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An Emerging Problem
Some developing-market ETFs are increasingly performing just like funds focused on the developed markets- but with more risk. Time for a change?
May 19, 2012--Through accidents of history and stock indexing, the most popular emerging-markets funds now offer investors more than a way to participate in the growth of small, developing economies.
Consider: The category's biggest funds devote about a quarter of their holdings to South Korea and Taiwan, two big, wealthy nations. Packed with the stocks of global conglomerates, the funds trade in increasing lockstep with developed markets. Tellingly, their returns since the financial crisis are roughly even with the most heavily trodden swath of the well-to-do world–the U.S.
The largest two emerging-markets ETFs, tracking the same MSCI benchmark, used to rip ahead of advanced markets. Their returns since the financial crisis are roughly even with the U.S.
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Source: EGShares – Emerging Market ETFs
CFTC Considers Loosening Dodd-Frank Speculation Limits
May 18. 2012--The U.S. Commodity Futures Trading Commission may propose easing Dodd-Frank Act regulations limiting speculation in oil, natural gas, wheat and other commodities, according to four people briefed on the matter.
The CFTC’s five commissioners are considering a private vote to change how companies aggregate their trading positions when they have ownership stakes in other firms, according to the people, who spoke on condition of anonymity. The agency may propose raising to 50 percent from 10 percent the threshold for when a company is considered to have an ownership stake and must add the trading positions, the people said.
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Source: Bloomberg
Pimco experiment beats flagship fund
May 18, 2012--Pimco's widely watched experiment with the industry's first sizeable actively managed exchange traded fund, the Total Return ETF, has significantly outperformed the flagship mutual fund on which it is based.
While both are managed by Bill Gross, the Total Return Fund ETF is up 4.8 per cent since it launched on March 1, with reinvested dividends, while the Total Return Mutual Fund has returned just 1.9 per cent, according to Morningstar, a research group.
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Source: FT.com
CFTC Approves Notice of Proposed Rulemaking Regarding Regulations on Aggregation for Position Limits for Futures and Swaps
May 18, 2012--The Commodity Futures Trading Commission (CFTC) today approved a notice of proposed rulemaking that would modify the CFTT's aggregation provisions for limits on speculative positions.
The proposed rulemaking would permit any person with a greater than 10 percent ownership or equity interest in an entity to disaggregate the owned entity’s positions, provided there are protections and firewalls in place to ensure trading decisions are made independently of one another.
This proposed rulemaking is in response to a January 19, 2012, petition of the Working Group of Commercial Energy Firms (WGCEF) filed under section 4a(a)(7) of the Commodity Exchange Act (CEA) seeking relief from the aggregation provisions of rule 151.7. The Commission invites the public and interested parties to comment on the proposed rule. The comment period will be open for 30 days after publication in the Federal Register.
view the Federal Register: Aggregation Under Part 151, Position Limits for Futures And Swaps
Source: CFTC.gov
CFTC Approves Final Rule on Swap Data Recordkeeping and Reporting Requirements for Pre-Dodd-Frank and Transition Swaps
May 18, 2012--The U.S. Commodity Futures Trading Commission (CFTC) today approved a final rule on swap data recordkeeping and reporting requirements for counterparties to pre-enactment swaps, those swaps executed prior to passage of the Dodd-Frank Act, and transition swaps, those entered into between the law's enactment date and the applicable compliance date for swap data recordkeeping and reporting.
The goal of the final rule for these swaps, collectively called historical swaps, is to specify what records must be kept and what data must be reported. The rule is also designed to ensure that historical swap data is available to regulators through swap data repositories (SDRs).
Background:
The Commission’s final rule regarding swap data recordkeeping and reporting for historical swaps further implements the Dodd-Frank Act’s new statutory framework regarding swap data recordkeeping and reporting. Section 723 of the Dodd-Frank Act amends Section 2 of the Commodity Exchange Act (CEA or Act) by adding new Section 2(h)(5), which directs that rules adopted by the Commission pursuant to this section shall provide for the reporting of data relating to swaps entered into before the date of enactment of the Dodd-Frank Act (pre-enactment swaps) and data relating to swaps entered into on or after the date of enactment of the Dodd-Frank Act and prior to the compliance date specified in the Commission’s final swap data reporting rules (transition swaps). The Commission’s final rule establishes recordkeeping and reporting requirements for these swaps, collectively known as historical swaps.
view the Federal Register: Swap Data Recordkeeping and Reporting Requirements: Pre-Enactment and Transition Swaps
Source: CFTC.gov
CFTC.gov Commitments of Traders Reports Update
May 18, 2012--The current reports for the week of May 15, 2012 are now available.
view updates
Source: CFTC.gov
iShares files with the SEC
May 18, 2012-iShares has filed a post-effective amendment, registration statement with the SEC for the iShares Latin America Bond Fund.
view filing
Source: SEC.gov
First Trust files with the SEC
May 18, 2012--First Trust has filed a amendment no.2, application for exemptive relief with the SEC.
view filing
Source: SEC.gov
BM&FBOVESPA registers record financial volume and number of trades in the BOVA11 ETF
May 18, 2012--BM&FBOVESPA registered an all-time record financial volume and number of trades today in the BOVA11 ETF, an index fund that tracks the performance of the BOVESPA Index (Ibovespa). There were 11,767 trades in 7,106,960 units, totaling financial volume of BRL 380.69 million.
The previous record number of trades was 10,154 on May 17, 2012 and the previous record financial volume was BRL 309 million on May 04, 2012.
ETFs are index funds traded on the Exchange like stocks and which replicate the composition of an index. An investor that buys a unit in an ETF is making a simultaneous investment in a share portfolio composed of companies in different sectors of the Brazilian economy, without having the buy the separate shares of the respective index.
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Source: BM&FBOVESPA
CFE to Launch Futures on CBOE NASDAQ-100 Volatility Index (VXN)
May 17, 2012--CBOE Futures Exchange, LLC (CFE) announced today that it plans to launch trading on the CBOE NASDAQ-100 Volatility Index futures contract (ticker symbol VXN, futures symbol VN) beginning on Wednesday, May 23, pending regulatory approval.
VXN, which measures the volatility of the NASDAQ-100 Index, is calculated through the application of CBOE's VIX® methodology to the prices of options on NDX.
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Source: CBOE
