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ETF Asset Flows Don't Sway Metal Prices, SEC Unit Says
November 9, 2012--Asset flows from exchange-traded products linked to metals don't have a significant impact on the price of the commodity, according a study for U.S. regulators weighing JPMorgan Chase & Co. (JPM)'s plan for a copper-backed fund.
The analysis, from a division of the Securities and Exchange Commission, is part of deliberations on a proposal by NYSE Arca Inc. to list the JPM XF Physical Copper Trust, a Nov. 6 SEC filing showed. A group of industrial copper users and at least one U.S. lawmaker oppose the plan, saying it would disrupt metal supplies and drive up prices.
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Source: Bloomberg
CFTC.gov Commitments of Traders Reports Update
November 9, 2012--The current reports for the week of November 6, 2012 are now available.
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Source: CFTC.gov
Exclusive: SEC left computers vulnerable to cyber attacks-sources
November 9, 2012--Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyber attacks, according to people familiar with the matter.
While the computers were unprotected, there was no evidence that hacking or spying on the SEC's computers took place, these people said.
The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC's Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said.
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Source: Chicago Tribune
Agencies Provide Guidance on Regulatory Capital Rulemakings
November 9, 2012--The U.S. federal banking agencies issued three notices of proposed rulemaking in June that would revise and replace the current regulatory capital rules. The proposals suggested an effective date of January 1, 2013.
Many industry participants have expressed concern that they may be subject to a final regulatory capital rule on January 1, 2013, without sufficient time to understand the rule or to make necessary systems changes.
In light of the volume of comments received and the wide range of views expressed during the comment period, the agencies do not expect that any of the proposed rules would become effective on January 1, 2013. As members of the Basel Committee on Banking Supervision, the U.S. agencies take seriously our internationally agreed timing commitments regarding the implementation of Basel III and are working as expeditiously as possible to complete the rulemaking process. As with any rule, the agencies will take operational and other considerations into account when determining appropriate implementation dates and associated transition periods.
Source: FBR
Federal Reserve Board Launches 2013 Capital Planning And Stress Testing Program
November 9, 2012--The Federal Reserve Board on Friday launched the 2013 capital planning and stress testing program, issuing instructions to firms with timelines for submissions and general guidelines.
The program includes the Comprehensive Capital Analysis and Review (CCAR) of 19 firms as well as the Capital Plan Review (CapPR) of an additional 11 bank holding companies with $50 billion or more of total consolidated assets.1
The aim of the annual reviews is to ensure that large, complex banking institutions have robust, forward-looking capital planning processes that account for their unique risks, and to help ensure that institutions have sufficient capital to continue operations throughout times of economic and financial stress. Capital is important to banking organizations, the financial system, and the broad economy because it acts as a cushion to absorb losses and helps to ensure that any such losses are borne by shareholders, not taxpayers. Institutions in the CCAR and CapPR programs will be expected to have credible plans that show they have sufficient capital to continue to lend to households and businesses even under severely adverse conditions, and are well prepared to meet Basel III regulatory capital standards as they are implemented in the United States.
view the Comprehensive Capital Analysis and Review 2013 Summary Instructions and Guidance
Source: FBR
SEC Begins Formal Inquiry Into Knight Related to Computer Error
November 9, 2012--Knight Capital Group Inc.'s(KCG) $457.6 million trading error in August is the subject of a formal investigation by the Securities and Exchange Commission.
Federal examiners are assessing the firm’s compliance with a rule governing risk-control procedures in its trading operation and other regulations, the company said in a filing with the commission yesterday. Knight was also the subject of on-site examinations into its capital and liquidity conditions, it said. Those inquiries have concluded.
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Source: Bloomberg
Canadian Securities Regulators Seek Comment on the Regulation of Market Data Fees
November 8, 2012-- The Canadian Securities Administrators (CSA) today published for comment CSA Consultation Paper 21-401 Real-Time Market Data Fees, which discusses issues related to the cost of real-time market data and seeks stakeholder feedback on options to manage these issues.
Real-time market data plays a key role in Canada's equity markets, as this information provides vital insight into the securities market, including prices, liquidity and trading activity. Given the importance of this data, the CSA are considering whether further steps should be taken to address the fees charged for market data by an individual marketplace and/or collectively by all Canadian marketplaces. The Paper discusses potential concerns with the cost of acquiring real-time market data and identifies possible options designed to reduce data fees and enhance the transparency of proposed fees and changes to fee models.
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Source: Canadian Securities Administrators
WisdomTree Surges As Arnott Withdraws Lawsuit
November 8, 2012--Good news this morning for exchange-traded fund company WisdomTree Investments (WETF): Robert Arnott's Research Affiliates dropped its patent-infringement lawsuit, ending a dispute over "fundamental indexing" that has hung over the stock.
Investors certainly like it: WisdomTree’s stock has surged 11% as of midmorning trading.
The two firms announced the move this morning in a joint press release. ”Based on information that came to our attention during the lawsuit, Research Affiliates can now acknowledge that WisdomTree’s fundamentally-weighted indexes and strategies were developed by WisdomTree independently of Research Affiliates,” Arnott, chairman and CEO of Research Affiliates, said in the release.
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Source: Barron's
BM&FBOVESPA begins bidding process to select Market Makers for Ibovespa Options and Banco Bradesco, Gerdau and Banco do Brasil Equity Options
November 8, 2012--BM&FBOVESPA hereby announces the start of the competitive bidding processes for the selection of up to three market makers for Banco Bradesco S.A. (BBDC4), Gerdau S.A. (GGBR4) and Banco do Brasil S.A. (BBAS3) equity options and for BOVESPA Index (IBOV) options.
The institutions that wish to take part in this process, including nonresidents, have until December 07, 2012 to submit their proposals, with the opening ceremony occurring on December 18, 2012, when the pre-selected institutions will be known. The winners will be announced on January 18, 2013, after the contract has been signed.
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Source: BM&FBOVESPA
CBO-Economic Effects of Policies Contributing to Fiscal Tightening in 2013
November 8, 2012--Substantial changes to tax and spending policies are scheduled to take effect in January 2013, significantly reducing the federal budget deficit. According to CBO's projections' if all of that fiscal tightening occurs, real (inflation-adjusted) gross domestic product (GDP) will drop by 0.5 percent in 2013 (as measured by the change from the fourth quarter of 2012 to the fourth quarter of 2013)-reflecting a decline in the first half of the year and renewed growth at a modest pace later in the year.
That contraction of the economy will cause employment to decline and the unemployment rate to rise to 9.1 percent in the fourth quarter of 2013. After next year, by the agency’s estimates, economic growth will pick up, and the labor market will strengthen, returning output to its potential level (reflecting a high rate of use of labor and capital) and shrinking the unemployment rate to 5.5 percent by 2018.
Output would be greater and unemployment lower in the next few years if some or all of the fiscal tightening scheduled under current law—sometimes called the fiscal cliff—was removed. However, CBO expects that even if all of the fiscal tightening was eliminated, the economy would remain below its potential and the unemployment rate would remain higher than usual for some time.
view the report-CBO-Economic Effects of Policies Contributing to Fiscal Tightening in 2013
Source: CBO (CONGRESSIONAL BUDGET OFFICE)
