As of Thursday, 12 June 2008, 66 new exchange-traded commodities (ETCs),will be tradable on Xetra. Offering a total of 114 exchange-traded commodities, Xetra is now the largest trading venue for ETCs in the euro zone.
“Within a short space of time, ETCs have become a successful new productgroup on the Frankfurt Stock Exchange. We are pleased to have the opportunity to further expand our investment range in the ETC segment with the innovative products from ETF Securities and to enable investors to implement new strategies in commodities,” says Rainer Riess, managing director and head of Cash Market Development at Deutsche Boerse.
The offering consists of 33 leveraged and 33 short ETCs issued by ETFSecurities. All of the products relate to Dow Jones AIG Commodity Indices. The leveraged products allow investors to track the price changes of the underlying index in a two-fold manner. Short ETCs allow investors to speculate on development diametrically opposite to that of the index: If the index falls, the price of the short ETC rises, and vice versa.
ETCs have been tradable on Xetra since November 2006. In legal terms, ETCs are collateralised debt instruments with an unlimited term and featuring no restrictions in terms of volume. They can be purchased and sold on an ongoing basis via Xetra just like equities, and offer a precise, transparent commodities exposure via recognised benchmarks.