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Beware 'Leveraged' ETFs .
May 11, 2012--Despite years of warnings about the dangers of "leveraged" exchange-traded mutual funds, many small investors-and, apparently, some investment professionals-may still not be getting the message.
Earlier this month, the Financial Industry Regulatory Authority fined brokers including Citigroup Global Markets, Morgan Stanley, MS -4.17%UBS Financial Services and Wells Fargo Advisors for improperly selling leveraged and inverse ETFs.
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Source: Wall Street Journal
HSBC introduces new fund for US retail investors
May 11, 2012--HSBC Global Asset Management has launched the World Selection Income Strategy Fund intended for US retail investors.
The new primarily invests in third-party and proprietary mutual funds and exchange-traded funds throughout a variety of income-producing asset classes.
It aims to invest in a range of income-producing investments, including US government & investment-grade corporate bonds, high-yield bonds, emerging market bonds, US & international equities and real-estate
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Source: BBR
U.S. Department of the Treasury-Treasury International Capital System (TIC) Homepage Update
May 11, 2012--Treasury International Capital System (TIC) Homepage for U.S. Department of the Treasury. This information has recently been updated, and is now available.
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Source: US Department of the Treasury
CFTC.gov Commitments of Traders Reports Update
May 11, 2012--The current reports for the week of May 8, 2012 are now available.
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Source:CFTC.gov
JPMorgan shares dive after $2bn trading loss
May 11, 2012--Shares in JPMorgan Chase have dived 9% after the biggest US bank, revealed a trading loss of at least $2bn (€1.2bn).
Chief executive Jamie Dimon blamed "errors, sloppiness and bad judgement" for the losses and warned "it could get worse".
In reaction to the loss, the company's credit rating was downgraded by the agency Fitch
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Source: BBC News
SPDR US ETF Snapshot: April 2012
May 11, 2012--1,246 Exchange Traded Funds (ETFs)-with assets totaling $1.2TN-were managed by 36 ETF managers as of April 30, 2012.
Month over month, ETF assets decreased by $5.3BN, down 0.4%.
Despite a $6.7BN gain in the Fixed Income category, the ETF industry experienced a modest 0.4% decline in assets in April.
ETF Industry Detail
Asset Classes-Overall
The S&P 500® Index decreased 0.6% while the MSCI EAFE® Index fell 2.0%. Commodities were slightly negative, with the S&P® GSCI® Index down 0.5% and Gold dropping 0.1%. US Bonds were positive with the Barclays US Treasury Index gaining 1.5% and the Barclays US Aggregate Index increasing 1.1%.
FLOWS
ETF flows topped $2BN in April. The Fixed Income category had a category-leading $4.9BN in inflows, increasing its year-to-date inflows to $20.5BN. The Size - Large Cap category continued its up-and-down trend: $4.5BN left the category in April after seeing $5.9BN in inflows in March, $4.8BN in outflows in February, and $4.8BN in inflows in January.
Manager and Fund Detail
The top three managers in the US ETF marketplace were: BlackRock, State Street and Vanguard. Collectively, they account for approximately 83% of the US listed ETF market.
•The top three ETFs in terms of dollar volume traded for the month were the SPDR® S&P 500 [SPY], iShares Russell 2000 [IWM] and PowerShares QQQ [QQQ].
•The top three ETFs in terms of assets for the month were the SPDR S&P 500 [SPY], SPDR Gold Shares [GLD] and Vanguard Emerging Markets [VWO].
Market Performance
Performance by Asset Class
International - Developed and Emerging Markets decreased 2.0% and 1.2%, respectively. Domestic Large Cap, Mid Cap and Small Cap markets were all negative, losing 0.6%, 0.2% and 1.3%, respectively. The US Aggregate, the US Treasury and the US Corporate Bond were all positive, gaining, 1.1%, 1.5% and 1.3%, respectively. Commodities fell 0.5%.
visit www.spdrs.com for more information.
Source: SSGA
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
May 10, 2012--Standard & Poor's will make the following changes in the S&P/TSX Canadian Indices:
The shares of Orosur Mining Inc. (TSXVN:OMI) will be removed from the S&P/TSX Venture Composite Index after the close of Friday, May 11, 2012.
The company will graduate to trade on TSX under the same ticker symbol. There is no consolidation of capital.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
CFTC Proposes Order Amending the Effective Date for Swap Regulation Order Issued on July 14, 2011
May 10, 2012--The Commodity Futures Trading Commission (CFTC) today voted to propose an Order regarding the effective date for swap regulation.
The Order is a six-month extension from certain provisions of the Commodity Exchange Act that otherwise would have taken effect on July 16, 2011, the general effective date of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act . Today’s order further narrows the scope of the Order because some rules, for example the further definition of swap dealer and major swap participant, have become effective.
Today, the Commission is extending the effective date for swap regulation until December 31, 2012, or until the Commission’s rules and regulations go into effect, whichever is sooner. The Order proposed today would allow the clearing of agricultural swaps; and remove any reference to the exempt commercial market; and exempt board of trade grandfather relief previously issued by the Commission.
Comments are due 14 days after publication of the proposal in the Federal Register.
view the Second Amendment to July 14,2011 Order for Swap Regulation
Source: CFTC.gov
Target Date Funds Miss The Mark
May 10, 2012--Target date ETFs are an increasingly popular fund category that allow investors to save for retirement by buying a single fund that periodically shifts asset allocation of the underlying investments as the years progress.
It is based on the well-founded concept that younger investors can embrace more risk in search of more reward, but that risk-taking should be reduced as retirement draws close. So what could be wrong with that?
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Source: Forbes
Opening Statement Regarding the Twelfth Open Meeting to Consider Final Rules Pursuant to the Dodd-Frank Act
May 10, 2012--Thank you Mr. Chairman and thank you to the rulemaking team for the hard work and diligence in crafting these rules.
We have before us today final rules relating to the Core Principles for Designated Contract Markets (DCMs). Core Principles were designed to allow DCMs the flexibility to establish compliance regimes that fit with their markets and business models. This flexible approach has been very successful. The proposed DCM Core Principle rules published in late 2010 significantly, and needlessly, strayed from the flexible approach in favor of a prescriptive, one-size-fits-all, rules-based approach. I did not, and still do not, support abandoning the flexible, principles-based approach to regulation. I am pleased, however, that in a number of areas the final rules before us today recognize the value of retaining flexibility and pull back from the overly prescriptive regime set out in the proposed rules. I understand that in a number of areas where we have established specific rules, we have codified the best practices already in place at DCMs today. While on its face this may seem reasonable, I have lingering concerns about whether codifying today’s best practices will prevent exchanges from developing tomorrow’s best practices. Our industry evolves quickly, and we are on the cusp of regulating vast markets and diverse products that we have never regulated before. We must remain vigilant to ensure that our lack of experience in these markets and with these products does not cause us to stand in the way of continued evolution and progress.
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Source: CFTC.gov
