AUM of ETF Securities’ Currency ETC platform jumps 72% in one week as investors short AUD and short JPY

27/04/10

• $41m flows into ETF Securities’ Currency ETC platform last week bringing AUM to $120 million
• 89% of investors currently short G10 currencies vs. USD, with USD strengthening 9.5% since November
• ETFS Short AUD Long USD (SAD) captures 45% of new inflows in April after ETFS Long AUD Short USD (LAUD) rallied 9% in previous 9 weeks
• ETFS Short JPY Long USD (SJPY) continues to be the most favoured position with 46% of total ETFS Currency ETC assets
• Average weekly trading volume up 177% since the start of 2010 on back of last week record turnover

London, 27/04/2010 - ETF Securities (ETFS), which launched the world’s largest and Europe’s first platform of Exchange Traded Currencies (ETFS Currency ETCs), has seen assets on the platform grow to around $120 million with average weekly trading volumes continuing to grow, up 177% since the start of 2010 as demand for currency ETCs keeps increasing. We believe growth in the new products further exemplifies investors’ acceptance of the ETC structure.

The fourteen ETFS Currency ETCs, which are short G10 currencies versus USD or EUR, have seen the most interest from investors, making up 89% of assets as of 23rd April 2010. We feel this has occurred as the USD strengthened 9.5% versus the Dollar Index (DXY index) since the recent low on 25th November 2009 to 23rd April 2010.

ETFS Short AUD Long USD (SAD) captured 45% of ETFS Currency ETC’s new inflows in April as recent comments by policymakers indicated a potential pause in the rate hike cycle after Australia was the first developed country to raise interest rates, and as investors fears that the potential for further policy tightening in Asia could reduce demand for raw materials and cap Australian dollar gains. The change in stance on the AUD comes on the back of ETFS Long AUD Short USD (LAUD) rallying 9% in the previous nine weeks when LAUD was the most favored long position versus USD.

ETFS Short JPY Long USD (SJPY) continues to build on its current position as the most favored ETFS Currency ETC with $55 million, while the Currency ETCs tracking the Norwegian Krone now holds the most net long positions, replacing the Currency ETCs tracking the Australian Dollar which was the favorite long position before April.

The platform has seen continuous increases in turnover since inception. To date, 85% of trading volumes have occurred in four products, ETFS Short EUR Long USD (SEUR) with 31% share of trading volumes, followed by ETFS Short GBP Long USD (SGBP) with 21%, ETFS Short JPY Long USD (SJPY) with 18% and ETFS Short AUD Long USD (SAD) with 15%.

Martin Arnold, Senior Analyst, ETF Securities, commented:

“Recent moves in the FX market indicate that investors are beginning to look more closely at the risk/reward profile of different currencies. We are seeing that most investors remain negative on the Euro and GBP, most likely a result of exploding debt levels and the upcoming elections in the UK. As a result, we believe other Euro-region FX pairs like ETFS Long CHF Short EUR (XBJA) and ETFS Long NOK short EUR (LNOE) appear more attractive. Similarly, investors seem to be starting to shy away from currencies that have strengthened significantly, like the ETFS Long AUD Short USD (LAUD), feeling that most of the good news is already priced in, with the US Dollar receiving strong interest as a result.”

ETFS Currency ETCs which were Short G-10 currencies versus USD performed best as the USD strengthened. The table below shows the best performing currencies since inception of the ETFS Currency ETCs on 12th November 2009. Over the last 12 months, long versions of the higher yielding G-10 currency indices were the top five performers such as the Australian Dollar and New Zealand Dollar.


Source: ETF Securities, Bloomberg, ¹ ETFS Currency ETC returns from 12/11/2009 to 23/04/2010, 2 AUM market share % as of 23/04/2010

ETFS Currency ETCs provide long or short passive exposure to G10 currencies versus the US Dollar and include AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZK and SEK. Our Currency ETCs also provide exposure to local interest rates in addition to FX movements. For example the implied interest rate incorporated into the MSFX Long Australian Dollar IndexSM averaged approximately 5% p.a. over the past three years (Source: ETF Securities as of 23rd April 2010).

For further information, please contact:

Helen Burden
Tel: +44 (0) 20 7448 4330
Email: helen.burden@etfsecurities.com

Conference Call:

Using Currencies as an Asset Class in a Dollar-Bullish World

Date: Wednesday 28th April 2010
Time: 11:00am and 15:00pm London Time

Speaker: Martin Arnold, Senior Analyst, ETF Securities Marketing LLP

This call will discuss:

• Key factors affecting currency returns
• The rise of sovereign risk a new key driver of returns
• Overview of potential implications for the G10 currencies
• The Euro and British Pound: Are the Risks Already Priced In?

To register your place today: www.etfsecurities.com/en/events/etfs_events_calls.asp

About ETFS Currency ETCs:

The first 18 ETFS Currency ETCs were listed on the LSE on the 12th November 2009 and track MSFX Currency Indices^SM. Since inception, the ETFS Currency ETCs have rapidly generated interest with eight liquidity providers signing up and four Multilateral Trading Facilities (MTFs) to provide investors access to these new securities. Further 10 Euro-based Currency ETCs were listed on the Deutsche Boerse (Xetra) on the 10th March 2010.

Similar to Exchange Traded Funds (ETFs), ETCs are liquid, accessible and simple. ETCs can be created and redeemed on a continuous basis by market makers, matching the tremendous liquidity of the underlying foreign exchange markets but traded on a regulated exchange in the same way as an equity. Historically, the average daily turnover of the global FX market is about $3.2 trillion which compares to the average daily turnover of $450 billion for global equities, $48 billion for the New York Stock Exchange and $6 billion for the London Stock Exchange. Thus currencies are considered much more liquid than equities.

ETF Securities launched the ETFS Currency ETC platform due to investor demand for secure, transparent and liquid exchange traded products. ETFS Currency ETCs are fully backed* by eligible collateral to the value of at least 100% of the total value of all ETFS Currency ETCs outstanding which is held in a segregated custody account with BNY Mellon. The collateral is adjusted daily to ensure credit risk is minimised. ETFS Currency ETCs are backed by the same eligible collateral criteria as ETF Securities’ existing Commodity ETCs. With ETF Securities’ Commodity ETC assets having grown by approximately 150% in 2009 to nearly $18 billion and volumes having doubled to around $1 billion per week, it is clear that investors have widely accepted the ETC structure as a secure vehicle of choice for exposure to commodities. As a result, the ETC product structure has been replicated to include currencies.

Notes to Editors:

ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of 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.

The Exchange Traded Products (ETPs) above provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors and now G10 Currencies.

ETPs are simple to access as they are traded in five currencies (EUR, USD, GBP, AUD and JPY) and listed across nine major exchanges globally including the London Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.

*ETFS Currency ETCs are fully collateralised. The total value of ETFS Currency ETCs outstanding is backed by between 100% and 110% of Eligible Collateral held in a segregated Custody Account with BNY Mellon. The value of the ETFS Currency ETCs and Eligible Collateral are marked to market daily so that at the end of the previous trading day, all ETFS Currency ETCs are fully backed to minimise counterparty risks.

Disclaimer:

This press release was issued by ETF Securities Marketing LLP for journalists in the United Kingdom. The products discussed in this document (the “Securities”) are issued by ETFS Foreign Exchange Limited (“FXL”). ETF Securities Limited and FXL each are regulated by the Jersey Financial Services Commission. The United Kingdom Listing Authority is the ‘home regulator’ FXL for purposes of passporting its prospectus under the Prospectus Directive.

This press release appears as a matter of record only and does not constitute an offer to sell or an invitation to purchase any securities. Important information is contained in the FXL prospectus and other documents, copies of which can be obtained by calling +44 (0)20 7448 4330 or by e-mail at info@etfsecurities.com.

None of the index providers of the products referred to herein nor their licensors make any warranty or representation whatsoever either as to the results obtained from use of the relevant indices and/or the figures at which such indices stand at any particular day or otherwise. None of the index providers shall be liable to any person for any errors or significant delays in the relevant indices nor shall be under any obligation to advise any person of any error or significant delay therein.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR TO THE GENERAL PUBLIC IN THE UNITED KINGDOM OR JERSEY. THIS PRESS RELEASE IS NOT A PROSPECTUS BUT AN ADVERTISEMENT AND INVESTORS SHOULD NOT SUBSCRIBE FOR ANY TRANSFERABLE SECURITIES REFERRED TO IN THIS PRESS RELEASE EXCEPT ON THE BASIS OF INFORMATION IN THE PROSPECTUS