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Two new exchange traded commodities (ETCs) issued by BNP Paribas Arbitrage Issuance B.V. have been tradable on Xetra and Börse Frankfurt since Thursday.
The Brent Crude Oil ETC enables investors to participate in the performance of the underlying ICE Brent Crude futures contracts.The underlying tracks ICE futures contracts in US dollars for Brent Crude oil. These contracts represent physical delivery of crude oil with the option of cash settlement. The ICE futures have a limited term with a specific expiry date and are replaced before they expire with contracts with later expiry dates (rolled over).
The RICI Enhanced Brent Crude Oil TR Index USD ETC enables investors to participate in the performance of the RICI Enhanced Brent Crude Oil Total Return Index. The reference index comprises Brent Crude oil futures contracts with differing terms and is denominated in US dollars. The limited term of the futures contracts requires a replacement prior to expiry with a futures contract with the next expiry date. Possible losses resulting from rollover are minimised by using an optimised selection procedure. Only contracts expiring in June or December are bought for the index. A rollover takes place twice a year and takes five trading days.
ETC name: Brent Crude Oil ETC
ISIN: DE000PS701L2
Management fee: 0.9 percent
Reference value: ICE futures contracts for Brent Crude oil
ETC name: RICI Enhanced Brent Crude Oil TR Index USD ETC
ISIN: DE000PR5RBU0
Management fee: 0.99 percent
Reference index: RICI Enhanced Brent Crude Oil Total Return Index
Deutsche Börse’s product range in its ETF and ETP segment currently comprises 1,148 ETFs, 213 ETCs and 132 ETNs. This selection, together with an average monthly trading volume of around €13 billion, makes Xetra Europe’s leading trading venue.
