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Remarks, Bringing Transparency to the Swaps Markets, National Association of Corporate Treasurers Conference
Chairman Gary Gensler
June 2, 2011--Good afternoon. I thank the National Association of Corporate Treasurers and Tom Deas for inviting me to speak today. Both the Commodity Futures Trading Commission (CFTC) and I have benefited from your thoughtful input and constant attention to important issues with regard to the swaps marketplace during the legislative process and the rule-writing process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Dodd-Frank Act brings essential reform to the swaps markets that will benefit the American public and each of you in your roles as corporate treasurers.
Though I am speaking to you in my formal capacity as Chairman of a market regulatory agency, I also was once co-head of finance at a major firm. Like many of you, I helped oversee how a corporation funded itself, managed its risk and met its budget.
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Source: CFTC.gov
NSX Releases June 2011 ETF Data Reports
Monthly Net Cash Outflows Posted For First Time During 2011
June 2, 2011--Highlights from the May 2011 reports include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) totaled approximately $1.11 trillion at May 2011 month-end, an increase of almost 40% over May 2010 month-end when assets totaled almost $798 billion.
ETFs/ETNs posted net cash outflows of approximately $978 million for the month of May.
Year-to-date 2011 net cash inflows stood at $50.4 billion, an increase of approximately 83% over the same time period in 2010 when net cash inflows reached $27.6 billion.
For May, Fixed Income products had net inflows of $4.8 billion, while Equities and Commodities products realized net cash outflows of $3.7 billion and $3.5 billion, respectively.
ETF/ETN notional trading volume during May 2011 totaled approximately $1.6 trillion, representing almost 31% of all U.S. equity trading volume. # At the end of May 2011, the number of listed products totaled 1254 compared to 995 listed products at the same time last year.
Visit http://www.nsx.com/content/etf-assets-list for more info.
Source: National Stock Exchange
IndexIQ Debuts Japan Mid-Cap ETF
June 2, 2011--IndexIQ, the firm behind a suite of hedge fund replication ETFs and small cap country-specific funds, notched another first for the ETF industry on Thursday.
The IQ Japan Mid Cap ETF (RSUN) will seek to replicate an index that consists of about 100 mid cap Japanese stocks. The weighted average market capitalization of the companies that make up the index will be approximately $3 billion
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Source: INDEX IQ
Guggenheim Launches Actively Managed Fixed-Income ETFs
Asset Manager Stakes Presence in Actively Managed Space
June 2, 2011 – Guggenheim Funds Distributors, Inc. announced the launch of two new actively managed exchange-traded funds (ETFs), the Guggenheim Enhanced Core Bond ETF (NYSE Arca: GIY)
and
the Guggenheim Ultra-Short Bond ETF (NYSE Arca: GSY). The two funds seek to offer the benefits of active management and a cost-effective way to access today’s fixed income marketplace.
Guggenheim Enhanced Core Bond ETF* is an actively managed ETF that seeks total return comprised of income and capital appreciation. The Fund will normally invest at least 80% of its net assets in fixed income securities and attempts to outperform the Barclays Capital U.S. Aggregate Bond index. The Investment Adviser utilizes a quantitative strategy which attempts to identify relative mispricing among the instruments of a given asset class and estimate future returns which may arise from the eventual correction of the relative mispricing.
Guggenheim Enhanced Ultra-Short Bond ETF** is an actively managed ETF that seeks maximum income, consistent with preservation of capital and daily liquidity. The Fund will normally invest at least 80% of its net assets in fixed income securities. The Fund uses a low duration strategy to seek to outperform the 1-3 Month Treasury Bill Index in addition to providing returns in excess of those available in U.S. Treasury bills, government repurchase agreements, and money market funds. The Fund is not a money market fund and thus does not seek to maintain a stable net asset value of $1.00 per share.
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Source: Guggenheim
CME Group Volume Averaged 13.5 Million Contracts Per Day In May 2011, Up 11
Agricultural commodities average daily volume up 32 percent year over year
Metals average daily volume up 16 percent year over year
June 2, 2011CME Group, the world's leading and most diverse derivatives marketplace, today announced May volume averaged 13.5 million contracts per day, up 11 percent from April 2011, but down 20 percent from the all-time record monthly average daily volume in May 2010.
Total volume for May was 283 million contracts, of which a record 85 percent was traded electronically. May 2011 month-end open interest reached 97 million contracts, up 7 percent from the same period last year and up 4 percent from the same period last quarter.
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Source: CME Group
SEC, FINRA Warn Retail Investors About Investing in Structured Notes with Principal Protection
June 2, 2011--The Securities and Exchange Commission’s Office of Investor Education and Advocacy and the Financial Industry Regulatory Authority (FINRA) have issued an investor alert called Structured Notes with Principal Protection: Note the Terms of Your Investment to educate investors about the risks of structured notes with principal protection, and to help them understand how these complex financial products work.
The retail market for these notes has grown in recent years, and while these structured products have reassuring names, they are not risk-free.
Structured notes with principal protection typically combine a zero-coupon bond – which pays no interest until the bond matures — with an option or other derivative product whose payoff is linked to an underlying asset, index or benchmark. The underlying asset, index or benchmark can vary widely, from commonly cited market benchmarks to currencies, commodities and spreads between interest rates. The investor is entitled to participate in a return that is linked to a specified change in the value of the underlying asset. However, investors should know that these notes might be structured in a way such that their upside exposure to the underlying asset, index or benchmark is limited or capped.
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SEC.gov
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
June 2, 2011-Standard & Poor's Canadian Index Operations announces the following index changes:
The shareholders of Equinox Minerals Limited (TSX:EQN) have accepted the $C8.15 cash per share takeover offer from Barrick Gold Corporation (TSX:ABX).
Equinox Minerals will be removed from the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity, Capped Equity and Equity Completion, the S&P/TSX Completion, the S&P/TSX Capped Diversified Metals & Mining, the S&P/TSX Global Mining, Global Base Metals and Equal Weight Global Base Metals and the S&P/TSX Capped Materials indices after close on Thursday, June 9, 2011.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
CBOE to Begin Disseminating Two New Volatility Benchmarks Based on CME Group Corn
June 2, 2011--The Chicago Board Options Exchange (CBOE) announced today that on Monday, June 6, CBOE will begin disseminating data for CME Group on two new volatility indexes based on CBOT corn and soybean options prices. The new volatility indexes will be calculated using proprietary CBOE Volatility Index® (VIX®)) methodology.
The CBOE/CBOT Corn Volatility Index (Ticker - CIV) and CBOE/CBOT Soybean Volatility Index (Ticker - SIV) follow two other CME Group volatility indexes that CBOE began calculating for CME Group in September 2010 -- the CBOE/NYMEX WTI Volatility Index (Ticker - OIV) and the CBOE/COMEX Gold Volatility Index (Ticker - GVX).
In March 2010, CBOE entered into a license agreement with CME Group that grants CME Group a worldwide license to trade futures and options on agreed-upon futures products based on indexes calculated by CBOE. CBOE retains ownership of the resulting volatility indexes used by CME Group.
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Source: CBOE
Global X Funds Launches First Farming ETF (BARN)
June 2, 2011--Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X Farming ETF (Ticker: BARN). BARN is the first ETF that comprehensively covers the farming sector, focusing on companies involved in agricultural products, livestock operations, and the manufacturing of farming equipment.
The global food crisis, driven in part by higher fuel costs, weather events, and increased demand from emerging market nations (World Bank, 2011), has placed greater importance on the farming industry. It is directly responsible for producing the agriculture and livestock products necessary for feeding the planet. World food production will have to rise 70 percent by 2050 to feed a population forecast to grow to 9 billion people (Bloomberg, May 2011). Emerging markets are predicted to be the main drivers of demand for world agricultural production, consumption and trade, propelled by rising per capita incomes and urbanization (Food and Agricultural Organization, 2010).The reality of food scarcity, coupled with high oil prices and a feeble US dollar, and increasingly unpredictable weather conditions will multiply the severity of rising food prices and lead agricultural products to become hard assets (The Market Oracle, 2011).
"As the population in emerging economies increases their purchasing power and shifts dietary patterns, these nations have to increase food production yields," said CEO of Global X Funds, Bruno del Ama. "Investors in BARN may stand to benefit from this continuing and global demand."
The Global X Farming ETF tracks the Solactive Global Farming Index, which is designed to measure broad based equity market performance of global companies involved in the farming industry. As of May 23, 2011, the three largest components of the index were Vitierra Inc., Kubota Corp., and Wilmar International Ltd.
Source: Global X Funds
DBX files with the SEC
June 2, 2011--DBX has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
