Americas ETP News
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Nasdaq Plans to Focus on EFTs With PSX Exchange
March 12, 2013--Nasdaq OMX Group Inc. (NDAQ) is seeking to bolster its status in the increasingly important arena of exchange-traded funds, dedicating one exchange solely to trading ETFs and similar products.
The exchange operator plans to change the structure of PSX, its smallest trading venue by volume, to focus on exchange-traded products, according to a filing submitted to regulators Friday and reviewed by The Wall Street Journal. That shift will involve a change to the exchange's market structure, as well as an introduction of designated market makers to the exchange, which is a descendent of the Philadelphia Stock Exchange, according to the filing submitted to the Securities and Exchange Commission. The exchange's operations are now based in New York.
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Source: Wall Street Journal
CFTC Certifies Futures Contracts on the MICEX Index, the Hang Seng Index, the FTSE/JSE Top 40 Index, and the BSE Sensitive Index Submitted by the Bolsa de Valores, Mercadorias e Futuros (BVMF-Brazil)
March 12, 2013--The U.S. Commodity Futures Trading Commission's (CFTC) Division of Market Oversight issued a letter advising the Bolsa de Valores, Marcadorias e Futuros (BVMF-Brazil) that its MICEX Index
, Hang Seng Index, FTSE/JSE Top 40 Index, and the BSE Sensitive Index futures contracts submitted for review on January 25, 2013, were deemed certified.
The contracts satisfy the requirements of the Commodity Exchange Act and the Commission’s Regulations and may be offered or sold to persons in the U.S. through the BVMF’s direct access terminals located in the U.S.
Source: CFTC.gov
DTCC Proposes Steps To Move Ahead On Full Dematerialization Of Physical Securities
March 12, 2013--The Depository Trust & Clearing Corporation (DTCC) today proposed changes in security processing that will help eliminate existing physical certificates as well as end the issuance of new certificates in the U.S. Dematerialization will help to lower costs, mitigate risk and bring greater efficiency to the industry, including the individual shareholder.
Referring to the proposals as the “four main pillars of dematerialization,” DTCC recommended that the Depository Trust Company (DTC), a DTCC subsidiary, and industry stakeholders:
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Source:DTCC
Swaps-Clearing D-Day Set to Trim Dealer Profits: Credit Markets
March 11, 2013--The $639 trillion over-the-counter derivatives market begins the largest transformation in its 30-year history today with rules intended to contain another financial crisis, trimming profits for Wall Street banks.
Companies from JPMorgan Chase & Co. to BlackRock Inc. are now required under the 2010 Dodd-Frank Act to have most of their privately negotiated swaps trades backed by a clearinghouse that’s capitalized by the world’s largest banks. That means dealers and their customers have to post upfront collateral to absorb losses if a firm defaults and settle daily losses.
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Source: Washington Post
CFTC Announces that Mandatory Clearing Begins Today
March 11, 2013--Today, swap dealers, major swap participants and private funds active in the swaps market are required to begin clearing certain index credit default swaps (CDS) and interest rate swaps that they entered into on or after March 11, 2013.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the Commodity Exchange Act (CEA) to require clearing of certain swaps. The Dodd-Frank Act also requires the Commission to determine whether a swap is required to be cleared by either a Commission-initiated review or a submission from a DCO for the review of a swap, or group, category, type, or class of swap. The clearing requirement determination does not apply to those who are eligible to elect an exception from clearing because they are non-financial entities hedging commercial risk.
view the Five Swap Classes"
Source: CFTC.gov
DB-US ETF Market Weekly Review-Markets and $6.0bn inflows push ETP assets to new all time high
March 11, 2013--Data in this report is as of Fri, Mar 08
Market and Net Cash Flows Review
Markets moved higher during last week. The US (S&P 500) rose by 2.17%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 1.84% and 1.26%, respectively.
Moving on to other asset classes, the 10Y US Treasury Yield rose by 20 bps last week. In the meantime, the DB Liquid Commodity Index was up by 1.15%. Similarly, the WTI Crude Oil, Gold and Silver prices moved higher by 1.40%, 0.16% and 1.36%, respectively; while the Agriculture sector (DB Diversified Agriculture Index) end flat for the week. Last but not least, Volatility (VIX) dropped by 18.03% during the same period.
The total US ETP flows from all products registered $6.04bn (+0.4% of AUM) of inflows during last week vs. $2.67bn (+0.2%) of inflows the previous week, setting the YTD weekly flows average at +$4.0bn (+$44.31bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of +$6.01bn (0.58%), +$0.83bn (0.32%), -$0.95bn (-0.91%) last week vs. +$2.7bn (0.26%), +$1.27bn (0.49%), -$1.43bn (-1.34%) in the previous week, respectively.
Among US sectors, Healthcare (+$0.17bn, +1.09%) and Consumer Staples (+$0.07bn, +1.00%) received the top inflows, while Energy (-$0.4bn, -1.72%) and Consumer Discretionary (-$0.01bn, -0.09%) experienced the largest outflows.
Top 3 ETPs & ETNs by inflows: SPY (+$2.3bn), QQQ (+$0.9bn), SSO (+$0.8bn)
Top 3 ETPs & ETNs by outflows: EEM (-$1.1bn), MVV (-$0.8bn), GLD (-$0.7bn)
New Launch Calendar: no new listings
There were no new listings during last week.
Turnover Review: Floor activity decreased by 27%
Total weekly turnover decreased by 26.8% to $259.15bn vs. $354.09bn from the previous week. Last week's turnover level was 3.9% below last year's weekly average. Equity, Fixed Income and Commodity ETPs turnover decreased by $89.4bn (-28.6%), $25m (-0.1%) and $3.3bn (-21.4%), respectively.
Assets under Management (AUM) Review:
ETP assets reach $1.436 trillion
US ETP assets rose by $26.4bn (+1.9%) totaling $1.436 trillion at the end of the week. As of last Friday, US ETPs have accumulated an asset growth of 7.7% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$26.7bn,-$28m, -$0.4bn during last week, respectively.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
Advisers gravitate towards ETFs
March 10, 2013--As exchange traded-fund sponsors look to expand their reach in the retail market, tactical portfolios are one of the fastest-growing channels to deliver the products.
Registered investment advisers and other third-party asset managers have gravitated towards ETFs as a way to execute tactical asset allocation strategies. When packaged into separate accounts, mutual funds or other products, they are finding a receptive audience among advisers, retirement plans and institutional investors.
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Source: FT.com
Pimco and Schwab join $10bn ETF club
March 10, 2013--Charles Schwab and Pimco have just joined the $10bn club -a select group of US investment managers that run more than $10bn-worth of exchange traded fund assets.
Schwab rushed out a press notice to publicise the fact, Pimco chose to let the occasion pass quietly with no acknowledgment.
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Source: FT.com
ETFs and ETPs in Canada had net inflows of US$907 million in February 2013 with the majority going into equities
March 8, 2013--In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) listed in Canada had net inflows of US$907 million, according to new research published in the latest ETFGI Canada ETF and ETP industry insights.
ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with US$641 million, followed by fixed income ETFs and ETPs with US$262 million, and leveraged inverse ETFs and ETPs with US$34 million, while commodity ETFs and ETPs experienced the largest net outflows with US$78 million.
Year to date through end of February 2013, ETFs and ETPs have seen net inflows of US$389 million. Fixed income ETFs and ETPs gathered the largest net inflows US$466 million, followed by leveraged inverse ETFs and ETPs with US$128 million, and active ETFs and ETPs with US$70 million, while leveraged ETFs and ETPs experienced the largest net outflows year to date with US$171 million.
“The flows into equity ETFs and ETPs show investors are starting to rotate out of cash and fixed income into equities as investor confidence continues to improve,” said Deborah Fuhr, Managing Partner at London-based ETFGI.
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Source: ETFGI
CFTC.gov Commitments of Traders Reports Update
March 8, 2013--The current reports for the week of March 5, 2013 are now available.
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Source: CFTC.gov
