Americas ETP News
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Gensler Statement on Meeting with Exchange Leaders
May 9, 2010-Commodity Futures Trading Commission Chairman Gary Gensler today released the following statement after meeting with leaders from the Chicago Mercantile Exchange and IntercontinentalExchange, Inc.
Chairman Gensler said:
“Today’s meetings with the futures exchanges were constructive in providing information regarding the market events of May 6, 2010. The exchanges have been very cooperative in providing essential data and analyses relating to their respective markets. I also was pleased to meet later in the day with Treasury Secretary Geithner, SEC Chairman Schapiro and representatives from the futures and securities exchanges to discuss contributing factors of the unusual trading and the exchanges’ preliminary thoughts on how to best protect investors.”
Source: CFTC.gov
NASDAQ OMX and NYSE Euronext Coordinate to Determine Cause of May 6th Market Event
May 9, 2010--The NASDAQ OMX Group (Nasdaq:NDAQ) and NYSE Euronext (NYSE:NYX) are committed to working closely with each other, the Securities and Exchange Commission, other regulators and all market participants to determine the cause of Thursday's market plunge and to develop effective solutions promoting greater market stability, efficiency and transparency.
We commend the Securities and Exchange Commission for their continued leadership during this critical time in global markets and agree that a constructive process will promote confidence in the financial markets by investors, listed companies and market participants.
Source: NASDAQ OMX
Exchange-Traded Funds: ETF Total Assets Increase to $841 Billion Despite Weak First-Quarter Flows-Morgan Stanley
May 7, 2010-Highlights
There were 54 new ETFs listed in the US during the
first quarter of 2010. 26 additional ETFs have been listed since the end of Q1, bringing total issuance this
year to 80. However, 11 ETFs have been closed, resulting in net new issuance of 69. As of May 3, 2010,
there were 32 issuers with 903 ETFs listed in the US.
Inflows into US-listed ETFs were $7.7 billion during the first quarter of
2010. This is well below the
average quarterly net cash inflows of $24.6 billion over the past six years. However, we note that ETF flows tend to be weaker in the first quarter with average and median net inflows of $13.7 and $9.3 billion respectively over the same period.
The largest net cash inflows went into ETFs tracking fixed income and US sector & industry indices, as well as into those that provide exposure to international developed markets. These asset classes had net cash inflows of $10.4, $4.2, and $2.9 billion respectively in the first quarter of 2010. ETFs tracking US large caps had the largest net outflows.
US ETF industry assets have increased by 11% since the end of 2009 to $841 billion. Even with the weak first quarter cash flows, US ETF assets increased from $757 billion at the end of 2009 as global markets have continued to rally. Despite the growth of the ETF market, it still remains concentrated as three providers and 20 ETFs account for roughly 79% and almost 50% of industry assets, respectively.
request report
Source: ETF Research-Morgan Stanley
U.S. Department of the Treasury Economic Statistics - Monthly Data Update-April 2010
May 7, 2010--U.S. Department of the Treasury Economic Statistics - Monthly Data has been updated.
view report
Source: U.S. Department of the Treasury
Canadian Regulator Reprices Trades in Fortis, Inter Pipeline
May 7, 2010-The Investment Industry Regulatory Organization of Canada said it canceled or repriced trades of two companies and two exchange-traded funds made during yesterday’s market plunge.
The regulator canceled a total of 12 trades of Fortis Inc., Claymore Canadian Financial Monthly Income ETF and iShares S&P/TSX Capped REIT Index Fund made from 2:40 p.m. to 3:10 p.m. yesterday. The regulator also repriced trade of Fortis, the two ETFs and Inter Pipeline Fund.
“In light of recent market volatility, IIROC will continue to closely monitor all trading on Canadian equity market places,” the Toronto-based organization said in a statement today.
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Source: Bloomberg
iShares Announces Launch of Three iShares MSCI Single Country Funds
May 7, 2010-- BlackRock, Inc. today announced that the iShares Exchange Traded Funds (ETFs) business, the world's largest provider of ETFs, launched several single country iShares ETFs. The iShares MSCI Ireland Capped Investable Market Index Fund (EIRL), iShares MSCI Indonesia Investable Market Index Fund (EIDO) and iShares MSCI USA Index Fund (EUSA) began trading on the NYSE Arca today. These funds build out iShares single country offerings, which is the largest in terms of the number of single country ETFs available for US investors.
"Through the addition of these three iShares MSCI single country funds financial professionals, institutions and individuals will now have expanded access to a relatively liquid global market," said Michael Latham, US Head of iShares at BlackRock. "These funds give investors the opportunity to take greater advantage of global growth and to more precisely implement their investment strategies. The use of MSCI indices provide useful building blocks within the larger iShares MSCI-based international product set."
The iShares MSCI Ireland Capped Investable Market Index Fund (EIRL) provides exposure and access to Ireland, a developed market economy where unemployment and consumer spending are stabilizing(1). The Underlying Index is a free-float adjusted market capitalization weighted index designed to measure the performance of the top 99% of equity securities listed on stock exchanges in Ireland. The top three sectors of the Index (as of 3/31/10) are materials (25%), consumer staples (23%) and industrials (18%).
The iShares MSCI Indonesia Investable Market Index Fund (EIDO) provides exposure and access to the Indonesia, an emerging market economy with 2010 growth forecasts of 6.5%.(2). The Underlying Index is a free-float adjusted market capitalization weighted index designed to measure the performance of equity securities in the top 99 percent by market capitalization of equity securities listed on stock exchanges in Indonesia. The top three sectors of the index (as of 3/31/10) are financials (29%), energy (13%) and telecom (13%).
The iShares MSCI USA Index Fund (EUSA) broadens the existing suite of iShares US benchmarks. The Underlying Index is a market capitalization weighted index designed to measure the performance of equity securities in the top 85 percent by market capitalization of equity securities listed on stock exchanges in the US. The top three sectors of the index (as of 3/31/10) are technology (19%), financials (16%) and healthcare (12%).
(1) SOURCE: Bank of Ireland Global Markets, "The Outlook," April 2010.
(2) SOURCE: Barclays Capital Emerging Markets Research, "The Emerging Markets Quarterly," March 2010.
Source: BlackRock
Statement of the Securities and Exchange Commission and the Commodity Futures Trading Commission
May 7, 2010--The Securities and Exchange Commission and the Commodity Futures Trading Commission today released the following statement:
“We are continuing to review the unusual trading activity that took place briefly yesterday afternoon to pinpoint its cause and contributing factors.
“Since yesterday, we have been in regular contact with other financial regulators and our respective exchanges. We also have been in touch with our foreign counterparts around the world.
“Our market oversight units are reviewing trading and market data from the exchanges, self regulatory organizations and market participants to examine yesterday's unusual trading activity. We are scrutinizing the extent to which disparate trading conventions and rules across various markets may have contributed to the spike in volatility.
“We are devoting significant resources and expertise to this effort.
“As we determine the cause and contributing factors, we will make our findings and any recommendations public.
“Thursday’s unusual trading activity included extreme volatility for a number of individual securities. This is inconsistent with the effective functioning of our capital markets and we will make whatever structural or other changes are needed.
“Market clearance and settlement processes functioned well and without incident."
Source: SEC.gov
BlackRock ETF Landscape: Latin America Industry Review Year End 2009
May 7, 2010--Highlights
At the end of 2009 the Latin American ETF industry had 17 locally domiciled ETFs, 211 exchange listings, and assets of US$9.84 Bn from three providers on two exchanges.
There are 169 ETFs cross listed in Mexico at the end of December 2009 from eight providers, while there are 340 ETFs registered for sale in Chile from 10 providers, and 277 ETFs registered for sale in Peru from 12 providers.
to request report
Source: Global ETF Research & Implementation Strategy Team, BlackRock
CFTC.gov Commitments of Traders Reports Update
May 7, 2010--CFTC.gov Commitments of Traders Reports Update.
The current reports for the week of May 4, 2010 are now available.
more info
Source: CFTC.gov
UPDATE -- The NASDAQ Stock Market Names Stocks With Cancelled Trades
The NASDAQ Stock Market Had No Technology or System Issues Associated With Yesterday's Trading Between 2:00 and 3:00 p.m. Eastern Time
May 7, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest exchange company, announced that The NASDAQ Stock Market had no technology or system issues associated with the trading that occurred between 2:00 and 3:00 p.m. ET yesterday. The NASDAQ Stock Market operated continuously and its close process ran successfully.
In addition, there is no indication at this time that a NASDAQ market participant experienced a technological failure in connection with this event. NASDAQ has coordinated a process among US Exchanges and therefore, pursuant to rule 11890(b), NASDAQ, on its own motion, will cancel all trades executed between 14:40:00 and 15:00:00 greater than or less than 60% away from the consolidated last print in that security at 14:40:00 or immediately prior. This decision cannot be appealed. NASDAQ has coordinated this decision with all other UTP Exchanges. NASDAQ will be canceling trades on the participant's behalf.
The stocks affected and the break points are posted on the following website: http://media.primezone.com/cache/6948/file/8212.pdf
Source: NASDAQ OMX
