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NASDAQ OMX Announces Third Equity Trading Platform in the U.S.
Leverages NASDAQ OMX PHLX Equity License and Becomes First Exchange
to Offer Price Size Priority Model
October 14, 2009-The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ), the world's largest exchange company, today announced
that it plans to launch a third equity trading platform during the
second half of 2010, pending SEC approval. NASDAQ OMX will offer this
equity trading platform with a new price/size priority model using the
license acquired from its 2007 acquisition of the former Philadelphia
Stock Exchange, known today as NASDAQ OMX PHLX.
ASDAQ OMX's new equity price/size priority market structure is
currently not offered on The NASDAQ Stock Market, NASDAQ OMX BX, or any
other U.S. equity trading platform. The new model gives customers the
ability to choose how to execute orders by either selecting a
price/size priority model on NASDAQ OMX PHLX or a price/time priority
model available on the exchange's other two U.S. equity trading
platforms. NASDAQ OMX's new equity platform will also run on the INET
technology to leverage the speed and efficiency benefits offered
throughout NASDAQ OMX globally.
"NASDAQ OMX is pleased to continue its tradition of offering customers additional choices that will help supplement their various trading strategies. Based on feedback from key customers we decided to announce the launch of this trading platform that offers a new competitive equity market structure model," commented Eric Noll, Executive Vice President, NASDAQ OMX Group. "Furthermore, we are happy to extend one of the many assets of our acquisition of The Philadelphia Stock Exchange, yet again, to provide the benefits to our equity trading customers," added Mr. Noll.
Currently, The NASDAQ Stock Market and NASDAQ OMX BX offer customers a
price time priority model with different pricing and functionality.
NASDAQ OMX will reactivate its NASDAQ OMX PHLX equity license. NASDAQ
OMX PHLX today operates a leading equity options trading business.
Today, NASDAQ OMX also offers two diverse market structures for equity
options trading in the U.S. with The NASDAQ Options Market and NASDAQ
OMX PHLX, the third largest U.S. options market.
Source: NASDAQ OMX
CME Group Announces The Launch Of New Options Contracts On Futures Strips For Natural Gas, Crude Oil, Electricity And Coal
October 14, 2009--CME Group, the world's largest and most diverse derivatives marketplace, today announced the launch of trading and clearing services for seven new options contracts on underlying futures strips for natural gas, crude oil, electricity and coal.
Trading will be available on the New York trading floor and clearing services will be available through CME ClearPort®, a set of flexible clearing services open to over-the-counter (OTC) market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes, scheduled to begin on November 1 for trade date November 2. These contracts are listed with and subject to the rules and regulations of NYMEX.
The European style options contracts and commodity codes will be:
Natural gas option on calendar futures strip (6J)
Natural gas option on summer futures strip (4D)
Natural gas option on winter futures strip (6I)
Crude oil option on calendar futures strip (6F)
Crude oil option on quarterly futures strip (6E)
PJM electricity option on calendar futures strip (6O)
Central Appalachian coal option on calendar futures strip (6M)
The energy industry widely uses options on futures strips (also known as swaptions) that represent the right, but not the obligation, to exercise into a consecutive monthly strip of futures. Such options are economically efficient because producers and consumers of a given commodity can lock in the right to buy or sell futures on a given multi-period time horizon with a single premium for a single expiration date. This is in contrast to a strip of options that usually have the same exercise price but would have multiple expiration dates and different premiums for each month. The options on futures strips are generally less expensive than buying individual options for each month for the same strike price, but the options strips allow greater flexibility in whether or not to exercise over the course of the entire time period.
The first listed month for the calendar and quarterly futures strips will be January 2010; for the summer futures strip will be April 2010; and for the winter futures strip will be November 2010. Options on calendar futures for PJM, crude oil and natural gas will be listed for five consecutive years; options on calendar futures strips for coal will be listed for four consecutive years; crude oil options on quarterly futures strip will be listed for the nearest four consecutive quarters; and natural gas will have one summer and one winter strip.
The minimum price fluctuations will be $0.0001 per MMBtu for natural gas; $0.01 per barrel for crude oil; $0.01 per megawatt hour for PJM; and $0.01 per ton for coal. The contract sizes are: 30,000 MMBtus for natural gas calendar strips; 17,500 MMBtus for natural gas summer strips; 12,500 MMBtus for natural gas winter strips; 12,000 barrels for crude oil calendar strips; 3,000 barrels for crude oil quarterly strips; approximately 10,200 MMBtus for PJM calendar strips; and 18,600 tons for coal calendar strips.
For more information please visit www.cmegroup.com/clearport.
Source: CME Group
DB Index Research -- Weekly ETF Reports -- US
October 14, 2009--Highlights
ETF Volume
US ETF turnover remained at about the same level at US$59.1bn in the previous week. Turnover in the S&P 500 SPDR ("Spider") was US$19.2bn. The PowerShares QQQ Nasdaq 100 had turnover of US$4.3bn followed by the iShares Russell 2000 with turnover of US$2.8bn.
There were no new ETFs launched in the last week.
In the previous week, average daily turnover in the Large Cap, US Sector Leveraged and global regional products was US$25.1bn (4.6%), US$9.1bn (6.4%), US$8.4bn (0.7%) and US$4.2bn (7.4%) respectively.
Among the Emerging country ETFs, iShares MSCI Brazil ETF turnover was US$1,107m followed by iShares FTSE/Xinhua China ETF with turnover of US$782m. In non-US developed market flows, iShares MSCI Japan had turnover of US$334m. In non-domestic regional flows, emerging market turnover was US$2.9bn and developed markets regional flows EAFE had turnover of US$1.1bn.
Assets under Management (AUM) Total assets under management for equity based ETFs rose by 3.4% in the previous week, AUM were US$555.4bn.
To request a copy of the report click here
Source: Aram Flores and Shan Lan -DB Index Research
House panel begins financial overhaul
October 14, 2009-
Small neighborhood banks and the US Chamber of Commerce are overshadowing the nation's biggest banks in influencing lawmakers as Congress begins the initial phase of its long-awaited overhaul of how the government regulates financial companies.
The House Financial Services Committee on Wednesday is taking up key elements of President Barack Obama's proposal for correcting the practices of banks, investment houses and other financial institutions that caused last year's economic collapse.
Up first is a measure that for the first time would regulate privately sold derivatives like credit default swaps, the complex contracts that brought down Wall Street banking house Lehman Brothers Holdings Inc. and nearly toppled insurance giant American International Group Inc.
The committee also wants to establish a Consumer Financial Protection Agency to police mortgages, credit cards and other consumer products offered by banks and other financial institutions.
Bankers and Republicans generally oppose the new agency, but community banks and the Chamber of Commerce have wielded the most influence in getting the House panel's Democrats to modify and clarify the regulatory powers that Obama would give it.
Source: Online News
Old Mutual has filed with the SEC
October 14, 2009-Old Mutual Global Shares Turst has filed a Preliminary Prospectus with the SEC for the following funds:
GlobalShares FTSE All-World Fund
GlobalShares FTSE Emerging Markets Fund
GlobalShares FTSE All-Cap Asia Pacific ex Japan Fund
GlobalShares FTSE All-World ex US Fund
GlobalShares FTSE Developed Countries ex US Fund
view filing
Source: SEC.gov
iShares files with the SEC
October 14, 2009-iShares has filed a ammended request for exemptive relief from the SEC for the India Fund.
view filing
Source: SEC.gov
ETF Hedge Fund Shop Names Traxis’ Dhanraj President
October 14, 2009--A hedge fund firm that invests exclusively in exchange-traded funds has added a Traxis Partners veteran as its president.
Charles Dhanraj will oversee infrastructure and new strategic relationships at ETF Portfolio Management. He is also charged with executing the firm’s growth plan.
"Charles brings a wealth of operational and institutional experience to ETF PM," David Kreinces, ETF PM's founder, said. "As the newest member of our management team, Charles will also help us identify new business opportunities and strategic partnerships to implement our investment platform.”
Source: Fin Alternatives
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
October 13, 2009--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Tuesday, October 13, 2009:
The shares of Mano River Resources Inc. (TSXVN:MNO) will trade under the new name African Aura Mining Inc. The new ticker symbol will be "AUR" and the new CUSIP number will be 00830H 10 8.
The capital of the company will be consolidated on a 1-for-8 basis.
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
ProShares Ultra Financials Fund (Symbol: UYG) Class Action Filed by Bernstein Liebhard LLP
October 13, 2009--Bernstein Liebhard LLP filed a class action lawsuit on October 13, 2009 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares in the Ultra Financials Fund (the "UYG Fund") (NYSE: UYG), an exchange-traded fund ("ETF") offered by ProShares Trust ("ProShares"), pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the "Registration Statement") issued in connection with shares of the UYG Fund (the "Class"). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").
The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, "Defendants"). ProShares sells its Ultra and UltraShort ETFs as "simple" directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The UYG Fund is one of ProShares' Ultra ETFs. The UYG Fund seeks investment results that correspond to twice (+200%) the daily performance of the Dow Jones U.S. Financial Index ("DJUSFI"). Accordingly, the UYG Fund is supposed to deliver double the return of the DJUSFI, which, from January 1, 2009 through July 30, 2009, increased approximately 1.47 percent. Rather than increase approximately 2.9 percent (double), the UYG Fund has fallen approximately 25 percent.
The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if UYG Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the UYG Fund would inevitably diverge from the performance of the DJUSFI -- i.e., the overwhelming probability, if not certainty, of spectacular divergence.
read more
Source: Bernstein Liebhard LLP
Direxion Funds files with SEC
October 13, 2009--Direxion has filed a prospectus with the SEC for the following fund:
Direxion IPOX Global Long/Short Strategy Fund
Investment Objective.
The Fund seeks capital appreciation. To achieve its investment objective, the Fund invests in initial public offerings (“IPOs”) and spin-offs using a combined long/short strategy developed by the Subadviser. The Fund’s investment objective is not a fundamental policy and may be changed by the Fund’s Board of Trustees without shareholder approval.
Total Annual Operating Expenses
Investor Class: 1.90%
Institutional Class:
1.40%
view filing
Source: SEC.gov
