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(July 18, 2008) Not content to wait for the federal government to take the lead on climate change, RBC Capital Markets has announced its entry into the global market for trading greenhouse gas (GHG) emissions.

“We are a market-making provider, taking principal risk, providing pricing liquidity and facilitating hedging for clients,” said Mike MacBain, head of Global Debt Markets, RBC Capital Markets. “We’re building a global book for these markets and becoming a one-stop shop for our clients’ GHG emissions trading needs.”

The bank-based firm is a general clearing member and market maker on several exchanges around the world, including European Climate Exchange (ECX), the Montréal Climate Exchange (MCeX), the Chicago Climate Exchange (CCX), the NYMEX Green Exchange and soon under the Regional Greenhouse Gas Initiative in the Northeastern United States.

GHG emissions trading is a system that caps the amount of GHG companies may emit, but rewards companies that cut their emissions, by giving them the right to sell their excess GHG allowance to those companies that surpass their emission allowance.

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Pension funds recoup some losses

(July 18, 2008) Canadian pension funds gained some ground in the second quarter, with energy stocks helping to recover some of the equity losses from the first quarter, according to RBC Dexia Investor Services.

Among the $340 billion in pension assets that RBC Dexia tracks, Canadian pension funds earned 1.0% in the quarter ended June 30, trimming six-month losses to 1.0%.

“Albeit modest, after posting three consecutive negative quarters, it’s a welcome reprieve, especially considering the weakness in other global markets,” said Don McDougall, director of advisory services for RBC Dexia.

With the price of crude hitting new all-time highs in June, energy stocks boosted the S&P TSX Composite Index to a gain of 9.1% in the quarter.

“Unfortunately, with advances so narrowly focused, Canadian pensions had a difficult time keeping pace, and underperformed the composite benchmark by 0.9% this quarter and by 3.0% over the year-to-date,” said McDougall.

Pensions saw their fixed income holdings lose 0.3% over the same period, as inflation fears drove investors out of the debt market.

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CSA proposes extension of passport model

(July 18, 2008) The Canadian Securities Administrators has published its proposal streamlining the process for dealer and adviser registration in multiple jurisdictions, using the passport model.

“Making the passport system available for the dealer and adviser community will give all market participants faster and simpler access to Canada’s capital markets,” said CSA chair Jean St-Gelais. “This phase of the passport will simplify the regulatory processes and benefit registrants and investors in all provinces and territories.”

The proposal would require changes to rules and policies by the assorted provincial and territorial securities regulators that have already signed on to the passport model. It would also require a new national policy that would include Ontario.

The new proposed policy, National Policy 11-204 Process for Registration in Multiple Jurisdictions, will replace and streamline the current National Registration System (NRS).

The proposed amendments to MI 11-102, the new NP 11-204, and related documents are available on various CSA members’ websites.

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Jovian teams up with First Nations Financial

(July 18, 2008) Jovian Capital Corp., a wholly-owned subsidary of Rice Financial Group, will start providing group benefits and insurance products to First Nations Financial Services Inc.

FNFS is a subsidary of Tribal Councils Investment Group, an organization owned by the seven tribal councils in Manitoba. These tribal councils represent 55 First Nations and over 100,000 people.

“We are very excited to partner with a dynamic and creative investment organization such as Tribal Councils Investment Group,” said Dave Velanoff, president and chief executive officer of Rice Financial Group. “We have a long-standing relationship with our First Nations clients and we feel that this partnership with such a respected member of the Manitoba business community, and one with such strong ties to the First Nations community, will allow us to enhance our services and expand our First Nations client base.”

(07/18/08)