Americas ETP News
If your looking for specific news, using the search function will narrow down the results
Brazil Rate Futures Yields Fall as Europe Debt Crisis Fuels Bets
September 28, 2011--Yields on most Brazilian interest- rate futures contracts fell as the deepening debt crisis in Europe fueled bets the central bank will continue lowering borrowing costs.
Yields on the contract due in January 2013 declined two basis points, or 0.02 percentage point, to 10.41 percent at 5 p.m. in New York.
read more
Source: Bloomberg Business Week
DB Global Equity Research: US ETF Market Weekly Review-- Market meltdown sends ETP AUM below $1 trillion
September 28, 2011--Where is the safe haven?
The latest measure announced by the Fed last Wednesday (i.e. "Operation Twist") was not enough to satisfy investors' anxiety as rising liquidity concerns affecting European Sovereigns and Financials more than offset any positive effect intended by the new policy measure. Equity markets in the US (S&P 500) went on free fall mode and lost 6.54%
The total US ETP flows from all products registered $6.5bn of outflows during last week vs $11.5bn of inflows the previous week, setting the YTD weekly flows average at +$1.9bn.
Last week long only ETPs experienced outflows of $6.7bn following the equity markets free fall triggered by rising European financial liquidity concerns. Long only equity and commodity ETPs were affected by the risk-off trade and experienced $8.3bn, and $334m of outflows, respectively; while fixed income ETPs stayed firm and attracted $1.9bn of inflows.
In the last weekly report we mentioned that we estimated that up to $6bn of inflows were deemed temporary and likely to be reversed. Conversely we believe that about $5bn out of the $8.3bn in outflows we had in long-only equity ETPs last week correspond to such reversal. Even after adjusting by this seasonal event which affects the SPY flows around the S&P 500 rebalancing dates, we would still have more than $3.0bn in outflows for the week which clearly reconfirms that the markets are still in risk-off mode.
Our flows data suggests that investors are running out of safe havens. Among the usual risk-off trades, we noticed that the only one with significant upside momentum during last week was the IG segment within Fixed Income ETPs (+$1.5bn). We believe that the widespread volatility affecting the equity, gold and interest rates markets have motivated investors to seek preservation of capital instead of uncorrelated returns as the current safe haven of choice.
New Launch Calendar: the ETP menu keeps adding choices
There were 9 new ETPs and 2 new ETNs listed on NYSE Arca during the previous week. The new products cover four different asset classes offering access to single commodity, Chinese debt in Yuan, and TIPS returns, among others.
Turnover Review: Floor activity rose on higher volatility
Total weekly turnover increased by 16.1% to $532bn vs. $458bn in the previous week. The three main asset classes experimented increases. The largest increase was on Equity ETP turnover, which rose by $54bn or 113.3% to $463bn. Fixed Income ETP turnover increased by $8.2bn to $23.2bn last week. Finally, Commodity ETPs products turnover increased by $11.2bn, totaling $39.4bn at the end of last Friday.
Assets Under Management (AUM) Review: Almost $75bn wiped away
The equity and commodity prices plunge combined with significant outflows contributed to a week-over-week ETP AUM drop of $74.2bn or 7.2%. ETP AUM ended up the week at $962 billion or -3.2% down YTD, its lowest level this year.
to request report
Source: Deutsche Bank - Global Equity Research
db-X Exchange-Traded Funds files with the SEC
September 28, 2011--db-X Exchange-Traded Funds has filed a post-effective amendment no. 6, registration statement with the SEC for the db-X 2010 Target Date Fund (NYSE Arca, Inc. – TDD)
db-X 2020 Target Date Fund (NYSE Arca, Inc. – TDH)
db-X 2030 Target Date Fund (NYSE Arca, Inc. – TDN)
db-X 2040 Target Date Fund (NYSE Arca, Inc. – TDV)
db-X In-Target Date Fund (NYSE Arca, Inc. – TDX)
view filing
Source: SEC.gov
US on knife edge of contraction - economist
September 27, 2011--The U.S. economy is on a "knife edge" between growth and contraction, and if it were a dashboard, it would be flashing "watch out, danger ahead on all gauges," Dallas Federal Reserve Bank's top economist said on Tuesday.
"The economy is moving along at stall speed," Dallas Fed research director Harvey Rosenblum told a forum sponsored by the greater San Antonio Chamber of Commerce. "Unless we start moving a little bit faster, we are at a tipping point where things may not go the right way."
The U.S. jobs engine has lost momentum and could be set for further "backtracking," Meanwhile, he said, there is also a "credible" risk of rising inflation.
read more
Source: Reuters
SPDR® ETF (Exchange Traded Fund) Family Announces Impact of Receiving Settlement Payments
September 27, 2011--The Financial Select Sector SPDR® Fund (NYSE:XLF), SPDR® S&P 500® ETF Trust (NYSE:SPY) and SPDR® Dow Jones Industrial AverageSM ETF Trust (NYSE:DIA) announced on Tuesday September 27, 2011 that each Fund received a payment as an authorized claimant from a settlement related to Bank of America Corp. and the impact to each Fund’s net asset value (“NAV”) per share would occur on Wednesday, September 28, 2011.
The total amount to be recorded by each Fund is listed below. When the Funds calculate their net asset value (“NAV”) per share on Wednesday, September 28, 2011, it is estimated that each Fund’s NAV will be impacted by the receipt of the corresponding payment in the amount stated below based on the shares outstanding as of September 26, 2011.
read more
Source: SPDR Exchange Traded Funds
Data point to stagnant US economy
September 27, 2011--The US economy continues to struggle as new data on Tuesday showed stagnant house prices and very weak consumer confidence, although there is still little sign of a spiral towards recession.
House prices were flat from June to July on a seasonally adjusted basis, according to the S&P Case-Shiller home price index, as the impact of foreclosures and unsold properties weighed on the housing market. Analysts had expected prices to edge up by 0.1 per cent as summer is traditionally a period of stronger demand in the housing market.
read more
Source: FT.com
US inflation expectations lowest for a year
September 27, 2011--Market expectations for US inflation have dropped to their lowest level in a year and are now below the Federal Reserve’s unofficial target, as investors respond to the central bank’s latest attempt to stimulate the economy.
The expected rate of inflation over the next 30 years, as measured by the difference between Treasury Inflation Protected Securities, Tips, and cash government bonds, dropped as low as 1.85 per cent in recent days from 2.73 per cent since last month. The rate was just under 2 per cent on Tuesday.
read more
Source: FT,com
BlackRock New ETF Landscape Report: US Handbook – Q2 2011
September 27, 2011--Q2 2011 is a comprehensive directory of all 1,288 Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) with assets of US$1,100.7 Bn from 48 providers on two exchanges in the United States, as at the end of June 2011.
request report
Source: BlackRock
SEC to Publish for Public Comment Updated Market-Wide Circuit Breaker Proposals to Address Extraordinary Market Volatility
September 27, 2011--The Securities and Exchange Commission today announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) are filing proposals to revise existing market-wide circuit breakers that are designed to address extraordinary volatility across the securities markets. When triggered, these circuit breakers halt trading in all exchange-listed securities throughout the U.S. markets.
The proposals being filed today would update the market-wide circuit breakers by among other things reducing the market decline percentage thresholds necessary to trigger a circuit breaker, shortening the duration of the resulting trading halts, and changing the reference index used to measure a market decline.
If approved by the Commission, the new market-wide circuit breaker rules would replace the existing market-wide circuit breakers, which were originally adopted in October 1988 and have only been triggered on one day in 1997.
“This new market-wide circuit breaker together with the other post-Flash Crash measures is designed to reduce extraordinary volatility in our markets,” said SEC Chairman Mary Schapiro. “We look forward to reviewing the comments, including any views on how the proposed circuit breaker changes might work together with the proposed limit up-limit down mechanism for individual securities.”
The SEC will seek comment on the proposed rule changes, which are subject to Commission approval following a 21-day public comment period.
Market-Wide Circuit Breaker Proposal The proposals would revise the existing market-wide circuit breakers by:
Reducing the market decline percentage thresholds necessary to trigger a circuit breaker from 10, 20, and 30 percent to 7, 13, and 20 percent from the prior day’s closing price.
read more
Source: SEC.gov
SEC to Publish for Public Comment Updated Market-Wide Circuit Breaker Proposals to Address Extraordinary Market Volatility
September 27, 2011--The Securities and Exchange Commission today announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) are filing proposals to revise existing market-wide circuit breakers that are designed to address extraordinary volatility across the securities markets. When triggered, these circuit breakers halt trading in all exchange-listed securities throughout the U.S. markets.
The proposals being filed today would update the market-wide circuit breakers by among other things reducing the market decline percentage thresholds necessary to trigger a circuit breaker, shortening the duration of the resulting trading halts, and changing the reference index used to measure a market decline.
If approved by the Commission, the new market-wide circuit breaker rules would replace the existing market-wide circuit breakers, which were originally adopted in October 1988 and have only been triggered on one day in 1997.
“This new market-wide circuit breaker together with the other post-Flash Crash measures is designed to reduce extraordinary volatility in our markets,” said SEC Chairman Mary Schapiro. “We look forward to reviewing the comments, including any views on how the proposed circuit breaker changes might work together with the proposed limit up-limit down mechanism for individual securities.”
The SEC will seek comment on the proposed rule changes, which are subject to Commission approval following a 21-day public comment period.
Market-Wide Circuit Breaker Proposal The proposals would revise the existing market-wide circuit breakers by:
Reducing the market decline percentage thresholds necessary to trigger a circuit breaker from 10, 20, and 30 percent to 7, 13, and 20 percent from the prior day’s closing price.
read more
Source: SEC.gov
