Americas ETP News
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U.S. Department of the Treasury Treasury International Capital System (TIC) Homepage Update
September 1, 2011--The U.S. Department of the Treasury Treasury International Capital System (TIC) Homepage has been updated.
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Source: U.S. Department of the Treasury
The Options Industry Council Announces August Volume Nearly Double That of August 2010
September 1, 2011 - The Options Industry Council (OIC) announced today that 550,049,407 total options contracts changed hands in August, a 94 percent increase over August 2010 when 283,487,110 contracts were traded.
In addition to August setting a new monthly record, several other records were achieved throughout the month, including three consecutive daily volume records.
This is the first time in history monthly volume has surpassed half a billion contracts. Furthermore, August saw the top four of the ten highest volume days for both total options and equity options. On August 8, 41,535,580 contracts were traded, establishing a new daily volume record and marking the first time over 40 million contracts were traded in one day.
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Source: OIC
Component Changes Made To Dow Jones Country And Dow Jones Emerging Markets Sector Titans Indexes - Changes Are The Result Of The Regular Quarterly Review
September 1, 2011-- Dow Jones Indexes, a leading global index provider, today announced the results of the regular quarterly review of the Dow Jones Country Titans Indexes and Dow Jones Emerging Markets Sector Titans Indexes. All changes will be effective after the close of trading on Friday, September 16, 2011.
Evraz Group S.A. (Russia, Basic Resources, EVR.LN) will be removed from the Dow Jones RusIndex Titans 10 Index and replaced by Sberbank Rossia ADS (Russia, Banks, SBER.LN). The total free-float market capitalization of the reconstituted Dow Jones RusIndex Titans 10 Index increased to US$240.05 billion from US$217.89 billion as of Wednesday, August 31, 2011.
No changes are being made in the Dow Jones Australia Titans 30, Dow Jones Brazil Titans 20 ADR, Dow Jones Brazil Titans 30, Dow Jones Canada Titans 60, Dow Jones Cyprus Titans 10, Dow Jones DFM Titans 10, Dow Jones EGX Egypt Titans 20, Dow Jones France Titans 30, Dow Jones Germany Titans 30, Dow Jones Hong Kong Titans 30, Dow Jones India Titans 30, Dow Jones Italy Titans 30, Dow Jones Japan Titans 10, Dow Jones Kuwait Titans 30, Dow Jones Netherlands Titans 30, Dow Jones Mexico Titans 20, Dow Jones Saudi Titans 30, Dow Jones South Africa Titans 30, Dow Jones South Korea Titans 30, Dow Jones Spain Titans 30, Dow Jones Sri Lanka Titans 20, Dow Jones Sweden Titans 30, Dow Jones Switzerland Titans 30, Dow Jones Turkey Titans 20, and Dow Jones U.K. Titans 50 Indexes as a result of this regular quarterly review.
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Source: Dow Jones Indexes
FlexShares files wth the SEC
September 1, 2011-FlexShares has filed a pre-effective amendment, registration statement with the SEC for the FlexShares Morningstar US Market Factor Tilt Index Fund
FlexShares Morningstar Global Upstream Natural Resources Index Fund
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund
FlexShares iBoxx 7-Year Target Duration TIPS Index Fund
view filing
Source: SEC.gov
Gensler: CFTC Eager to Clean Up Swap Market
September 1, 2011-Before the 2008 financial crisis, our country’s largest financial institutions were trading complicated derivatives, called swaps, in the shadows, which helped propel the economy into a downward spiral.
Though the crisis had many causes, it’s evident that swaps – created to lower risk for Main Street businesses – heightened risk on Wall Street. Further, the swaps market created the belief that certain financial institutions were not only too big to fail but too interconnected to fail. When AIG, Bear Stearns and others faltered or crumbled, it was the taxpayers who were left with the bill. It wasn’t just the financial system that failed; the regulatory system designed to protect the public also failed.
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Source: CFTC.gov
CFTC to Hold Open Meeting to Consider Two Proposed Rules under Dodd-Frank Act
September 1, 2011--– The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, September 8, 2011, at 9:30 a.m., to consider proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Documentation and Margining (further Notice of Proposed Rulemaking), and
• Mandatory Clearing and Trading Implementation (NPRM).
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Source: CFTC.gov
DB Global Equity Research: US ETF Market Weekly Review :Strong flows and equity market add $29bn to ETP AUM
August 31, 2011--Risk off trade pause or risk reversal?
Equity markets took a breather last week after having experienced four straight weeks of losses. Risky assets rallied towards Friday anticipating some sort of auspicious policy announcement (e.g. QE3) during Bernanke’s Jackson Hole speech. Although explicit additional stimulus expectations were not met on Friday, equity markets in the US (S&P 500) ended the week up by 4.74%.
The total US ETP flows from all products were $8.2bn of inflows last week vs $1.1bn of inflows the previous week, setting the YTD weekly flow avg. at +$1.9bn.
Maybe it was the fact that investors decided to book some profits on the recent Gold surge, or maybe it was the fact that markets expected a repetition of last year’s Jackson Hole speech with its corresponding QE3 announcement. Anyhow the reality is that after 4 weeks of outright risk off trade, long-only ETP flow patterns were significantly reversed during last week (Figure 1). Long only equity ETPs received almost $11.0bn inflows by the end of Friday, while Gold ETPs experienced the largest weekly outflows (-$3.5bn) since the recent gold surge began. At the same time Fixed Income ETPs had positive flows of $829m
Another hint of potential change in risk appetite was perceived among US-focused sector ETPs grouped by business cycle sensitivity. Cyclical sectors dominated the flows last week with +$1.3bn for the Global ones and +$941m for the Domestic ones. However, Defensive sectors remained positive with $340m of inflows. It is worth to add that the strong inflows received by the cyclical sectors could easily have been in response to the previous week sell-off when Global and Domestic sectors experienced outflows of $1.5bn and $2.9bn, respectively.
Despite the magnitude of last week’s risk surge, it is still too soon to call a risk reversal; thus additional cash flow data should confirm whether last week’s flows were a pause in the risk off trade or its reversal.
New Launch Calendar:
No new listings & 3 ETN delistings
There were no new listings in the US during last week. Meanwhile, Deutsche Bank AG repurchased three of their ELEMENTS ETNs (BVT, BVL, and BSC).
Turnover Review: floor activity decreases on lower volatility
Total weekly turnover decreased by 5.1% to $490bn vs. $516bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $49.2bn or 10.8% to $407bn. Fixed Income ETP turnover decreased by $4.4bn to $17.5bn last week. Finally, Commodity ETPs products turnover increased by 83.0% totaling $62.1bn at the end of last Friday.
Assets Under Management (AUM) Review:
AUM back to positive growth
Driven by strong flows and a rally in the US equity market, US ETP AUM gained $28.5bn or 2.9% as compared to the previous week and closed at $1.01 trillion or 1.5% up YTD.
to request report
Source: Deutsche Bank - Global Equity Research
U.S. Department of the Treasury TIC Annual and Benchmark Surveys Update
August 31, 2011--The U.S. Department of the Treasury TIC Annual and Benchmark Surveys have been updated and is now available.
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Source: US Department of the Treasury
PowerShares files with the SEC
August 31, 2011--PowerShares has filed a post-effective amendment, registration statement with the SEC for the PowerShares Dynamic Banking Portfolio (PJB)
PowerShares Dynamic Biotechnology & Genome Portfolio
(PBE)
PowerShares Dynamic Building & Construction Portfolio
(PKB)
PowerShares Dynamic Energy Exploration & Production Portfolio
(PXE)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
PowerShares Dynamic Insurance Portfolio (PIC)
PowerShares Dynamic Leisure and Entertainment Portfolio
(PEJ)
PowerShares Dynamic Media Portfolio (PBS)
PowerShares Dynamic Networking Portfolio (PXQ)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
PowerShares Dynamic Retail Portfolio (PMR)
PowerShares Dynamic Semiconductors Portfolio (PSI)
PowerShares Dynamic Software Portfolio (PSJ)
view filing
Source: SEC.gov
Dow Jones Indexes’ Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index To Begin Decreasing Its Equity Allocation To 25% From 100%
Index Signals 'Dead Cross,' or Downward-Trending Market Condition
Remaining 75% of Allocation to Move to Short-Term U.S. T-Bills
August 31, 2011-- Dow Jones Indexes, a leading global index provider, today announced its Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index's equity allocation is set to gradually decrease over the next five days to 25% from 100%, with the difference moving to the cash-index component, short-term U.S. T-Bills.
The index's quantitative and rules-based algorithm has signaled the start of a downward-trending market condition. The indication, called a "Dead Cross", occurs when a market's 50-day moving average crosses below its 200-day moving average.
The Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index applies the "Moving Average Crossover System" to U.S. large-cap equity securities. Based on a risk-based methodology, the index is designed to dynamically reallocate component weights between an underlying equity index and a cash index according to the occurrence of "Golden Cross" and "Dead Cross" signals. During Dead Cross periods, a portion of the index is allocated toward the underlying equity index and a portion toward the cash index; during Golden Cross periods, the index tracks only the underlying equity index.
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Source: Dow Jones Indexes
