Americas ETP News
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BM&FBOVESPA and BSM Choose NASDAQ OMX's SMARTS Integrity to Enhance Market Surveillance Operation
September 15, 2011--Exchange Groups Partner to Bring Greater Transparency to Brazilian Marketplace in Equities, Commodities and Bonds
The NASDAQ OMX Group, Inc., BM&FBOVESPA, the largest stock exchange in Latin America, and Bovespa Market Supervision (BSM), the Brazilian self-regulatory organization in charge of inspecting and supervising the transactions
and the persons authorized to trade, today announced that they will use NASDAQ OMX's SMARTS Integrity market surveillance platform to monitor trading across their equities and commodities platforms.
The SMARTS Integrity platform will provide BM&FBOVESPA and BSM with an automated solution for market surveillance, operations and market oversight, strengthening their current surveillance capabilities and providing them a scalable platform for long-term growth. Using SMARTS Integrity, BM&FBOVESPA and BSM will have a comprehensive portfolio of alerting scenarios for market behaviors. As BM&FBOVESPA grows its business, SMARTS Integrity will enhance the exchange and BSM's ability to maintain a compliant and orderly market. SMARTS Integrity already handles the volumes of the largest markets in the world and will be mission-critical to BM&FBOVESPA's future growth plans.
"BM&FBOVESPA is committed to maintaining the highest level of market integrity and an operating framework that inspires confidence amongst participants. SMARTS Integrity's cross-market surveillance platform will allow us to monitor our markets effectively and efficiently, with the scalability to process increased volumes as we expand," said Cicero Vieira, Chief Operating Officer of BM&FBOVESPA. "The combination of proven functionality, reliable performance and NASDAQ OMX's global technology expertise make SMARTS Integrity an optimal platform to help us achieve our goals."
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Source: NASDAQ OMX
RBC Global Asset Management Inc. Launches New Suite of Target Maturity Corporate Bond ETFs
September 15, 2011--RBC Global Asset Management Inc. (RBC GAM) announced the launch of eight RBC Target Maturity Corporate Bond Exchange-Traded Funds (ETFs). Effective today, the RBC ETFs are available for purchase by individual and institutional investors on the Toronto Stock Exchange.
"Clients and advisors have been enquiring about an ETF offering of this kind for some time and we are very pleased to be able to bring this innovative structure to market with the full backing and comprehensive capabilities of RBC Global Asset Management," said John Montalbano, chief executive officer, RBC GAM. "The new suite of RBC ETFs illustrates our commitment to meeting the evolving needs of investors and delivering added value investment solutions that enable investors to construct diverse portfolios reflective of their individual profiles.
Cary Blake, vice-president, RBC GAM, added, "We employed a thorough evaluation and rigorous research process that incorporated input from advisors and investors. The resulting RBC Target Maturity Corporate Bond ETFs fill a gap in the investment landscape, offering advisors increased flexibility to tailor their bond laddering strategies for clients, serve as a source of cash to match large known future liabilities, and capture perceived opportunities at particular points on the yield curve."
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Source: RBC Global Asset Management and RBC Wealth Management
CFTC Will Not Hold September 22, 2011, Meeting
September 15, 2011--The Commodity Futures Trading Commission will no longer hold a scheduled meeting on September 22, 2011.
The next scheduled meeting of the Commission will be on October 4, 2011.
Source: CFTC.gov
DB Global Equity Research: US ETF Market Weekly Review-- ETP AUM drops, while defensive flows keep piling up
September 14, 2011-- Defensive trades underpin ETP flows
An apparently worsening financial situation in Europe and a domestic economy which doesn’t seem to convince to the upside have continued to keep the equity markets bound in negative territory. Equity markets in the US (S&P 500) ended the week down by 1.68%, recording red figures for the sixth time in the past seven weeks.
The total US ETP flows from all products (long+short) registered $1.7bn of inflows during last week vs $434m of inflows the previous week, setting the YTD weekly flows average at +$1.9bn.
Defensive flows kept receiving healthy inflows during last week as investors sail choppy seas, and helped long only ETPs to gather $1.5bn of inflows in spite of the equity market downturn. Within long only ETPs, equity products experienced outflows of $625m, while Fixed Income and Commodity ETPs registered $1.2bn and $928m of inflows, respectively (Figure 1).
In general, equity defensive sectors (+$988m), fixed income investment grade (+$637m), comdty gold (+$619m), and equity dividend (+$200m) remain the favorite defensive trades during last week.
A noteworthy point was the unusually large inflow to the US Healthcare sector ETPs ($796m) during last week after bottoming at $1.3bn of outflows on a QTD basis last Tuesday. We believe that the current underlying trend governing the equity market (i.e. risk off trade) and the relative valuations within the main three defensive sector ETFs (XLP: Cons. Staples, XLU: Utilities, and XLV: Healthcare) suggest that last week’s flows could be the beginning of a sector rotation within defensives.
New Launch Calendar: New ways to play a volatile market
There were 4 new ETFs and 12 new ETNs listed on NYSE Arca during the previous week. The new products provide additional investment vehicles to play volatile markets by taking different views on volatility and market neutral strategies.
Turnover Review: floor activity decreases on a shorter trading week Total weekly turnover decreased by 13.8% to $354bn vs. $411bn in the previous week. The largest decrease was on Equity ETP turnover, which fell by $55bn or 15.3% to $305bn. Fixed Income ETP turnover decreased by $4bn to $14.3bn last week. Finally, Commodity ETPs products turnover kept on the same level, totaling $29.8bn at the end of last Friday.
Assets Under Management (AUM) Review:
equity markets drag ETP AUM down The equity markets downturn dragged ETP AUM along the way in spite of inflows to Commodity and Fixed Income products. US ETP AUM lost $15.8bn or 1.5% compared to the previous week and closed at $1.007 trillion or 1.2% up YTD..
to request report
Source: Deutsche Bank - Global Equity Research
ETF Securities Passes $4.5 Billion in U.S. Assets Under Management and $30 Billion Worldwide
September 14, 2011--ETF Securities USA LLC (ETFS) today announced that the total assets under management (AUM) of its U.S.-listed products is now $4.7 billion, which represents 15% of the firm's new total of roughly $31 billion in AUM worldwide as at the end of August 2011.
"ETF Securities entered the U.S. market in July 2009 and we have exceeded $4.5 billion in AUM in just over two years," said William Rhind1, Managing Director at ETF Securities (US) LLC based in New York, NY. "We are delighted with the progress we are making in the United States and hope to expand our presence here with a new range of exchange-traded products."
.-Listed PPLT Now Largest
The company also today announced that its Physical Platinum Shares (PPLT) is now the world's largest physically-backed Platinum ETP in terms of AUM, which stood at $886 million on August 31, 2011. This figure represents roughly 480,000 ounces of platinum stored in secure vaults located in London, U.K. and Zurich, Switzerland.
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Source: ETF Securities
J.P. Morgan Selected by FFCM to Provide Fund Services and Prime Custody for the Launch of its Market-Neutral Equity ETFs
September 14, 2011– J.P. Morgan announced today that it has been selected by investment management firm FFCM LLC to provide a suite of securities services, including fund administration, fund accounting and custody, along with prime custody services, for its newly launched family of equity ETFs, QuantShares.
The QuantShares ETFs will be “market neutral,” holding both long and short positions in approximately equal dollar amounts. They are among the first ETFs that will engage in shorting physical securities. FFCM LLC has also chosen J.P. Morgan Clearing Corp. as prime broker for four of its seven new funds.
“We are pleased to be launching these funds that will leverage J.P. Morgan’s ETF servicing with its prime custody solutions,” said Bill DeRoche, founding member of FFCM LLC, the Boston-based investment adviser to QuantShares. “Our decision to partner with J.P. Morgan reflects our confidence in their ability to support us across this multi-faceted and diverse set of strategies.”
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Source: About JPMorgan Chase & Co.
SEC review takes the lustre off Reits shares
September 14, 2011--A move by regulators to review rules governing real estate investment groups in the US has sparked concerns over an important source of mortgage funding.
The Securities and Exchange Commission is looking at whether Real Estate Investment Trusts, or Reits, should enjoy a special status that has allowed them to take more risk than typical investment funds.
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Source: FT.com
Exchange Traded Spreads Trust has filed with the SEC
September 14, 2011--Exchange Traded Spreads Trust has filed a pre-effective amendment, registration statement with the SEC for the ETS BOCHK Offshore RMB Bond Index ETF.
view filing
Source: SEC.gov
OIC Announces Updated Study Shows Buy-Write Strategy Outperforms Buy-And-Hold
September 14, 2011-- The Options Industry Council (OIC) today announced results and analysis of the performance of a buy-write strategy on the Russell 2000®, which found that over the 15 year period covered in the study (including the periods before, during and after the credit crisis), the buy-write strategy provided a higher return than a long RUT portfolio while reducing risk by almost 17%.
In the study, “15 Years of the Russell 2000 Buy-Write,” Nikunj Kapadia and Edward Szado from the University of Massachusetts looked at the performance of data from February 1, 1996 to March 31, 2011, concluding that a passive buy-write strategy of one month to expiration calls on the Russell 2000 consistently outperformed the index. Over 182 months, the 2% out-of-the-money buy-write returned 263% (8.87% annually), compared to the return on the RUT of 226% (8.11% annually). Furthermore, the annualized standard deviation for the entire period on the buy-write portfolio was 16.57%, almost 4 ½ percentage points lower than for the RUT portfolio.
This is an update to one in a series of studies intended for institutional investors which evaluate the performance of different options strategies on different contracts over specific time periods. By supporting these studies in conjunction with well-respected research and educational institutions, OIC remains committed to its mission of providing education and research to institutional investors. With options volume on a growth trend in recent years, these studies show the importance of options in attaining investment goals.
view the Risk Reducing & Income Enhancing Buy-Write Strategy-
15 Years of the Russell 2000® Buy-Write
Source: Options Industry Council (OIC)
PowerShares files with the SEC
September 14, 2011-PowerShares has filed a post-effective amendment, registration statement with the SEC for the PowerShares S&P International Developed High Beta Portfolio (IDHB)
PowerShares S&P International Developed Low Volatility Portfolio (IDLV)
PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)
view filing
Source: SEC.gov
