Americas ETP News
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UBS, State Street discussed asset management merger
August 8, 2012--UBS was in talks with State Street Corp about a possible combination of their asset management businesses, but those talks fell through in June, according to two people familiar with the situation.
For UBS, which had $599 billion in assets under management as of June 30, the merger would have provided a capital infusion, said one of the sources, who declined to be named because he is not allowed to speak to the press.
A UBS spokeswoman referred a request for comment to a statement made by UBS Chief Executive Sergio Ernotti during the company's second-quarter earnings call in which he said, "Our strategy builds on the strengths of all our businesses, including our diversified asset management business." The spokeswoman declined to comment on the discussions with State Street.
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Source: Reuters
DB-Equity Research-US ETF+ Monthly Directory : July 2012 ETPs
August 7, 2012--This document includes all US listed exchange-traded funds (ETFs) and exchangetraded vehicles (ETVs), plus a special section covering exchange-traded notes (ETNs).
The directory is organized by asset class and asset-class-related sub sections. Within each sub section it has also been sorted. For Equity and Fixed Income ETPs it is sorted by country (or sub region for regional products) in alphabetical order and by AUM in descending order, and for the other ETP asset classes it is sorted by sub sector in alphabetical order and by AUM in descending order. A number of key information points per product has been included in order to enable the reader to get an overview in their respective area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US). If you have any questions for any of the products listed, or any suggestions on how to improve the directory going forward, please do not hesitate to get in touch.
The following link will be available for 90 days. For more information, please click on the link for the full PDF. If you have any trouble viewing the link, copy and paste the link in a browser.
http://pull.db-gmresearch.com/p/374-A9E6/22254493/US_ETF+_Monthly_Directory.pdf
Source: Deutsche Bank-Equity Research-North America
Moment of truth for US grain
August 8, 2012--Hundreds of hedge fund managers, commodity merchants, government officials and farmers will have one thing on their mind when they turn on their computers on Friday: US grain statistics.
The release of this specialised report from the US Department of Agriculture has acquired huge market significance this year as the worst drought in half a century shrivels crops in America’s farm belt. It will influence trading for days and weeks to come as well as possible government decisions on biofuels and feed exports.
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Source: FT.com
Russell to conduct strategic review of its U.S. ETF business
August 8, 2012--Russell Investments is reviewing its direct U.S. exchange-traded fund business and will scale back the team dedicated to those funds.
Russell will focus on its core role of providing multiasset solutions to investors and advisers, the firm said in a statement posted on its website.
The firm, whose direct ETF team works mostly in San Francisco and New York, will cut about 30 jobs between the two offices, Steve Claiborne, a spokesman for Seattle-based Russell, said in a telephone interview. The ETFs provided by the firm have about $300 million in assets.
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Source: Pensions & Investments
Federal Reserve Board extends comment period on three proposed capital rules rulemakings until October 22, 2012
July 8, 2012--The Federal Reserve Board on Wednesday announced the extension of the comment period until October 22, 2012, on three notices of proposed rulemaking that would revise and replace current capital rules.
The proposals by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency would implement the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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Source: FBR
Knight Capital to Fully Resume NYSE and NYSE MKT Designated Market Maker Responsibilities on Monday, Aug. 13, 2012
August 8, 2012--Knight Capital Group Inc., has regained some of the market share it lost after a huge trading loss last week nearly ran it out of business and will resume full market-making responsibilities as of next week.
Knight, which secured a $400 million bailout from an investor consortium in exchange for a 73 percent stake, may have turned down a more lucrative rescue bid that might have had less of an effect on shareholders from hedge fund Citadel LLC, a source familiar with negotiations said on Tuesday.
The bailout has restored some confidence in the firm days after a software glitch caused a trading loss of $440 million - most of Knight's capital - and caused customers to desert. Trading volumes are now steadily recovering SEC to Host Market Technology Roundtable
Nearly all trading in the equity and options markets depends on the reliable performance of highly automated systems used by investors, broker-dealers, and exchanges and other trading systems.
read more "Libor, Naked and Exposed-New York Times OP-ED" read more
AdvisorShares Set to Launch the QAM Equity Hedge ETF (NYSE: QEH) QEH employs an actively managed long/short strategy that seeks to exceed the risk-adjusted performance of approximately 50% the long/short equity hedge fund universe as defined by the constituents of the HFRI Equity Hedge (Total) Index, aiming to provide investors with better risk adjusted returns versus the S&P 500 Index over time while reducing the time required and expertise needed to select individual hedge funds. Combined with its exposure to the HFRI Equity Hedge (Total) Index, CAM utilizes its own proprietary research with Markov Processes International's ("MPI") Dynamic Style Analysis ("DSA") hedge fund analysis software, and extensive experience and knowledge of the hedge fund investment community for its portfolio management of QEH. read more DB - Equity Research-US ETF Market Monthly Review : ETP AUM added $30bn helped by equity inflows of $16bn
Muddling through the way back to risk-on
Within long-only ETPs, total flows were +$15.7bn in July vs. +$11.6bn in June. Equity, Fixed Income, and Commodity long-only ETPs experienced cash flows of +$14.8bn, +$0.9bn, and -$1.6bn, respectively. July and June ETP flow trends, although flickering, have been pointing towards a comeback to risk. Moreover, flows have been consistent with the market which has downplayed the negativism portrayed towards the end of Q2. Nevertheless, July ETP flows exhibited a more evident bias towards risk as compare to June. The main shift was marked by a clearer allocation to riskier asset classes along with a significant departure from typical ‘safe haven’ investment segments. Although markets are still navigating choppy seas, ETP flow trends suggest that investors are becoming less negative about the outlookin Europe and in the US. However as the oscillation of equity flows suggests (Figure 3), the situation remains fluid and could revert easily on the back of any negative development. Stronger and steadier inflows to equity would be required before we could confirm a full shift back to risk on.
Some of the relevant flow trends of the month were: (1) US equity (+$11.4bn), (2) Sovereign debt (-$4.1bn), and (3) Corporate debt (+$2.7bn).
New Launch Calendar: ETFs going after alpha and income
ETP floor activity recorded lowest level since May 2007
US ETP trading made up 26.0% of all US cash equity trading in July, down from both its August 2011 peak of 37.5% and its 3-year monthly average of 29.4%.
The largest drop was on Equity ETP turnover, which fell by $205bn or 17.9% to $0.9 trillion, followed by Commodity and Fixed Income ETP turnover which shrank by $18.2bn (totaling $50bn) and $15.2bn (totaling $67bn) during last month, respectively. request report
SOurce: Fox Business News
August 8, 2012--The Securities and Exchange Commission today announced that it will host a technology roundtable next month to discuss ways to promote stability in markets that rely on highly automated systems.
The roundtable entitled “Technology and Trading: Promoting Stability in Today’s Markets” will take place on September 14 and convene experts on designing, operating, and controlling the systems that form the core of our market’s infrastructure.
Source: SEC.gov
Opinion by Chairman Gary Gensler
August 7, 2012--AMERICANS who save for the future, use credit cards or borrow money for tuition, cars and homes deserve assurance that the interest rates on their savings and loans are set in a reliable and honest way.
That’s why the revelation that the British bank Barclays attempted to manipulate the London interbank offered rate, or Libor — one of the benchmark rates used to determine the cost of borrowing around the world — is so disturbing. But the Barclays case isn’t only about misconduct by large financial institutions. It also raises questions about the reliability and accuracy of these key interest rates, which are largely determined by the private sector, without significant government oversight.
Source: CFTC.gov
New Actively Managed ETF Seeks to Outperform Long/Short Equity Hedge Fund Universe
August 7, 2012--AdvisorShares, a leading sponsor of actively managed Exchange Traded Funds (ETFs), announced today that the QAM Equity Hedge ETF (NYSE: QEH) will open for trading tomorrow, Wednesday, August 8, 2012.
QEH is sub-advised by Commerce Asset Management ("CAM"), a Memphis, Tenn.-based investment advisor and subsidiary of Commerce Holdings, LLC who advise on approximately $700 million in assets.
Source: AdvisorShares
August 7, 2012--US ETP assets rose by 2.6% MoM in July reaching a 14% growth YTD
ETP assets in the US rose by $29.9bn to $1.19 trillion last month, boosting AUM growth to a decent 14% growth on a YTD basis.
Global ETP industry assets rose to $1.62 trillion, or 13.0% up YTD.
US ETP flows experienced inflows of $16.3bn during July (+$88.5bn, 8.5% of last year’s AUM).
There were 9 new ETPs and 1 new ETN listed during the previous month. All of the products were listed in the NYSE Arca. The new products cover multiple asset classes such as equity, fixed income, and currency (See figure 20 for more details). Most of the new additions to the ETF offering give access to incomedriven investments, actively managed strategies, or enhanced beta indices
Total monthly turnover dropped by 18.5% to $1.07 trillion vs. $1.31 trillion in the previous month.
Source: Deutsche Bank-Equity Research-North America
