Americas ETP News
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CME Group Announces Record Volume For Benchmark Light Sweet Crude Oil (WTI) Options Contracts
February 24, 2011--CME Group, the world's leading and most diverse energy marketplace, today announced the third record volume for its global benchmark Light Sweet Crude Oil (WTI) options contracts since the beginning of 2011. On Wednesday, Feb. 23, WTI options reached a record 324,655 contracts, surpassing the previous record of 294,411 contracts set on Jan. 31, which represents a 10.3 percent increase from the prior record.
"CME Group is the leading crude oil options marketplace for both WTI and Brent Crude Oil," said Joe Raia, CME Group Managing Director, Energy & Metals Products. "As unrest continues in key parts of the world, customers around the world come to CME Group to manage their crude oil risk because of the depth of liquidity and unmatched transparency of our products."
CME Group NYMEX WTI is the largest, deepest and most liquid global energy market benchmark, trading more than 1.1 million futures and options contracts daily – on average more than double the size of its nearest competitor.
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Source:CME Group
TSI launches US domestic ferrous scrap price index
February 24, 2011--The Steel Index (TSI) is launching its US domestic ferrous scrap price index on Friday. The reference price is for shredded obsolete scrap, delivered US Midwest mill.
It will be published weekly, each Friday at 7:30am EST (12:30pm GMT).US ferrous scrap prices are a key indicator for world steel and scrap prices. Scrap is a critical raw material in the steel-making process, typically accounting for around 80% of electric arc furnace (EAF) route costs and 5-10% of blast furnace route costs. Scrap prices are also notoriously volatile.
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Source: Scrap Monster
Fears over CFTC derivatives rule
February 24, 2011--Leading US exchanges are gravely concerned about proposed rules that could hamper the launch of new derivatives products – a key strategy in the current round of exchange mergers.
The issue revolves around a rule proposed by the Commodity Futures Trading Commission that 85 per cent of annual trading in a futures contract or swap must occur on an exchange, or what is called a Designated Contract Market.
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Source: FT.com
“Risky Business”
Statement of Commissioner Chilton
February 24, 2011--I support the proposed interpretive order regarding disruptive trading practices that we are considering today. At the same time, I want to be clear that we need to do more than merely this order. We need explicit rules to address trading using advanced analytics. Cheetah traders (High Frequency Traders or HFTs) and algorithmic traders are relatively new to markets and deserve special consideration and action to ensure that they do not disrupt the fundamental purposes of futures markets.
Cheetah and algo traders are an important component of markets; they provide liquidity, super-fast access, and an audit trail—something our enforcement folks really appreciate. At the same time, there are concerns about this type of trading and they merit special attention.
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Source: SEC.gov
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
February 24, 2011--Commissioner Michael V. Dunn
Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act.
I am particularly interested in the proposed interpretive order regarding the Commission’s antidisruptive trading practices authority. In reading the comment letters we received in response to our Advance Notice of Proposed Rulemaking, two things stood out to me. First, there was widespread support for the goal of eliminating disruptive trading practice from our markets. Second, most commentators called for greater clarity to help them understand how we interpret the concept of a “disruptive practice.” I look forward to receiving the public’s comments to see if the proposed interpretive order adequately addresses these concerns.
As I have mentioned in previous open meetings, the CFTC is under serious strain at its current funding level. We lack the staff and technological resources necessary to implement Dodd-Frank and continue to fulfill our pre-Dodd-Frank duties under the Commodity Exchange Act. Our staff’s performance during this difficult time has been truly remarkable, as they have worked long hours to essentially do two very big jobs at once. However, without additional funding, the strain will only become worse in July, when much of Dodd-Frank goes into effect. At that point, in addition to our traditional oversight of the futures industry, we will also be regulating the swaps market – a market that has been estimated to be nine times larger than the futures market.
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Source: CFTC.gov
Opening Statement, Meeting on the Twelfth Series of Proposed Rulemakings under the Dodd-Frank Act
February 24, 2011--Commissioner Jill E. Sommers
Good morning. Thank you Mr. Chairman and thank you to the teams for their hard work on the proposals we consider today.
Before I address the specific proposals, I would like to talk about an issue that has become an increasing concern of mine – that is, our failure to conduct a thorough and meaningful cost-benefit analysis when we issue a proposed rule. The proposals we are voting on today, and the proposals we have voted on over the last several months, contain very short, boilerplate “Cost-Benefit Analysis” sections. The “Cost-Benefit Analysis” section of each proposal states that we have not attempted to quantify the cost of the proposal because Section 15(a) of the Commodity Exchange Act does not require the Commission to quantify the cost. Moreover, the “Cost Benefit Analysis” section of each proposal points out that all the Commission must do is “consider” the costs and benefits, and that we need not determine whether the benefits outweigh the costs.
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Source: CFTC.gov
SPDR files with the SEC
February 23, 2011---SPDR has filed a post-effective amendment, registration statement with the SEC for the SPDR Global Dow ETF (DGT).
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Source: SEC,gov
ETF Securities USA LLC files with the SEC
February 23, 2011--ETF Securities USA LLC has filed a FORM S-1 with the SEC for the ETFS Physical Base Metals Trust.
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Source: SEC.gov
SPDR files with the SEC
February 23, 2011--SPDR has filed a post-effective amendment, registration statement with the SEC SPDR® Barclays Capital Emerging Markets Local Bond ETF (EBND).
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Source: SEC.gov
Teucrium Trading, LLC Adds Crude Oil Fund to Its Single Commodity ETP Fund Offerings
Teucrium Trading, LLC Adds Crude Oil Fund to Its Single Commodity ETP Fund OfferingsWTI Crude Oil Fund (NAGS) begins trading February 23, 2011
February 23, 2011--The Teucrium WTI Crude Oil Fund (NYSE: CRUD), one of two new single energy commodity Exchange Traded Products (ETPs) recently introduced by Teucrium Trading, LLC (Teucrium), began trading today on the New York Stock Exchange Arca.
Like the Teucrium Corn Fund (NYSE: CORN), which was launched in June 2010, and the Teucrium Natural Gas Fund (NYSE: NAGS), which began trading earlier this month, Teucrium’s new crude oil fund is expected to appeal to a broad spectrum of institutional and individual investors seeking portfolio diversification and direct exposure to commodities through an easily traded, transparent and unleveraged New York Stock Exchange Arca-listed security.
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Source: Teucrium Trading, LLC
