ETF Securities to expand Europe’s first and world’s largest Exchange Traded Currency platform with the launch of 10 new Euro-based Currency ETCs on Xetra

24/02/10

• 10 new Euro-based Currency ETCs
• Long or short exposure to the EUR versus G-10 Currencies including (CHF, GBP, JPY, NOK, and SEK)
• Fully collateralised and include exposure to local interest rates
• Will be listed on the Deutsche Börse (Xetra)
• Exposure to world's most liquid asset class through a total of 28 Currency ETCs

London, 24/02/2010 - ETF Securities (ETFS), the global pioneer in Exchange Traded Commodities (Commodity ETCs) and 3rd generation Exchange Traded Funds (ETFs) is planning to expand the world’s largest and Europe’s first Exchange Traded Currency (Currency ETCs) platform with the launch of 10 new Euro-based Currency ETCs on the Deutsche Börse (Xetra) in the coming weeks.

The upcoming listing of 10 new Euro-based Currency ETCs on the Deutsche Borse adds to ETF Securities’ commitment to the German market. ETF Securities is already an established player in Germany with over 114 Commodity ETCs and 11 ETFs listed on Xetra, totaling approximately $1.5 billion of local investment and close to $200 million weekly trading volume on Xetra.

The 10 new Currency ETCs will track Morgan Stanley Foreign Exchange Indices (MSFX^SM Indices) and are designed to replicate a fully collateralised long or short investment in EUR versus CHF, GBP, JPY, NOK, or SEK and also provide exposure to local interest rates.

The 10 new Currency ETCs will complement the existing platform of 18 Currency ETCs listed on the London Stock Exchange (LSE) on the 12th November 2009 providing long or short passive exposure to G10 currencies versus the US Dollar and include AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZK and SEK. Since the launch of the Currency ETC platform, assets have grown to approximately $50 million and weekly trading volumes have risen strongly, up over 200% since start of 2010.

Currency ETCs which are Long USD and short G10 currencies have seen the most interest from investors, making up 81% of assets. ETFS Short EUR Long USD (LSE: SEUR) has been the most popular trade in 2010, capturing 50% of new assets, while the Australian dollar held the most net long positions.

All Currency ETCs are fully collateralised in order to mitigate counter-party risk and listed in the ETC segment of the Deutsche Börse or the LSE.

The 10 new securities to be listed on the Deutsche Börse are:


The new additions to the currency ETC platform will offer greater choice and flexibility for local investors, enabling them to take long or short exposures against the Euro. Having currency ETCs based on the Euro will allow investors to trade strategies predicated on European macro dynamics. With the Euro being weighed down by debt and default concerns in the current environment, investors will be able to use of the new currency ETCs such as ETFS Long CHF Short EUR to play the relative safety of the Swiss Franc or ETFS Long NOK Short EUR to play the relative fiscal strength of the Norwegian Krone versus the Euro.

Currency ETCs are intended for investors wishing to diversify their portfolio through the addition of a new asset class which has a low correlation with equities and bonds, or for those investors wanting to take advantage of tactical or strategic macro opportunities using the foreign exchange market.

ETF Securities is expanding it’s Currency ETC platform due to investor demand for increased choice of secure, transparent and liquid exchange traded products. Currency ETCs are backed by eligible collateral to the value of at least 100%* of the total value of all Currency ETCs outstanding and is held in a segregated custody account by BNY Mellon. The collateral is adjusted daily to ensure credit risk is minimised. Currency ETCs are backed by the same eligible collateral criteria as ETF Securities’ existing Commodity ETCs. With Commodity ETC assets having nearly tripled in 2009 and volumes having doubled, it is clear that investors have widely accepted the ETC structure as a secure vehicle of choice for exposure to commodities. As a result, this is now been extended to include currencies.

Currency ETCs provide accurate and transparent currency exposure to recognised benchmarks in a single trade. In addition, Currency ETCs require no foreign currency account and no trading or management of futures/forward contracts as ETCs are simply priced off new currency indices published by Morgan Stanley.

Nik Bienkowski, Chief Operating Officer, commenting on this innovative launch said:

“ETF Securities is extremely proud to be able to be offering these ten new exciting Currency ETCs which use the same widely accepted structure as Commodity ETCs. This will broaden our currency offering to include 10 long and short Euro Currency ETCs in addition to the existing 18 long and short USD Currency ETC”.

“Currencies have been one of the best performing asset classes, along with commodities, over the past 1 year, 3 years and 5 years. Currencies also have low correlation to other asset classes and low volatility, making currencies an asset which can improve portfolio performance through increased diversification.”

Martin Arnold, Senior Research Analyst, commenting on this innovative launch said:

“Eurozone debt problems, and Greece’s in particular, remain a key issue for FX investors, at least until a formal resolution to the situation is achieved – the EU Commission has given Greece a mid-march deadline to provide concrete evidence that its deficit-busting plan is working. In response to the debt situation in Europe and the continued removal of liquidity support by global central banks, sentiment in the FX market has changed dramatically in recent weeks as investors increasingly question whether the strong performance of risk assets in 2009 can be sustained in 2010. Not surprisingly, short Euro strategies have been popular and profitable, with our currency ETCs providing investors with an easy way to take advantage of these themes”.

For further information, please contact:

Nicolas Rajner
Tel: +44 (0) 20 7448 4330
Email: nicolas.rajner@etfsecurities.com

Notes to Editors:

ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of 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.

The Exchange Traded Products (ETPs) provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors and now G10 Currencies.

ETPs are simple to access as they are traded in five currencies (EUR, USD, GBP, AUD and JPY) and listed on nine major exchanges globally including the London Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.

Similar to Exchange Traded Funds (ETFs), ETCs are liquid, accessible and simple. ETCs can be created and redeemed on a continuous basis by market makers, matching the tremendous liquidity of the underlying foreign exchange markets and can be traded by investors on a regulated exchange in the same way as any equity

*Currency ETCs are fully collateralised. The total value of Currency ETCs outstanding is backed by between 100% and 110% of Eligible Collateral held in a segregated Custody Account with BNY Mellon. The value of the Currency ETCs and Eligible Collateral are marked to market daily so that at the end of the previous trading day, all Currency ETCs are fully backed to minimise counterparty risks.

ETF Securities Conference Call:

Using Currencies as an Asset Class in a Dollar-Bullish World

Date: Tuesday 9th March 2010
Time: 11:00am and 15:00pm London Time

Special Guest Speakers: Sophia Drossos and Ronald Leven, Morgan Stanley

This call will discuss:

• How divergent monetary policy and other factors are giving the dollar an upward bias
• What a strengthening dollar and widening yield spreads imply for foreign exchange as an asset class
• Summary and Conclusions
• Question and Answer Session

To register your place today: www.etfsecurities.com/en/events/etfs_events_calls.asp

To learn more about ETF Securities go to: www.etfsecurities.com

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This is not an offer of securities for sale in the United States. The Shares and Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. The Shares and 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. None of ETFS Foreign Exchange Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited and ETFS Fund Company public limited company (each an "Issuer") has been or intends to become registered as an investment company under the United States Investment Company Act of 1940 (as amended) (the "Investment Company Act") and related rules. Neither the Shares nor the Securities or any beneficial interest therein may be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If an Issuer determines that any holder of shares is a US Person or any holder of Securities 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 Shares or Securities (as the case may be) held by that Security Holder in accordance with the provisions described in the Prospectus. Neither the Shares nor the Securities may 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 or Shares held by that person in accordance with the provisions described in the relevant Prospectus.

Index disclaimer: The Morgan Stanley Indices are the exclusive property of Morgan Stanley & Co. Incorporated (“Morgan Stanley”). Morgan Stanley and the Morgan Stanley index names are service mark(s) of Morgan Stanley or its affiliates and have been licensed for use for certain purposes by the Issuer and ETF Securities Limited. The financial securities referred to herein are not sponsored, endorsed, or promoted by Morgan Stanley, and Morgan Stanley bears no liability with respect to any such financial securities. The Prospectus contains a more detailed description of the limited relationship Morgan Stanley has with the Issuer and any related financial securities. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting Morgan Stanley to determine whether Morgan Stanley's permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley. ETF Securities Limited, ETFS Foreign Exchange Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited, and Gold Bullion Securities Limited are each regulated by the Jersey Financial Services Commission. ETFS Fund Company PLC is regulated by the Financial Regulator in Ireland.