Americas ETP News
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U.S. Court Of Appeals For The Federal Circuit Unanimously Rules In ISE's Favor In Patent Infringement Case Against Chicago Board Options Exchange
May 7, 2012--The International Securities Exchange (ISE) announced today that the U.S. Court of Appeals for the Federal Circuit unanimously ruled in ISE's favor in the exchange's patent infringement case against the Chicago Board Options Exchange (CBOE).
This decision clears the way for the case to move back to the District Court where ISE will aggressively pursue its claims of patent infringement.
ISE originally brought the action against the CBOE in November 2006 for infringement of its primary patent, U.S. Patent No. 6,618,707, titled "Automated Exchange for Trading Derivative Securities." Among other aspects, this patent covers ISE’s trade matching algorithm.
Gary Katz, ISE’s President and CEO, said, "We are very gratified that the Appeals Court ruled unanimously in ISE’s favor. We will continue to vigorously pursue our ongoing effort to protect our patented technology as this case moves back to the trial judge for further consideration." ISE is represented in the litigation by Goodwin Procter LLP.
Source: International Securities Exchange (ISE)
Deutsche Bank - Equity Research - North America-US ETF+ Monthly Directory : April 2012 ETPs
April 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).
view US ETF+ Monthly Directory : April 2012 ETPs
Source: Deutsche Bank-Equity Research-North America
DB Equity Research Equity Research-US ETF Market Monthly Review : Market sell-off removes $23bn or 1.9% from ETP assets
May 7, 2012--Net Cash Flows Review
Last week, markets experienced a sell-off across the board. The US (S&P 500) plunged by 2.44%. Outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) dropped by 2.29% and 0.57%, respectively. Moving on to other asset classes, the 10Y Treasury yield retreated by 5bps last week, while the DB Liquid Commodity Index was down by 3.83%.
Other sectors followed suit. The Agriculture sector (DB Diversified Agriculture Index), the WTI Crude Oil, the Gold and the Silver prices fell by 1.26%, 6.14%, 1.23%, and 2.88%, respectively. Last but not least, Volatility (VIX) increased by 17.40% during the same period.
The total US ETP flows from all products registered $1.6bn of outflows during last week vs $7.3bn of inflows the previous week, setting the YTD weekly flows average at +$3.0bn (+$53.2bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of -$4.2bn, +$3.1bn, and -$0.5bn last week vs. +$5.7bn, +$1.7bn, and -$0.2bn the previous week, respectively.
Within Equity ETPs, Large Cap, Small Cap, and US sector products experienced the largest outflows (-$2.6bn, -$1.2bn, -$0.9bn, respectively); while dividend vehicles experienced the largest inflows (+$0.3bn). Within Fixed Income ETPs, Sovereign products recorded the largest inflows (+$1.8bn), followed by Corporates products (+$0.8bn). Within Commodity ETPs, Gold products experienced the largest outflows (-$0.6bn).
Top 3 ETPs & ETNs by inflows: SHY (+$0.6bn), IEI (+$0.6bn), UST (+$0.5bn)
Top 3 ETPs & ETNs by outflows: SPY (-$2.0bn), IWM (-$1.1bn), IVV (-$0.5bn))
New Launch Calendar: global inflation protection
There was one new ETF launched during the previous week. The product was listed on NYSE Arca. The new fixed income ETF employs an active strategy to offer access to global inflation protection by holding a basket of inflation-linked debt instruments.
Turnover Review: turnover pushed higher by rising volatility
Total weekly turnover increased by 4.2% to $284bn vs. $272bn in the previous week. Last week’s turnover level, however, is still 24% below last year’s weekly average. The largest increase was on Equity ETP turnover, which rose by $7.8bn or 3.2% to $252bn. Fixed Income and Commodity ETP turnover followed with increases of 26.5% ($3.2bn) and 4.3% ($0.6bn), respectively.
Assets Under Management (AUM) Review:
$23bn removed by the sell-off
Last week’s market sell-off removed $23bn or almost 2% from ETP assets. ETP AUM shrank by 1.9% to $1.17 trillion from the previous week’s level. YTD growth remains at two-digits with 11.7%. Assets for equity, fixed income and commodity ETPs moved -$23.9bn, +$3.2bn, and -$2.5bn during last week, respectively.
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Source: Deutsche Bank-Equity Research-North America
BNY Mellon ADR Index Monthly Performance Review is Now Available-April 2012
May 6, 2012--The BNY Mellon ADR Index Monthly Performance Review April 2012 is now available.
view updates
Source: BNY Mellon
Crackdown on exotic ETFs moves forward
May 6, 2012--Efforts to keep nontraditional ETFs out of the hands of unsophisticated investors are heating up as regulators and an influential senator take aim at sales of the risky products.
Citigroup Global Markets Inc., Morgan Stanley, UBS Financial Services Inc. and Wells Fargo Advisors LLC last week agreed to pay $9.1 million to settle allegations that they sold leveraged and inverse exchange-traded funds to clients who had no business investing in the complex instruments.
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Source: Investment News
Two Years After Flash Crash, SEC Still Pursuing New Safeguards
May 5, 2012--This weekend marks the two-year anniversary of the aptly named flash crash. On May 6, 2010, starting at 2:42 in the afternoon, the Dow Jones Industrial Average plummeted nearly 600 points in just five minutes, only to recover most of that loss two minutes later.
A few large U.S. companies witnessed their stocks trading for as little as a penny a share before snapping back to near where they had been trading when the day began. What would be the second-biggest trading day for U.S. equity markets — 19.3 billion shares crossed the tape — left investors, regulators and most journalists scratching their heads.
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Source: Institutional Investor
Morgan Stanley-ETFs Exhibited Net Inflows of $53.0 billion
May 4, 2012--There were 76 new ETFs listed in the US in the first quarter of 2012. So far this year, 94 ETFs have been issued while 17 ETFs were liquidated, resulting in net new issuance of 77 ETFs. As of April 30, 2012, there were 34 issuers with 1,243 ETFs listed in the US. Net inflows into US-listed ETFs were $53.0 billion during 1Q12.
This is the highest quarterly net cash inflow since the fourth quarter
of 2009, which had net cash inflows of $54.6 billion. Additionally, it
is the highest net cash inflows for the first quarter since we began
monitoring quarterly flows in 2004.
The largest net cash inflows this past quarter went into Fixed Income ETFs. ETFs tracking fixed income indices had the highest net cash inflows this past quarter at $16.7 billion and they now account for 18% of the US-listed ETF market. Emerging Market Equity and US Large-Cap ETFs had the next highest net cash inflows this past quarter at $10.8 billion and $8.2 billion, respectively. The only segment to exhibit meaningful net cash outflows this past quarter was the Currency ETF segment, which had net cash outflows of $1.5 billion.
US ETF industry assets of $1.2 trillion are ~14% higher than their level at the end of 2011. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 79% and 48% of industry assets, respectively.
As with any investment, ETFs have risks. These include the general risks associated with investing in securities, potential tracking error, and the possibility that particular indices may lag other market segments or active managers.
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Source: Morgan Stanely
Markets and regulator keep industry on its toes
May 4, 2012--The US mutual fund industry has no shortage of challenges, both near-term and long-term.
On the competition front, exchange-traded funds and other passively managed products have siphoned off a sizeable chunk of assets from actively managed mutual funds. The shift into beta products – as well as the steady growth of fixed income assets – has put a squeeze on expense ratios. In fact, new data released by the Investment Company Institute (ICI), the group that represents the industry’s interests in Washington, shows that equity funds’ expenses have dropped 20 per cent from the 1990 average of 99 basis points.
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Source: FT.com
CFTC.gov Commitments of Traders Reports Update
April 4, 2012--The current reports for the week of May 1, 2012 are now available.
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Source: CFTC.gov
NASDAQ OMX Plans to Launch Retail Market for U.S. Equity Options
New Trading Platform to Target Retail Customer Orders With Access to Liquidity, Reliable Technology and Innovative Functionality
April 4, 2012--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ - News) today announced at the Options Industry Conference that it will launch NASDAQ OMX BX OptionsSM (BX OptionsSM) in June 2012, pending SEC approval.
BX OptionsSM will reward retail customers who wish to access liquidity and provide market makers with additional opportunities to provide liquidity, initially with a price/time trading system.
BX OptionsSM will complement the exchange group's established U.S. options venues with unique enhancements that include a hybrid allocation model, directed order flow for market participants and a new multi-faceted price improvement auction. Additionally, customers utilizing the new market will benefit from innovations known to both NASDAQ OMX PHLX (PHLX) and the NASDAQ Options Market (NOM) like microsecond trading speeds, bulk quoting, rapid fire risk protection and low latency protocols. In order to facilitate an inexpensive and easy connection for options trading customers, BX OptionsSM will leverage the same architecture, data center and world-class INET technology as other NASDAQ OMX platforms.
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Source: NASDAQ OMX
