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DB-Global Equity Index and ETF Research-Asia-Pac ETF Market Weekly Review - ETP Market recorded $2bn inflows in September
October 4, 2012--Market Review
Last week, Asia-Pacific region had mixed markets. From north to south, Japan (Nikkei 225) lost 2.63%, Korea (KOSPI2) fell by 0.35%, China (CSI 300) appreciated by 4.28%, Hong Kong (HSI) gained 0.51%, Singapore (FSSTI) slid by 0.58%, and Australia (S&P/ASX 200) declined by 0.48% over the previous week.
New ETP launches
Last week, two ETP issuers made their debut and each launched one Equity ETF in the Asia-Pacific ETP market. Yinhua Fund Management listed one Equity ETF on Shanghai Stock Exchange tracking the SSE 50 Equal Weight Index and Lippo Investments Management listed one Equity ETF on Hong Kong Exchange tracking Lippo Select HK & Mainland Property Index. (See Figure 5 for further details).
ETP Monthly Flows
Asia-Pacific ETP market recorded monthly cash inflows of $2bn for the month of September, taking the YTD cash flows to +$24.3bn or 26.6% of last year’s end AUM. Prior to that, Asia-Pacific region recorded monthly flows of $13.4bn, $4.4bn, $2.4bn and $1.5bn for May, June, July and August respectively. Within Equity products, ETFs offering exposure to Japan and China received robust cash inflows of $2.1bn and $0.7bn respectively, while South Korea and Taiwan focused ETFs experienced outflows of $0.4bn and $0.3bn.
Turnover Review
Asia-Pacific ETP turnover totaled $7.1bn for last week, 8.8% up from the previous week’s total. South Korea continues to be on top of the turnover ranking with $2.6bn, followed by China ($2.2bn), Hong Kong ($1.3bn), Japan ($0.6bn), and Singapore ($0.1bn). Among Equity ETFs, Emerging Country, Leveraged Strategy, Asia Pac Developed Country and Short Strategy ETFs recorded total turnover of $3.9bn, $1.2bn, $0.9bn and $0.6bn respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $89m.
Asset Under Management Review
Last week, Asia-Pacific ETP AUM ended at $119.7bn after $3.3bn increase over the previous week. On a year to date basis, Asia-Pacific ETP assets are up by $28.2bn or 30.9% above last year’s closing.
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Source: Deutsche Bank - Equity Research - Asia Pacific
CFTC's Division of Swap Dealer and Intermediary Oversight Provides Guidance on Segregated and Secured Funds Maintained in a Combined Omnibus Account
October 4, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today released a letter providing guidance to registered futures commission merchants (FCMs).
The letter is intended to identify a situation whereby FCMs may be inappropriately utilizing an omnibus account with their clearing FCM in which they are combining segregated and secured funds in one account.
The letter is available at the Commission’s Web site:
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Source: CFTC.gov
IndexIQ Launches QMN As Latest In Innovative Family Of Absolute Return Hedge Fund ETFs
IQ Hedge Market Neutral Tracker ETF (QMN) expands industry-leading hedge fund replication ETF family
October 4, 2012--IndexIQ, a leading developer of liquid index-based alternative investment solutions, is launching the newest addition to its Exchange-Traded Fund family, the IQ Hedge Market Neutral Tracker ETF (QMN, on October 4, 2012, it was announced today.
QMN is designed to offer investors liquid, transparent Market Neutral hedge fund exposure.
QMN will seek to track, before fees and expenses, the performance characteristics of the IQ Hedge Market Neutral Index (IQHGMN), part of IndexIQ’s proprietary IQ Hedge family of benchmark hedge fund replication indexes. The IQ Market Neutral Index (IQHGMN) has live performance dating from September 2008.
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Source: IndexIQ
Minutes of the Federal Open Market Committee, September 12-13, 2012
October 4, 2012--Information received since the Federal Open Market Committee met in August suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated.
Household spending has continued to advance, but growth in business fixed investment appears to have slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation has been subdued, although the prices of some key commodities have increased recently. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely would run at or below its 2 percent objective.
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Source: FRB
FlexShares files with the SEC
October 3, 2012--FlexShares has filed a post-effective amendment, registration statement with the SEC.
view filing
Source: SEC.gov
Singapore Exchange Derivatives Trading Limited's MSCI Indonesia Index Futures
Contract has been Certified and may be Offered to U.S. persons through Direct Access Effective October 2, 2012
October 3, 2012-- On August 15, 2012, Singapore Exchange Derivatives Trading Limited (SGX) requested expedited Commodity Futures Trading Commission (CFTC) review of the SGX's MSCI Indonesia Index futures contract so that it may be offered to U.S. persons.
SGX also requested that the contract may be made available through direct access terminals in the United States.
The CFTC’s Division of Market Oversight reviewed the contract and determined that it satisfied the requirements of the Commodity Exchange Act (Act) and the Commission’s Regulations. Accordingly, the MSCI Indonesia Index futures contract is deemed to be in conformance with the Act and therefore may be offered or sold to persons in the U.S. SGX may make the contract available for trading through its direct access terminals in the U.S.
Source: CFTC.gov
Morgan Stanley-Preliminary 3Q2012 ETF Net Cash Flows Estimates
October 3, 2012--We estimate that net cash inflows into US-listed ETFs were
$58.3 billion during the third quarter of 2012. This report
contains our estimates and analysis of 3Q 2012 ETF flows for the US
market. Once official data are released, we will publish our more
comprehensive flow analysis.
The $58.3 billion during 3Q 2012 is above the $34.0 billion
average quarterly net cash inflows over the past three years.
Year to date, we estimate ETF net inflows at $135.9 billion, which is
already more than the total net cash inflows in each of the full years
from 2009-2011. US-listed ETF assets are now almost $1.3 trillion,
which is up 23% year to date.
The largest net cash inflows went into ETFs tracking US Large-Cap and Fixed Income indices. These segments had net cash inflows of $13.0 billion and $8.1 billion in 3Q 2012, bringing their total inflows for the first three quarters of the year to $25.3 billion and $41.2 billion, respectively. US Sector & Industry ETFs also had a strong quarter with net inflows of $7.7 billion. Currency ETFs were the only segment to post net outflows (only $76 million) in 3Q 2012.
BlackRock’s net cash inflows of $18.3 billion in 3Q 2012 were the
largest of any provider. State Street had the next highest net cash
inflows at $15.1 billion.
As of 9/28/12, BlackRock, State Street and
Vanguard accounted for almost 79% of ETF assets.
There were 30 ETFs launched and 27 liquidated in the US during 3Q 2012. There have been 130 ETFs issued and 44 closures this year (additional 29 liquidations announced).
As of 9/28/12, there were 36 issuers with 1,252 ETFs.
Roughly $9 billion in total ETF market cap is from ETFs issued over the past year. The most successful recent launches (by total assets) focus on fixed income and on low volatility equity indices.
request report
Source: Morgan Stanley
CFE Temporarily Postpones Launch Date For S&P 500 Variance Futures
October 3, 2012--CBOE Futures Exchange, LLC (CFE) today announced that it has temporarily postponed the launch of S&P 500 Variance futures, originally scheduled to begin on Thursday, October 4.
The additional time will allow market participants to further prepare for the trading and clearing of S&P 500 Variance futures.
CFE plans to launch S&P 500 Variance futures later this quarter and will announce the new launch date when it has been determined.
For more information on S&P 500 Variance futures: www.cfe.cboe.com/Products/Products_VA.aspx.
Source: CBOE
ISE Introduces Risk Management Feature in Kill Switch
October 3, 2012--The International Securities Exchange (ISE) today announced the implementation of its electronic "Kill Switch" functionality in PrecISE Trade(R), ISE's innovative, front-end execution system.
The Kill Switch has already been available for exchange members that are connected to ISE via a Direct Trading Interface (DTI) or FIX connection. By extending this functionality to PrecISE, this segment of ISE’s membership community now has the ability to utilize the Kill Switch to cancel all open orders and prevent new order submissions for more comprehensive risk management. In addition, if a DTI or FIX user is unable to access their system during a session, PrecISE serves as an alternative means of enabling the Kill Switch.
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Source: International Securities (ISE)
Brown Brothers Harriman, Hilliard Lyons, Legg Mason, Edward Jones, and JPMorgan Chase Recognized with SIFMA Diversity Leadership Awards
October 3, 2012--SIFMA today awarded Brown Brothers Harriman, Hilliard Lyons, Legg Mason, Edward Jones, and JPMorgan Chase with its annual Diversity Leadership Awards.
Emerging Diversity Leadership: Brown Brothers Harriman - Possibility Thinking and Hilliard Lyons - Women’s Financial Consultant Roundtable.
Innovative Diversity Leadership: Legg Mason - Diversity & Inclusion Leadership Council Board Leadership Program.
Sustained Diversity Leadership: Edward Jones - Cross-Cultural Development Program.
Team Diversity Leadership: JPMorgan Chase - Black Organization for Leadership Development.
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Source: SIFMA
