NEWS SCAN
SEC Chair White on Meeting With Leaders of Exchanges
Securities and Exchange Commission Chair Mary Jo White met with leaders of the equities and options exchanges, FINRA, DTCC and the Options Clearing Corporation following the August 22 interruption in the trading of NASDAQ-listed securities.
Chair White issued this statement following the meeting:
"Our securities markets are strong and work effectively for millions of investors and businesses. The orderly functioning of those markets and the robustness of our market infrastructure are vitally important to our nation's economy. That is why we hold ourselves to very high standards.
"Today's meeting was very constructive. I stressed the need for all market participants to work collaboratively--together and with the Commission--to strengthen critical market infrastructure and improve its resilience when technology falls short. To that end, I asked those at the meeting to work constructively with the Commission staff as we continue to consider ways to enhance the integrity of market systems. They pledged to do so and I expect other market participants will do so as well.
"In short order, I also want those at the meeting--with the input of other market participants--to identify a series of concrete measures designed to address specific areas where the robustness and resilience of market systems can be improved, including the systems that were at the core of last month's trading interruption. The investing public deserves no less."
BNY Mellon Named to Dow Jones Sustainability Index
BNY Mellon has been named to one of the most highly regarded global sustainability indices, the Dow Jones Sustainability Indices (DJSI). This family of indices, offered jointly by Swiss investment firm RobecoSAM and S&P Dow Jones Indices, tracks the stock performance of leading sustainability-driven businesses worldwide.
"Being named to the prestigious Dow Jones Sustainability Indices reflects BNY Mellon's strong commitment to being invested in market integrity, our people and our world," said John Buckley, BNY Mellon's director of corporate social responsibility in a statement. "BNY Mellon's role in the global markets includes a responsibility to support stability and growth, helping families, businesses and communities thrive."
BNY Mellon carries out its responsibility through a global focus on six CSR priorities: ethics and transparency; strong governance; responsible investments; operational reliability and effectiveness; excellent talent; and community commitment.
Manulife Launches RetirementPlus
ManulifeInvestments has launched Manulife RetirementPlus, designed for people who are between five and 15 years from retirement. Manulife RetirementPlus provides the opportunity for retirement savings growth through equity participation, the potential to benefit from rising interest ratesand the option to choose a future guaranteed lifetime income-all within a single flexible contract.
"Manulife RetirementPlus is the first-of-its-kind in Canada to offer clients the opportunity to benefit from market upside potential and unprecedented flexibility to customize their retirement plan," said Paul Lorentz, executive vice president and general manager, Retail Markets in a statement. "Manulife RetirementPlus is another example of our forward thinking approach to the retirement solutions space."
RESEARCH
Morningstar Reports U.S. Mutual Fund Asset Flows for August 2013
Morningstar reported estimated U.S. mutual fund asset flows for August 2013. The fixed-income exodus continued in August, as mutual fund investors pulled $15.5 billion from taxable-bond funds and $11.8 billion from municipal-bond funds.
Since the end of April, bond funds have seen outflows of $81.9 billion, with taxable-bond and municipal-bond offerings losing 1.6% and 6.6% of beginning assets, respectively.
FINRA Survey Reveals Exposure to Financial Scams
The FINRA Investor Education Foundation issued a new research report--Financial Fraud and Fraud Susceptibility in the United States--which reveals that over 80% of respondents have been solicited to participate in potentially fraudulent schemes, and over 40% of those surveyed cannot identify some classic red flags of fraud.
"When it comes to financial fraud, America is a nation at risk. Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money, and far too few Americans are able to detect likely fraudulent sales pitches," said FINRA Foundation President Gerri Walsh in a statement.
The FINRA Foundation's new survey of nearly 2,400 U.S. adults age 40 and older revealed that financial fraud solicitations are commonplace, many Americans are unable to spot fraudulent sales pitches, and older Americans (age 65 and older) are particularly vulnerable.
Wells Fargo/Gallup: Investor Optimism Low
The Wells Fargo/Gallup Investor and Retirement Optimism Index fell 10 points in the third quarter to +33, down from +43 recorded in May. Among retired investors, third quarter optimism has fallen 18 points since May to +14, but optimism among non-retired investors has waned only slightly in the third quarter, falling five points since May to +40. Answers related to questions about the stock market and inflation showed the greatest decline in optimism and contributed to the overall Index dip.
PRODUCTS
ING U.S. Files Registration Statement for Public Offering of Common Stock
ING U.S., Inc. (VOYA), which plans to rebrand in the future as Voya Financial, announced it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in connection with a potential public offering of ING U.S. common stock currently held by ING Group. ING U.S. will not be issuing or selling common stock in the offering and will not receive any proceeds from the offering.
In connection with this potential offering, the underwriters have agreed to waive the previous lock up agreement by ING Group to not offer or sell its shares of ING U.S. for a 180-day period following ING U.S.'s initial public offering on May 1, 2013.
Eaton Vance Files Amendeded Exemptive Application for ETNFs
Eaton Vance Management, announced that it has filed an amended application with the U.S. Securities and Exchange Commission seeking exemptive relief to permit the offering of exchange-traded managed funds (ETMFs). The amended application amends and supplements the ETMF exemptive application filed on March 27, 2013.
Eaton Vance seeks to launch a family of ETMFs that mirror existing Eaton Vance mutual funds and to license the underlying technology to other fund groups through its subsidiary Navigate Fund Solutions LLC.
ARRIVALS
Siebert Financial Corporation Appoints Acting CEO
Siebert Financial Corporation announced the appointment of Suzanne Shank as Acting CEO of the company and its wholly owned subsidiary, the discount broker/dealer and institutional investment bank, Muriel Siebert & Co., Inc., effective September 16, 2013. The company was founded by Muriel F. "Mickie" Siebert, who died on August 24.
BMO Capital Hires Key Trading Professionals
BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group, has added key trading professionals to its U.S. team.
Joining the group are Jim Gallagher as managing director and head of U.S. Equity Sector Trading, David Matlow as managing director, U.S. Equity Sales Trading and New York sales manager, Daniel Mara as director, U.S. Equity Sales Trading and Ashley Amo as vice president, U.S. Equity Sales Trading.
