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ETF Securities launches Exchange Traded Commodities (ETCs) for multicurrency trading on London Stock Exchange (LSE)
29/10/07
- Exchange Traded Commodities (ETCs) to trade in Sterling for the first time
- Gold, silver, oil and agriculture ETCs to be made more accessible due to increasing demand
- First physical gold ETC to trade in Sterling
Global pioneer in exchange traded commodities, ETF Securities is set to initially make ten of the most popular Exchange Traded Commodities (ETCs) available for multicurrency trading. The new multicurrency platform will enable investors to trade ETCs in sterling as well as US dollars on the London Stock Exchange (LSE) from today. Investors will also be able to buy new Sterling priced ETCs for ISAs, PEPs, CTFs and SIPPs.
Substantial demand has come from investors wanting simple access to the world’s major commodity markets in the home currency. This demand and desire for increased accessibility has led the London Stock Exchange to enhance its successful ETC segment by offering the multicurrency platform. The world’s commodity markets trade in US dollars, however the launch of multicurrency trading will enable investors to trade ETCs in ordinary sterling brokerage accounts and without the need to exchange currency. This should help reduce the overall cost of trading ETCs for UK investors.
The ETCs to be listed for multicurrency trading are ten of the most popular ETCs to date. All Agriculture ETCs have proven popular this year due to the limited options for investment in this market. Agriculture ETCs have already gained $605 million in assets over the past 13 months and they have traded over $1.3 billion on five ETC platforms in Europe. It is expected more of the ETCs will be included in the Sterling segment overtime.
Physical Precious Metal ETCs have also been hugely successful, having gained $500 million in assets in only 6 months. ETFS Physical Gold has been the most popular precious metal ETC, having accumulated $370 million of new assets in the past three months alone, an increase of 800% making ETFS Physical Gold the fastest growing gold ETF over the past three months. With the launch of a total of 8 precious metal ETCs in the past 12 months, investors have traded in excess of $1 billion of these ETCs.
ETFS Physical Gold will be the first ETC tracking physical gold to be traded in Sterling. UK investors can now have the benefit of unique benefits of Gold in their portfolios including tax wrappers such as SIPPs, PEPs, ISAs and CTFs.
The 10 Exchange Traded Commodities (ETCs) which will be available for trading in sterling from today:
| Name of ETC |
Sedol Code |
LSE Code |
| ETFS Agriculture £ DJ-AIGCISM |
B285XZ6 |
AGAP |
| ETFS All Commodities £ DJ-AIGCISM |
B285Y75 |
AGCP |
| ETFS Grains £ DJ-AIGCISM |
B285YH5 |
AGGP |
| ETFS Natural Gas £ |
B285YS6 |
NGSP |
| ETFS Gold £ |
B285Z05 |
BULP |
| ETFS Physical Gold £ |
B285Z72 |
PHGP |
| ETFS Physical Silver £ |
B285ZK5 |
PHSP |
| ETFS Physical PM Basket £ |
B285ZX8 |
PHPP |
| ETFS Brent 1mth £ |
B286069 |
OLBP |
| ETFS WTI 2mth £ |
B2860J2 |
OLWP |
As a result of their overwhelming success, over 50 ETCs are now traded in 3 major currencies (US dollars, Sterling and Euros) on 5 of Europe’s largest stock exchanges: London Stock Exchange, Deutsche Bourse, Euronext Paris, Euronext Amsterdam and Borsa Italiana. Each Exchange has created their own ETC segment with fifteen registered Market Makers or Authorised Participants having signed up to trade ETCs. The success of ETCs is due to their simplicity and accessibility – similar to Exchange Traded Funds (ETFs), ETCs can be bought and sold through ordinary brokerage accounts and are eligible for UCITS funds and PEP, ISA and CTF accounts. ETCs trade and settle like stocks and with fees ranging from 0.39% to 0.49% per annum, ETCs are a cost effective way to invest in commodities. ETCs managed by ETF Securities now exceed $1.9 billion.
Commenting on launching another world first, Graham Tuckwell, Chairman of ETF Securities, said:
"Exchange Traded Commodities (ETCs) have now been available in Europe since December 2003 and their simplicity and structure have now been embraced by the market. Many investors have approached us showing an appetite for ETCs to be priced in sterling. Increased investor demand and knowledge has resulted in investors wanting access to more choice and alternative trading and investment strategies."
"With access to ETCs in sterling, ETF Securities is continuing its leadership of the ETC market. Previously commodity markets were hard to access and now ETF Securities has delivered multicurrency ETCs across 5 exchanges, providing investors access to both physical precious metals and established commodity indices. Most recently, ETCs which track the Dow Jones-AIG Commodity 3 Month Forward Indices were listed on the London Stock Exchange earlier this month."
"Overall there has been a huge surge in global demand for ETCs and we recently passed the landmark of US $1.9 billion invested in our existing offering of over 50 ETCs. With listings on five of Europe’s major exchanges ETF Securities has successfully delivered simple, cost-efficient and accessible products for all investors."
For further information, please contact:
Roman Townsend / Laura Stevens
Penrose Financial
Tel: +44 (0) 20 7786 4875 / 4861
Notes to editors:
The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF Securities created 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 broad range of ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment.
To learn more about ETF Securities go to: www.etfsecurities.com
The Dow Jones - AIG Commodity IndexSM(DJ-AIGCISM) and The Dow Jones - AIG Commodity 3 Month Forward IndexesSM(DJ-AIGCI-F3SM) are designed to be liquid and diversified benchmarks for the commodity futures market. They are composed of futures contracts on 19 physical commodities traded on U.S. exchanges, with the exception of aluminium, nickel and zinc, which trade on the London Metal Exchange (LME). In addition, there are nine sub-indexes, representing the major commodity sectors within the index: Energy (including petroleum and natural gas), Petroleum (including crude oil, heating oil and unleaded gasoline), Precious Metals, Industrial Metals, Grains, Livestock, Softs, Agriculture and ExEnergy.
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 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 USSecurities 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,” “AIG®” “Dow Jones-AIG Commodity IndexSM,” “DJ-AIGCISM”, “Dow Jones-AIG Commodity 3-Month Forward Index” 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) or 3-Month Forward Indexes 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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