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NASDAQ OMX Helsinki, part of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) today starts trading six new Exchange Traded Notes issued by Commerzbank. The new range of Bull and Bear certificates consists of double leveraged certificates on the Nokia, Fortum and UPM-Kymmene shares.
Lauri Rosendahl, President of NASDAQ OMX Helsinki said: "We are pleased to be able to expand on our ETN offering with the new certificate products from Commerzbank. In 2010 we have seen a significant increase in interest from issuers to launch products in the Helsinki market, proving that this is a market with a great growth potential."
"Our plan is to offer the Finnish investors a wider range of product types, so that the investors can choose the most suitable product according to their personal risk profile. We expect our Bull & Bear certificates to find their place in the Finnish investors' portfolios as an attractive investment product. With the double leveraged Bull & Bear-certificates we can offer an attractive risk-reward combination to investors who are normally day-trading the underlying shares", says product manager Johannes Ankelo from Commerzbank.
About certificates
An exchange traded certificate is a security that tracks an index, commodity,
currency or a basket of assets like an index fund, but trades like a stock on an
exchange. The simplest form of a certificate is an index certificate which
tracks a stock index. Depending on the certificate type (bull or bear), an
investor can benefit from either the rise or fall in the value of the underlying
asset. A leveraged certificate multiplies the movement of the underlying
instrument, which increases the potential return but also the risk level. A
certificate can have a closed end or an open end. Holders of the now issued
certificates do not receive any coupon payments during the life of the note, and
there is no principal protection for the investment.
