Americas ETP News
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Statement at Open Meeting to Propose Rule Amendments Eliminating the Prohibition Against General Solicitation and General Advertising in Rule 506 and Rule 144A Offerings
by Commissioner Troy A. Paredes
U.S. Securities & Exchange Commission
August 29, 2012--Thank you, Chairman Schapiro.
When addressing a joint session of Congress last year, the President expressed his intent to "cut away the red tape that prevents too many rapidly growing startup companies from raising capital and going public."1
On April 5 of this year, the President signed into law the Jumpstart Our Business Startups (JOBS) Act to do exactly that. The goal motivating the bipartisan legislation is to spur our economy and job creation by making it easier for companies to raise the capital they need to invest and hire. In this way, the JOBS Act promotes the SEC’s own mission, which includes facilitating capital formation. In promoting capital formation, the JOBS Act also stands to benefit investors by affording them a wider range of investment opportunities.
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Source: SEC.gov
CFTC Certifies Euro STOXX 50 Ex Financials Index Futures Contract Submitted by Eurex Deutschland
Contract may be Offered to U.S. Persons Through Direct Access Effective August 28, 2012--August 28, 2012-- The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight issued a letter advising Eurex Deutschland (Eurex) that its Euro STOXX 50 Ex Financials Index futures contract submitted by Eurex for review on July 12, 2012, was deemed certified.
The contract satisfies the requirements of the Commodity Exchange Act and the Commission’s Regulations and may be offered or sold to persons in the U.S. through Eurex’s direct access terminals located in the U.S.
read more
Source: CFTC.gov
Knight Capital head defends leadership
August 28, 2012--The head of Knight Capital defended his leadership of the electronic trading company just weeks after a trading glitch left the company on the verge of bankruptcy, adding that its finances were now as "healthy" as they had ever been.
The statements from Tom Joyce, chief executive and a well-known industry figure, came as Knight named three new directors to its board as part of a $400m bailout it agreed to this month. Investors in the bailout now own about 70 per cent of the company.
read more
Source: FT.com
DB-Equity Derivatives and Quantitative Strategy Research-North America-US ETF Market Weekly Review : ETP assets reach record high
August 28, 2012--Net Cash Flows Review
Equity markets moved lower last week. Stocks in the US (S&P 500) fell by-0.50%, while abroad, the MSCI EAFE and MSCI EM indices, both in USD terms, declined by -0.04% and -0.53%, respectively.
Among the other asset classes, over the same period: the 10 Yr US Treasury yield declined 13bps. Meanwhile, the DB Liquid Commodity index gained 1.08%, as Agriculture (DB Diversified Agriculture index), WTI Crude Oil, Gold, and Silver prices rose by 0.18%, 0.15%, 3.37%, and 9.59%, respectively. Finally, Volatility (VIX index) rose by 12.86%.
All US ETP products in aggregate had inflows of $2.9bn last week vs. $0.6bn of inflows in the previous week. Cash flows year-to-date total $91.4bn, for a weekly average of $2.7bn.
Equity, Fixed Income, and Commodity ETPs experienced inflows of +$1.3bn, +$0.5bn, and +$0.9bn last week vs. outflows of -$0.5bn and inflows of +$0.3bn and +$0.8bn in the previous week, respectively.
Within Equity ETPs, Large Cap products had the most inflows (+$0.8bn); while Small Cap products had the most outflows (-$0.2bn). Within Fixed Income ETPs, Corporate products had the largest inflows (+$0.5bn); while Sovereign products had the only outflows (-$0.3bn). And within Commodity ETPs, only the precious metals products had significant flows (+$0.9bn).
Top 3 ETPs & ETNs by inflows: SPY (+$0.7bn), GLD (+$0.6bn), VWO (+$0.5bn) Top 3 ETPs & ETNs by outflows: IWM (-$0.2bn), XLV (-$0.2bn), DIA (-$0.2bn)
New Launch Calendar: No New Listings There were no new product listings last week.
Turnover Review: Floor Activity Increased by 16%
Total weekly turnover increased by 16% to $218bn vs. $188bn from the previous week. However, last week’s turnover level was 42% below last year’s weekly average. Equity ETP turnover increased by $21.6bn, or 13.3%, to $184bn. Concurrently, Fixed Income and Commodity ETPs turnover rose by 0.7% ($0.1bn) and 82.9% ($7.6bn), respectively.
Assets under Management (AUM) Review: Assets Rose by 0.3%
Last week, total US ETP AUM reached a new all-time high of $1.219 trillion. Although Equity ETP assets declined by -$2.3bn, Fixed Income and Commodity ETP assets gained $1.8bn and $4.5bn, respectively. As of last Friday, total assets, year-to-date, had grown by 16.6% or $173.4bn.
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http://pull.db-gmresearch.com/p/632-744E/64203527/US_ETF_Market_Weekly_Review_08282012.pdf
Source: Deutsche Bank - Equity Derivatives and Quantitative Strategy Research - North America
BlackRock First ETP Landscape Thematic Report Published on Fixed Income
August 28, 2012--The Fixed Income Special Report provides key highlights on the global Fixed Income Exchange Traded Products (ETPs) industry, as of July 2012.
This report is the first in a new series of thematic reports that offer an in-depth analysis of specific segments and/or significant market trends emerging within the global ETP industry.
Global Fixed Income ETP assets have rapidly grown to $309 billion, delivering a 10 year compound annual growth rate (CAGR) of 57%.1
Global Fixed Income ETP assets could exceed $1 trillion in five years and $2 trillion over the next decade. We believe investor appetite for Bond ETPs will continue over the coming decade spurred by the income needs of aging populations resulting in a larger allocation to Fixed Income assets.2
The Fixed Income ETP market accounts for a mere 0.3% of the $98 trillion global bond market leaving ample room for future growth.
request report
Source: BlackRock Investment Institute
Wall Street Granted Another Brief Reprieve
August 28, 2012--Wall Street received a brief but important reprieve on Monday, as federal regulators quietly postponed another set of new rules.
At first, when regulators announced their action, the delay went undetected. In a statement on Monday, the Commodity Futures Trading Commission instead highlighted how it approved a package of reforms that would bring clarity to derivatives trading, one of the foggiest corners of Wall Street.
But buried in the 254-page document, the agency also granted a separate extension for some rules. The agency’s decision was reached behind closed doors rather than at a public meeting in Washington.
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Source: NY Times
Statement of Support-Internal Business Conduct Standards
Chairman Gary Gensler
August 27, 2012--I support the final rule implementing Congress' direction that the Commission adopt rules for "timely and accurate confirmation, processing, netting, documentation, and valuation of all swaps."
This direction was included in the swaps market reform provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
Each of these requirements promotes crucial back office standards that will reduce risk and increase efficiency in the swaps market. These final rules are critical to the risk management of swap dealers and major swap participants and lowering their risk to the public.
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Source: CFTC.gov
Federal Reserve Board begins practice of publishing Reserve Bank financial reports on a quarterly basis
August 27, 2012--The Federal Reserve Board on Monday began the practice of publishing unaudited combined Federal Reserve Bank financial reports on a quarterly basis.
This enhancement to the Board's previous financial reporting procedures will provide greater transparency by communicating financial information on a more frequent basis and in greater detail.
view 2012 Q1-Federal Reserve Banks Combined Quarterly Financial Report view the view 2012 Q2-Federal Reserve Banks Combined Quarterly Financial Report CFTC Issues Final Rules Establishing Swap Dealer and Major Swap Participant Requirements for Swap Trading Relationship Documentation, Swap Confirmation, Reconciliation and Compression of Swap Portfolios
The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Commission to adopt rules on the timely and accurate confirmation, processing, netting, documentation, and valuation of all swaps, as well as the reconciliation and compression of swap portfolios. These rules fulfill this congressional direction. Federal Reserve Board considering changes to the implementation timeline for the Dodd-Frank company-run stress test requirements The Federal Reserve in December 2011 issued a notice of proposed rulemaking to implement the enhanced prudential standards and early remediation requirements established under the Dodd-Frank Act. The December 2011 proposal would require all bank holding companies and state member banks with more than $10 billion in total consolidated assets to comply with the requirements to conduct an annual company-run stress test beginning on the effective date of the final rule. The December 2011 proposal would also require all savings and loan holding companies with more than $10 billion in assets to comply with the annual company-run stress test requirements once those holding companies become subject to minimum risk-based capital requirements. read more
Source: FBR
August 27, 2012--The Commodity Futures Trading Commission (CFTC) today approved final rules to improve the risk management procedures of swap dealers and major swap participants.
The CFTC voted 5 to 0 via seriatim to approve the final rules, which will become effective 60 days after publication in the Federal Register.
August 27, 2012--The Federal Reserve Board is considering changes to the implementation timeline for the annual company-run stress test requirements required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The changes under consideration would delay implementation until September 2013 for bank holding companies, state member banks, and savings and loan holding companies with between $10 billion and $50 billion in total consolidated assets.
Source: FBR
