Americas ETP News
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BATS Bats Its Eyes at Rivals
Exchange's Board Considers Listing a Relaunched IPO on NYSE or Nasdaq
May 17, 2012--BATS Global Markets' board is debating whether to list the company on a rival exchange once it revisits plans for an initial public offering, a step that would further undermine its bid to challenge NYSE Euronext and Nasdaq OMX Group Inc. for corporate listings.
BATS's first IPO attempt ended in disaster in March, when the company pulled the offering over what it called a technical glitch on its own exchange. The setback halted BATS's ambitions for its fledgling corporate-listings business, of which BATS was to be the first customer.
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Source: Wall Street Journal
First Trust files with the SEC
May 17, 2012--First Trust has filed a registration statement with the SEC for the First Trust Morningstar Diversified Futures Fund.
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Source: SEC.gov
One ETF Firm Hints at 12b-1 Fees
May 17, 2012--Exchange-traded funds are not required to pay brokerage firms a 12-b1 fee to be held in an account, but one ETF company appears to be preparing for this.
As the number of ETFs expands and marketing expenses rise, brokerage firms are stepping up pressure on ETF companies to pay them 12b-1 fees. In response, SSgA has begun including 12b-1 language in their prospectus. The fee isn’t being charged yet, but their ability to do so is closer than most might think.
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Source: Forbes
Junk-Debt ETFs Set Markets 'Abuzz' After Record Trades
MAy 17, 2012--The largest trades on record in shares of two exchange-traded funds that invest in junk debt are attracting attention to the four-year-old market that allows anyone from banks to retirees fast and discreet access to speculative-grade bonds and loans.
Shares of an Invesco Ltd. ETF that invests in leveraged loans had a record one-day inflow on May 10 that boosted its shares outstanding by 25 percent, according to data compiled by Bloomberg. The same day, an investor used State Street Corp. (STT)’s ETF of junk bonds to anonymously obtain as much as $780 million of the debt by swapping shares of the fund.
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Source: Bloomberg
U.S. Institutions Find New Strategic Uses for ETFs
May 17, 2012--Institutional investors that began using exchange-traded
funds (ETFs) for manager transitions, rebalancing, and other tactical applications are increasingly employing
ETFs for strategic purposes, such as gaining long-term exposures to desired asset classes.
The results of a recent study by Greenwich Associates show that 57% of institutional ETF users employ these
products to achieve strategic allocation ranges — a share
that includes 38% of asset managers and more than 60% of institutional funds using ETFs.
Those shares have both grown since last year, when, among ETF users, about 50% of institutional funds and a quarter of asset managers said they used the product to achieve strategic allocation ranges.
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Source: Greenwich Associates
Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices
May 17, 2012--Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices:
The Canadian Pacific Railway Ltd (TSX:CP) announced changes to the Board of Directors today.
Among others, William Ackman who represents Pershing Square was elected to the board. Pershing Square owns about 14% of the outstanding shares of Canadian Pacific Railway. As a result of the director changes, the relative weight of Canadian Pacific Railway will decrease in the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX Composite Dividend, the S&P/TSX 60 and 60 Capped, the S&P/TSX Equity 60 and the S&P/TSX Capped Industrials indices. There will be no weight change effective in the S&P/TSX Composite Equal Weight and Canadian Dividend Aristocrats, S&P/TSX 60 Equal Weight and 60 130/30 Strategy indices. These changes will be effective after close on Thursday, May 24, 2012.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
BM&FBOVESPA and Santander announce partnership to develop the Brazilian carbon market
Agreement to study creation of financial carbon credits related products
May 17, 2012--BM&FBOVESPA and Santander Brasil have signed a partnership agreement to stimulate the carbon credit market in Brazil. This aims at studying the creation of products such as derivatives and actuals with carbon credits as underlying.
The agreement will lead the two institutions to assess jointly the development of products aimed at the Brazilian and international markets and to develop joint studies, assess economic viability and suggest the necessary regulatory measures for the launch of these products. The initiative also foresees the creation of a Market Maker Program for the products that result from the partnership.
This is an important phase in the development of the local carbon market, getting Brazil on track to what has been done internationally,” said Santander Treasury Officer Roberto Campos. “We’re taking another step towards creating an environment that, in the medium term, will promote standardization, transparency and liquidity for the market participants,” said BM&FBOVESPA Product and Customer Officer Marcelo Maziero.
Source: BM&FBOVESPA
Five Questions: John Hyland of the National ETF Association
May 16, 2012--On April 25, at the annual Capital Link Closed-End Funds and Global ETFs conference in New York City, John Hyland announced the birth of the National ETF Association (Netfa).
Hyland is the chief investment officer at United States Commodity Funds (USCF) of Alameda, California, the sponsor of 12 commodity ETFs — mostly in oil, natural gas, gasoline, and heating oil — and he will be the chairman.
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Source: Institutional Investor
Industry Pros Continue Migration to WallachBeth Capital; More New Hires for Go-To Execution Experts
May 16, 2012--WallachBeth Capital LLC ("WB"), the institutional brokerage/execution firm specializing in exchange-traded funds (ETFs), equities and options, announced its further expansion with the recent hiring of Jennica Ross, who will oversee strategic client relationships, and options and merger arbitrage specialist Randy Sharringhausen.
Both Ms. Ross and Mr. Sharringhausen will report to WallachBeth’s senior principals, CEO Michael Wallach and President/COO David Beth.
Ms. Ross was most recently a Director for the Strategic Relations Group at Guggenheim Funds Distributors, Inc. and previously, Director, Equity Syndicates Sales/Marketing for UBS Financial Services. Ms. Ross came to the Industry in 2003, immediately upon graduating from Princeton University.
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Source: WallachBeth Capital
Minutes of TThe Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee Meeting held on April 24-25, 2012
May 16, 2012--The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on April 24-25, 2012. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the April 24-25, 2012 meeting is also included as an addendum to these minutes.
The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. Summaries of economic projections are released on an approximately quarterly schedule. The descriptions of economic and financial conditions contained in these minutes and in the Summary of Economic Projections are based solely on the information that was available to the Committee at the time of the meeting.
view the Minutes of Federal Open Market Committee
Source: FBR
