ETF Liquidity Dealt a Setback
Market liquidity was tested on Thursday. It failed. The blame game now in full motion, with many analysts pointing to an NYSE circuit-breaker mechanism that seems to have backfired. The carnage was bad for stocks, but even worse for ETFs and ETNs. Much is being made about the Accenture (ACN) trade...
DailyFinance on Derivative ETFs
AOL Daily Finance has a good story about the ongoing regulatory drama involving leveraged, inverse and other derivative-based ETFs. Writer Sheryl Nance-Nash goes into more depth about this complex subject than any other mainstream media report I’ve seen. As we reported last month, the Securities...
SEC Reviews Derivative ETFs
The Securities & Exchange Commission announced last week it is conducting a “review” of ETFs and mutual funds that make heavy use of derivatives in their portfolios. Pending the review, applications for new issues of such funds have been suspended. Existing funds may continue to operate...
SEC Tries To Get Efficient
Under criticism for letting Bernie Madoff’s scheme drag on for years, the Securities & Exchange Commission is trying to improve itself and rebuild its image. This is an excellent idea, and good timing too, given that the people who ignored Madoff for so long have now moved on to bigger and...
Deflation Means No COLA for Seniors
Sorry, senior citizens: there will be no cost-of-living adjustment in your Social Security payments this year. You are victims of deflation. Today the Labor Department reported that the Consumer Price Index rose 0.2% in September and fell -1.3% in the last twelve months. This was no great surprise,...
It’s About Time: FTC 16 CFR Part 255
Proper disclosure means different things to different people. In the investment “advice” world, proper disclosure is different for Registered Investment Advisors than brokers or insurance agents. In the investment “publishing” world, publishers typically try to hide behind their “freedom of...
Bankrupt Deadbeat Banks Stiff Taxpayers
Only a few weeks ago, We The People seemed to be turning a profit on the U.S. Treasury’s investment in banks via the Troubled Asset Relief Program, or TARP. Not so fast. Yes, a few banks repaid the government with interest. As I noted at the time, their main motivation was probably to escape...
The G-20 Pittsburgh Summit
The G-20 heads of government and finance ministers met in Pittsburgh last week. Officially named “The Group of Twenty Finance Ministers and Central Bank Governors,” the organization was established in 1999. According to their website the G-20’s purpose is “to bring together systematically...
UNG May Resume Share Creation
The United States Natural Gas Fund LP (UNG) filed a Form 8-K with the SEC on Friday (9/11/2009) indicating that it may resume offering new shares on September 28. You may recall that UNG stopped issuing new shares in the second week of July. Additional background can be found in our CFTC Camel Sticks...
DXO Becomes First Victim of CFTC Activity
PowerShares DB Crude Oil Double Long ETN (DXO) became the first apparent victim of the recent CFTC activity surrounding exchange traded products. Deutsche Bank (DB) announced today (9/1/09 press release) that it will redeem all outstanding shares of DXO after the market close on September 9. Unlike...
