Investors can now take speculate on rising tin prices on the London Stock Exchange, using an Exchange Traded Commodity (ETC) product launched by ETF Securities on 12 November. Long cocoa, lead and platinum ETC products were introduced at the same time. The new ETCs are designed to track the Dow Jones – UBS Commodity Indices on cocoa, tin, lead and platinum, which are in turn priced off the relevant commodities futures contracts. The company states that all its ETCs “are fully collateralised in order to mitigate counter-party risk using ETF Securities’ standard requirements for eligible collateral assets which requires between 100% to 110% coverage of the outstanding value.”
The new offerings complete a set of 148 ETCs offering long, short and leveraged exposure to commodity markets which have accumulated US$16 billion in assets since the concept was first developed in 2003. ETF Securities’ Commodity ETC platform experienced record trading volumes in October 2009, with over $5.2 billion traded globally. Over $3 billion was traded on the LSE alone, with weekly trading regularly exceeding $1 billion.
