Americas ETP News
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ISE to Launch New Competitive Market Maker Trading Rights Program on September 1
August 18, 2011--The International Securities Exchange (ISE) announced that it has received approval from the Securities and Exchange Commission to restructure its Competitive Market Maker (CMM) trading rights and will launch the new program on September 1, 2011. The new structure grants greater flexibility to current and new CMMs to select the options classes they would like to quote.
Gary Katz, President and CEO of ISE, stated, “Our new CMM trading rights structure grants our market makers greater flexibility and control over which symbols they choose to quote, making it more attractive to provide liquidity at ISE. In this highly competitive environment, we believe this new structure will better enable ISE’s market makers to react to changes in the marketplace and to support their business objectives.”
The new CMM trading rights structure entitles a market maker to enter quotes in options symbols that comprise a certain percentage of industry volume. A CMM’s first trading right entitles that market maker to quote in 20 percent of the industry volume, and each subsequent right provides the ability to quote an additional 10 percent of volume.
The new structure does not impact the rights and obligations of ISE’s Primary Market Makers (PMMs). A PMM will continue to be assigned to each symbol traded on the exchange to provide continuous, two-sided quotes and carry out other responsibilities to maintain an orderly market.
Source: International Securities Exchange (ISE)
Jovian Announces Launch of World's First Gold/Silver Spread ETFs
August 18, 2011--Jovian Capital Corporation and its subsidiaries Horizons Exchange Traded Funds Inc.and BetaPro Management Inc.are now offering Canadian investors a new way to invest in precious metals by listing the world's first gold/silver spread exchange traded funds (the "Gold/Silver Spread ETFs"), which began trading on the Toronto Stock Exchange today.
Horizons BetaPro COMEX® Long Gold/Short Silver ETF ("Horizons HBZ") and the Horizons BetaPro COMEX® Long Silver/Short Gold ETF ("Horizons HZB") offer two different ways for investors to attempt to take advantage of relative price changes between gold and silver futures contracts.
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Source: Horizons Exchange Traded Funds Inc.
NYSE Liffe U.S. Passes 100,000 in Open Interest in Mini MSCI Index Futures
Open Interest Up 35% Since June Migration
Volumes Continue to Grow With Strong Customer Demand
August 18, 2011--NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext, today announced that Open Interest in the family of mini MSCI Index futures trading on the exchange surpassed the 100,000 contract milestone.
In just 8 weeks since completing the contract migration from CME of contracts based on MSCI Emerging Markets and MSCI EAFE indices, Open Interest in the mini MSCI complex has increased more than 35% to 102,214 as of August 16, 2011.
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Source: NYSE Euronext
iShares Announces Launch of Emerging Markets Small Cap Fund
August 18, 2011--BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched the iShares MSCI Emerging Markets Small Cap Index Fund (NYSE Arca: EEMS).
By adding the new iShares ETF, iShares complements its robust emerging market product suite and enables investors access to the next generation of emerging market growth.
"In the long-term, investors can look to emerging market small cap stocks as the driver of the next wave of emerging market growth," said Russ Koesterich, iShares Global Chief Investment Strategist at BlackRock. "In the short-term, emerging markets may be more defensively positioned than conventional wisdom might suggest."
"Because emerging market small cap stocks offer greater exposure to local consumer sectors --and those sectors are more tied to domestic demand than foreign demand -- they should be better insulated from issues facing developed markets today," said Koesterich.
Noel Archard, Head of US iShares Product at BlackRock, said, "With the new iShares Emerging Markets Small Cap ETF investors can efficiently access the next generation of small cap companies with 100% local exposure. By combining the new iShares Emerging Markets Small Cap ETF with the broadly diversified iShares MSCI Emerging Markets ETF, investors can gain access to 100% of the investable emerging market universe with no overlap in core holdings."
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Source: iShares
iShares Launches Two New Target Date ETFs that Expand the iShares Target Date Series
August, 18, 2011 - BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched two new iShares ETFs on the NYSE Arca. The funds are the iShares S&P Target Date 2045 (NYSEArca: TZW) and iShares S&P Target Date 2050 (NYSEArca: TZY) Index Funds.
The new funds provide a continuation of the existing iShares target series products, which are designed to provide investors with a diversified portfolio of iShares ETFs within an efficient ETF structure and can help investors prepare for an anticipated future need for funding a life event such as retirement.
"Implementing target date funds in retirement portfolios can be an increasingly attractive strategy for investors," said Chip Castille, Managing Director and head of BlackRock's U.S. and Canada Defined Contribution Group. "Target date products each offer a diversified, cost-effective way to help investors meet their investment needs. They also help mitigate common investor pitfalls such as poor asset allocation and failure to make portfolio changes over time, two actions that can reduce portfolio returns."
The two funds are benchmarked to the S&P Target Date 2045/2050 indices, which are designed to provide exposure to a diversified array of asset classes. The indices are rebalanced monthly, while on a yearly basis S&P conducts a survey of target date funds and derives an allocation strategy for the indices. S&P uses iShares ETFs to track each asset class.
Source: BlackRock
Canada Private Equity Investments Up 40% In 2Q
August 17, 2011--The second quarter marked the most active period for Canada's buyout and private-equity market since the fourth quarter of 2008, while the venture-capital sector continued to struggle, underscoring that investors see more risk in early-stage investing.
The number of buyout and private-equity deals jumped 40% year-over-year, as total investments hit C$5.7 billion (US$5.8 billion), fueled in part by the first C$1 billion-plus investments in over two years, Canada's Venture Capital & Private Equity Association, or CVCA, reported Wednesday. The deals included the C$2.1 billion purchase of Husky International Ltd. by OMERS Private Equity and Berkshire Partners from Onex Corp. (OCX.T) and the acquisition of Timberwest Forest by B.C. Investment Management Corp. and PSP Investment Board.
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Source: Wall Street Journal
Cantor Fitzgerald & Co. Announces the Launch of Its ETF Arbitrage Business with the Appointment of Market Veteran Dan Segal
August 17, 2011--Cantor Fitzgerald & Co. announced today the appointment of Dan Segal, formerly of SEG Capital, to launch and build its ETF Arbitrage business based in New York. Cantor Fitzgerald is committed to being a principal trader in the global ETF market by providing customers with competitive two sided ETF markets, encompassing the entire ETF spectrum in full service execution, research and market color.
Cantor also appointed Joseph La Grasta, Todd Alberico, and Kanellas Cafcules as ETF Trader/Market Makers. As Managing Director of the ETF Arbitrage Group, Mr. Segal will report to Jarred Kessler, Global Head of Equities.
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Source: Cantor Fitzgerald & Co.
Van Eck Global Introduces Mortgage REIT Income ETF (MORT)
ETF offers yield-seeking investors pure play exposure to mortgage REIT market
August 17, 2011--New York-based asset manager Van Eck Global announced today that it has launched Market Vectors Mortgage REIT Income ETF (NYSE Arca: MORT), an exchange-traded fund (ETF) offering pure play exposure to the mortgage REIT marketplace.
“Yields from mortgage REITs have been higher in recent years than those provided by equity REITs and a number of other income-oriented products,” said Jan van Eck, Principal at Van Eck Global. “We’re pleased to bring out MORT, an EFT which we think could be a valuable portfolio building tool for yield-focused investors in this low-yield environment.”
MORT is intended to track, before fees and expenses, the performance of the Market Vectors Global Mortgage REITs Index (ticker: MVMORTTR), a capitalization-weighted index that requires constituent companies to derive at least 50 percent of their revenues from mortgage REITs. This includes companies and trusts which are primarily engaged in the purchase or service of commercial or residential mortgage loans or mortgage-related securities.
The Index had 25 constituents as of July 31, 2011, all of which were REITs focused on residential mortgages, commercial mortgages or a mix of both. Unlike other indexes used in mortgage REIT-focused ETFs, the Index does not include mortgage finance companies or savings associations.
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Source: Van Eck
iShares files with the SEC
August 17, 2011--iShares has filed a post-effective Amendment No. 137 , registration statement with the SEC for the iShares MSCI Emerging Markets Small Cap Index Fund.
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Source: SEC.gov
DTCC And Markit Launch First DVP Platform For The Syndicated Loan Market -
Settlement Date Coordination and Cash on Transfer services simultaneously transfer cash and loan assets on settlement date
August 17, 2011-- The Depository Trust & Clearing Corporation (DTCC), in conjunction with Markit, today announced the launch of its Loan/SERV Cash on Transfer service.
The DTCC service, coupled with Markit’s loan settlement platform, gives the global syndicated loan market its first delivery-versus-payment (DVP) platform for secondary loan trading. The service is a major advance in reducing settlement risk in the loan market.
In the current trading process, there is no assurance that cash settles simultaneously with the change of ownership recorded by agent banks at the time of trade settlement. This leaves the seller on each trade at risk of no longer being the lender of record of the loan asset without ensuring that cash payment has been received.
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Source: DTCC
