Americas ETP News
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Industry Sounds Off On Paying ETF Market Makers
August 9, 2012--If issuers of exchange-traded funds could pay to attract market makers to their products, would there be more liquidity in ETFs? Or would paying market-makers create a dangerous precedent and harm long-term investors?
Both Nasdaq and NYSE Arca have proposed programs allowing ETF issuers to pay fees to the exchanges for market-maker support. The proposals are similar to a program already implemented on the BATS exchange, which has a handful of ETF listings.
These proposals, according to comment letters to the Securities and Exchange Commission, are drawing strong reactions from key industry figures.
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Source: Traders Magazine
UBS, State Street discussed asset management merger
August 8, 2012--UBS was in talks with State Street Corp about a possible combination of their asset management businesses, but those talks fell through in June, according to two people familiar with the situation.
For UBS, which had $599 billion in assets under management as of June 30, the merger would have provided a capital infusion, said one of the sources, who declined to be named because he is not allowed to speak to the press.
A UBS spokeswoman referred a request for comment to a statement made by UBS Chief Executive Sergio Ernotti during the company's second-quarter earnings call in which he said, "Our strategy builds on the strengths of all our businesses, including our diversified asset management business." The spokeswoman declined to comment on the discussions with State Street.
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Source: Reuters
DB-Equity Research-US ETF+ Monthly Directory : July 2012 ETPs
August 7, 2012--This document includes all US listed exchange-traded funds (ETFs) and exchangetraded vehicles (ETVs), plus a special section covering exchange-traded notes (ETNs).
The directory is organized by asset class and asset-class-related sub sections. Within each sub section it has also been sorted. For Equity and Fixed Income ETPs it is sorted by country (or sub region for regional products) in alphabetical order and by AUM in descending order, and for the other ETP asset classes it is sorted by sub sector in alphabetical order and by AUM in descending order. A number of key information points per product has been included in order to enable the reader to get an overview in their respective area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US). If you have any questions for any of the products listed, or any suggestions on how to improve the directory going forward, please do not hesitate to get in touch.
The following link will be available for 90 days. For more information, please click on the link for the full PDF. If you have any trouble viewing the link, copy and paste the link in a browser.
http://pull.db-gmresearch.com/p/374-A9E6/22254493/US_ETF+_Monthly_Directory.pdf
Source: Deutsche Bank-Equity Research-North America
Moment of truth for US grain
August 8, 2012--Hundreds of hedge fund managers, commodity merchants, government officials and farmers will have one thing on their mind when they turn on their computers on Friday: US grain statistics.
The release of this specialised report from the US Department of Agriculture has acquired huge market significance this year as the worst drought in half a century shrivels crops in America’s farm belt. It will influence trading for days and weeks to come as well as possible government decisions on biofuels and feed exports.
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Source: FT.com
Russell to conduct strategic review of its U.S. ETF business
August 8, 2012--Russell Investments is reviewing its direct U.S. exchange-traded fund business and will scale back the team dedicated to those funds.
Russell will focus on its core role of providing multiasset solutions to investors and advisers, the firm said in a statement posted on its website.
The firm, whose direct ETF team works mostly in San Francisco and New York, will cut about 30 jobs between the two offices, Steve Claiborne, a spokesman for Seattle-based Russell, said in a telephone interview. The ETFs provided by the firm have about $300 million in assets.
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Source: Pensions & Investments
Federal Reserve Board extends comment period on three proposed capital rules rulemakings until October 22, 2012
July 8, 2012--The Federal Reserve Board on Wednesday announced the extension of the comment period until October 22, 2012, on three notices of proposed rulemaking that would revise and replace current capital rules.
The proposals by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency would implement the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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Source: FBR
Knight Capital to Fully Resume NYSE and NYSE MKT Designated Market Maker Responsibilities on Monday, Aug. 13, 2012
August 8, 2012--Knight Capital Group Inc., has regained some of the market share it lost after a huge trading loss last week nearly ran it out of business and will resume full market-making responsibilities as of next week.
Knight, which secured a $400 million bailout from an investor consortium in exchange for a 73 percent stake, may have turned down a more lucrative rescue bid that might have had less of an effect on shareholders from hedge fund Citadel LLC, a source familiar with negotiations said on Tuesday.
The bailout has restored some confidence in the firm days after a software glitch caused a trading loss of $440 million - most of Knight's capital - and caused customers to desert. Trading volumes are now steadily recovering SEC to Host Market Technology Roundtable
Nearly all trading in the equity and options markets depends on the reliable performance of highly automated systems used by investors, broker-dealers, and exchanges and other trading systems.
read more "Libor, Naked and Exposed-New York Times OP-ED" read more
AdvisorShares Set to Launch the QAM Equity Hedge ETF (NYSE: QEH) QEH employs an actively managed long/short strategy that seeks to exceed the risk-adjusted performance of approximately 50% the long/short equity hedge fund universe as defined by the constituents of the HFRI Equity Hedge (Total) Index, aiming to provide investors with better risk adjusted returns versus the S&P 500 Index over time while reducing the time required and expertise needed to select individual hedge funds. Combined with its exposure to the HFRI Equity Hedge (Total) Index, CAM utilizes its own proprietary research with Markov Processes International's ("MPI") Dynamic Style Analysis ("DSA") hedge fund analysis software, and extensive experience and knowledge of the hedge fund investment community for its portfolio management of QEH. read more
SOurce: Fox Business News
August 8, 2012--The Securities and Exchange Commission today announced that it will host a technology roundtable next month to discuss ways to promote stability in markets that rely on highly automated systems.
The roundtable entitled “Technology and Trading: Promoting Stability in Today’s Markets” will take place on September 14 and convene experts on designing, operating, and controlling the systems that form the core of our market’s infrastructure.
Source: SEC.gov
Opinion by Chairman Gary Gensler
August 7, 2012--AMERICANS who save for the future, use credit cards or borrow money for tuition, cars and homes deserve assurance that the interest rates on their savings and loans are set in a reliable and honest way.
That’s why the revelation that the British bank Barclays attempted to manipulate the London interbank offered rate, or Libor — one of the benchmark rates used to determine the cost of borrowing around the world — is so disturbing. But the Barclays case isn’t only about misconduct by large financial institutions. It also raises questions about the reliability and accuracy of these key interest rates, which are largely determined by the private sector, without significant government oversight.
Source: CFTC.gov
New Actively Managed ETF Seeks to Outperform Long/Short Equity Hedge Fund Universe
August 7, 2012--AdvisorShares, a leading sponsor of actively managed Exchange Traded Funds (ETFs), announced today that the QAM Equity Hedge ETF (NYSE: QEH) will open for trading tomorrow, Wednesday, August 8, 2012.
QEH is sub-advised by Commerce Asset Management ("CAM"), a Memphis, Tenn.-based investment advisor and subsidiary of Commerce Holdings, LLC who advise on approximately $700 million in assets.
Source: AdvisorShares
