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Statement of Support on Three Final Rules and Two Proposed Rules Under the Dodd-Frank Act-Chairman Gary Gensler
July 19, 2011--Customer Clearing Documentation and Timing of Acceptance for Clearing
I support the proposed rulemaking for customer clearing documentation and timing of acceptance for clearing. The proposed rule promotes market participants’ access to central clearing, increases market transparency and supports market efficiency. This proposal will foster bilateral clearing arrangements between customers and their futures commission merchants. This proposal also re-proposes certain time-frame provisions of the Commission’s proposed rule in February related to straight-through processing.
Clearing Member Risk Management
I support the proposed rulemaking for enhanced risk management for clearing members. One of the primary goals of the Dodd-Frank Wall Street Reform and Consumer Protection Act was to reduce the risk that swaps pose to the economy. The proposed rule would require clearing members, including swap dealers, major swap participants and futures commission merchants to establish risk-based limits on their house and customer accounts. The proposed rule also would require clearing members to establish procedures to, amongst other provisions, evaluate their ability to meet margin requirements, as well as liquidate positions as needed. These risk filters and procedures would help secure the financial integrity of the markets and the clearing system and protect customer funds.
read more
Source: CFTC.gov
Dow Jones Industrial Average Component Companies Increase Expected Dividend Distribution by 12.66% From a Year Ago, 2.93% From Previous Quarter, Dow Jones Indexes' 2Q11 Survey Says
DJIA Components' Dividends Represent 38% of Total U.S. Stock Market Payouts
Dividend Data Provides Insight Into Outlook of Bellwether U.S. Corporations, Dow Jones Indexes' Krein Says
July 19, 2011--The Dow Jones Industrial Average's 30 component companies are expected to increase their annual dividend payout by 12.66% year-over-year and 2.93% from the previous quarter, according to a second-quarter 2011 survey by Dow Jones Indexes.
DJIA component companies' $101.6 billion expected distribution for the 12 months beginning July 1, 2011 represents 38% of all indicated annual dividends (IAD) by American companies as measured by the Dow Jones U.S. Index, a gauge that accounts for roughly 95% of the U.S. equity market. (Indicated annual dividend is a forward-looking measure defined as a company's most recently paid quarterly dividend multiplied by four.)
For the quarters ended March 31, 2011 and June 30, 2010, DJIA component companies paid $98.7 billion and $90.1 billion in IAD, respectively.
"As is the case with most information gleaned from Dow Jones Industrial Average's component companies, this dividend data provides meaningful insight into the strategic outlook of bellwether U.S. corporations," said David Krein, Senior Director, Product Development and Analytics, at Dow Jones Indexes.
read more
Source: Dow Jones Indexes
ProShares files with the SEC
July 19, 2011--ProShares has filed a post-effective amendment, registration statement with the SEC for the ProShares Hedge Replication ETF.
view filing
Source: SEC.gov
DST Systems Inc. Announces Agreement to Acquire ALPS Holdings, Inc.
Acquisition Builds DST’s Distribution and Asset Gathering Services
While Broadening Range of Administrative Capabilities
July 19, 2011--DST Systems, Inc. (NYSE: DST) announced that it has signed a
definitive agreement to acquire ALPS Holdings, Inc. (ALPS) through a merger with a wholly owned
subsidiary. At closing, DST will pay $250 million funded from cash and existing credit facilities.
ALPS is a 25-year-old financial services firm that provides a suite of asset servicing and asset gathering
solutions to the investment management industry. As of December 31, 2010, the firm managed more than $3.275 billion in assets and provided servicing to more than $291 billion in client assets.
Headquartered in Denver, ALPS employs approximately 300 people.
The acquisition broadens the range of products and services DST will offer to the investment management and brokerage industries. ALPS’s asset servicing segment provides a comprehensive suite of turn-key outsourcing services including fund administration, fund accounting, transfer agency, legal and compliance, creative services and medallion distribution services to a broad set of asset managers across open-end funds, closed-end funds, exchange traded funds (ETFs) and hedge funds. ALPS’s asset gathering segment provides an advisory platform and scaled wholesale distribution to investment managers. Services include active distribution, closed-end fund IPOs, Liberty All-Star Funds and proprietary products. The distributor division services Select Sector SPDR ETFs.
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Source: DST Systems Inc
BM&FBovespa to issue depositary receipts
July 19, 2011--Brazil’s BM&FBovespa will next week start offering depositary receipts in Nike, Coca-Cola, Chevron and seven other large US companies as the stock exchange struggles to lure more investors to the market.
Concerns over inflation and government intervention in local companies such as Vale, the iron ore miner, have weighed on Brazil’s equity market over the past few months, making foreign stocks an attractive option.
read more Tensions boil over at commodities watchdog read more More Comprehensive ETF Marketing Strategies Will Be Required As the Market Evolves, According to New FRC Study “As the ETF market continues to expand and becomes more sophisticated,” Jenkins continued.
“ETF providers are being faced with increasingly complex decisions about their target markets,
the fit of their products with the markets, and the effectiveness of both their communication
processes and the tools being provided within distribution channels.” read more Remarks Before the Financial Stability Oversight Council This week is the one-year anniversary of the Dodd-Frank Act. And on this anniversary, it is important to remember why the President and Congress came together to pass this historic law.
The 2008 financial crisis occurred because the financial system failed the American public. The financial regulatory system failed as well. When large financial firms, such as AIG and Lehman Brothers faltered, we all paid the price. read more
Morgan Stanley-US ETF Weekly Update Despite net inflows for most asset classes, ETFs exhibited net outflows of $1.4 billion last week
13-week flows remained mostly positive among asset classes; combined $28.4 bln net inflows
US-Listed ETFs: Estimated Largest Flows by Individual ETF SPDR Gold Trust (GLD) generated net inflows of $1.5 bln last week, the most of any ETF
request report Claymore Investments, Inc. sees Assets Under Management surpass $6.5 billion
Unlike ETFs that track traditional market-cap based indices, Claymore ETFs track indices that seek to best capture the investment potential of the asset class or market they are invested in. Each product is designed with research partners and institutional asset managers to utilize what we believe are the best-in-class investment strategies for the specific asset class. Claymore's ETF lineup covers the Canadian, US, and global core equity markets, sector strategies, dividend and income-based strategies, fixed income and commodity based strategies.
Source: FT.com
July 19, 2011--Tensions at one of the top US watchdogs charged with implementing key reforms of the derivatives markets spilt into the open on Tuesday as a regulator blasted the process as having “no specific plan or strategy”.
The comments were made by Scott O’Malia, one of five commissioners at the Commodity Futures Trading Commission and one of two Republicans at the agency, which is dominated by Democrats.
Source: FT.com
July 18, 2011--Use of the core/satellite investment strategy has helped drive the growth of ETFs, according to a new study, but ETF providers must understand that investors
have highly diverse objectives, according to ETF Trends: Insider Insights on Distribution,
Portfolio Construction, Risk & Regulation, published by Financial Research Corporation (FRC), a
research and consulting firm focused on the investment industry.
“In our interviews with industry leaders, we learned that the core/satellite approach has proven
to be an effective way to introduce investors to ETFs,” said Bob Jenkins, President of FRC, in
speaking about the report. “One important finding from our research, however, was that the
terms “core” and “satellite” had different meanings to different people. ETFs and mutual funds
are now used in both core and satellite, and so are active and passive strategies. RIAs are also
blending strategic and tactical approaches, due to client demand for downside protection.”
Source: Financial Research Corporation
July 18, 2011--Good morning. I thank Secretary Geithner for calling today’s meeting of the Financial Stability Oversight Council (FSOC).
I also thank my fellow regulators and FSOC members for their coordination and consultation on the rule-writing process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Lastly, I want to thank the staffs of all the agencies – and particularly the Treasury staff – for their efforts in coordinating amongst eight agencies.
Source: CFTC.gov
July 18, 2011--US ETF Weekly Update
Weekly Flows: $1.4 Billion Net Outflows
ETF Assets at $1.1 Trillion, Up 9% YTD
Launches: 6 New ETFs
No ETF News Highlights This Week
US-Listed ETFs: Estimated Flows by Market Segment
US equity ETFs experienced aggregate net outflows of $5.3 bln last week
Commodity ETFs posted the largest net inflows last week ($1.8 bln); $2.4 bln net outflows over past 13 weeks
ETF assets stand at $1.1 trillion, up 9% YTD; we estimate from both net new money and market appreciation
US Large-Cap up $6.7 bln versus US Small- & Micro-Cap down $2.7 bln over the past 13 weeks
We estimate ETFs have generated net inflows 17 out of 28 weeks YTD; YTD net inflows of $66.6 bln
All of the top 10 ETFs to post net outflows last week were US equity focused (six broad market ETFs, three
sector ETFs, one leveraged inverse ETF)
Over the past 13 weeks, the iShares Russell 2000 Index Fund (IWM) posted the largest net outflows ($1.8 bln)
Source: Morgan Stanley
Claymore's AUM has grown by 46% over the past 12 months
July 18, 2011--Today Claymore Investments, Inc. (Claymore) announced that the firm's assets under management (AUM) have exceeded $6.5 billion, as of June 30, 2011. Claymore's AUM has grown by a remarkable $2 billion over the past year.
"When we introduced our first ETF in Canada six years ago our mission was to make investing cheaper and better for Canadians. We have accomplished this by building an ETF lineup with products that are low cost, but also follow intelligent and disciplined investment strategies, giving investors greater value for the fees," said Som Seif, President and CEO, Claymore Investments Inc. "Given our impressive growth that we have seen in AUM, it is clear that Canadians have enthusiastically embraced Claymore ETFs, helping us become one of the fastest firms in history to grow to over $6 billion in such a short period of time."
Source: Claymore
