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ETF Securities will tomorrow launch an exchange-traded
precious metals platform backed by physical metal on the
Borsa Italiana
19/06/07
- 5 new physically backed Exchange Traded Commodities (ETCs) to
be listed tomorrow on the Borsa Italiana
- Platinum, palladium, silver and a precious metal basket ETC to be
made available to ordinary Italian investors for the first time ever
- Precious metals contribute 25% to commodities demand
The global pioneer in exchange traded commodities, ETF Securities, will tomorrow
bring another first to the Borsa Italiana 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 Italian 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 Borsa Italiana in an innovative new listing.
The 4 separate classes of metal securities to be listed are:
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ETFS Physical Platinum
ETFS Physical Palladium
ETFS Physical Silver
ETFS Physical Gold
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Code: PHPT
Code: PHPD
Code: PHAG
Code: PHAU
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The basket of metals to be listed is:
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ETFS Physical PM Basket
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Code: PHPM
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The basket consists of platinum (20%), palladium (12%), silver (26%) and gold
(42%).
First dealings in these securities will commence on Borsa Italiana
tomorrow, Wednesday 20th June.
The listing on the Borsa Italiana follows the recent successful launch of the
world’s first exchange traded precious metals platform backed by physical metal
on the London Stock Exchange, Deutsche Börse, Euronext Paris and Euronext
Amsterdam.
The launch of this new range of ETCs on Borsa Italiana is in response to the
strong interest that investors have shown in ETFs and Borsa Italiana’s new ETC
segment on the ETFplus market.
All of the new ETCs are backed by physical metal bars held by or on behalf of the
Custodian HSBC Bank USA N.A., who is the world’s leading Custodian for ETCs.
All metal must conform to the rules for Good Delivery of the London Bullion
Market Association (LBMA) and London Platinum Palladium Market (LPPM) and
may not be lent out.
The listing also coincides with assets in ETF Securities’ new ETCs exceeding
US$950 million for the first time, with over 25% of total assets attributable to
precious metals. ETF Securities listed 3 precious metal ETCs in Italy in April 2007
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 Flow Traders, IMC, Nyenburgh, Susquehanna, Morgan Stanley &
Co, Barclays Capital, UBS, ABN Amro, HVB, HSBC, Merrill Lynch, Citigroup,
Winterflood and JP Morgan. 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 tomorrow’s listing on the new range of physical ETCs on
the Borsa Italiana, 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 8 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, Deutsche Börse,
Euronext Paris and Euronext Amsterdam in April, 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 Pietro Poletto, Head of ETFplus Market, Borsa Italiana
said:
"Through this partnership with ETF Securities our market is enriched with a new
important asset class for the investors, both retail and institutional ones. The new
physically-backed gold, silver, platinum and palladium ETCs, together with the
other 32 securities on commodities already present on our market, offer a wide
and diversified range of trading opportunities in the commodities sector. This
confirms that our ETCs platform, is increasingly raising its attractiveness for the
investors who can access the commodities market in a simple and transparent
way and with a high potential of liquidity”.
We are holding a seminar on Exchange Traded Commodities at the Borsa Italiana,
on 21st June at 16:00 for more information contact helen.burden@etfsecurities.com
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 (Italy, Frankfurt, Paris and Amsterdam) with each exchange
creating a separate ETC segment.
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