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ETFS US Precious Metals Weekly: Gold price decline attracts record turnover on Shanghai Exchange as retail buyers step up
October 10, 2011-Chinese ‘Golden Week’ sees strong demand for gold – volume on Shanghai Exchange at Record. China’s golden week holiday has attracted strong retail interest, as gold hovers near levels last reached at the beginning of August.
A spokesman for the Chinese Gold and Silver Exchange indicated that retailers would be ‘busy like crazy’ during the annual festivities. Weekly turnover in gold futures on
the Shanghai Gold Exchange (SGE) hit a record level, with heightened activity
around the national holiday celebrations lifting volumes.
Gold records first weekly gain in five weeks, rising 2%. Low or negative real interest rates in major developed economies and with central banks continuing to flood market with liquidity, investor appetite for gold is rebounding strongly. While European politicians have pledged to recapitalise the Eurozone banking system, central banks continue to inject increasing amounts of liquidity into financial markets to stave off short-term liquidity problems. Gold trading will likely remain choppy but the uncertain economic backdrop should be a positive influence for gold. More concrete details on the Eurozone recapitalisation plan, which are scheduled for release at the G20 meeting in early November, could trigger greater risk appetite.
Impala Platinum announces signing of 2-year wage deal for workers. Impala, the world’s second largest platinum producer, announced it had settled a two-year wage agreement with South Africa’s National Union of mineworkers. According to the company statement, workers will receive between 8.5-10% in the first year, and between 8-10% in the following year. The trend of rising costs on mining should provide price support for precious metals over the medium term.
CME hikes margins on futures contracts as volatility picks up. The CME increased margins on platinum futures contracts by around 29% last week, as weakening economic sentiment led to sharp falls for precious metals, thereby lifting volatility. After recent sharp declines in platinum, the margin increase is unlikely to trigger a sell-off akin to that when gold and silver margins jumped, but it could keep price action subdued this week.
What to watch this week. Relative value will remain in focus this week as the gold:platinum ratio remains at a record high and the gold:silver at an eleven-month high. Economic sentiment is fragile, as investors remain wary of the possibility of a disorderly default by Greece. Economic data will likely remain in the background, with market direction driven again by policymakers’ comments this week. Economic data from Eurozone is likely to be soft and highlight the potential divergence between the recovery path between the Eurozone and the US. The release of the latest FOMC minutes, as well as any details about the framework for the Euurozone’s plan to resolve the sovereign debt crisis will be closely watched. Initial market reactions from the Merkel/Sarkozy summit comments have been supportive to more cyclically-oriented silver, platinum and palladium prices, however volatility is unlikely to evaporate in the current highly uncertain environment.
visit www.etfsecurities.com for more info
Source: ETF Securities
ELX Announces 3RD Quarter U.S. Treasury Bond Records
October 10, 2011 – ELX Futures, L.P. (ELX), a leading electronic futures exchange, today announced its total volume for the first three quarters has surpassed 15 million contracts as trading activity for its 30-year and ultra-long U.S. Treasury bond futures contracts set new quarterly records
The 30-year bond volume in the third quarter exceeded 1 million contracts for the first time, with 1,167,171 contracts traded, surpassing the second quarter 2011 record of 964,534 contracts and bringing the total traded since launch to nearly 5 million. The average daily volume for the quarter was a record 18,237 contracts, with market share during the quarter rising to a record 4.3%.
The ultra-long bond set a quarterly record of 25,573 contracts, more than double the previous record of 10,299 set during the second quarter of 2010, and a monthly record for September of 13,436 contracts, after setting the previous record of 9,141 last month.
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Source: ELX Futures
DB Global Equity Research: US ETF Market Monthly Review Risk Off Trade Continued on in September: $5.8 bn flowed into FI ETPs
October 10, 2011--To our readers: Starting from this month, we will publish a monthly commentary and review of the ETP market. This new monthly report will replace our first weekly report of each month. We will continue to publish our weeklies for the rest of the weeks which will now focus exclusively on data.
Risk off trade continues
In spite of the announcement of further easing from the Fed, this time in the form of "Operation Twist", equity markets around the world were overwhelmed by the ramping solvency and liquidity threats coming from the European Sovereign crisis during September.
Equity markets in the US (S&P 500) went on free fall mode and lost 7.18% during the month.
The risk off trade continued throughout the month of September and spread from equities into other asset classes such as commodities. However, overall, long only ETPs gathered $3.3bn of inflows in September vs. $2.1bn of inflows in August. Long only equity ETPs experienced $2.3bn of outflows during last month; however the downtrend seems to have lost some momentum as compared to the previous 2 months. In the meantime, long only fixed income ETPs continued their rally and added $5.8bn in inflows during the same period; while long only commodity ETPs edged lower recording outflows of $67m, reversing the trend we had seen in recent months. (Figure 3)
Investors continued to allocate assets in line with the underlying risk-off trade governing the markets during September. Defensive trades again dominated the inflows landscape, although the fear-driven gold inflows were missing in action this time. Our data suggests that investors are seeking preservation of capital in an effort to shield their assets from a possible recession. The following segments of the ETP market gathered sturdy inflows during this period: fixed income investment grade (+$4.1bn), equity international broad including EM and DM (+$4.1bn), equity dividend (+$1.5bn), equity US defensives (+$1.4bn), and currency long USD (+$0.7bn) products. In the meantime, we also saw significant outflows from equity international country including EM and DM (-$1.6bn), and equity US global cyclicals (-$1.8bn) products as investors departed those products believed to be more sensitive to an economic downturn. (Figure 4)
New Launch Calendar: more "Alternatives" to the ETP menu
There were 20 new ETPs and 17 new ETNs listed on NYSE Arca during the previous month. The new products cover four different asset classes and offer access to new markets, industries and strategies.
Turnover Review: Floor activity decreases, but still remains high
Total monthly turnover decreased by 30% to $2.0 trillion vs. $2.8 trillion in the previous month. The three main asset classes experimented declines. The largest decline was on Equity ETP turnover, which dropped by $731bn or 29.4% to $1.75 trillion. Fixed Income ETP turnover retreated by $43.5bn to $80.4bn last month. Finally, Commodity ETPs products turnover fell by $75bn, totaling $144.3bn at the end of September.
Assets Under Management (AUM) Review: ETPs closed under $1 trillion
The equity and commodity prices plunge sent the ETP AUM speedily below $1 trillion straight into negative growth territory for the year. ETPs lost $89bn or 8.5% in assets during September. ETP AUM ended the month at $959 billion or 3.6% down YTD, its lowest level this year.
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Source: Deutsche Bank - Global Equity Research
CFTC.gov Commitments of Traders Reports Update
October 7, 2011--The current reports for the week of October 4, 2011 are now available.
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Source: CFTC.gov
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
October 7, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Tuesday, October 11, 2011:
Alderon Iron Ore Corp. (TSXVN:ADV) will be removed from the index as well as the S&P/TSX Venture Select Index.
The company will graduate to trade on TSX under the same ticker symbol.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
Standard & Poor's Announces Changes In The S&P/TSX SmallCap Index
October 7, 2011--Standard & Poor's will make the following changes in the S&P/TSX SmallCap Index after the close of trading on Tuesday, October 11, 2011:
Shareholders of Candente Copper Corp. (TSX:DNT) approved on August 23, 2011, the Plan of Arrangement whereby the company will spin out certain copper and lead-zinc properties in Peru.
For every 5 shares of Candente held, shareholders will receive 1 share of a new company named Cobriza Metals Corp. Cobriza will trade on TSX for the first time (the ex-date of the spin-off) on October 12, 2011, under the ticker symbol "CZA" and the CUSIP number 19105V 10 5. The spun out shares of Cobriza will be added at zero price to the S&P/TSX SmallCap and Equity SmallCap Indices after the close of trading on Tuesday, October 11, 2011. There will be no divisor changes for either of these indices as a result of these additions.
Effective after the close of Wednesday, October 12, 2011, the shares of Cobriza will be removed from the same two indices and new divisors will be created.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
Javelin files with the SEC
October 7, 2011--Javelin has filed a Post-Effective Amendment relating solely to the JETS Contrarian Opportunities Index Fund.
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Source: SEC.gov
Maple Group Provides Update On Regulatory Process
October 7, 2011--Maple Group Acquisition Corporation ("Maple"), a corporation whose investors comprise 13 of Canada's leading financial institutions and pension funds, announced today that it has submitted applications for regulatory approval to each of the Ontario Securities Commission ("OSC"), Autorité des marchés financiers ("AMF"), Alberta Securities Commission and British Columbia Securities Commission, in connection with Maple's proposal to acquire 100% of TMX Group Inc. ("TMX Group") (TSX: X) shares in an integrated acquisition transaction valued at approximately $3.8 billion.
Maple has been advised that each of the applicable securities regulatory authorities has or intends to publish and accept public comments on the securities applications and that the OSC and AMF intend to subsequently convene public hearings in December 2011in respect of the securities applications. Copies of Maple's securities applications are available at www.abetterexchange.com. Maple welcomes the opportunity to continue its dialogue with the securities commissions to address the issues raised in their notices and requests for comments. Maple is also in the process of responding to Supplementary Information Requests issued by the Commissioner of Competition.
Speaking on behalf of Maple's investors, Luc Bertrand said, "These applications mark an important milestone in the regulatory process and set out further details of our vision for an integrated exchange and clearing group that is well-positioned to pursue new growth opportunities and meet the needs of Canada's capital markets and capital market participants. We are moving forward with our offer, our discussions with the TMX Group are ongoing and we remain confident we can obtain all necessary regulatory approvals by early 2012."
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Source: Maple Group Acquisition Corporation
iShares files with the SEC-iShares MSCI EAFE Minimum Volatility Index Fund
October 6, 2011--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares MSCI EAFE Minimum Volatility Index Fund.
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Source: SEC.gov
Claymore files with the SEC
October 6, 2011--Claymore has filed a post-effective amendment, registration statement with the SEC for the >Guggenheim Yuan Bond ETF.
view filing
Source: SEC.gov
