Americas ETP News
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SEC tightens leash on exchanges post "flash crash"
January 12, 2012--The May 2010 "flash crash" was bad for almost everyone involved in the stock market, but for the Securities and Exchange Commission, it was a disaster.
With $1 trillion in shareholder equity wiped out in a matter of minutes - however temporarily - alarmed investors demanded answers.
Embarrassingly, the heads of the New York Stock Exchange and Nasdaq Stock Market got into a spat on television, blaming each other for the mess, and the SEC realized that it didn't have the information to explain what caused the scariest few minutes in recent Wall Street history.
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Source: Reuters
Dow Jones Indexes To License Dow Jones Credit Suisse 30-Year Inflation Breakeven Index For ProShares 30 Year TIPS/TSY Spread ETF and ProShares Short 30 Year TIPS/TSY Spread ETF
Along With Dow Jones Credit Suisse 10-Year Inflation Breakeven Index,
New Index Family Seeks to Track Market Expectations for Long-Term Inflation
With Inflation at Historic Lows, Increasing Global Demand for Commodities, and Low Interest Rates, the Climate Seems Right for Inflation Index Products
JANUARY 12, 2012 — Dow Jones Indexes, a leading global index provider, today announced that ProShares® has licensed the new Dow Jones Credit Suisse 30-Year Inflation Breakeven Index to serve as the basis for both the ProShares 30 Year TIPS/TSY Spread ETF and the ProShares Short 30 Year TIPS/TSY Spread ETF.
The ETFs were launched today by ProShares; all of the ProShares ETFs in the series will trade on the NYSE Arca.
The Dow Jones Credit Suisse 30-Year Inflation Breakeven Index was also launched today as was the Dow Jones Credit Suisse 10-Year Inflation Breakeven Index.
The Dow Jones Credit Suisse Inflation Breakeven Indexes, an extension of the Dow Jones Long-Term Inflation Indexes family, is designed to provide investors with tools for tracking the market’s expectations for long-term inflation. The indexes leverage a methodology developed by the Fixed Income Index Products Group in Credit Suisse Group’s New York office.
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Source: Dow Jones Indexes
BATS Announces First Primary Listings - Welcomes New iShares ETFs - Leading ETF Issuer To Launch Inaugural Listings On BATS Exchange - New ETFs Based On MSCI Indexes
January 12, 2012 – BATS Global Markets (BATS), a global operator of stock and options markets, today announced that BlackRock, Inc.’s (NYSE: BLK) iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, will list eight new ETFs on BATS Exchange, marking BATS’ first primary listings.
The iShares MSCI Norway Capped Investable Market Index Fund is scheduled to commence trading on BATS Exchange on January 24 and the remaining seven funds will begin trading soon after.
“iShares is one of the leading global providers of exchange-traded products and we are proud to kick off the new year by welcoming their new products to our market. The innovation and leadership that iShares brings to capital markets makes them the perfect partner for our first primary listings,” said Joe Ratterman, Chairman and CEO of BATS Global Markets. “iShares’ decision to list on BATS underscores the commitment that we are placing on ensuring our market is issuer-focused and concentrates on market quality.”
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Source: BATS Global Markets
Financial Times Says ETFs Are Reaching A Saturation Point
January 12, 2012--The U.S. ETF market may be getting saturated, says the Financial Times, as the appetite for new funds wanes. Last year, a record 302 exchange traded products were launched, a little less than the 389 funds that made up the entire market in 2007. At the end of 2011, there were 1,369 ETPs with more than $1 trillion in assets under management.
However, of the 190 ETFs launched in the first six months of 2011, 79% failed to reach the profitability mark of $30 million in assets under management, according to XTF, an ETF-focused research house. This was up from 62% in 2010 and less than half in 2009. Fewer assets in the funds means less liquidity and wider bid-ask spreads. Mel Herman, the head of XTF, says, said: “Most popular indices already have an ETF tracking them, so issuers are launching more and more niche products.”
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Source: Bullfax,com (story from Lawrence Carrel)
State Street Global Advisors Introduces the First Emerging Asia Pacific Small Cap Exchange Traded Fund
January 12, 2012 — State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today announced that the SPDR® S&P® Small Cap Emerging Asia Pacific ETF (Symbol: GMFS) began trading on the NYSE Arca on January 12, 2012.
The first emerging Asia Pacific small cap ETF, the new fund provides investors with access to companies poised to benefit from the growth of emerging Asia’s middle class. Its annual expense ratio is 0.65 percent.
The SPDR S&P Small Cap Emerging Asia Pacific ETF seeks to track the performance of the S&P Asia Pacific Emerging Under $2 Billion Index. The Index is a float-adjusted market capitalization weighted benchmark that includes publicly listed companies with a total market capitalization between $100 million and $2 billion. Each individual stock is capped at a maximum of 25 percent of the index weight, and the top five stocks are capped at a maximum of 50 percent of the index weight. Among the countries historically covered in the Index are China, India, Indonesia, Malaysia, Philippines, Taiwan, and Thailand. As of December 31, 2011, the Index was comprised of 1,455 securities.
“Emerging market small cap stocks are an attractive opportunity for many investors, as broad emerging market equity funds are often dominated by large cap companies that rely on developed world demand,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “In providing investors with precise access to an asset class with the potential to provide portfolio growth and diversification benefits, the SPDR S&P Small Cap Emerging Asia Pacific ETF enhances our family of emerging market SPDR ETFs, which includes the SPDR S&P Emerging Markets Small Cap ETF.”
State Street manages more than $271** billion in SPDR ETF assets worldwide (as of December 31, 2011) and is one of the largest ETF providers globally.
Source: State Street Global Advisors (SSgA)
Canadians can’t get enough of exchange traded funds. In 2011, asset growth hit 13 per cent, pushing the total figure now invested in ETFs to $43-billion, according to National Bank Financial
January 12, 2011--Canadians can’t get enough of exchange traded funds. In 2011, asset growth hit 13 per cent, pushing the total figure now invested in ETFs to $43-billion, according to National Bank Financial.
While the latest annual jump isn’t as large as the few years prior, it was still an impressive feat considering that the ETF market is becoming more mature. NBF analysts attributed the continued growth to investors seeking income and safety, and that shows in the top selling ETFs, which included covered call strategies and bond funds. Conversely, commodity ETFs that centre on crude and natural gas saw the biggest outflows last year.
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Source: Globe and Mail
CFTC.gov Financial Data for Futures Commission Merchants Update
January 12, 2012--Selected FCM financial data as of November 30, 2011 (from reports filed by January 2, 2012) is now available.
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Source: CFTC.gov
WisdomTree Announces Investment Sub-Advisory Relationship with Western Asset Management for Fixed Income ETFs In Credit Space
Western Asset Management is One of the World’s Leading Global Fixed Income Managers
January 12, 2012 – WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) sponsor and asset manager, today announced a new investment sub-adviser relationship with Western Asset Management, a subsidiary of Legg Mason (NYSE: LM). The collaboration will be in the global fixed income area with a focus on credit products.
“We are pleased to tap the expertise of the Western team, one of the world’s leading fixed income managers, as we look to build on our progress in the international fixed income space,” said Bruce Lavine, WisdomTree President & COO.
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Source: Wison Tree
FlexShares files with the SEC
January 12, 2012--FlexShares has filed a pre-effective amendment, registration statement with the SEC for the FlexSharesSM Morningstar Developed ex-US Markets Factor Tilt Index Fund.
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Source: SEC.gov
FlexShares files with the SEC
January 12, 2012-FlexShares has filed a second and restated application for exemptive relief with the SEC for actively-managed ETFs.
view filing
Source: SEC.gov
