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SEC Staff Issues Summary Report of Sweep Examination of Structured Products Sold to Retail Investors
July 27, 2011 — The Securities and Exchange Commission staff today issued a report identifying common weaknesses seen in sales of structured securities products and describing measures by broker-dealers to better protect retail investors from fraud and abusive sales practices.
The report summarizes the results of a sweep examination of the retail structured securities products business of 11 broker-dealers, covering a cross-section of the industry. Structured securities products generally do not represent ownership of a particular asset (such as stock in a manufacturing company); instead, the products promise returns to investors based on the performance of one or more underlying assets.
Among other things, the staff observed that broker-dealers might have:
recommended unsuitable structured securities products to retail investors;
traded at prices disadvantageous to retail investors;
omitted material facts about structured securities products offered to retail investors;
engaged in questionable sales practices with customers.
view the Staff Summary Report on Issues Identified in Examinations of Certain Structured Securities Products Sold to Retail Investors
Source: SEC.gov
Weakening US demand squeezes oil
July 29, 2011--Oil glided lower in the week, weighed down by sluggish economic growth and jitters over the outcome of the debt ceiling debate in Washington.
The declines came as data showed the US expanded at a weaker than expected annualised rate of 1.3 per cent in the second quarter.
read more
Source: FT,com
CFTC.gov Commitments of Traders Reports Update
July 29, 2011--The current reports for the week of July 26, 2011 are now available.
view updates
Source: CFTC.gov
Global X files with the SEC
July 29, 2011--Global X has filed a second amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
National Income and Product Accounts Gross Domestic Product: Second Quarter 2011 (Advance Estimate) Revised Estimates: 2003 through First Quarter 2011
July 29, 2011--Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 1.3 percent in the second quarter of 2011,
(that is, from the first quarter to the second quarter), according to the "advance" estimate released by the
Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.
The Bureau emphasized that the second-quarter advance estimate released today is based on
source data that are incomplete or subject to further revision by the source agency (see the box on page
3). The "second" estimate for the second quarter, based on more complete data, will be released on
August 26, 2011.
The estimates released today reflect the annual revision of the national income and product accounts (NIPAs). In addition to the regular revision of estimates for the most recent 3 years and the first quarter of 2011, current-dollar GDP and some components are revised back to the first quarter of 2003. In cases for which the estimates for the reference year (2005) are revised, this results in revisions to the levels of the related index numbers and chained-dollar estimates for the entire historical period; revisions to percent changes before the first quarter of 2003 are small. Annual revisions, which are usually released in July, incorporate source data that are more complete, more detailed, and otherwise more reliable than those previously available. This release includes the revised quarterly estimates of GDP, corporate profits, and personal income and provides an overview of the results of the revision.
view highlights of report
Source: BEA
CFTC to Hold Open Meeting to Consider Three Final Rule Proposals
July 29, 2011--Commission will also vote on public meeting dates for the remainder of the year
The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Thursday, August 4, 2011, at 9:30 a.m., to consider three final rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Agricultural Swaps;
Swap Data Repositories: Registration Standards, Duties and Core Principles; and
Implementing the Whistleblower Provisions of Section 23 of the Commodity Exchange Act.
In addition, the Commission will vote on public meeting dates for the remainder of the year.
The Meeting will be open to the public on a first-come, first-served basis.
read more
Source: CFTC.gov
Senator Shelby says Soros Hypocrite for Reforms Dodge
July 28, 2011--Prominent Republican Senator Richard Shelby accused billionaire investor George Soros of hypocrisy on Wednesday for evading new hedge fund regulations he once publicly backed.
Soros recently said he would return money to outsider investors and only manage his own family's funds to escape the Securities and Exchange Commission's new hedge fund adviser registration rules.
read more
Source: Reuters
ETF Inflows On Pace To Exceed $100 Billion In 2011, According To State Street Global Advisors’ 2011 Mid Year ETF Outlook Report
July 28, 2011--State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today released a new report titled, 2011 Mid Year SPDR(R) ETF Outlook, which details the developments that shaped the Exchange Traded Fund (ETF) industry's growth during the first half of 2011 and offers insights into the trends expected to drive asset flows through year-end.
Against a backdrop of historically low interest rates and global economic uncertainty, US ETFs attracted an impressive $56.3 billion in new inflows during the first six months of 2011, up from $37.3 billion during the first half of 2010. According to the report, ETF investors increased their exposure to fixed-income, developed international markets, and dividend strategies while shifting away from emerging markets and small cap equities during this same period of time.
"With demand for income and non-correlated assets on the rise, a growing universe of professional and retail investors are using ETFs to access precise sources of return and improve the diversification of their portfolios," said Kevin Quigg, global head of the SPDR ETF Capital Markets Group at State Street Global Advisors. "If flows remain on their current pace, 2011 will mark the fifth consecutive year that ETFs attract more than $100 billion in positive cash flows."
Among the key themes highlighted in the 2011 Mid Year SPDR ETF Outlook report are:
Growth of ETF industry asset flows by category;
Increased investment in ETFs that provide access to high dividend paying stocks; and
Outlook for ETFs that track real assets and non-US equities and bonds,
as investors rethink asset allocation. For more information on these developments and others emerging in the ETF industry, financial professionals can download a copy of the 2011 Mid Year SPDR ETF Outlook report at SPDR University (www.spdru.com), State Street's award winning online educational resource for investment professionals.
Source: SPDR Exchange Traded Funds
ETF Inflows Set to Exceed $100 Billion in 2011
July 28, 2011--U.S. exchange-traded funds (ETFs) are on a roll so far in 2011, according to State Street Global Advisors, which released its 2011 mid-year ETF outlook report on Thursday.
The report revealed that ETF inflows are set to exceed $100 billion in 2011, a signal of strength in the ETF industry despite historically low interest rates, persistently high unemployment, and global economic uncertainty. U.S. ETFs raked in $56.3 billion in new inflows during the first six months of 2011, an increase of 50.9% over the first half of 2010 and on pace to surpass last year’s total of $111.5 billion. ETF investors poured money into fixed-income, developed international markets, and dividend strategies and moved away from emerging markets and small cap equities during this period.
read more
Source: Financial Planner
AltaVista's Model ETF Portfolios Celebrate Four Years of Outperformance
Three model ETF portfolios demonstrate the real-world benefits of AltaVista's ALTAR Score rating methodology by beating their benchmarks over the four years since inceptions.
July 28, 2011-- AltaVista’s model ETF portfolios celebrated their fourth anniversary posting solid track records. The U.S. Equity model has returned a cumulative 3.5 percentage points over the S&P500 index since inception on June 15, 2008, while the International model, a non-US equity portfolio, enjoyed cumulative excess returns of 11.3 percentage points versus its benchmark over the same period.
A third model, Global Fundamentals, which includes both U.S. and foreign equity ETFs, is 47 months old and has bested its benchmark by 7.4 percentage points since inception.
The model portfolios are constructed using AltaVista’s proprietary research, including the ALTAR Score™ rating, under a relative value strategy. ATLAR Score™ is short for AltaVista Long Term Annual Return forecast (details here).
“Most fund ratings simply tell you what has performed well until now, encouraging investors to allocate assets to areas that have already increased in price and away from those that have declined—in essence a buy high, sell low strategy,” explains Michael Krause, President and founder of AltaVista Research. “The ALTAR Score™ works differently by encouraging investors to dynamically allocate assets away from areas that may be overheated and into areas of more value going forward.”
Source: AltaVista Research
