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ISE Extends Fee Waiver Offer for New PrecISE Trade® Users
Proprietary Front-End Trading System Provides Industry-Leading Risk Management Tools and Fast, Efficient Access to the U.S. Options Market
October 6, 2010 – The International Securities Exchange (ISE) announced today that it is
offering a two month fee waiver for new users of its proprietary front-end trading terminal, PrecISE Trade.
The customizable interface provides members with user-friendly, direct access to the exchange as well as
valuable risk management tools and market data. PrecISE also offers extensive safeguards for members
participating in ISE’s sponsored customer program.
“ISE’s PrecISE Trade front-end trading system leads the options industry in terms of trading functionality
and risk management capabilities,” said Boris Ilyevsky, Managing Director of ISE’s options exchange.
“PrecISE allows for consolidated access to order and trade activity for multiple desks or business units
within a member firm. In anticipation of pending regulation on sponsored access, ISE is proactively
providing sponsoring firms with important risk management features, including the ability to set risk
parameters and monitor orders in real time. We encourage new users to sign up and familiarize
themselves with the PrecISE terminal and its powerful functionality.”
PrecISE Trade supports all exchange order types and functionality, including complex orders, tied-tostock options orders, crossing orders, and sweep functionality to access other exchanges. PrecISE Trade users have access to real time market data as well as ISE’s Depth of Market Feed, the ISE Spread Book Feed and real time options Greeks. In addition, PrecISE offers order management tools and flexible posttrade clearing and allocation functions.
The fee waiver was first introduced in May 2010 and is being extended due to the success of the program. All new users, including traders, back office users and sponsored customers, are eligible for the fee waiver.
To request a new PrecISE user or for more information, please contact ISE Business Development at
precise@ise.com or visit www.ise.com/precise. PrecISE fees are available on ISE’s fee schedule at
www.ise.com/fees.
Source: International Securities Exchange (ISE)
Through Dynamic Growth Latin America and the Caribbean Absorbed the Crisis’ Social Impact
Some Countries at Same Level as Asian Tigers
October 6, 2010--Latin America and the Caribbean (LAC) cushioned the social impact of the 2008 global crisis thanks to its ability to inter-connect firmly with emerging markets in Asia which in turn boosted growth to 5-6 percent for 2010 -and at least 4 percent for 2011- while keeping in place the region’s social protection networks.
According to “Globalized, Resilient, Dynamic: The New Face of Latin America and the Caribbean” a report authored by the World Bank’s Chief Economist for LAC, Augusto de la Torre, the region showed a remarkable capacity to withstand the crisis’ impact which –the report argues- did not last very long in comparison with other regions, including developed countries, “due to the region’s sound macroeconomic, fiscal and financial policies.”
Between 2002 and 2008, LAC managed to lift 60 million Latin Americans out of poverty, even as preliminary estimates showed the crisis adding 10 million people to the ranks of its poor. But according to new World Bank data, in 2009 the number of people living in moderate poverty ($4 per day) grew by 2.1 million with respect to 2008, totaling 168.3 million, while the number of Latin Americans living in extreme poverty ($2.5 per day) grew by 2.5 million, and now it reaches 85.9 million.
In 2010 LAC was able to reverse the temporary increase in poverty levels. New estimates indicate that 7 million people will leave poverty behind and 6 million more will be pulled out of extreme poverty allowing the region to return to pre-crisis levels as a result of governments’ capacity and speed to react and apply measures to mitigate the crisis’ social impact.
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Source: World Bank
Market Vectors(R) Brazil Small-Cap ETF Reaches $1 Billion in Assets
October 6, 2010--Market Vectors Brazil Small-Cap ETF, distributed by Van Eck Global, has reached $1 billion in assets as of October 5, 2010, the company announced today. BRF was the first ETF listed in the U.S. to focus on Brazilian small-cap stocks.
BRF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Brazil Small-Cap Index (MVRIOTR), a basket of 61* securities of small-capitalization companies that are domiciled and primarily listed on an exchange in Brazil, or that generate at least 50% of revenues in Brazil. BRF seeks to provide investors with exposure to Brazil's domestic investment themes and opportunities, such as the growth potential in the country's homebuilding and consumer goods sectors.
"BRF has appealed to investors looking for a different type of exposure to Brazil's local economy," said Jan van Eck, Principal of Van Eck Global. "In our view, small-cap stocks represent excellent direct exposure to the Brazilian economy since small-caps are typically driven by local trends. We are pleased to see that the interest in BRF continues to grow among financial advisors and their clients."
Source: Van Eck Global
International Issues in the Implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act
October 5, 2010--International Issues in the Implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act
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Source: CFTC.gov
Derivatives Reform: Comparison of Title VII of theDodd-Frank Act to International Legislation
October 6, 2010--Derivatives Reform: Comparison of Title VII of the Dodd-Frank Act to International Legislation
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Source: CFTC.gov
Credit Suisse Announces Launch of New ETN that Provides Liquid Exposure to the Merger Arbitrage Strategy
New Product is Linked to the Credit Suisse Merger Arbitrage Liquid Index (Net)
October 5, 2010-Credit Suisse today announced the launch of the new Credit Suisse Merger Arbitrage Liquid Index (Net) ETN (the "ETN"), one of the first vehicles to offer investors access to the merger arbitrage strategy in a liquid, exchange traded format. Credit Suisse's Investment Banking division is launching the ETN on one of the Asset Management Liquid Alternative Beta Indices.
The Credit Suisse Merger Arbitrage Liquid Index (Net) ETN (NYSE Arca: CSMA) is designed to correlate, subject to fees, to the performance of the Credit Suisse Merger Arbitrage Liquid Index (Net) which aims to gain broad exposure to the merger arbitrage strategy by using a quantitative methodology.
The exchange traded approach offers a variety of advantages to investors, including real-time pricing, intraday liquidity and full portfolio transparency – advantages previously not associated with alternative investments. In addition, the ETN mitigates many of the risks usually associated with alternative investments such as illiquidity, fraud risk or individual manager risk.
The ETN joins the existing Credit Suisse Long/Short Liquid Index (Net) ETN (NYSE Arca: CSLS) to become the second in a suite of alternative ETN products. Together, the ETNs offer access to two of the most popular alternative investment strategies.
Michael G. Clark, head of the Structured Equity Derivatives desk in the Investment Bank, which is launching the ETN, added, "Historically, Merger Arbitrage strategies have provided attractive risk-adjusted returns, effectively allowing investors to diversify their equity exposure; however, complex structures and infrequent liquidity have made this sector difficult to access. We are excited to offer a product which provides liquid access to this strategy, especially in the current volatile market environment."
"Investors today are seeking more liquid, transparent and cost effective solutions. By launching this ETN, we are expanding our liquid alternative investment offerings and demonstrating our commitment to providing innovative alternative solutions to our clients," said Oliver Schupp, Head of the Beta Strategies Group which manages Credit Suisse's Liquid Alternative Beta strategies.
This new ETN seeks to provide exposure to the Merger Arbitrage strategy as represented by the Credit Suisse Merger Arbitrage Liquid Index (Net), an index which benefits from daily valuations and a transparent rules-based construction process. Equity positions are selected and weighted in accordance with a predefined quantitative methodology to gain exposure to a liquid and diversified set of announced merger deals. More information on the Credit Suisse Merger Arbitrage Liquid Index (Net) ETN can be found on: www.credit-suisse.com/notes.
Source: Credit Suisse AG
Opening Statement, Meeting of: The Global Markets Advisory Committee
Chairman Gary Gensler
October 5, 2009--Good afternoon. Thank you Commissioner Sommers for chairing today’s meeting of the Global Markets Advisory Committee. I also thank my fellow Commissioners for their hard work to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. As the Commodity Futures Trading Commission (CFTC) works to implement that bill, it is essential that we work across international borders to harmonize our regulatory approach.
I thank the members of the Japanese Financial Services Authority and the European Commission who have traveled to meet with us today. Japan passed their derivatives reform proposal in May, and the E.C. has released its proposal on OTC derivatives, central counterparties and trade repositories. I look forward to continued consultation with both jurisdictions as we implement comprehensive derivatives reform. We also benefit from a strong working relationship with the Securities and Exchange Commission (SEC) on all of our Dodd-Fran implementation. In that regard, I welcome and thank SEC Commissioner Kathy Casey for participating in today’s discussions.
Last week, I traveled to Brussels to meet with members of the European Commission (E.C.) and to speak at a conference on financial regulation. As we had in the Dodd-Frank Act, the E.C.’s proposal covers the entire derivatives marketplace – both bilateral and cleared – and the entire product suite, including interest rate swaps, currency swaps, commodity swaps, equity swaps and credit default swaps. The Japanese proposal also includes a requirement that certain derivatives be centrally cleared. Though we have different political systems and different cultures, our coordination and cooperation on financial regulatory reform is leading to two largely consistent approaches.
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Source: CFTC.gov
Statement, Global Markets Advisory Committee
Commissioner Michael V. Dunn
October 5, 2010--The world we live in today is smaller and more interconnected than at any time in our history. Financial events taking place in the United States, are like skipping stones crossing oceans and sending ripples through the markets in Europe and Asia. The United States cannot stand alone in the effort to bring transparency to the OTC markets and in crafting best practices for risk management in the financial industry. If we are to make financial reform meaningful and effective, we must tackle this issue hand and hand with our sister regulators around the world. Only together can we accomplish the ultimate goal of creating a secure, stable and productive global financial system.
I would like to first thank Chairwoman Sommers for all her work in this area. The panelists she has assembled from throughout the financial world to discuss the new OTC and clearing paradigms is impressive and I look forward to hearing the thoughts of our distinguished speakers. As the world reacts to the recent financial crisis that threatened everyone’s economic stability, it has become apparent that prudential regulators from all countries need to better communicate and harmonize their efforts. Additionally, I would like to welcome Kathleen Casey to this meeting, as past-Chairwoman of the IOSCO Technical Committee her insight into today’s topics will undoubtedly be very valuable.
I would also like to recognize the tremendous work done by our Office of International Affairs under the leadership of its Director Jacqueline Mesa. Although understaffed, this office has done an excellent job at representing the CFTC around the world. Lastly, I would like to thank Chairman Gensler for all his efforts in advocating for greater international regulatory oversight and harmonization.
As we begin to implement the Dodd-Frank legislation, I would again stress the importance of US regulatory agencies working in concert with regulators around the world as opposed to acting unilaterally. World bodies such as the G-20, FSB and IOSCO are all working on financial reform and it is imperative that we understand the directions they are heading. I am hopeful at today’s meeting that the GMAC members will be able to shed some light on actions taken internationally and share their concerns and recommendations. My hope is that regulatory cooperation between countries, with substantial assistance from market users, will lead us to develop a set of comparable financial regulations used throughout the world. Only by working together can financial regulators create an adequate structure for the OTC markets that promotes stability and transparency, while at the same time discouraging any type of regulatory arbitrage.
Thank you all again for your participation in this process.
Source: CFTC.gov
Foreign Boards of Trade and the Dodd-Frank Bill
October 5, 2010--Presentation by Duane Andresen Foreign Boards of Trade Registration Rulemaking Team.
view presentation
Source: CFTC.gov
NSX Releases September 2010 ETF Data Reports
October 5, 2010--Highlights from the September report include:
Assets in U.S. listed Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN) surpassed $900 billion for the first time, totaling approximately $900.1 billion at September 2010 month-end. This is an increase of approximately 28% over September 2009 month-end when assets totaled $704.9 billion.
Net cash flows to ETFs for the month totaled $28 billion, bringing the year to date total to over $75 billion.
ETF/ETN notional trading volume during September 2010 totaled $1.3 trillion, representing 30% of all U.S. equity trading volume.
Total U.S. Equities and Total Global/Int'l Equities led all product categories with over $19.6 billion and $5.8 billion, respectively, in net cash inflows.
At the end of September 2010, there were 1066 listed products.
visit http://www.nsx.com/content/etf-assets-list for full report
Source: National Stock Exchange (NSX)
