MacroMarkets to pull the plug on MacroShares

MacroMarkets LLC announced today the termination of the MacroShares $100 Oil Up Trust (UOY) and the MacroShares $100 Oil Down Trust (DOY), due to assets on deposit falling to less than $50 million.
MAY 15, 2009
MacroMarkets LLC announced today the termination of the MacroShares $100 Oil Up Trust (UOY) and the MacroShares $100 Oil Down Trust (DOY), due to assets on deposit falling to less than $50 million. Their respective registration statements provide for a termination when “the amount of cash and Treasuries on deposit in the down trust and/or up trust is less than $50 million per trust on any business day and we elect, in our discretion, to terminate the paired trusts.” The trusts — which are similar to exchange traded funds — will continue to trade until June 25. On July 6, a final distribution payment will be made to shareholders of record, based on the underlying value of the trusts. The termination of the trusts is the second time that MacroMarkets of Madison, N.J., has had to kill off its oil trusts. With Claymore Securities Inc. of Lisle, Ill., acting as marketing agent, the firm launched the MacroShares Oil Up Trust and the MacroShares Oil Down Trust in November 2006. The partnership was dissolved, however, in November 2007. Industry experts have speculated that the split had to do with the fact that MacroShares surprised almost everyone by trading at wide discounts and premiums to net asset value — something that few investors thought would happen. MacroShares stopped trading in April 2008 because oil prices rose to the point of triggering a built-in early-termination event within the trusts. MacroMarkets is in the midst of an initial public offering of MacroShares Major Metro Housing Up (UMM) and MacroShares Major Metro Housing Down (DMM). After the IPO, the trusts will be listed on NYSE Arca. The two trusts are designed to track the change in U.S. home prices as measured by the Standard & Poor’s/Case-Shiller Composite of 10 Home Price Index. The paired securities will have a five-and-a-half-year term and will feature a 300% leverage factor.

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income