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ETF Securities will today launch an exchange-traded precious
metals platform backed by physical metal on Euronext Paris
& Euronext Amsterdam
10/05/07
- 5 new physically backed Exchange Traded Commodities (ETCs) to
be listed tomorrow on Euronext Paris & Euronext Amsterdam
- Platinum, palladium, silver and a precious metal basket ETC to be
made available to ordinary German investors for the first time ever
- Precious metals contribute 25% to commodities demand
The global pioneer in exchange traded commodities, ETF Securities, will today
bring further innovation to Euronext Paris & Euronext Amsterdam with the listing
of a range of physically backed, precious metal, Exchange Traded Commodities
(ETCs).
Never before have physically backed platinum, palladium, silver or a precious
metals basket been made available to French and Dutch investors through
ordinary brokerage accounts; however, this is set to change as ETF Securities
lists these new ETCs – along a gold ETC – on both Euronext Paris & Euronext
Amsterdam in an innovative new listing.
The 4 separate classes of metal securities to be listed are:
- ETFS Physical Platinum code: Amsterdam PHPT, Paris : PHPTP
- ETFS Physical Palladium code: Amsterdam PHPD, Paris : PHPDP
- ETFS Physical Silver code: Amsterdam PHAG, Paris : PHAGP
- ETFS Physical Gold code: Amsterdam PHAU, Paris : PHAUP
The basket of metals to be listed is:
- ETFS Physical PM Basket code: Amsterdam PHPM, Paris: PHPMP
The basket consists of platinum (20%), palladium (12%), silver (26%) and gold
(42%).
First dealings in these securities will commence on Euronext Paris &
Euronext Amsterdam today, Thursday 10th May
The listings come from the same management team who created the world’s first
ETC, Gold Bullion Securities which now have over US$2.2 billion of assets
combined. All of the new ETCs are backed by physical allocated metal – uniquely
identifiable bars which carry no credit risk - held by the Custodian HSBC Bank
USA N.A., who is the world’s leading Custodian for ETCs with over US$13 billion
of precious metals being held for such products. All physical metals held with the
Custodian must conform to the rules for Good Delivery of the London Bullion
Market Association (LBMA) and London Platinum Palladium Market (LPPM) and
Securities will only be issued once metal is confirmed as being deposited into the
Company’s Bullion account with the Custodian.
The listing also coincides with assets in ETF Securities’ new ETCs exceeding
US$750 million for the first time, with over 25% of total assets attributable to
precious metals. ETF Securities listed 3 precious metal ETCs on Euronext
Amsterdam in November 2006 and Euronext Paris in January 2007 based on DJAIG
Commodity IndicesSM tracking gold, silver and a gold-silver basket.
ETCs are relatively new investment tools which enable investors to gain exposure
to commodity prices without trading futures or taking physical delivery. The ETCs
are designed to offer investors a simple, cost-efficient and secure way to access
the precious metals market. They provide investors with a return equivalent to
movements in their spot price less a small management fee which accrues daily.
ETCs are open-ended securities which can be created or redeemed on demand
provided that the relevant amount of metal is delivered to the Custodian by
Authorised Participants or market makers. Which currently include Fortis Bank
Global Clearing N.V., HSBC Bank plc, Morgan Stanley & Co. International Limited,
Flowtraders, IMC and Nyenburgh. Investors can buy and sell the new ETCs
through regulated brokers or approved market makers. ETCs can be traded with
all the same order types available to equities, including market, limit and stop
orders. They can also be shorted through stock borrowing or CFDs.
Commenting on today’s listing of the new range of physical ETCs on
Euronext Paris and Amsterdam Graham Tuckwell, Chairman ETF
Securities, said:
"Our decision to launch this range of precious metals is twofold. Firstly, it comes
in the wake of successful and increasing global demand for precious metals
through ETCs which have seen steady growth over the last four years to over
US$16 billion. In the past 6 months, 25% of demand for our range of 36 ETCs
has come from demand from precious metals.
“Unlike many other commodities, precious metals are durable, homogenous and
easily stored, enabling the ETCs to be backed by allocated physical bars which
have transparent pricing and carry no credit risk. As a result, the new physical
ETCs save investors from many of the difficulties associated with purchasing
precious metals such as access to physical bars and then having to store and
insure those bars.
“ETCs provide investors with an investment vehicle that tracks the price of
precious metals, not a portfolio of equities. Uncorrelated to equities, they can
provide investors with an additional tool for portfolio diversification.”
Adding to this, Alicia Suminski, Product manager, warrants, certificates
and ETCs, Euronext, said:
"We are delighted, through our partnership with ETF Securities, to bring further
innovation to both Euronext Paris & Euronext Amsterdam and offer investors
access to a physically-backed gold, silver, platinum and palladium ETCs. These
products follow ETF Securities initial listing of Exchange Traded Commodities on
Euronext Amsterdam in 2006 and on Euronext Paris in early 2007. Thanks to
these listings, 36 different ETCs are today available on Euronext, offering a wide
range of trading opportunities in the commodities sector for investors."
For further information please contact:
Claire Burston / John Kelly Tel: +44 (0) 20 7786 4886/4821
Penrose Financial
NYSE Euronext Paris
Tel: + 33 1 49 27 11 33
NYSE Euronext Amsterdam
Tel: + 31 20 550 44 88
- Notes to editors -
To obtain a copy of the prospectus please visit the website at
www.etfsecurities.com/msl
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 in Australia and London in 2003 and then the world’s first
entire ETC platform which was listed on the London Stock Exchange in September
2006. Since then, ETF Securities has listed its entire range of ETCs on Europe’s
major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange
creating a separate ETC segment. ETCs listed by the management of ETF
Securities (including Gold Bullion Securities which is part owned by the World
Gold Council) now exceed US$2.95 billion.
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
Metal 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 Metal
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. Metal Securities have not been and will
not be registered under the US Securities Act or any other applicable law of the United States. Metal
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 or in transactions
exempt from the registration requirements of the 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. 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 Metal Securities held by that Security Holder in accordance with the provisions described
in the Prospectus. Metal 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 Metal Securities held by that Security Holder in accordance with the provisions
described in the Prospectus."
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