ETNs Take Off On The LSE
Tuesday, May 04, 2010
The London Stock Exchange has announced that 28 new Exchange Traded
Notes (ETNs) have been admitted to its markets.
ETNs are secured notes designed to track the performance of a
particular underlying asset. They are tradable in real-time during
market hours allowing investors to access the market as they would
shares, Exchange Traded Funds (ETFs) or Exchange Traded Commodities
(ETCs). The products offer simple, real-time exposure to commodities
and futures indices and join one existing ETN, tracking gold, issued by
Lyxor in March 2009.
Société Générale has admitted 16 ETNs to
trading on the exchange, while Barclays iPath has admitted 12.
Pietro Poletto, Head of Exchange Traded Products at London Stock
Exchange Group, said: “[The] listings create a strong base of
instruments from a range of issuers for investors accessing the London
markets. We look forward to leading further European growth in this
product type in the coming months and years.”
Today’s admissions further expand the Exchange’s range of Exchange
Traded Products (ETPs), which include:
- 243 ETFs, offering exposure to major indices such as the FTSE
100, as well as those tracking companies in emerging markets, cleantech
businesses and Shariah compliant firms;
- 200 ETCs, offering exposure to commodities including natural
resources and agriculture; and
- 18 Exchange Traded Currencies (Currency ETCs), offering long and
short exposure to G10 currencies against the US Dollar.
Trading activity in ETPs has seen consistent growth since their
launch ten years ago this week. In the first quarter of 2010, there was
GBP10.4bn worth of trading in the products on the London Stock
Exchange, a 13.4% increase on the same period last year. |
Lowtax Network Portal