 8 new ETNs listed during the previous month, these represent the highest number of ETPs and ETNs listed in one single month ever.
The new products cover four different asset classes, and in most cases offer access to DM and EM countries and regions, new fixed income sectors or strategies, and inverse and leveraged exposure to commodities.
Floor activity slightly higher following historical low levels in January
Total monthly turnover increased by 4.6% to $1.19 trillion vs. $1.14 trillion in the previous month.
US ETP trading made up 27.1% of all US cash equity trading in February, down from both its recent peak of 37.5% last August and its 3-year monthly average of 30.6%.
The largest increase was on Equity ETP turnover, which rose by $38bn or 3.8% to $1.03 trillion, followed by Commodity products turnover which grew by $12.6bn, totaling $85bn at the end of February. Meanwhile, Fixed Income ETP turnover rose by $2.2bn to $69bn last month.
to request report
Source: Source: Deutsche Bank - Global Equity Research
US bourses to fine HFT data-cloggers
March 7, 2012--Two of the biggest US stock exchanges are set to impose penalties on high-frequency traders who clog the markets' data pipes with unnecessary messages that do not result in trades.
This move comes as Mary Schapiro, head of the Securities and Exchange Commission, recently expressed worries that such activity might be disruptive to markets.
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Source: FT.com
Brazil becomes sixth biggest economy
March 7, 2012--Brazil has overtaken the UK to become the world's sixth-largest economy despite Latin America's biggest growth engine sharply decelerating last year in its second worst performance in nearly a decade.
Gross domestic product expanded 2.7 per cent last year – about a third of the rate of 2010 and the lowest since 2003, with the economy stalling in the second half of the year amid efforts to control inflation and negative sentiment from the eurozone crisis.
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Source: FT.com
