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CFTC-SEC Statement on MF Global
October 31, 2011--The Commodity Futures Trading Commission and Securities and Exchange Commission today made the following joint statement:
“For several days, the SEC, CFTC and other regulators had been closely monitoring developments affecting MF Global, Inc., a jointly registered futures commission merchant and broker-dealer, in anticipation of a transaction that would include the transfer of customer accounts to another firm. Early this morning, MF Global informed the regulators that the transaction had not been agreed to and reported possible deficiencies in customer futures segregated accounts held at the firm. The SEC and CFTC have determined that a SIPC-led bankruptcy proceeding would be the safest and most prudent course of action to protect customer accounts and assets. SIPC announced today that it is initiating the liquidation of MF Global under the Securities Investor Protection Act (SIPA).”
Source: CFTC.gov
CFTC and SEC Approve Confidential Private Fund Risk Reporting
October 31, 2011--The Commodity Futures Trading Commission (CFTC) today approved a final rule requiring certain advisors to private funds that are dually registered with the CFTC and the Securities and Exchange Commission (SEC) to report information to the SEC for use by the Financial Stability Oversight Council (FSOC) in monitoring risks to the U.S. financial system.
The SEC approved the joint rule on October 26, 2011.
The Commissions’ final rules, which implement Sections 404 and 406 of the Dodd-Frank Act, require SEC-registered investment advisers and dually registered CFTC registrants with at least $150 million in private fund assets under management to periodically file a new reporting form (Form PF). The information reported on Form PF will remain confidential.
Private fund advisers are divided by size into two broad groups – large advisers and smaller advisers. The amount of information reported and the frequency of reporting depends on the group to which the adviser belongs. Both the CFTC and the SEC anticipate the relatively limited number of large advisers providing more detailed information will represent a substantial portion of industry assets under management. As a result, these thresholds will allow FSOC to monitor a significant portion of private fund assets while reducing the reporting burden for private fund advisers.
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Source: CFTC.gov
Treasury Announces Marketable Borrowing Estimates
October 31, 2011-- The U.S. Department of the Treasury today announced its current estimates of net marketable borrowing for the October – December 2011 and the January - March 2012 quarters:
During the October – December 2011 quarter, Treasury expects to issue $305 billion in net marketable debt, assuming an end-of-December cash balance of $60 billion. This borrowing estimate is $21 billion higher than announced in July 2011. The increase in borrowing relates to lower receipts, higher outlays, and changes in the cash balance assumptions partially offset by higher net issuances of State and Local Government Series securities.
During the January - March 2012 quarter, Treasury expects to issue $541 billion in net marketable debt, assuming an end-of-March cash balance of $60 billion.
During the July - September 2011 quarter, Treasury issued $286 billion in net marketable debt, and ended the quarter with a cash balance of $58 billion. In July 2011, Treasury estimated $331 billion in net marketable borrowing and assumed an end-of-September cash balance of $110 billion. The decrease in borrowing was related to lower receipts offset by lower outlays and cash balance adjustments that lowered the estimated end-of-quarter cash balance.
Additional financing details relating to Treasury’s Quarterly Refunding will be released at 9:00 a.m. on Wednesday, November 2, 2011.
Source: US Department of the Treasury
Van Eck files with the SEC
October 31, 2011-Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Biotech ETF.
view filing
Source: SEC.gov
Report on U.S. Portfolio Holdings of Foreign Securities at End-Year 2010
October 31, 2011--The findings from an annual survey of U.S. portfolio holdings of foreign securities at year-end 2010 were released today and posted on the Treasury web site at link.
The survey was undertaken jointly by the U.S. Department of the Treasury, the Federal Reserve Bank of New York and the Board of Governors of the Federal Reserve System.
A complementary survey measuring foreign holdings of U.S. securities also is conducted annually. Data from the most recent such survey, which reports on securities held on June 30, 2011, are currently being processed. Preliminary results are expected to be reported on February 29, 2012.
Overall Results
This survey measured the value of U.S. portfolio holdings of foreign securities at year-end 2010 of approximately $6.8 trillion, with $4.6 trillion held in foreign equity, $1.7 trillion held in foreign long-term debt securities (original term-to-maturity in excess of one year), and $0.4 trillion held in foreign short-term debt securities. The previous such survey, conducted as of year-end 2009, measured U.S. holdings of approximately $6.0 trillion, with $4.0 trillion held in foreign equity, $1.6 trillion held in foreign long-term debt securities and $0.4 trillion held in foreign short-term debt securities. The increase in the value of U.S. portfolio holdings between the two surveys primarily reflects valuation changes in foreign equity during 2010.
U.S. portfolio holdings of foreign securities by country at the end of 2010 were the largest for the United Kingdom ($1,001 billion), followed by Canada ($695 billion), and Japan ($519 billion) (see Table 2). These three countries attracted about one-third of the total U.S. portfolio investment.
The surveys are part of an internationally-coordinated effort under the auspices of the International Monetary Fund (IMF) to improve the measurement of portfolio asset holdings.
view the Foreign Portfolio Holdings of U.S. Securities
Source: US Department of the Treasury
Van Eck files with the SEC
October 31, 2011-Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Renminbi Bond ETF.
view filing
Source: SEC.gov
Global X files with the SEC
October 31, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the
Global X FTSE Toll Roads & Ports ETF
Global X FTSE Railroads ETF
Global X Farmland & Timberland ETF
Global X Cement ETF
Global X Advanced Materials ETF
view filing
Source: SEC.gov
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite And Select Indices
October 31, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite and Select Indices:
Shareholders of Reservoir Capital Corp. (TSXVN:REO) approved on October 13, 2011, the Plan of Arrangement whereby the company will spin out certain Serbian mineral exploration permits to shareholders.
For every share of Reservoir Capital held, shareholders will receive 0.191482444 shares of a new company named Reservoir Minerals Inc. Reservoir Minerals will trade on TSX Venture for the first time (the ex-date of the spin-off) on November 1, 2011, under the ticker symbol "RMC". The spun out shares of Reservoir Minerals will be added at zero price to the S&P/TSX Venture Composite and Venture Select Indices after the close of trading on Monday, October 31, 2011. Effective after the close of Tuesday, November 1, 2011, the shares of Reservoir Minerals will be removed from the same two indices.
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
Maple’s Bid for TMX Group More Likely With Exchange Support
October 31, 2011--A takeover of Toronto Stock Exchange owner TMX Group Inc. by a group of Canadian banks and pension funds is “significantly” more likely to succeed after TMX’s board endorsed the C$3.73 billion ($3.73 billion) offer, analysts said.
TMX’s board recommended shareholders accept the C$50-a- share offer from Maple Group Acquisition Corp., whose 13 members include Toronto-Dominion Bank, Ontario Teachers’ Pension Plan and Manulife Financial Corp. The Toronto-based exchange owner said it would cooperate with Maple to push for approvals from securities regulators and Canada’s Competition Bureau.
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Source: Bloomberg BusinessWeek
Morgan Stanley-ETF Weekly Update
October 31, 2011--Highlights-US ETF Weekly Update
Weekly Flows: $17.4 Billion Net Inflows
ETF Assets Stand at $1.1 Trillion, up 9% YTD
Launches: No New ETFs
Emerging Global Advisors Makes Name Change
US-Listed ETFs: Estimated Largest Flows by Individual ETF
US-Listed ETFs: Estimated Flows by Market Segment
ETFs posted net inflows of $17.4 bln last week, the largest weekly net inflow of the year
Net inflows last week were primarily driven by US Equity ETFs (combined $13.7 bln net inflows)
Last week’s net inflows were the most since we started estimating weekly flows (week of 1/4/10)
ETF assets stand at $1.1 tln, up 9% YTD (due to net inflows)
13-week flows were mostly positive among asset classes; combined $29.4 bln net inflows
Fixed Income ETFs have exhibited net inflows for 11 straight weeks ($13.8 bln net inflows over the 11 weeks)
We estimate ETFs have generated net inflows 26 out of 43 weeks in 2011; net inflows of $98.3 bln YTD
SPDR S&P 500 ETF (SPY) posted net inflows of $3.5 bln last week, the most of any ETF
The 10 ETFs to generate the biggest net inflows last week accounted for $14.0 bln in inflows (9 of 10 are
equity-based)
The two ETFs to post the largest net outflows last week invest in US Treasury Bills, signifying a move away
from safe-haven assets
US-Listed ETFs: Change in Short Interest Data Updated: Based on data as of 10/14/11
SPY exhibited the largest increase in USD short interest since last updated
$4.4 billion in additional short interest
SPY has been fluctuating around record levels of shares short since mid-August
IWM exhibited the largest decline in USD short interest since last updated
$1.1 billion in reduced short interest
Lowest level of shares short for IWM since 8/31/11
US-Listed ETFs: Most Successful Recent Launches by Assets
Source: Bloomberg, Morgan Stanley Smith Barney Research. Data estimated as of 10/28/11 based on daily change in share counts and daily NAVs.
$7.0 billion in total market cap of ETFs less than 1-year old
Suggests that unique new offerings continue to gain meaningful traction
205 new ETF listings and 9 liquidations YTD
3 different asset classes represented; 7 different issuers
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Equity (7), Fixed Income (2), Alternative (1)
Top 10 account for $3.2 billion in market cap and posted net inflows of $896 million over last 13 weeks
iShares High Dividend Equity Fund (HDV) and PowerShares S&P 500 Low Volatility Portfolio (SPLV),
defensive equity ETFs, exhibited a combined $744 million net inflows over the past 13 weeks
No ETF Launches.
US-Listed ETFs: News Highlights Source: Company Data, Morgan Stanley Smith Barney Research.
Emerging Global Advisors Makes Name Change
In a 10/28/11 press release, Emerging Global Advisors announced that it renamed the EGShares Emerging Markets High
Income Low Beta ETF (HILO) to the EGShares Low Volatility Emerging Markets Dividend ETF.
The fund’s ticker remains the same as does its objective.
According to Emerging Global Advisors, the change was based on client feedback and will make the fund’s desired objectives more easily recognizable to investors.
request report
Source: Morgan Stanley
