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As the Securities and Exchange Commission moves ever-closer to fully approving the first actively managed exchange-traded funds, some experts predict a cool reception. Tom Lydon, president of Global Trends Investments and editor of ETFTrends.com, said the new breed of ETFs will not catch on because many ETF investors do their own asset allocation and use ETFs because they are cheap ways to track indexes. He said institutional investors and hedge funds in particular will likely shun the new offerings.

Sources say that Richard D'Albert is poised to move across from his role in securitisation – lucky fellow – and head up global head of sales for Deutsche Bank.

The Securities and Exchange Commission has given the American Stock Exchange the green light to bring in off-floor ETF market makers, a move traders say is necessary for when the Amex merges with the New York Stock Exchange. The so-called Designated Amex Remote Traders (DARTs) will act as automated market makers and will provide continuous quotes, fill trades and bring in new order flow. Until now, most of the options market makers were on the floor. NYSE Arca, which trades all Big Board ETF listings, is completely automated, so it would be difficult to combine Amex’ floor structure with fast-paced trading in the instruments, one trader said. Amex will handle the allocations and set specific performance standards at a later date. It is still unclear how much of the Amex floor would migrate to the Big Board and when. NYSE officials said it was too early in the merger process and no concrete plans have been made yet.

More on Merrill Lynch

If Europe and Japan authorities are reluctant to follow the same path their US counterparts, are we really moving towards serious rebalancing, even if via a shared recession?

Operating company securitizations had to take a back seat to real estate as UK corporates rode the real estate boom in recent years. But they could now be set for a revival. Louise Bowman reports.

The National Futures Association (NFA) has fined yet another of its forex dealer members. The regulator has ordered the Charlotte, North Carolina based Advanced Markets and its principals, Anthony Brocco and Geoffrey Gooch, to jointly pay a fine of $150,000. The decision came after an NFA hearing panel found that Brocco and Gooch failed to diligently supervise Advanced Market’s financial and recordkeeping activities and the promotional materials used by AMI’s unregistered solicitors.

Well, I seem to have upset one reader last week, when I described how I was off skiing for the weekend and some of the efforts Euromoney Poll head honcho Andrew Newby has to go to protect its sanctity. The reader, who calls himself Robin Prinz, added a comment to the site. “Break a leg!” he exhorted. “In fact, break both of them.”

Are we witnessing the birth of a new EBS?

Two surveys released this week suggest that while the FX market is still expanding, the rate of growth has slowed. Covering activity in October 2007, the US foreign exchange committee (FXC), which meets under the auspices of the New York Fed, and the UK’s joint standing committee (FX JSC), which is sponsored by the Bank of England, show that activity rose by 13% in the US market from April 2007 and by a more modest 7% in the UK. Total average daily turnover in the US was put at $701 billion, while in London it was $1.334 billion (see table below).

In next month’s Euromoney, there is an article which examines whether there is a level regulatory playing field in the US for the FX platform providers. Further ammunition for those who believe it is not comes this week in an announcement from the National Futures Association (NFA). Titled, “Effective Date of Amendments to the Interpretive Notice Regarding Forex Transactions,” the NFA says that effective June 1, 2008, any forex dealer members (FDMs which act as counterparties to trades must disclose prominently, “in uppercase letters in at least 10 point size type,” that they may profit from the trade. Exchanges don’t have to do this. Of course, it could be argued that the exchange itself does not profit from trades which move against the client, the ultimate counterparty does. There are numerous conspiracy theories on the bulletin boards in the US and the NFA is right to examine some of the activities of the OTC platforms. In the past, there is no doubt that prices were shaded on occasions massively when clients came to exit positions. There’s far too much transparency and choice for that to happen on a widespread scale now and it seems that the NFA’s action is an example of too much too late.

Mark Carrodus has stepped down from his position as global head of FX spot and options at Deutsche Bank for personal reasons. He is set to return with his family to New Zealand. His replacement is Rob Mandeno, who coincidentally is currently based in New Zealand, but who will return to London to take up his new role.