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ETF Securities will today launch an exchange-traded precious
metals platform backed by physical metal on the
Deutsche Börse
09/05/07
- 5 new physically backed Exchange Traded Commodities (ETCs) to
be listed today on the Deutsche Börse
- 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 another first to the Deutsche Börse with the listing of a range of physically
backed, precious metal, Exchange Traded Commodities (ETCs).
Never before have platinum, palladium, silver or a precious metals basket been
made available to German investors through ordinary brokerage accounts;
however, this is set to change as ETF Securities will list these new ETCs – along
with a gold ETC - on the Deutsche Börse in an innovative new listing.
The 4 separate classes of metal securities to be listed are:
- ETFS Physical Platinum German ISIN: DE000A0N62D7
- ETFS Physical Palladium German ISIN: DE000A0N62E5
- ETFS Physical Silver German ISIN: DE000A0N62F2
- ETFS Physical Gold German ISIN: DE000A0N62G0
The basket of metals to be listed is:
- ETFS Physical PM Basket German ISIN: DE000A0N62H8
The basket consists of platinum (20%), palladium (12%), silver (26%) and gold
(42%).
First dealings in these securities will commence on Deutsche Börse’s
electronic trading system Xetra today, Wednesday 9th May.
The listing on the Deutsche Börse follows the recent successful launch of the
world’s first exchange traded precious metals platform backed by physical metal
on the London Stock Exchange.
The launch of this new range of ETCs on Deutsche Börse is in response to the
strong interest that investors have shown in ETFs and Deutsche Börse’s new ETC
segment. Currently Deutsche Börse’s XTF segment is by far the largest ETF
market place in Europe and accounts for over 40% of total European trading
volume in exchange-traded funds.
The listings come from the same management team who created the world’s first
ETC, Gold Bullion Securities in Australia and London which now have over $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 $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 in Germany in
October 2006 based on DJ-AIG 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.
Similar to Exchange Traded Funds, 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 on the new range of physical ETCs on the
Deutsche Börse, 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 some from demand for precious metals.
Secondly, we want to offer investors exposure to a broad range of precious
metals which have historically been extremely difficult to access. Previous to our
listing of precious metals ETCs on the London Stock Exchange last month,
exposure to precious metals such as platinum and palladium was only available
through derivates or a limited number of equities.
“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, Rainer Riess, Managing Director Stock Market Business
Development, said “We are pleased to broaden our ETC offering with the first
Euro listing of five new, physically backed ETCs issued by ETF Securities. ETCs
provide both investors and traders with a new and easily accessible way of
trading precious metals on our electronic trading platform Xetra. The new
products mark an excellent addition to our extensive and well-established ETF
offering."
ETF Securities Ltd will be presenting at Frankfurter Investmenttag on 9th May at
15.30
For further information please contact:
Claire Burston / John Kelly Tel: +44 (0) 20 7786 4886/4821
Penrose Financial
- 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
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