ETF Securities Ltd, the world pioneer of Exchange Traded Commodities (ETCs), will be making a wide range of commodity investments available to Dutch investors in easily tradable ETCs. This will take place via a listing of 25 ETCs on Euronext Amsterdam, comprising 15 individual securities and 10 index securities. These ETCs add to a wide range of Trackers, Structured and Investment Products listed on Euronext Amsterdam.
ETCs are open-ended securities which can be bought and sold intraday by investors on a regulated exchange in the same way as any equity. They provide accurate and transparent commodity exposure to recognised benchmarks in a single trade. All 25 securities will be available for trading on Friday 15 December. This groundbreaking listing will enable investors in the Netherlands to trade and settle an expansive range of commodities in euros through an ordinary brokerage account in the same way as they trade and settle equities. The ETCs will either track individual or basket indices published by Dow Jones AIG Indices.
The 15 separate classes of commodity securities that will be available to Dutch investors are:
| - Aluminium | - Crude Oil | - Silver |
| - Coffee | - Gasoline | - Soybeans |
| - Copper | - Gold | - Sugar |
| - Corn | - Natural Gas | - Wheat |
| - Cotton | - Nickel | - Zinc |
The 10 baskets of commodities are:
| - All Commodities | - Grains | - Precious Metals |
| - Agriculture | - Industrial Metals | - Softs |
| - Energy | - Livestock | |
| - Ex-Energy | - Petroleum |
ETF Securities already has two oil ETCs available on Euronext Amsterdam. ETFS Brent (OILB) and ETFS WTI (OILW) were listed on Euronext Amsterdam in July this year. They replicate the performance of Brent oil and WTI oil futures. The oil exposure is managed by the Shell Group of companies.
The launch of this range of ETCs on Euronext Amsterdam is in response to the overwhelming interest that investors have shown in ETFs (Exchange Traded Funds) and commodities. Exchange Traded Commodities are very similar to ETFs with regards to their structure, sharing many of their advantages. They are openended and cost-effective. For each product, two market makers will provide prices on a continuous basis ensuring the transparency of the product pricing and its liquidity. They offer continuous on-exchange trading and allow investors to buy through ordinary brokerage accounts. They are also traded on a regulated exchange and are liquid because new demand can be met when authorised participants create or redeem. ETF Securities can create or redeem a minimum of $600m worth of new ETCs on a daily basis.
Nik Bienkowski, Head of Listings at ETF Securities Limited, comments:
“We are very pleased to be the first to open such a wide range of direct
commodity investments to investors and trading firms connected to Euronext
Amsterdam. ETFs have been extremely popular across Europe and the offering of
our product range here in Amsterdam seemed the logical step for us following the
huge interest in our ETCs.
“We designed our ETCs to be simple, secure, open-ended securities that would
lower the many barriers that previously prevented investors from investing
directly in commodities such as access, trading and operational risks, custody,
and transaction costs.”
Commenting on the listings, Marianne Demarchi, Executive Director, Cash
Markets & Listing, in charge of Marketing and Business Development at
Euronext, said:
“We are very pleased to offer both investors and traders a new and easily
accessible way of trading commodities on our electronic trading platform. With
the launch of ETCs on Euronext Amsterdam, investors will be able to have access
to a large range of euro quoted commodities on a single electronic platform. ETCs
are a great addition to our Trackers and Structured and Investment Products
offering that means investors can benefit from a greater number of diversification
opportunities.”
The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs) with the world’s first listing of an ETC, Gold Bullion Securities (GBS) in Australia, in 2003. In 2005, ETF Securities listed the world’s first oil ETC priced off oil futures on the London Stock Exchange. Volumes for the gold and oil ETCs have increased by 70% and 100% respectively, over the past 12 months. Globally, there are now US$15 billion of assets in ETCs.
Conference calls
ETF Securities will be holding a telephone conference
for investors, analysts and journalists at 1pm (GMT)
on Wednesday 13 December. To access the call +44
(0)20 8609 0581 (no pin is necessary )
