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Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
October 16, 2009--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, October 16, 2009:
The shares of Western GeoPower Corp. (TSXV:WGP) will be removed from the index. The company has been acquired by GTO Resources Inc. through a Plan of Arrangement.
The shares of Buffalo Resources Corp. (TSXV:BFR) will be removed from the index. The company has been acquired by Twin Butte Energy Ltd. (TSX:TBE) subsequent to an Arrangement Agreement.
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 & Poors
Standard & Poor's Announces Changes in the S&P/TSX Canadian Indices
October 16, 2009-Standard & Poor's Canadian Index Operations announces the following index changes:
The shareholders of Moto Goldmines Ltd. (TSX:MGL) have approved the share exchange offer from Randgold Resources Ltd. (NASDAQ:GOLD). Pursuant to the arrangement agreement, shareholders of Moto will receive 0.07061 ordinary shares (LSE:RRS) or ADR's (NASDAQ:GOLD) for each share held.
The ADR ratio is 1-for-1. Moto will be removed from the S&P/TSX SmallCap and Equity SmallCap indices effective after the close of Tuesday, October 20, 2009.
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 and Poors
CFTC and SEC Issue Joint Report on Regulatory Harmonization
October 16, 2009--The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) today issued a joint report identifying areas where the agencies’ regulatory schemes differ and recommending actions to address those differences, where appropriate.
In June, the White House released a White Paper on Financial Regulatory Reform calling on the CFTC and SEC to “make recommendations to Congress for changes to statutes and regulations that would harmonize regulation of futures and securities.”
Today’s report includes 20 recommendations to enhance enforcement powers, strengthen market and intermediary oversight and improve operational coordination (See pages 11-14 of the attached report for a list of recommendations).
“In this report, our agencies rose above the usual challenges and came together to offer meaningful recommendations to improve our oversight of the financial markets,” CFTC Chairman Gary Gensler said. “This is just one important step. Now we must continue to work together to implement these recommendations and work with Congress to secure necessary changes in statute to best protect the American public.”
“This report is another step forward in our effort to reform the regulatory landscape and ensure greater harmonization between our agencies,” said SEC Chairman Mary Schapiro. “I believe these recommendations will help to fill regulatory gaps, eliminate inconsistent oversight, and promote greater collaboration.”
Over the past several months, the CFTC and the SEC have engaged in extensive discussions, including their first ever joint public meetings last month. The meetings solicited views from members of the investor community, academics, industry experts and market participants on the current regulatory scheme, harmonization of the agencies’ rules and recommendations for changes to statutes and regulations. The agencies also solicited written comments to further assist their deliberations.
A Joint Report of the SEC and the CFTC
on Harmonization of Regulation
Source: CFTC.org
Joint Statement of Tim Geithner, Secretary of the Treasury,Peter Orszag,
Director of the Office of Management and Budget, on Budget Results for Fiscal Year 2009
October 15, 2009--U.S. Treasury Secretary Tim Geithner and White House Office of Management and Budget (OMB) Director Peter R. Orszag today released details of the final Fiscal Year 2009 budget results. In making the announcement, Geithner and Orszag pointed to the severe economic and financial crisis the country faced this year and the Administration's commitment to lay a new foundation for economic growth and fiscal sustainability.
"This year's deficit is lower than we had projected earlier this year, in part because we are managing to repair the financial system at a lower cost to taxpayers. But future deficits are too high, and the President is committed to working with Congress to bring them down to a sustainable level as the economy recovers," Secretary Geithner explained.
"It was critical that we acted to bring the economy back from the brink earlier this year. As we move from rescue to recovery, the President recognizes that we need to put the nation back on a fiscally sustainable path. As part of the FY 2011 budget policy process, we are considering proposals to put our country back on firm fiscal footing," Director Orszag stated.
A summary of the FY2009 data, released as part of the September 2009 Monthly Treasury Statement of Receipts and Outlays of the United States Government, shows that the federal deficit dropped by $162 billion from a projected $1,580 billion in the August Mid-Session Review (MSR) to the final figure of $1,417 billion.
Receipts for the fiscal year totaled $2,105 billion, while outlays totaled $3,522 billion.
The decline in the deficit from the August MSR estimate reflected outlays that were $132 billion lower than expected in August, in large measure because of lower-than-anticipated outlays by the government's Troubled Assets Relief Program (TARP). The decline was also the result of receipts that were $31 billion higher than estimated in the MSR.
The FY2009 deficit was largely the product of the spending and tax policies inherited from the previous Administration, exacerbated by a severe recession and financial crisis that were underway as the current Administration took office. The new Administration's chief economic stabilization and recovery efforts implemented through TARP and the American Recovery and Reinvestment Act (Recovery Act) accounted for 24 percent of the deficit total.
Federal borrowing from the public net of financial assets increased by $1,417 billion during FY2009, to $6,711 billion or 47.2 percent of GDP. [1]
Summary of Fiscal Year 2009 Final Data
read more
Source: U.S. Department of the Treasury.
Treasury International Capital Data for August
October 16, 2009--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for August 2009. The next release, which will report on data for September 2009, is scheduled for November 17, 2009.
Net foreign purchases of long-term securities were $28.6 billion.
Net foreign purchases of long-term U.S. securities were $32.9 billion. Of this, net purchases by private foreign investors were $21.3 billion, and net purchases by foreign official institutions were $11.6 billion.
U.S. residents purchased a net $4.3 billion of long-term foreign securities. Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $13.0 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $18.5 billion. Foreign holdings of Treasury bills decreased $2.5 billion.
Banks' own net dollar-denominated liabilities to foreign residents increased $15.7 billion.
Monthly net TIC flows were $10.2 billion. Of this, net foreign private flows were $14.9 billion, and net foreign official flows were negative $4.7 billion.
Complete data are available on the Treasury website at www.treas.gov/tic
Source: U.S. Department of the Treasury.
Wisom Tree files with the SEC
October 15, 2009--Wisdom Tree has filed a prospetus with the SEC. The prospectus refers to the following funds:
WisdomTree
Fixed Income Funds
WisdomTree U.S. Short-Term Government Income Fund
WisdomTree Currency Income Funds
WisdomTree U.S. Short-Term Government Income Fund (formerly the WisdomTree U.S. Current Income Fund) -Ticker:USY
WisdomTree Dreyfus Brazilian Real Fund-Ticker:BZF
WisdomTree Dreyfus Chinese Yuan Fund-Tocker:CYB
view filing
Source: SEC. gov
AlphaShares Launches New China All Cap Index Covering Broad Market of Chinese Stocks
New China All Cap Index includes Chinese companies listed in Hong Kong and New York including the technology and consumer sectors
October 15, 2009--The first China All Cap Index designed to track Chinese companies of all capitalization sizes has been introduced by AlphaShares, LLC, it was announced today.
The AlphaShares China All Cap Index (Bloomberg: ACNAC) measures the performance of large, mid and small capitalization Chinese companies currently trading on the Hong Kong or New York stock exchanges and available to international investors. The index uses a modified market capitalization weighting methodology that limits individual companies to five percent of the index and sector exposure to 35 percent of the index. It does not currently include China A-Shares or China B-Shares.
“The major China indexes and the ETFs based on them are materially flawed,” said Dr. Burton G. Malkiel, Co-founder and Chief Investment Officer of AlphaShares. “The largest does not include important Chinese technology companies such as Baidu, BYD or Tencent. It has 45% exposure to financials - dominated by extremely large state owned banks. It has nearly 20% in state owned oil companies, and perhaps worse, it has no exposure to the Consumer sectors. Investors should be seeking exposure to China but they should look more closely at what they are buying when they use an (index-based) ETF. We believe the AlphaShares China All Cap Index is now the best index available for investors seeking exposure to the increasingly important China equities market.”
The AlphaShares China All Cap Index has been licensed to Claymore Advisors, LLC (“Claymore”) and it is anticipated to be the basis for the Claymore/AlphaShares China All-Cap ETF (NYSE Arca: YAO) that is scheduled to launch later this month. AlphaShares has licensed two other China indexes to Claymore. The AlphaShares China Real Estate Index (Bloomberg: ACNRE) serves as the basis for the Claymore/AlphaShares China Real Estate ETF (NYSE Arca: TAO) which provides exposure to Chinese real estate companies and the AlphaShares China Small Cap Index (Bloomberg: ACNSC) serves as the basis for the Claymore/AlphaShares China Small Cap Index ETF (NYSE Arca: HAO) which provides exposure to Chinese small cap stocks.
Source: AlphaShares
Guggenheim Partners Announces the Acquisition of Investment Adviser to Claymore-Advised Funds
October 15, 2009-Guggenheim Partners, LLC ("Guggenheim Partners"), a global diversified financial
services firm, and Claymore Group Inc. ("Claymore"), a leading provider of
innovative investment products, including exchange-traded funds ("ETFs"),
closed-end funds ("CEFs" and, together with the ETFs, the "Funds") and unit
investment trusts, announce the completion of a previously-announced merger.
As
a result of the transaction, Claymore and its associated entities, including
Claymore Securities, Inc., Claymore Advisors, LLC and Claymore Investments, Inc.
in Canada, are now indirect wholly-owned subsidiaries of Guggenheim Partners.
:read more
Source: Reuters
Financial Services Committee Approves Legislation to Regulate Derivatives
Committee completes work on a key element of President Obama’s plan to bring accountability and responsibility to Wall Street
October 15, 2009-- Washington, DC - The House Financial Services Committee today approved legislation that would, for the first time ever, require the comprehensive regulation of the over-the-counter (OTC) derivatives marketplace. Today’s bill, which was approved by a vote of 43-26, represents a key part of a broader effort by Congress and President Obama to modernize America’s financial regulatory system in response to last year’s financial crisis.
Under the bill, all standardized swap transactions between dealers and large market participants, referred to as “major swap participants,” would have to be cleared and must be traded on an exchange or electronic platform. A major swap participant is defined as anyone that maintains a substantial net position in swaps, exclusive of hedging for commercial risk, or whose positions creates such significant exposure to others that it requires monitoring. OTC derivatives include swaps, which are contracts that call for an exchange of cash between two counterparties based on an underlying rate, index, credit event or the performance of an asset.
The legislation then sets out parallel regulatory frameworks for the regulation of swap markets, dealers, and major swap participants. Rulemaking authority is held jointly by the Commodity Futures Trading Commission (CFTC), which has jurisdiction over swaps, and the Securities and Exchange Commission (SEC), which has jurisdiction over security-based swaps. The Treasury Department is given the authority to issue final rules if the CFTC and SEC cannot decide on a joint approach within 180 days. Subsequent interpretations of rules must be agreed to jointly by the Commissions.
Description of the Over-the-Counter Derivatives Markets Act of 2009
Clearing
The legislation provides a mechanism to determine which swap transactions are sufficiently standardized that they must be submitted to a clearinghouse. For transactions that are clearable, clearing is a requirement when both counterparties are either dealers or major swap participants. Clearing organizations must seek approval from the appropriate regulator—either the CFTC or the SEC—before a swap or class of swaps can be accepted for clearing.
Transactions in standardized swaps that involve end-users are not required to be cleared. Such customized transactions must, however, be reported to a trade repository.
Mandatory Trading on Exchange or Swap Execution Facility
A standardized and cleared swap transaction where both counterparties are either dealers or major swap participants must either be executed on a board of trade, a national securities exchange or a “swap execution facility”—as defined in the legislation. If none of these venues makes a clearable swap available for trading, the trading requirement would not apply. Counterparties would, however, have to comply with transaction reporting requirements established by the appropriate regulator. The legislation also directs the regulators to eliminate unnecessary obstacles to trading on a board of trade or a national securities exchange.
Registration and Regulation of Swap Dealers and Major Swap Participants
Swap dealers and major swap participants must register with the appropriate Commission and dual registration is required in applicable cases. Capital requirements for swap dealers' and major swap participants' positions in cleared swaps must be set at greater than zero. Capital for non-cleared transaction must be set higher than for cleared transactions. The prudential regulators will set capital for banks, while the Commissions will set capital for non-banks at a level that is “as strict or stricter” than that set by the prudential regulators.
The regulators are directed to set margin levels for counterparties in transactions that are not cleared. The regulators are not required to set margin in transaction where one of the counterparties is not a dealer or major swap participant. In cases where an end user is a counterparty to a transaction, any margin requirements must permit the use of non-cash collateral.
Reporting and Public Disclosure of Swap Transactions
Reporting and recordkeeping is required for all over-the-counter derivative transactions. Clearing organizations must provide transaction information to the relevant Commission and a designated trade repository. Swap transactions that are not cleared and for which no trade repository exists, must be reported directly to the relevant Commission. The legislation also provides for public disclosure of aggregate data on swap trading volumes and positions—in a manner that does not disclose the business transactions or market position of any person. Large positions in swaps must also be reported directly to regulators.
Swap Execution Facilities
Swap execution facilities, or facility for the trading of swaps that are not Boards of Trade or National Securities Exchanges, must register with the relevant regulator as a swap execution facility (SEF). SEFs must also adhere to core regulatory principles relating to enforcement, anti-manipulation, monitoring, information collection and conflicts of interest, among others. The CFTC and SEC are required to prescribe joint rules governing the regulation of swap execution facilities. A Commission may exempt a SEF from registration if it is subject to comparable, comprehensive supervision and regulation by another regulator.”
view the OTC Derivatives Markets Act of 2009
Source: House Financial Services Committee
Statement of Chairman Gary Gensler on House Financial Services Committee Passage of OTC Derivatives Regulatory Reform Legislation
October 15, 2009-U.S. Commodity Futures Trading Commission Chairman Gary Gensler today commented on the OTC Derivatives Markets Act of 2009, passed this morning by the House of Representatives Committee on Financial Services. Chairman Gensler said:
“Today’s vote by the House Financial Services Committee represents historic progress toward comprehensive regulatory reform of the over-the-counter derivatives marketplace. The Committee’s bill is a significant step toward lowering risk and promoting transparency. Substantive challenges remain. I look forward to building on this Committee’s hard work with Chairman Frank, Chairman Peterson and others in the House and Senate to complete legislation that covers the entire marketplace without exception and to ensure that regulators have appropriate authorities to protect the public."
Source: CFTC.gov
