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ETF Securities breaks Italian investment records with
tomorrow’s listing of Exchange Traded Commodities on the
Borsa Italiana
19/04/07
- ETF Securities create largest ever simultaneous listing of securities
on the Borsa Italiana with the launch of 31 ETCs
ETF Securities Ltd, a world pioneer of Exchange Traded Commodities (ETCs), is
shattering Italian investment records with the simultaneous launch of 31 separate
ETCs on the Borsa Italiana tomorrow, comprising 21 individual securities and 10
index securities.
Due to investor demand for ETCs, Borsa Italiana has recently created a new
segment for ETCs on the ETFplus market, enabling ETF Securities Limited to list
its entire ETC platform tomorrow. The listing of ETCs in Italy will enable investors
to effectively trade commodities through ordinary brokerage accounts. Investors
will be able to add any combination of individual commodities and/or baskets of
commodities to their equity, bond and alternative asset portfolios.
Investors will be able to gain access to all of the key commodity groups; energy,
agriculture, livestock, precious metals, industrial metals. This can be done
without having to engage in the trading or management of future contracts. 29 of
the ETCs are simply priced off existing DJ-AIG Commodity Indices, with the other
2 ETCs priced directly off oil futures.
The 21 separate classes of commodity securities 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 Live Cattle
- ETFS Natural Gas
- ETFS Nickel
- ETFS Silver
- ETFS Soybean Oil
- ETFS Soybeans
- ETFS Sugar
- ETFS Wheat
- ETFS WTI Oil
- ETFS Zinc
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The 10 baskets of commodities indices are:
- 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 Italian investors have
shown in ETFs and now ETCs. Similar to Exchange Traded Funds, ETCs are liquid,
accessible and simple.
The listing follows the recent successful launches of ETCs by ETF Securities on the
London Stock Exchange, Deutsche Bourse, Euronext Amsterdam, and Euronext
Paris. Since September 2006, assets under management on these 31 ETCs have
increased by approximately 300% to over US$600 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
(ETF), they can be created and redeemed on a continuous basis by Authorised
Participants, who can apply for up to US$600 million in aggregate of new
securities across the 31 ETCs each day. It is expected that at least two 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
Borsa Italiana. Following the recent successful launches of our ETC range in
Europe and the creation by Borsa Italiana of a new ETC segment on the ETFplus
market, we saw listing on Borsa Italiana as the next logical step.
“Since launching the first ETC more than 4 years ago, we have seen huge
demand for new products. ETC’s have lowered many of the barriers that
previously prevented many investors from investing in the commodities market,
including access, trading and operational risks, custody and transaction costs.
Globally, more than US$100 billion has been invested in commodity indices and
over US$20 billion in ETCs.
“With the launch of a record-breaking 31 ETCs, we are enabling investors to tap
into the ever-increasing appetite for commodities and to trade easily and cheaply
on a single platform. Regular investors wanting to invest in the commodities
market have previously had limited choice when trying to gain commodity
exposure without exposing themselves to corporate and operational risks. With
the advent of ETCs, this is the first time such a wide range of commodities has
been available on the one exchange and in the same time zone.”
For further information please contact:
Claire Burston / Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4886 / 4875
- 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 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 now Italy) with each
exchange creating a separate ETC segment. ETCs listed by the management of
ETF Securities now exceed US$2.5 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 (the “Securities”) to
be issued by ETFS Commodity Securities Limited, ETFS Oil Securities Limited (the “Issuers”) 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 the Issuers.
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 Securities 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 Securities) 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 Securities in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. The Securities have not been and will
not be registered under the US Securities Act or any other applicable law of the United States. The
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. The 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
Issuers determine 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 Issuers may redeem the
Securities held by that Security Holder in accordance with the provisions described in the Prospectus.
The 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 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. Securities
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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