Americas ETP News
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SEC's White Vows New Safeguards Following Nasdaq Failure
August 23, 2013--U.S. Securities and Exchange Commission Chairman Mary Jo White, responding after system errors caused a three-hour halt on the Nasdaq Stock Market, said she will push to adopt proposed automated-trading rules.
The failure that affected Nasdaq’s system for reporting quotes and prices bolsters the case to pass a proposal issued in March, White said in a statement. Advancing it will require the regulator to face down opposition by exchanges, which have pushed the SEC to limit the scope of the rule, including how much information about glitches they must be provide.
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Source: Bloomberg
Nasdaq in Fresh Market Failure
Glitch That Locked Out Investors for Three Hours Is Latest Malfunction in Electronic Trading
August 22, 2013--A technical glitch knocked out trading in all Nasdaq Stock Market NDAQ -3.42% securities for three hours Thursday afternoon, an unprecedented meltdown for a U.S. exchange that paralyzed a broad swath of markets and highlighted the fragility of the financial world's electronic backbone.
Nasdaq officials scrambled to figure out what happened and resume trading. They shared few of their findings with trading firms or the public during regular trading hours, sowing confusion across Wall Street and leaving many investors frustrated.
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Source: Wall Street Journal
Nasdaq Halts Trading in Stocks, Options Amid 'Issue'
August 22, 2013--Computer breakdowns shook American equity markets again today as malfunctioning software that feeds data between exchanges prompted Nasdaq Stock Market to halt trading in thousands of stocks and options.
Nasdaq said trading for all its listed stocks will resume by about 3:25 p.m. following a 15-minute quote-only period, according to a statement on its website.
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Source: Bloomberg
NASDAQ Dividend Achievers Index ETFs List in Canada
Another Milestone in the Worldwide Expansion of NASDAQ OMX Global Indexes
August 22, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) is pleased to support the launch of two new Vanguard exchange-traded funds (ETFs) based on the NASDAQ Dividend Achievers Select Index, Listed on the Toronto Stock Exchange, the Vanguard U.S. Dividend Appreciation Index ETF (TSX:VGG) and the Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (TSX:VGH) are now available to investors in Canada.
NASDAQ OMX acquired the Dividend Achievers Index Family from Mergent, Inc. in December 2012, an acquisition that immediately catapulted NASDAQ OMX Global Indexes into one of the largest providers of dividend indexes in the world, based on benchmarked assets. The world's largest dividend-themed ETF, the Vanguard Dividend Appreciation ETF (Symbol:VIG), tracks the NASDAQ U.S. Dividend Achievers Select Index. As of August 15, 2013, VIG had $16.8 billion in assets under management.
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Source: NASDAQ OMX Global Indexes
Hot Potato: Momentum As An Investment Strategy
August 22, 2013--Momentum investing has important features in common with other factor-based Smart Beta strategies. For example, it has straightforward index or portfolio construction rules that are easily explained and implemented.
And, although momentum investing is emphatically not a contrarian strategy, neither is it necessarily inconsistent with the Smart Beta thesis that prices are noisy and mean-reverting. In this interpretation, momentum investing is a lively game of hot potato—buying rapidly appreciating stocks, holding them for a relatively short period, and selling them before their price trends reverse direction. And in favorable conditions it works very well.
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Source: Research Affiliates
Goldman assessing fallout from options trading glitch
Options trading glitch could cost bank millions-sources
SEC enforcement staff looking into what caused problems
Upgrade of internal inventory system led to bad trades
August 22, 2013--Goldman Sachs Group Inc is assessing the financial damage caused by a trading glitch that led to a flood of erroneous options trades, as U.S. regulators began looking into what caused the problem.
On Tuesday morning, an upgrade of an internal Goldman system affected options on stocks and some exchange-traded funds with listing symbols beginning with the letters H through L.
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Source: Reuters
Bond Funds Lose $30.3 Billion in August in Big 'Shift'
August 21, 2013--U.S.-registered bond mutual and exchange-traded funds lost $30.3 billion to investor redemptions this month, putting them on track for their slowest year since 2004.
The withdrawals for the month through Aug. 19 are already the third-highest on record, following $69.1 billion of withdrawals in June and $42 billion in October 2008, according to a report dated yesterday by TrimTabs Investment Research in Sausalito, California. Bond funds have suffered $4 billion in redemptions this year, on pace for the biggest withdrawals since investors pulled $7 billion in 2004.
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Source: Bloomberg
Minutes Of The Federal Open Market Committee, July 30-31, 2013
August 21, 2013--The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the minutes of the Committee meeting held on July 30-31, 2013.
The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. The descriptions of economic and financial conditions contained in these minutes are based solely on the information that was available to the Committee at the time of the meeting.
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Source: FBR
Goldman trading glitch could cost more than $100 million
August 21, 2013--Goldman Sachs experienced a trading glitch Tuesday that resulted in a large number of erroneous single stock and ETF options trades. Many of the trades may wind up being erased but the error could still cost the firm upwards of $100 million, according to a person familiar with the situation.
"The exchanges are working to resolve the issue," a Goldman spokesman said in a statement. "Neither the risk nor the potential loss is material to the financial condition of the firm."
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Source: CNBC.com
QFA-Inter Quarterly Broadcast Update
August 20, 2013--The word for the month is 'Caution'.
The U.S. equity market has had a great run, but, seasonally it is heading into its most treacherous time of the year. This, is why we have sold off equity indices, growth stocks for the last three months
and have sold a lot of calls on existing stock positions. Our timing could have been a little better but we are extremely sensitive to protecting your principal.
The Fed will likely taper their bond buying program next month. The debt ceiling debate could boost market volatility. Investor sentiment is optimistic. The VIX index suggests investor complacency and the economy is still dealing with the lagged effects of the 2013 tax bite. Looming issues near term include; full dosage of the sequester, middle east crisis and higher unemployment levels in 26 States!
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Source: QFA
