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Massachusetts Suing RBC Capital Over Leveraged ETF Sale
June 20, 2011---Massachusetts’ top securities regulator is suing RBC Capital Markets LLC over the sale of leveraged and inverse exchange-traded funds, saying they sold them to clients who didn’t understand the investments.
Secretary of the Commonwealth William F. Galvin said RBC Capital and Michael D. Zukowski, a former agent, used “dishonest practices” in selling the funds, according to a statement e-mailed today. The lawsuit seeks restitution to Massachusetts investors, a cease and desist order, and an administrative fine.
“The point of the complaint is not that the investors lost money,” Galvin said in the statement. “The dishonesty here is that the investors, and indeed the agent soliciting their investment, did not understand the workings of these funds.”
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Source: Bloomberg Businessweek
BM&FBOVESPA Announces Questionnaire For Selection Of 2012 ISE Portfolio - Questionnaire Approved By The ISE Deliberative Council Includes New Transparency Question
Questionnaire approved by the ISE Deliberative Council includes new Transparency question
July 20, 2011--The questionnaire to decide the companies for the 2012 Corporate Sustainability Index (ISE) portfolio is available on the website www.isebvmf.com.br. BM&FBOVESPA announced on Tuesday.
The questionnaire was drawn up by the Sustainability Study Center (GVces) of the Getúlio Vargas Foundation (FGV) and was approved by the ISE Deliberative Council after a public consultation with companies and society, which ended June 24. The eligible companies are on the list of the 200 most traded on the Exchange and must register by July 31 and answer the questions by September 16.
The Index was launched on December 1, 2005, based on methodology developed by GVces and with the financial backing of the International Finance Corporation (IFC). ISE assesses separate sustainability questions as a whole, within the dimensions of General, Nature of the Product, Corporate Governance, Economic-Financial, Social, Environmental, and Climate Change.
more info
Source: BM&FBOVESPA
BM&FBOVESPA Stock Index Portfolios To Have New Validity Starting Dates As Of September
June 20, 2011--The start of the four-month validity periods for theoretical portfolios for companies included in BM&FBOVESPA indices shall be changed as of September 2011, to the first Monday of January, May and September.
At present the starting dates are on the first business days of these months.
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Source: BM&FBOVESPA
Bank Of America Merrill Lynch Announces Next Generation Trading Platform With Launch Of BofAML Express
July 20, 2011-Bank of America Merrill Lynch today unveiled BofAML Express, the firm's next generation ultra low-latency market access and risk control platform for U.S. equities.
The platform delivers sub 10-microseconds of wire-to-wire latency and provides an embedded series of risk controls required by recent SEC regulation.
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Source: Bank of America Merrill Lynch
Knight Capital Group Announces Consolidated Earnings Of USD0.19 Per Diluted Share For The Second Quarter 2011
July 20, 2011--Equities generated second quarter 2011 revenues of $236.4 million, compared to second quarter 2010 revenues of $305.0 million, due to significantly lower overall U.S. equity volumes and market volatility. Fixed Income, Currencies and Commodities (FICC) second quarter 2011 revenues grew 46% to $88.4 million from second quarter 2010 revenues of $60.4 million, driven by reverse mortgage origination and HMBS securitization, institutional foreign exchange and capital markets.
Knight Capital Group, Inc. (NYSE Euronext: KCG) today reported consolidated earnings of $17.6 million, or $0.19 per diluted share, for the second quarter of 2011.
For the second quarter of 2010, the company reported consolidated earnings of $54.4 million, or $0.58 per diluted share.
Revenues from continuing operations for the second quarter of 2011 were $326.0 million, compared to $366.3 million from continuing operations for the second quarter of 2010.
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Source: Knight Capital Group
Horizons launches Canada's first Australian currency ETF
July 20, 2011--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and BetaPro Management Inc. are pleased to announce the launch of the Horizons Australian Dollar Currency ETF (the "Australian Dollar ETF" or "ASD"), an exchange traded fund ("ETF") which offers investors direct access to foreign currency investing. The Australian Dollar ETF will begin trading on the Toronto Stock Exchange ("TSX") July 20, 2011, under the symbol ASD.
The Australian Dollar ETF seeks to reflect the price in Canadian dollars of the Australian dollar, net of expenses, by investing primarily in cash and cash equivalents that are denominated in the Australian dollar.
ASD is structured as an ETF and therefore has all the characteristics of an ETF, including intraday liquidity, a low cost structure, and portfolio transparency. The Australian Dollar ETF will make monthly distributions of any income earned on the cash and cash equivalents it holds, net of fees and expenses.
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Source: Horizons Exchange Traded Funds Inc
SEC Issues Investor Bulletin on Retail Forex Transactions
July 20, 2011 — The Securities and Exchange Commission today issued an investor bulletin highlighting some of the most significant risks that foreign currency exchange (forex) transactions may pose for individual investors.
The forex market is a large and generally liquid financial market. Banks, insurance companies, and other financial institutions as well as large corporations use the forex markets to manage the risks associated with fluctuations in currency rates. However, the risk of loss for individual investors who trade forex contracts can be substantial.
“Forex trading can be very risky and is not appropriate for all investors,” said Lori J. Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Individual investors considering forex trading need to fully understand the unique characteristics of this market and consult their financial adviser before making any investment decisions.”
view the Investor Bulletin: Forex Trading for Individual Investors
Source: SEC.gov
Statement of Support on Three Final Rules and Two Proposed Rules Under the Dodd-Frank Act-Chairman Gary Gensler
July 19, 2011--Customer Clearing Documentation and Timing of Acceptance for Clearing
I support the proposed rulemaking for customer clearing documentation and timing of acceptance for clearing. The proposed rule promotes market participants’ access to central clearing, increases market transparency and supports market efficiency. This proposal will foster bilateral clearing arrangements between customers and their futures commission merchants. This proposal also re-proposes certain time-frame provisions of the Commission’s proposed rule in February related to straight-through processing.
Clearing Member Risk Management
I support the proposed rulemaking for enhanced risk management for clearing members. One of the primary goals of the Dodd-Frank Wall Street Reform and Consumer Protection Act was to reduce the risk that swaps pose to the economy. The proposed rule would require clearing members, including swap dealers, major swap participants and futures commission merchants to establish risk-based limits on their house and customer accounts. The proposed rule also would require clearing members to establish procedures to, amongst other provisions, evaluate their ability to meet margin requirements, as well as liquidate positions as needed. These risk filters and procedures would help secure the financial integrity of the markets and the clearing system and protect customer funds.
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Source: CFTC.gov
Dow Jones Industrial Average Component Companies Increase Expected Dividend Distribution by 12.66% From a Year Ago, 2.93% From Previous Quarter, Dow Jones Indexes' 2Q11 Survey Says
DJIA Components' Dividends Represent 38% of Total U.S. Stock Market Payouts
Dividend Data Provides Insight Into Outlook of Bellwether U.S. Corporations, Dow Jones Indexes' Krein Says
July 19, 2011--The Dow Jones Industrial Average's 30 component companies are expected to increase their annual dividend payout by 12.66% year-over-year and 2.93% from the previous quarter, according to a second-quarter 2011 survey by Dow Jones Indexes.
DJIA component companies' $101.6 billion expected distribution for the 12 months beginning July 1, 2011 represents 38% of all indicated annual dividends (IAD) by American companies as measured by the Dow Jones U.S. Index, a gauge that accounts for roughly 95% of the U.S. equity market. (Indicated annual dividend is a forward-looking measure defined as a company's most recently paid quarterly dividend multiplied by four.)
For the quarters ended March 31, 2011 and June 30, 2010, DJIA component companies paid $98.7 billion and $90.1 billion in IAD, respectively.
"As is the case with most information gleaned from Dow Jones Industrial Average's component companies, this dividend data provides meaningful insight into the strategic outlook of bellwether U.S. corporations," said David Krein, Senior Director, Product Development and Analytics, at Dow Jones Indexes.
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Source: Dow Jones Indexes
ProShares files with the SEC
July 19, 2011--ProShares has filed a post-effective amendment, registration statement with the SEC for the ProShares Hedge Replication ETF.
view filing
Source: SEC.gov
