Comments on: DXO Becomes First Victim of CFTC Activity http://investwithanedge.com/dxo-becomes-first-victim-of-cftc-activity Actionable Ideas for Your ETFs, Funds, & Stocks Mon, 15 Mar 2010 08:03:29 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Tania http://investwithanedge.com/dxo-becomes-first-victim-of-cftc-activity/comment-page-1#comment-5846 Tania Fri, 11 Sep 2009 19:46:02 +0000 http://investwithanedge.com/?p=5873#comment-5846 I still have in my account DXO short (11/09/009) , may You know who will take carry about return , share price and procedure in action. thanks I still have in my account DXO short (11/09/009) , may You know who will take carry about return , share price and procedure in action. thanks

]]> By: Ron Rowland http://investwithanedge.com/dxo-becomes-first-victim-of-cftc-activity/comment-page-1#comment-5515 Ron Rowland Wed, 02 Sep 2009 12:38:08 +0000 http://investwithanedge.com/?p=5873#comment-5515 Tony, I think it's a combination of things. DXO is leveraged and leveraged products have had their own regulatory problems recently. My guess is that PowerShares DB is thinking twice about whether or not they want to be in the leveraged ETF business. The "regulatory event" provides them with cover to do this. Additionally, because it is leveraged, DB needs to buy 2x the fund's assets in crude oil contracts to cover this fund. I also believe that the CFTC restrictions apply at the company level (DB) and not at the fund level. Ron Tony,

I think it’s a combination of things. DXO is leveraged and leveraged products have had their own regulatory problems recently. My guess is that PowerShares DB is thinking twice about whether or not they want to be in the leveraged ETF business. The “regulatory event” provides them with cover to do this.

Additionally, because it is leveraged, DB needs to buy 2x the fund’s assets in crude oil contracts to cover this fund. I also believe that the CFTC restrictions apply at the company level (DB) and not at the fund level.

Ron

]]> By: Tony B http://investwithanedge.com/dxo-becomes-first-victim-of-cftc-activity/comment-page-1#comment-5491 Tony B Wed, 02 Sep 2009 02:42:06 +0000 http://investwithanedge.com/?p=5873#comment-5491 If $600 million in assets is "too successful", what asset level is appropriate to not be effected by these rules? Without even looking I can think of several ETN/ETF's that breach this level. I think many even double that value. If $600 million in assets is “too successful”, what asset level is appropriate to not be effected by these rules?
Without even looking I can think of several ETN/ETF’s that breach this level. I think many even double that value.

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