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The physically-backed bond Xetra-Gold, issued by Deutsche Börse Commodities GmbH, has been admitted for sale in Austria with immediate effect. Xetra-Gold (ISIN: DE000A0S9GB0) was successfully launched in Germany in December 2007, and has also been available in Luxembourg since November 2008.
The Xetra-Gold bond combines the advantages of physical gold and exchange-traded securities. Each bond represents the option for delivery of one gram of gold and can be bought or sold via the Xetra trading platform. The securities issued are tradable constantly and quickly, and private investors can receive the underlying gold in physical form from their bank if desired. The bond offers the advantages of physical gold along with the low costs of securities trading on Xetra. It is ideally suited for risk diversification in securities accounts and provides maximum issuer security through the physical deposit. Its exchange listing makes Xetra-Gold a fungible and liquid security with a transparent pricing process. The security conforms to the EU UCITS criteria for securities investment, and is thus also suitable for institutional investors such as investment funds.
Clearstream Banking Frankfurt (CBF), a Deutsche Börse subsidiary, stores the gold in its vault. The physical gold is supplied, monitored and processed by industry partner Umicore AG & Co. KG. The safe custody of the gold reserves at Clearstream meets high security standards and saves investors the costs of the transporting and storing physical gold.
Deutsche Börse Commodities GmbH is a joint venture launched by Deutsche Börse and its partners Bankhaus Metzler, Bank Vontobel, Commerzbank AG, Deutsche Bank AG, DZ Bank AG and Umicore AG & Co. AG in November 2007. The aim of the new company is to offer innovative types of securitization for commodities and to ensure cost-effective trading in an alliance with the partners.
Steffen Orben, managing director of Deutsche Börse Commodities GmbH said, “With innovative securitizations, we offer investors direct access to the commodities market and a cost-effective opportunity to diversify their portfolios, which is particularly valuable in times of market turmoil.”
Martina Gruber, managing director of Deutsche Börse Commodities GmbH, said, “We are delighted to be offering investors in Austria the advantages and security of a very simple investment in gold as a commodity. We believe Xetra-Gold will be as successful in Austria as in Germany and Luxembourg, where results have exceeded expectations.”
Of the 113 commodities traded on the Frankfurt Stock Exchange, Xetra-Gold is by far the most traded. Order book turnover on Xetra and on the Frankfurt trading floor also outperforms the other products; at € 255.9 million in February it accounted for at least 50 percent of the total turnover of exchange-listed commodities. Deutsche Börse Commodities GmbH is the leading issuer for exchange-traded commodity certificates with just one product.
Xetra® is a registered trademark of Deutsche Börse AG.
