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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.