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The Nonidentical Twins of ETFs
Differences in the way indexes are weighted will make similar-looking funds diverge
May 4, 2015--Shopping for an exchange-traded fund has at least one key thing in common with shopping for a car: Before you buy, you should look under the hood.
ETFs own baskets of securities that are designed to track the performance of a certain market index.
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Source: Wall Street Journal
The Nonidentical Twins of ETFs
Differences in the way indexes are weighted will make similar-looking funds diverge
May 4, 2015--Shopping for an exchange-traded fund has at least one key thing in common with shopping for a car: Before you buy, you should look under the hood.
ETFs own baskets of securities that are designed to track the performance of a certain market index.
view more
Source: Wall Street Journal
Markets, regulators still feel effects of "flash crash"
May 4, 2015--Since the 2010 "flash crash," regulators have extended trading pauses following steep drops in markets and taken steps to ensure brokers' quotes remain legitimate in the markets they make.
However, experts who have scrutinized the "flash crash" say another such event could happen now.
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Source: SmartBrief
Where are people searching for financial advisers, planners and brokers?
A deep dive with Google Trends finds results that may surprise you
May 4, 2015--Advisers, take note. You may not realize how-or where-investors are searching for financial advice.
Using Google Trends, a tool that tracks search terms around the world, InvestmentNews found that some terms are stronger than others on a state-by-state basis. For example, of all the states, people in New Jersey searched the most for "financial advisor" while its neighbors in New York searched the most for "broker."
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Source: Investment News
CBOE Holdings to List VIX "Weeklys" Futures and Options
May 1, 2015--CBOE Holdings, Inc. (NASDAQ: CBOE) today announced that it plans to list futures and options with weekly expirations on the CBOE Volatility Index(R) (VIX(R) Index), the leading market barometer of U.S. equity market volatility.
VIX Weeklys futures are expected to begin trading at CBOE Futures Exchange (CFE®) in July, subject to regulatory review. VIX Weeklys options are expected to begin trading at Chicago Board Options Exchange(R) (CBOE(R)) shortly thereafter, also subject to regulatory approval.
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Source: CBOE
CBOE Holdings Reports April 2015 Trading Volume
May 1, 2015--Total Volume of 91.4 Million Contracts
ADV of 4.4 Million Contracts, Down 15% From Year Ago
CBOE Holdings, Inc. (NASDAQ: CBOE) reported today that total trading volume during April for options contracts on Chicago Board Options Exchange(R) (CBOE(R)) and C2 Options Exchange (C2) and futures contracts on CBOE Futures Exchange (CFE(R)) was 91.4 million contracts, a decrease of four percent versus March 2015 and a decrease of 15 percent from April 2014.
Total options and futures average daily volume (ADV) at CBOE Holdings during April was 4.4 million contracts, an increase of one percent from March 2015 and a decrease of 15 percent from April 2014.
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Source: CBOE
ISE Holdings Reports Business Activity for April 2015
May 1, 2015--ISE and ISE Gemini combined represent 16.7% of equity options market share, excluding dividend trades.
ISE and ISE Gemini reported a combined ADV of 2.4 million contracts.,br>
Dividend trades made up 0.7% of industry volume in April 2015.
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Source: ISE Holdings
IMF Working paper-The Potential Macroeconomic Impact of the Unconventional Oil and Gas Boom in the United States
May 1, 2015--Summary: This paper uses two of the IMF's structural macroeconomic models to estimate the potential global impact of the boom in unconventional oil and natural gas in the United States. The results suggest that the impact on the level of U.S. real GDP over roughly the next decade could be significant, but modest, ranging between 1 and 1½ percent.
Further, while the impact on the U.S. energy trade balance will be large, most results suggest that its impact on the overall U.S. current account will be negligible. The impact outside of the United States will be modestly positive on average, but most countries dependent on energy exports will be affected adversely.
IMF-Fiscal Policy in Latin America: Lessons and Legacies of the Global Financial Crisis
April 30, 2015--Summary: Latin America's bold fiscal policy reaction to the global financial crisis was hailed as a sign that the region had finally overcome its procyclical fiscal past.
However, most countries of the region have not yet rebuilt their fiscal space, despite buoyant commodity revenues and relatively strong growth in the aftermath of the crisis. Using the experience of Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, this paper examines the lessons and legacies of the crisis by addressing the following questions, among others: How much did the 2009 fiscal stimulus help growth? What shortcomings were revealed in the fiscal policy frameworks? What institutional reforms are now needed to provide enduring anchors for fiscal policy? How much rebuilding of buffers is needed going forward?
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Source: IMF
Report On Foreign Portfolio Holdings Of U.S. Securities At End-June 2014
April 30, 2015--The final results from the annual survey of foreign portfolio holdings of U.S. securities at the end of June 2014 were released today on the Treasury website.
The survey was undertaken jointly by Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System. The next survey will cover holdings at the end of June 2015; preliminary data are expected to be released by February 29, 2016.
view the Foreign Portfolio Holdings of U.S. Securities as of June 30, 2014
Source: US Department of the Treasury