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SEC to tighten rules following Knight bailout
August 6, 2012-The Securities and Exchange Commission would require trading firms and other market participants to disclose system failures and test computer-code changes before they go live under rules being developed in light of the software glitch that forced the $400m bailout of Knight Capital, people familiar with the matter said.
The Knight fiasco is the latest in a series of technological failures – ranging from the “flash crash” of 2010 to the software problem that marred Nasdaq’s handling of the Facebook initial public offering in May – that have eroded investor confidence in US markets and increased pressure on the SEC to tighten its rules for trading systems.
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Source: FT.com
Six out of seven IndexIQ hedge fund indices positive in July
August 6, 2012-ndexIQ, a developer of index-based alternative investment solutions, has reported positive performance for six out of seven of its proprietary family of hedge fund replication and alternative beta indices.
The IQ Hedge Global Macro Beta Index was the strongest performer in July, rising by 3.28 per cent.
This was followed by the IQ Hedge Event-Driven Beta Index, which was up 2.14 per cent.
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Source: HedgeWeek
Fast-Growing RIAs Have $2T In Assets
August 6, 2012--What is the fastest growing financial services market and distribution channel? According to Tiburon Strategic Advisors, it's the fee-based financial advisory market.
According to Tiburon, the fee-based advisory business emerged in the 1980s, signaled by the founding of the National Association of Personal Financial Advisors (1983) and the launch of Schwab Institutional, Financial Advisor Services (1987). The most recent highlights mentioned in this July 2012 report were Bank of New York Mellon's Pershing Advisor Solutions winning Citigroup's business to support its RIA referral network in 2010 and the shift of fee-based financial advisors with $25 million to $100 million in assets under management to state supervision in 2011.
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Source: Financial Planner
Chairman Schapiro Statement on Knight Capital Group Trading Issue
July 3, 2012--Securities and Exchange Commission Chairman Mary Schapiro today made the following statement:
The apparent trading error by Knight Capital Group on Wednesday reflects the type of event that can raise concerns for investors about our nation's equity markets-markets that I believe are the most resilient, efficient, and robust in the world.
Reliance on computers is a fact of life not only in markets everywhere, but in virtually every facet of business. That doesn’t mean we should not endeavor to reduce the likelihood of technology errors and limit their impact when they occur.
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Source: SEC.gov
Horizons ETFs Announces ETF Closures
August 3, 2012--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate Horizons ETFs Management ( Canada ) Inc. (the "Manager") announced today that they will be terminating certain exchange traded funds ("ETFs") effective at the close of business on Friday October 12, 2012.
The ETFs being terminated (collectively, the "Terminated ETFs") are as follows:
Horizons BetaPro NYMEX® Natural Gas Inverse ETF-HIN Horizons BetaPro NYMEX® Crude Oil Inverse ETF-HIO
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Source: Horizons Exchange Traded Funds Inc
Goldman support boosts Knight Capital
August 3, 2012--Goldman Sachs has stepped in to help Knight Capital unwind its erroneous trades, helping to push shares of the broker sharply higher.
The preliminary agreement with Goldman was struck late on Wednesday, hours after Knight’s newly installed market-making software went haywire and entered thousands of erroneous trades. The glitch led to a $440m loss for Knight and sent its shares plunging more than 75 per cent on Thursday.
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Source: FT.com
Rafferty Asset Management closing nine Direxion Daily 3x Shares Funds
August 3, 2012--The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and shutter nine exchange-traded funds ("Funds") based on the recommendation of Rafferty Asset Management, LLC, the Trust's advisor.
Due to the Funds' inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and shuttering the Funds would be in the best interests of the Funds and their shareholders.
The Trust will close the following Funds: Direxion Daily Agribusiness Bull 3X Shares (COWL), Direxion Daily Agribusiness Bear 3X Shares (COWS), Direxion Daily Basic Materials Bear 3X Shares (MATS), Direxion Daily BRIC Bull 3X Shares (BRIL), Direxion Daily BRIC Bear 3X Shares (BRIS), Direxion Daily Healthcare Bear 3X Shares (SICK), Direxion Daily India Bear 3X Shares (INDZ), Direxion Daily Latin America Bear 3X Shares (LHB) and Direxion Daily Retail Bear 3X Shares (RETS).
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Source: Direxion
CFTC.gov Commitments of Traders Reports Update
August 3, 2012--The current reports for the week of July 31, 2012 are now available.
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Source: CFTC.gov
Fidelity Is Said to Plan Jump Into ETFs With Active Funds
August 3, 2012--Fidelity Investments, the asset manager that watched from the sidelines as exchange-traded funds went from zero to $1.5 trillion over the past 20 years, is finally preparing to jump into the business, according to a person familiar with the matter.
Fidelity, based in Boston, aims to become the first major mutual-fund company to introduce ETFs run by active stock pickers by opening a series of products based on its “Select” line of industry-focused equity funds, said the person, who asked not to be named because the plan isn’t public. The Denver- based unit that would run the ETFs is headed by Anthony Rochte, who was hired from State Street Corp. (STT) (STT) in March, the person said.
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Source: Bloomberg BusinessWeek
Direxion Closing Nine Daily 3x Shares ETFs
RAFFERTY ASSET MANAGEMENT CLOSING
NINE DIREXION DAILY 3X SHARES FUNDS
August 3, 2012--The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and shutter nine exchange-traded funds ("Funds") based on the recommendation of Rafferty Asset Management, LLC, the Trust's advisor.
Due to the Funds’ inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and shuttering the Funds would be in the best interests of the Funds and their shareholders.
The Trust will close the following Funds: Direxion Daily Agribusiness Bull 3X Shares (COWL), Direxion Daily Agribusiness Bear 3X Shares (COWS), Direxion Daily Basic Materials Bear 3X Shares (MATS), Direxion Daily BRIC Bull 3X Shares (BRIL), Direxion Daily BRIC Bear 3X Shares (BRIS), Direxion Daily Healthcare Bear 3X Shares (SICK), Direxion Daily India Bear 3X Shares (INDZ), Direxion Daily Latin America Bear 3X Shares (LHB) and Direxion Daily Retail Bear 3X Shares (RETS).
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Source: Direxion
