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Open Meeting on Tenth Series of Proposed Rules under the Dodd-Frank Act
January 4, 2010--The Commodity Futures Trading Commission (CFTC) will hold a public meeting to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
When:
Thursday, January 20, 2010, 9:30 AM (ET)
Where: CFTC’s Hearing Room, 1155 21st, NW, Washington DC
Topic:
Tenth Series of Proposed Rules under the Dodd-Frank Act.
Source: CFTC.gov
Open Meeting on Ninth Series of Proposed Rules under the Dodd-Frank Act
January 4, 2011-The Commodity Futures Trading Commission (CFTC) will hold a public meeting to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
When:
Thursday, January 13, 2010, 9:30 AM (ET)
Where: CFTC’s Hearing Room, 1155 21st, NW, Washington DC
Topic: Ninth Series of Proposed Rules under the Dodd-Frank Act
This event is open to the public.
The Commission will consider proposed rulemakings on the following topics:
the issuance of a proposed rulemaking regarding position limits for derivatives;
the issuance of a proposed rulemaking regarding swap trading relationship documentation requirements for swap dealers and major swap participants; and
the adoption of a final rule that addresses requirements for derivatives clearing organizations, designated contract markets and swap execution facilities regarding the mitigation of conflicts of interest.
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Source: CFTC.gov
U.S. Corporate Credit Trends to Show Further Improvement with Modest Event Risks in 2011
January 4, 2011--Rating Outlook
U.S. corporate credit trends in 2011 should remain on the same trajectory as in 2010, with modest economic growth, improving operating profiles, and good liquidity offsetting a number of still-weak macroeconomic factors. As the risks of a double-dip recession recede, company-specific event risk will act as the primary catalyst for downgrades. Although the pendulum is clearly swinging back to equityholders as issuers and investors seek to boost returns in a slow-growth environment, global macro concerns remain tangible enough that most corporate issues remain cautious in their
outlooks on spending and investment.
Few companies see boom times ahead. Corporate concerns remain focused largely in two areas: the potential for global market dislocations, and the risks of regulatory/legislative actions at home.
The following credit themes are expected to be predominant in 2011.
Forecasted 2011 U.S. economic growth of 3.2% should support continued top-line and margin growth. Margin expansion will be more limited than the gains seen in 2010 due to higher raw material costs, cost-creep from the draconian cost cuts taken at the depth of the credit crisis, and a moderation of the inventoryrestocking gains achieved in early 2010.
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Source: Fitch Ratings
Van Eck Launches New CM Commodity Index Fund (CMCAX) 1/3/11
Constant Maturity (“CM”) fund seeks to track UBS Bloomberg Constant Maturity
Commodity Total Return Index and reduce the potential negative effects of contango
January 3, 2010--New York-based asset manager Van Eck Global, among the most respected names in commodity investing, has launched a new index-based, open-end mutual fund, the Van Eck CM Commodity Index Fund (tickers: CMCAX, COMIX, CMCYX). The Fund, a “second-generation” commodity product, is designed to reduce the potential negative effects of
contango that can significantly reduce the performance of commodity investments over time.
The passively managed Van Eck CM Commodity Index Fund seeks to track, before fees and expenses, the performance of UBS Bloomberg Constant Maturity Commodity Total Return Index (CMCI). The Index was designed to minimize investment exposure
to the front end of the futures curve and diversifies exposure across maturities. By diversifying exposure across multiple maturities,
the Index seeks to mitigate the impact of contango.
“Many traditional indices, and thus the funds that track them, suffer from negative roll yield during periods of contango. Van Eck has sought to minimize this problem in the construction of our new fund by using a benchmark that places less emphasis on the front end of the futures curve,“ said Kristen Capuano, Marketing Director at Van Eck.
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Source: Van Eck Global
Statement Regarding Position Limits and Interim Position Points
January 4, 2011--I have been reluctant to support the Commission’s issuance of a position limit proposal because what has been proposed so far has not met the congressionally mandated implementation schedule. I have been clear about this and have stated that since there is not support on the Commission to implement position limits on time, we should institute an interim position "points" system.
To be clear, speculative position points are not speculative position limits. Limits would be hard and fast levels. The Commission would mandate traders adhere to position limits. On the other hand, interim position points would serve first as a flag for us to obtain further data. Second, they would allow for a determination of the size of a trader’s net position. If a trader's net position is in excess of a speculative position point, we could use that information to make a determination as to what, if any, course of action to take, just as we do now with market surveillance information. We could do nothing, or we could urge the trader to reduce trading positions. In addition, the Commission has other authorities that could, following an affirmative vote by the Commission, be used to ensure that a trader does not exceed the position point—but that, again, would require additional action by the full Commission. Not less than monthly, staff will brief Commissioners on those traders who exceed position points.
Let me reiterate: position points are not position limits. Only with the implementation of an additional position limit rule as directed by Congress will actual limits be put in place. Since the time of our last public meeting on December 16th, however, I have been convinced that the interim position point system is, unfortunately, the best the agency can do at this time, given the lack of Commission support for moving forward on actual position limits now.
Therefore, while I cannot prejudge what or when the Commission will do regarding position limits, it is my intent to move the process forward with the Chairman's concurrence to adopt the interim position points approach despite what I consider flaws in the position limits proposal.
While I will now support publishing a position limit proposal for public comment, I will continue to make the case that we need to address excessive speculation in these markets immediately. We already have more speculative positions in the commodities markets than ever before. There are some who suggest that certain commodity prices are currently delinked from supply and demand fundamentals, and are being impacted by excessive speculation. The delayed implementation in the Commission proposal exacerbates this already troubling set of circumstances.
Source: CFTC.gov
Emerging Markets Week in Review -12/27/2010 - 12/31/2010
January 3, 2011--The Dow Jones Emerging Markets Sector Titans Composite Index finished 2011 up 1.9% for the week and 15.18% for the year. Financials and Utilities led the market up, increasing 2.51% and 2.09%, while Industrials and Technology gained the least, climbing 1.61% and 0.42% respectively.
2010 was a great year for all emerging market sectors with particularly strong performance from Consumer stocks, an investment theme that many analysts expect to drive growth for the next decade.
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Source: Emerging Global Advisors
ISE Reports Business Activity for December and Full Year 2010
January 3, 2011--Dividend trades make up 15.1% of industry volume in December 2010. ISE is second largest equity options exchange in 2010 with market share of 21.7%, excluding dividend trades.
The International Securities Exchange (ISE) today reported average daily volume of 2.5 million contracts in December 2010, a decrease of 6.4% over December 2009. Total options volume for the month was 56.0 million contracts.
Average daily volume for full year 2010 was 3.0 million contracts, and total volume for the year was 745.2 million contracts. ISE maintained its position as the second-largest U.S. equity options exchange in 2010 with market share of 21.7%*. Business highlights for the month of December include:
On December 8, 2010, ISE announced that it will begin the rollout of its new options trading system in April 2011. Based on Deutsche Börse Group’s Optimise™ trading architecture, the new platform will be an industry leader in terms of latency and performance. ISE’s members will benefit from enhanced functionality and improved risk management tools to enhance the ISE customer experience.
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Source: International Securities Exchange (ISE)
Morgan Stanley Exchange-Traded Funds: US ETF Weekly Update
January 3, 2011--Weekly Flows: $891 Million Net Outflows
ETF Assets at $998 Billion, Up 28% in 2010
ETFsTraded $153 Billion Last Week
No ETF Launches or News
US-Listed ETFs: Estimated Flows by Market Segment
ETFs closed out 2010 on a negative note, posting net outflows of $891 mln
For the second straight week, net outflows were led by US Equity ETFs(net outflows of $1.2 blnlast week)
ETF assets stand at $998 bln; up 28% in 2010
13-week flows were mostly positive among asset classes
$42.5 bln net inflows into ETFs over past 13 weeks (66% into USEquity ETFs)
Fixed Income ETFsexhibited net outflows of $2.2 blnduring the 4thqtr of 2010
We estimate ETFs generated net inflows 37 out of 52 weeks in 2010
US-Listed ETFs: Estimated Largest Flows by Individual ETF
iShares DJ Select Dividend Fund (DVY) posted net inflows of $410 mln last week, the most of any ETF
SPDR S&P 500 ETF (SPY) has given back $7.5 blnover last 2 wks of the $11.6 blnthat it took in during wk of 12/13
Vanguard Emerging Markets ETF (VWO) has generated largest net inflows over past 13 weeks ($6.0 bln)
US-Listed ETFs: ETF Dollar Volume
ETF monthly $ volume has recently declined to 26% of listed trading volume (lowest % since May ’08)
US Large-Cap accounts for 37% weekly ETF volume, but only has 21% of market cap
Fixed Income accounts for only 6% weekly ETF volume, but has 14% of market cap.
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Source: ETF Research-Morgan Stanley
CORRECT: ProShares To Launch Volatility ETFs - CEO
January 3, 2011-)--Investors who prefer exchange-traded funds over stocks, bonds or other instruments will be able to trade two ProShares ETFs tied to the stock market's "fear index" starting Tuesday.
ProShares is set to launch two funds that track futures on the CBOE Market Volatility Index, according to ProShare Capital Management Chairman and Chief Executive Michael Sapir. The launch ...
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Source: Wall Street Journal
CFTC.gov Commitments of Traders Reports Update
January 3, 2011-The CFTC.gov Commitments of Traders Reports for the for the week of December 28, 2010 are now available.
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Source: CFTC.gov
