ETF Securities Ltd, the pioneer of Exchange Traded Commodities (ETCs), will be listing 29 separate ETCs, consisting of 19 individual securities and 10 index securities, on the London Stock Exchange.
Until now, says ETC, no single exchange has covered all the world’s major commodities or commodity groups (energy, agriculture, livestock, precious metals, industrial metals).
The launch, coupled with the investment demand for Exchange Traded Funds (EFTs) specifically in commodities, has prompted the London Stock Exchange (LSE) to create a new sector, Exchange Traded Commodities. The new trading platform on the LSE will deal exclusively in ETCs, with the management of ETF Securities having created all 32 securities (29 new ones and 3 existing ones).
“We designed ETCs to be simple and secure, open-ended securities,” says Graham Tuckwell, the Chairman of ETF Securities. “They have lowered many of the barriers that previously prevented some investors from investing in commodities including access, trading and operational risks, custody, and transaction costs. ETCs also provide a pure way of tracking a commodity rather than trying to replicate exposure by trading shares of commodity companies – many of which do not correlate to the underlying commodity, if available at all.”
“London was one of the first exchanges in the world to list Gold and Oil Securities, and we are delighted to be pioneers in becoming the first Exchange to offer investors a way to access a broad range of commodities without the need to trade futures and options,” adds Martin Graham, the Director of Markets at the London Stock Exchange. “It will be the first time in the City’s modern history investors have had such straightforward access to these commodities through London’s marketplaces, and the first time that all of these commodities have been available through the same market and the same time-zone.”