Americas ETP News
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US regulator probes ETF pricing structures
December 21, 2014--Extreme movements in the prices of bonds, commodities and other assets have prompted regulators at the Federal Reserve Bank of New York to take a closer look at the inner workings of exchange traded funds.
Wall Street's top regulator has been talking to the firms responsible for ensuring the smooth functioning of such ETFs as it seeks to gauge the resilience of the structures to sharp fluctuations in the underlying market they track.
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Source: FT.com
Bloomberg and State Street Global Advisors Introduce the First Fixed Income ETF Creation and Redemption Service To Enhance Transparency Of Fixed Income ETFs.
State Street Global Advisors is the first ETF Provider to Use the Bloomberg Fixed Income ETF Basket Tool
December 19, 2014--Bloomberg today introduced the Bloomberg Fixed Income ETF Basket Tool in order to further automate the workflow and construction of fixed income exchange traded funds (ETFs).
The new offering provides the first comprehensive solution for clients of State Street Global Advisors (SSGA) to automate the process of creating and redeeming baskets of fixed income ETFs.
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Source: Bloomberg
A Humbled Janus Capital Is Betting on Bill Gross for Its Turnaround
December 19, 2014--When Bill Gross quit bond giant Pacific Investment Management Co. three months ago, almost as stunning as his departure was his choice of employer: Janus Capital Group Inc.
(JNS), a struggling stock fund manager whose assets had shrunk by half from a peak 14 years earlier.
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Source: Bloomberg
Commodity Funds CFD and CTF Propose Plan to Convert to ETF Structure
Funds to seek shareholder approval for structure change that seeks a closer alignment between market price and net asset value
December 19, 2014--Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, today announced that Nuveen Commodities Asset Management ("NCAM"), the manager for the Nuveen Diversified Commodity Fund (NYSE MKT: CFD) and the Nuveen Long/Short Commodity Total Return Fund (NYSE MKT: CTF), has approved a plan to convert the Funds into open-end exchange-traded funds ("ETFs").
The purpose of the conversion plan is to seek a closer alignment between the funds’ share price and net asset value (“NAV”).
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Source: Nuveen
Commodity Funds CFD and CTF Propose Plan to Convert to ETF Structure
Funds to seek shareholder approval for structure change that seeks a closer alignment between market price and net asset value
December 19, 2014--Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, today announced that Nuveen Commodities Asset Management ("NCAM"), the manager for the Nuveen Diversified Commodity Fund (NYSE MKT: CFD) and the Nuveen Long/Short Commodity Total Return Fund (NYSE MKT: CTF), has approved a plan to convert the Funds into open-end exchange-traded funds ("ETFs").
The purpose of the conversion plan is to seek a closer alignment between the funds' share price and net asset value ("NAV").
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Source: Nuveen Investments
CFTC Swaps Report Update
December 19, 2014--The current reports for the week of December 16, 2014 are now available.
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Source: CFTC.gov
Financial Stability Oversight Council Releases Request for Comment on Asset Management Products and Activities
Council Seeks Public Comment on Potential Financial Stability Risks Related to Liquidity and Redemptions, Leverage, Operational Functions, and Resolution
December 18, 2014--The Financial Stability Oversight Council (Council) today voted unanimously to release a notice seeking public comment regarding potential risks to U.S. financial stability from asset management products and activities.
The Council is seeking input from the public about potential risks to the U.S. financial system associated with liquidity and redemptions, leverage, operational functions, and resolution in the asset management industry.
Asset management is a vital segment of the financial services sector, with a high degree of diversity in investment strategies, corporate structures, regulatory regimes, and customers. The Council is issuing this notice in connection with its ongoing evaluation of asset management products and activities, building on work carried out by the Council over the past year regarding potential risks to U.S. financial stability.
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Source: US Department of the Treasury
FINRA Issues Precious Metals Investor Alert
December 18, 2014--The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Physical Precious Metals: Tips to Avoid Tarnishing Your Portfolio.
FINRA's new Alert warns investors of the risks involved with investing in physical precious metals such as silver, gold, palladium or platinum. Enforcement actions by the Commodity Futures Trading Commission (CFTC) and court decisions paint an ugly picture of sellers who charge high commissions and fees but ultimately fail to purchase or deliver the physical assets as promised.
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Source: FINRA
ALPS Sector Dividend Dogs ETF Surpasses Billion Dollar Mark
"SDOG" Reaches Milestone Assets Under Management (AUM) in Just Over Two Years
December 18, 2014--ALPS, a DST Company focused on asset management and asset servicing, today announced that the ALPS Sector Dividend Dogs Exchange-Traded Fund (ETF) (NYSE: SDOG) has passed one billion dollars in assets under management.
Launched in June 2012, SDOG was the first of the ALPS Sector Dividend Dogs Series, a lineup of specialized ETFs that utilize the "Dogs of the Dow" theory to access potentially undervalued high dividend stocks.
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Source: ALPS
Are Concerns About Leveraged ETFs Overblown?
December 18, 2014--Leveraged and inverse exchange-traded funds (ETFs) have been heavily criticized for exacerbating volatility in financial markets because it is thought that they mechanically
rebalance their portfolios in the same direction as contemporaneous returns.
We argue that these criticisms are likely exaggerated because they ignore the effects of capital fows on ETF rebalancing demand. Empirically, we find that capital fows substantially
reduce the need for ETFs to rebalance when returns are large in magnitude and,
therefore, mitigate the potential for these products to amplify volatility. We also show theoretically that
flows can completely eliminate ETF rebalancing in the limit.
view the Are Concerns About Leveraged ETFs Overblown? Fed paper
Source: Federal Reserve
