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ETF Securities to offer investors easy access to a large range of commodities with Exchange Traded Commodities launch on Euronext Paris
06/02/07
- 31 Exchange Traded Commodities to be listed
- ETC assets now exceed US$400 million
ETF Securities Ltd, the world pioneer of Exchange Traded Commodities (ETCs), is planning shortly to list a record 31 separate ETCs, comprising of 21 individual securities and 10 index securities, on Euronext Paris. This simultaneous listing on Euronext Paris will enable investors to trade such an expansive range of commodities through ordinary brokerage accounts just like any equity.
Investors will gain easy access to all of the key commodity groups, energy, agriculture, livestock, precious metals, industrial metals, without having to engage in the trading or management of future contracts; 29 of the ETCs are simply priced off DJ-AIG Commodity Indices, with the other 2 ETCs priced directly off oil futures.
The 21 separate classes of commodity securities to be listed are:
- ETFS Aluminium
- ETFS Brent Oil
- ETFS Coffee
- ETFS Copper
- ETFS Corn
- ETFS Cotton
- ETFS Crude Oil
- ETFS Gasoline
- ETFS Gold
- ETFS Heating Oil
- ETFS Lean Hogs
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- ETFS Aluminium
- ETFS Live Cattle
- ETFS Natural Gas
- ETFS Nickel
- ETFS Silver
- ETFS Soybean Oil
- ETFS Soybeans
- ETFS Sugar
- ETFS Wheat
- ETFS WTI
- ETFS Zinc
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The 10 baskets of commodities indices will be:
- ETFS All Commodities DJ-AIGCISM
- ETFS Agriculture DJ-AIGCISM
- ETFS Energy DJ-AIGCISM
- ETFS Ex-Energy DJ-AIGCISM
- ETFS Grains DJ-AIGCISM
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- ETFS Industrial Metals DJ-AIGCISM
- ETFS Livestock DJ-AIGCISM
- ETFS Petroleum DJ-AIGCISM
- ETFS Precious Metals DJ-AIGCISM
- ETFS Softs DJ-AIGCISM
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The listing is in response to the overwhelming interest that European investors have shown in ETFs and now ETCs. Similar to Exchange Traded Funds, ETCs are liquid, accessible and simple.
The Euronext Paris listing follows the successful launch of the ETCs on Euronext Amsterdam late last year. Since September 2006, assets under management on these 31 ETCs have increased by over 160% to US$400 million. The rapid growth in assets highlights the investor demand for easy access to new asset classes.
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. Investors can buy and sell the new ETCs through regulated brokers. ETCs can be traded with all the same order types available to equities, including market, limit and stop orders.
The ETCs will be priced and settled in Euros. Like an Exchange Traded Fund, they can be created and redeemed on a continuous basis by the Authorised Participants, who ensure minimum applications up to a total of US$600 million daily across the 31 ETCs. It is expected that at least three market makers will provide prices on the exchange, ensuring efficient and transparent pricing and market liquidity.
Announcing the listings Nik Bienkowski, Head of Listings at ETF Securities Limited, said:
"We are delighted to offer this pioneering investment to investors and traders on Euronext Paris. Following our recent successful launches of our range of ETCs in Europe, we saw listing on Euronext Paris as the next logical step.
"We designed ETCs to be simple and secure, open-ended securities. They have lowered many of the barriers that previously prevented some investors from investing directly in commodities, which include access, trading and operational risks, custody, and transaction costs. ETCs also provide a pure way of tracking a commodity rather than trying to replicate exposure by trading shares of commodity companies - many of which do not correlate to the underlying commodity, if available at all.
"The new securities track indices created by Dow Jones Indexes and AIG and each individual commodity index tracks a designated futures contract and is designed to reflect the returns from investing in commodities."
Commenting on the forthcoming listings, Alicia Suminski, Product manager, warrants, certificates and ETCs, Euronext said:
"Following ETF Securities initial listing of Exchange Traded Commodities on Euronext Amsterdam in 2006, Euronext is delighted to be able to extend access to this innovative product range to investors in France. Thanks to the addition of the ETCs, Euronext's products range has been deepened, thus offering a wide variety of trading opportunities to the investors."
For further information please contact:
ETF Securities
Claire Burston/Ben Larter
Penrose Financial
Tel: +44 (0) 20 7786 4886/4876
Euronext Paris:
Tel: +33 1 49 27 11 33
Notes to editors
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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, and which was listed on Euronext Paris in November 2005. In 2005, ETF Securities listed the world's first oil ETC priced off oil futures on the London Stock Exchange; in 2006 it was listed on Euronext Amsterdam.
This advertisement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any transferable securities to be issued by ETFS Commodity Securities Limited or any other securities, nor shall it or any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto. Any offer, invitation or solicitation shall be made solely by means of the prospectus and recipients of this advertisement who are considering a purchase of securities following distribution of the prospectus in connection therewith are reminded that any such purchase should be made solely on the basis of the information contained in such prospectus and any supplementary prospectus(es). This advertisement does not constitute any recommendation regarding the securities of ETFS Commodity Securities Limited.
The communication of this press release is not being made by, and this press release has not been approved by, an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (the "FSMA"). Accordingly this press release is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this press release or any other document issued in connection with the offer and sale of the ETCs is only being made to and directed at those persons in the United Kingdom falling within the definition of Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), or high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any person to whom it may otherwise lawfully be made (all such persons together being referred to as "relevant persons"). The communication of this press release (or any other document issued in connection with the offer and sale of the ETCs) must not be acted upon or relied upon by persons who are not relevant persons. Persons distributing this press release must satisfy themselves that it is lawful to do so. All applicable provisions of the FSMA must be complied with in respect of anything done in relation to the ETCs in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. Commodity Securities have not been and will not be registered under the USSecurities Act or any other applicable law of the United States. Commodity Securities are being offered and sold only outside the United States to non-US persons in reliance on the exemption from registration provided by Regulation S of the US Securities Act. The Issuer has not been and does not intend to become registered as an investment company under the Investment Company Act and related rules. Commodity Securities and any beneficial interest therein may not be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If the Issuer determines that any Security Holder is a Prohibited US Person (being a US Person who is not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may redeem the Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus. Commodity Securities may not be purchased with plan assets of any "employee benefit plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or section 4975 of the Code or any United States Federal, state, or local law or non-United States law that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section 4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the Issuer may redeem the Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus."
"Dow Jones," "AIG®" "Dow Jones-AIG Commodity IndexSM," and DJ-AIGCISM" are service marks of Dow Jones & Company, Inc. and American International Group, Inc. ("American International Group"), as the case may be, and will be licensed for use for certain purposes by ETF Securities Ltd. ETCs based on the DJ-AIGCISM or related sub-indices (including single commodity sub-indices) are not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial Products Corp. ("AIG-FP"), American International Group, or any of their respective subsidiaries or affiliates, and none of Dow Jones, AIG-FP, American International Group, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product(s).
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