Americas ETP News
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“Policy Buffets: Plating-Up Efficient and Effective Financial Markets”
Speech of Commissioner Bart Chilton to High Frequency Trading World Amsterdam, 2011, Amsterdam, the Netherlands
June 8, 2011--Be Happy
It’s good to be with you today. I especially want to thank Matthew Pullan for the kind invitation to be here. It’s fitting that we’re here in Amsterdam, home of the world’s oldest stock exchange.
And, you may have heard that just last month, the OECD (Organization for Economic Cooperation and Development) rated the Netherlands as the happiest country in the world. The happiest! That’s just great.
There was a popular song that some of you may recall from 1998, “Don’t Worry, Be Happy” by Bobby McFerrin. In the U.S. “Don’t Worry, Be Happy” rose to number 1 and became song and record of the year. Well, I’m happy to be here in Amsterdam, a great city in the happiest country in the world, to talk a little about global financial regulation and a few cutting edge issues. However, I can’t tell you that there aren’t some reasons to worry. So, I suppose to amend Bobby McFerrin’s don’t worry, be happy for financial markets, I’d say: don’t worry too much, be happy.
read more
Source: CFTC.gov
DB Global Equity Research: North America-US ETF Market Weekly Review : $14bn drained from ETP AUM on market downturn
June 8, 2011--Low appetite for risky assets remain in place
The market couldn’t take it anymore. As more and more disappointing and softer-than-expected US economic data flooded the markets, investors factored in the new environment and pushed the equity markets down the hill. Equity markets in the US (S&P 500) plummeted by 2.32%.
Last week, total US ETP flows from all products registered $720m of outflows vs $2.2bn of inflows the previous week, setting the YTD weekly flows average at +$2.1bn. US ETP AUM lost about $14bn, closing at $1.073 trillion or 7.9% up YTD.
A closer look at our flows makes more evident that the risk-off trade remains in place. Long-only Equity ETP flows have clearly broken our bullish trend support level of $12bn QTD, while Fixed Income ETP flows keep their momentum and Gold ETP flows remain positive, albeit much smaller.
Long only equity ETPs recorded $2.4bn of outflows last week vs $890m of inflows the previous week. From a geographic allocation perspective, US-focused ETPs concentrated the bulk of the outflows (-$2.3bn), followed by Global and EM ETPs with -$254m, and -$196m, respectively; while DM ex US ETPs recorded inflows of $344m.
Long-only fixed Income ETPs recorded inflows of $1.4bn last week. Sovereign ETPs had $569m inflows, followed by Corporates funds with $406m. Commodity ETPs recorded outflows of $299m. At a sector level, Energy ETPs recorded the largest outflows with $312m. Crude Oil ETPs recorded the largest outflows with $169m, followed by Natural Gas ETPs with $138m.
New Launch Calendar: short and quiet week for ETF launches
There were 2 new ETPs listed in the NYSE Arca during the previous week. The new ETFs will offer exposure to Japanese Mid Cap companies and Farming stocks.
Turnover Review: Floor activity picks up on higher volatility
In spite of the shorter week, total weekly turnover increased by 4.8% to $316bn vs. $301bn in the previous week. The market plunge and increased volatility pushed Equity ETP turnover $14.5bn or 5.6% higher to $276bn. Commodity ETPs turnover was again trimmed as Silver ETP related turnover kept returning to pre-bubble levels, total weekly turnover was $23.6bn last week. Finally, Fixed Income products turnover flourished totaling $13bn at the end of last Friday, about a 30% higher from the previous week.
Assets Under Management (AUM) Review: $14bn drained from ETP assets
Outflows and the market free-fall drained almost $14bn or 1.3% from ETP assets during last week. ETP AUM settled at $1.073 trillion as of the end of last Friday, recording a $78.0bn or a 7.9% increase on YTD basis.
to request report
Source: Deutsche Bank - Equity Research
Vanguard's Canadian funds may be managed - or not
June 7, 2011--Investment giant Vanguard Group Inc. has confirmed the long-anticipated launch of its "Canadian investment business" but it's not yet clear whether it will be offering mutual funds, exchange-traded funds or both.
A press release issued Monday is frustratingly vague about what kinds of products the new Vanguard Canada actually plans to sell, leaving pundits to speculate about its statement that its "initial focus in Canada will be to offer investment products to Canadian investors through investment advisors."
read more
Source: National Post
Direxion files with the SEC -3 ETFs
June 7, 2011-Direxion has filed a post-effective amendment, registration statement with the SEC for the Direxion NASDAQ-100® Equal Weighted Index Shares (QQQE) and
Direxion NASDAQ Volatility Index Shares (QVOL)
Direxion Wireless Communications Shares
view filing
Source: SEC.gov
Schwab files with the SEC
June 7, 2011-Charles Schwab has filed an application for amended relief with the SEC.
view filing
Source: SEC.gov
FaithShares Shutters 4 Of Its 5 ETFs
June 6, 2011--One of the first family of ETFs aimed at socially responsible investors is planning to close most of its funds by July 15, according to a filing to the SEC.
FaithShares Advisors says it’ll keep open its broadest-based ETF, the Christian Values Fund (FOC). Set to shutter are:
The FaithShares Baptist Values Fund (FZB)
The FaithShares Catholic Values Fund (FCV)
The FaithShares Lutheran Values Fund (FKL)
The FaithShares Methodist Values Fund (FMV)
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Source: Barron
Claymore files with the SEC-2 ETFs
June 6, 2011--Claymore has filed a post-effective amendment, registration statement with the SEC for the Guggenheim Small-Mid Cap BRIC ETF and
the Guggenheim International High Dividend ETF
view filing
Source: SEC.gov
Claymore files with the SEC
June 6, 2011--Claymore has filed a post-effective amendment, registration statement with the SEC for the Guggenheim ABC High Dividend ETF.
read more
Source: SEC.gov
XTF Capital Corp. Launches Canada's First Convertible Bond ETF-Canadian Convertible Liquid Universe ETF
June 6, 2011--- XTF Capital Corp., a First Asset Company, is pleased to announce the launch of Canada's first Convertible Bond ETF - Canadian Convertible Liquid Universe ETF (the "Convertible Bond XTF").
This will mark the fifth exchange-traded fund launched by XTF Capital this month. The Convertible Bond XTF will begin trading on the Toronto Stock Exchange ("TSX") on Tuesday, June 7, 2011 under the symbol CXF (for its Common Units) and CXF.A (for its Advisor Units).
A UNIQUE ETF FROM LARGEST MANAGER OF CONVERTIBLE BONDS
"The Convertible Bond XTF is unique to Canada," said Barry Gordon, President and CEO of XTF Capital Corp. and First Asset. "Our deep experience with convertible bonds puts XTF Capital Corp. in a position to properly assess the eligible universe and make the subtle decisions for inclusion or exclusion from the portfolio." Mr Gordon also noted that convertible bonds are not uniform in structure and have many different call and conversion features. He added that the Convertible Bond XTF follows a rules-based methodology of portfolio construction, but the Manager must have an override to include or exclude particular bonds in order to capture special situations.
read more
Source: XTF Capital
Official Dollarization as a Monetary Regime: Its Effects on El Salvador -IMF Working paper
June 6, 2011--This paper examines El Salvador’s transition to official dollarization by comparing aspects of this regime to the fixed exchange rate regime prevailing in the 1990s. Commercial bank interest rates are analyzed under an uncovered interest parity framework, and it is found that dollarization lowered rates by 4 to 5 percent by reducing currency risk.
This has generated net annual savings averaging ½ percent of GDP for the private sector and ¼ percent of GDP for the public sector (net of the losses from foregone seigniorage). Estimated Taylor rules show a strong positive association between Salvadoran output and U.S. Federal Reserve policy since dollarization, implying that this policy has served to stabilize economic activity more than it did under the peg and more than policy rates in Central American countries with independent monetary policy have done. Dollarization does not appear to have affected the transmission mechanism, as pass-through of monetary policy to commercial interest rates has been similar to pass-through under the peg and in the rest of Central America.
view the IMF Working paper-Official Dollarization as a Monetary Regime: Its Effects on El Salvador
Source: IMF
