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ETF Securities lists Europe's first Carbon ETC last week
03/11/08
- European first for listed access to carbon emissions
- Simple and direct exposure on the London Stock Exchange
- ETC to track the world's most liquid carbon emissions futures contract
- European carbon emissions trading expands by 80% in 1H08 to EUR 30 billion
ETF Securities Limited (ETFS), the global pioneer in Exchange Traded Commodities (ETCs), has listed Europe's first Carbon ETC on the London Stock Exchange (LSE) in the dedicated ETC segment. ETFS Carbon offers investors, for the first time ever in Europe, the opportunity to gain simple and direct exposure to the carbon emissions allowance futures market.
ETFS Carbon (LSE Code: CARB) is designed to track the price of carbon emissions allowance futures and offers investors a total return*. CARB tracks the ICE ECX EUA Futures Contract traded in London on the ICE Futures Market - currently the most liquid exchange traded contract within the EU Emissions Trading Scheme ("EU ETS"). Each ETFS Carbon is initially equivalent to one emissions allowance; the holder of an emissions allowance owns the right to emit one tonne of carbon dioxide equivalent gas. On the LSE, ETFS Carbon will trade in both Euros (CARB) and also in British pence (CARP) on the London Stock Exchange. Each ETFS Carbon began trading last Thursday at approximately EUR 18.37 (£14.74). This morning, ETFS Carbon was trading at EUR 18.55 (£14.50).
According to the Energy Information Administration (EIA), global CO2 emissions increased by approximately 32% from 1990 to 2005. Carbon emissions allowance trading markets have developed as part of the international response to concerns over the environmental effects of increasing global greenhouse gas (GHG) emissions, in particular carbon dioxide (CO2). The Kyoto Protocol (1997) provides a framework for the reduction of global GHG emissions through the establishment of emissions trading schemes. In January 2008, the European Commission announced proposals to improve and extend the EU ETS post-2012.
The EU ETS is currently the largest and most liquid GHG trading market, with approximately 80% of global turnover in CO2 allowances and credits in 2007. Total EU ETS trading activities were valued at approximately EUR 30 billion in the first half of 2008, equivalent to 750 million tonnes of CO2, an increase of 80% over the same period in 2007. Germany, UK and Italy are currently in the list of the top ten emitters in the world.
ETFS Carbon is the newest ETC to be added to the range of ETCs which are issued by ETFS Oil Securities Limited and which are backed by matching Energy Contracts purchased from an entity of Shell Trading. Shell Trading is the principal trading and shipping business within the Shell Group. ETFS Brent Oil 1mth (OILB) and ETFS WTI Oil 2mth (OILW) were the world's first oil ETCs when they first started trading in July 2005. Last year, ETF Securities added to the Oil Securities platform when six more ETCs were added, providing exposure to a range of both Brent and WTI dated oil contracts. In total, there are nine ETCs issued by ETFS Oil Securities Limited.
ETF Securities now offers more than 120 ETCs, issued by four different issuers, which give investors the flexibility to implement different investment strategies using physical, long, forward, leveraged and short exposures in a wide range of commodity sectors. ETCs are simple to access as they are traded in three currencies (USD, Euros and Sterling) and are listed on five major European Exchanges including the London Stock Exchange, Euronext Paris, Euronext Amsterdam, Deutsche Borse and Borsa Italiana. ETFS assets under management have grown to US$6 billion with trading volumes reaching over US$4 billion monthly.
Commenting on the launch of Carbon Securities, Nik Bienkowski, Chief Operating Officer of ETF Securities, said:
"We are very pleased to be able to offer the first carbon ETC in Europe. ETFS Carbon is an exciting new development for investors to gain exposure to the carbon emissions trading market through a listed product on the London Stock Exchange. This development recognises the rising importance of carbon emissions trading and more importantly global warming."
"ETCs were designed to be simple and accessible tools for all types of investors. Currently most investors cannot invest in carbon emissions allowance futures due to limited market access, but our response to this problem in the form of ETFS Carbon creates a practical and accessible answer for investors."
Pietro Poletto, Head of ETF and ETC markets at London Stock Exchange Group, said:
"The ETF Securities Carbon ETC is another demonstration of the important role played by our Exchange Traded Commodities platform in opening up new asset classes and new opportunities for investors. It also demonstrates the extent to which London has become the global centre for the funding of innovation in low-carbon and environmental technologies, with a cluster of industry-leaders using IPOs on our markets to fund the development of their businesses."
*Total return is the return that an investor can earn by holding a long only, fully collateralised position in commodity futures.
For further information, please contact:
Helen Burden
ETF Securities Ltd
Tel: +44 (0) 20 7448 4330
ETF Securities continues its series of conference calls for finance
professionals:
Title: Introduction to ETFS Carbon
- ETFS Carbon and the EU Emissions Trading Scheme (EU ETS)
- Regulatory Background to the EU ETS
- Supply and Demand in Emissions Allowances
- Summary and Concluding Comments
- Question and answer session
Date: 4th November 08
Time: 11:00am and 15:00pm London Time
Click here to register
Notes to editors:
The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF Securities created 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 ETCs on Europe's major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment. With Classic, Forward, Short and Leveraged ETCs available, investors can execute most trading and investment strategies previously not possible.
To learn more about ETF Securities go to: www.etfsecurities.com
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 Oil 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 Oil 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. Oil Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. Oil 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. Oil 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 Oil Securities held by that Security Holder in accordance with the provisions described in the Prospectus. Oil 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 Oil Securities held by that Security Holder in accordance with the provisions described in the Prospectus."
ETF Securities Limited and the Issuer are each regulated by the Jersey Financial Services Commission
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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