本文发表在 rolia.net 枫下论坛Investors get lucky on Claymore pricing glitch
Posted: May 27, 2008, 1:04 PM by David Pett
Market Call
Christmas came nice and early for a few lucky retail investors in the Claymore S&P/TSX Global Mining exchange-traded fund (ETF) on Monday due to a last minute pricing glitch that affected the ability of Bank of Montreal to make markets based on the company's true net asset value.
According to Claymore vice president Jeff Logan, market makers for Claymore ETFs, including Bank of Montreal, use Reuters as a pricing vendor. He said that Reuters, based out of the U.S., had a reset or pricing glitch right at the end of the day yesterday, causing Bank of Montreal's automated trader to make markets at a much lower price than the fund's actual net asst value.
"While BMO lost money on the trading, many retail investors were able to pick up the ETF at a big discount to the net asset value," said Mr. Logan. "Bank of Montreal could have canceled the trades but given the relatively small loss, they decided not to, making many investors very happy."
In total, about 7,300 units in the global mining ETF were bought during the last minute of trading as the price fell from $25.70, to a low of $19.55. The ETF closed at $20.05. Mr. Logan said the Claymore Global Agriculture ETF was also affected by Reuter's pricing glitch, although not as drastically.
Mr. Logan said the error has been corrected and secondary pricing sources and failsafes have been put in place to prevent this isolated occurence from happening again.
Units in the Global Mining ETF are back trading above $25 to $25.20 at 12:30 p.m. ET.
David Pett更多精彩文章及讨论，请光临枫下论坛 rolia.net
Posted: May 27, 2008, 1:04 PM by David Pett
Market Call
Christmas came nice and early for a few lucky retail investors in the Claymore S&P/TSX Global Mining exchange-traded fund (ETF) on Monday due to a last minute pricing glitch that affected the ability of Bank of Montreal to make markets based on the company's true net asset value.
According to Claymore vice president Jeff Logan, market makers for Claymore ETFs, including Bank of Montreal, use Reuters as a pricing vendor. He said that Reuters, based out of the U.S., had a reset or pricing glitch right at the end of the day yesterday, causing Bank of Montreal's automated trader to make markets at a much lower price than the fund's actual net asst value.
"While BMO lost money on the trading, many retail investors were able to pick up the ETF at a big discount to the net asset value," said Mr. Logan. "Bank of Montreal could have canceled the trades but given the relatively small loss, they decided not to, making many investors very happy."
In total, about 7,300 units in the global mining ETF were bought during the last minute of trading as the price fell from $25.70, to a low of $19.55. The ETF closed at $20.05. Mr. Logan said the Claymore Global Agriculture ETF was also affected by Reuter's pricing glitch, although not as drastically.
Mr. Logan said the error has been corrected and secondary pricing sources and failsafes have been put in place to prevent this isolated occurence from happening again.
Units in the Global Mining ETF are back trading above $25 to $25.20 at 12:30 p.m. ET.
David Pett更多精彩文章及讨论，请光临枫下论坛 rolia.net