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ETF Securities to offer Dutch investors easy access to commodities with ETCs launch on Euronext Amsterdam
13/12/06
- 25 ETCs to be launched on Euronext Amsterdam
- Listings to take place on Friday, December 15
ETF Securities Ltd, the world pioneer of Exchange Traded Commodities (ETCs), will be making a wide range of commodity investments available to Dutch investors in easily tradable ETCs. This will take place via a listing of 25 ETCs on Euronext Amsterdam, comprising 15 individual securities and 10 index securities. These ETCs add to a wide range of Trackers, Structured and Investment Products listed on Euronext Amsterdam.
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. All 25 securities will be available for trading on Friday 15 December.
This groundbreaking listing will enable investors in the Netherlands to trade and settle an expansive range of commodities in euros through an ordinary brokerage account in the same way as they trade and settle equities. The ETCs will either track individual or basket indices published by Dow Jones AIG Indices.
The 15 separate classes of commodity securities that will be available to Dutch investors are:
- Aluminium
- Coffee
- Copper
- Corn
- Cotton
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- Crude Oil
- Gasoline
- Gold
- Natural Gas
- Nickel
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- Silver
- Soybeans
- Sugar
- Wheat
- Zinc
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The 10 baskets of commodities are:
- All Commodities
- Agriculture
- Energy
- Ex-Energy
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- Grains
- Industrial Metals
- Livestock
- Petroleum
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ETF Securities already has two oil ETCs available on Euronext Amsterdam. ETFS Brent (OILB) and ETFS WTI (OILW) were listed on Euronext Amsterdam in July this year. They replicate the performance of Brent oil and WTI oil futures. The oil exposure is managed by the Shell Group of companies.
The launch of this range of ETCs on Euronext Amsterdam is in response to the overwhelming interest that investors have shown in ETFs (Exchange Traded Funds) and commodities. Exchange Traded Commodities are very similar to ETFs with regards to their structure, sharing many of their advantages. They are open-ended and cost-effective. For each product, two market makers will provide prices on a continuous basis ensuring the transparency of the product pricing and its liquidity. They offer continuous on-exchange trading and allow investors to buy through ordinary brokerage accounts. They are also traded on a regulated exchange and are liquid because new demand can be met when authorised participants create or redeem. ETF Securities can create or redeem a minimum of $600m worth of new ETCs on a daily basis.
Nik Bienkowski, Head of Listings at ETF Securities Limited, comments:
"We are very pleased to be the first to open such a wide range of direct commodity investments to investors and trading firms connected to Euronext Amsterdam. ETFs have been extremely popular across Europe and the offering of our product range here in Amsterdam seemed the logical step for us following the huge interest in our ETCs.
"We designed our ETCs to be simple, secure, open-ended securities that would lower the many barriers that previously prevented investors from investing directly in commodities such as access, trading and operational risks, custody, and transaction costs."
Commenting on the listings, Marianne Demarchi, Executive Director, Cash Markets & Listing, in charge of Marketing and Business Development at Euronext, said:
"We are very pleased to offer both investors and traders a new and easily accessible way of trading commodities on our electronic trading platform. With the launch of ETCs on Euronext Amsterdam, investors will be able to have access to a large range of euro quoted commodities on a single electronic platform. ETCs are a great addition to our Trackers and Structured and Investment Products offering that means investors can benefit from a greater number of diversification opportunities."
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. . In 2005, ETF Securities listed the world's first oil ETC priced off oil futures on the London Stock Exchange. Volumes for the gold and oil ETCs have increased by 70% and 100% respectively, over the past 12 months. Globally, there are now US$15 billion of assets in ETCs.
For further information please contact:
Claire Burston / Roman Townsend, Penrose Financial on 020 7786 4886 / 4875
Or Euronext Amsterdam on +31 20 550 40 98
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.
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, 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 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 US Securities 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," "AIGŪ" "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).
To obtain a copy of the prospectus, please visit the website at www.etfsecurities.com
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