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ETF Securities to list Europe’s first Carbon ETC
28/10/08
- European first for listed access to carbon emissions
- Simple and direct exposure on the London Stock Exchange
- ETC to track the world’s most liquid carbon emissions futures
contract
- European carbon emissions trading expands by 80% in 1H08 to
EUR 30 billion
ETF Securities Limited (ETFS), the global pioneer in Exchange Traded
Commodities (ETCs), will list the world’s first Carbon ETC on the London Stock
Exchange (LSE) in the dedicated ETC segment. ETFS Carbon offers investors, for
the first time ever in Europe, the opportunity to gain simple and direct exposure
to the carbon emissions allowance futures market. It is expected that the first day
of trading will be Thursday 30th October.
ETFS Carbon (LSE Code: CARB) is designed to track the price of carbon emissions
allowance futures and offers investors a total return*. CARB tracks the ICE ECX
EUA Futures Contract traded in London on the ICE Futures Market – currently the
most liquid exchange traded contract within the EU Emissions Trading Scheme
(“EU ETS”). Each ETFS Carbon is initially equivalent to one emissions allowance;
the holder of an emissions allowance owns the right to emit one tonne of carbon
dioxide equivalent gas. On the LSE, ETFS Carbon will trade in both Euros (CARB)
and also in British pence (CARP) on the London Stock Exchange. Each ETFS
Carbon will begin trading at approximately EUR 18.37 (£14.74).
According to the Energy Information Administration (EIA), global CO2 emissions
increased by approximately 32% from 1990 to 2005. Carbon emissions
allowance trading markets have developed as part of the international response
to concerns over the environmental effects of increasing global greenhouse gas
(GHG) emissions, in particular carbon dioxide (CO2). The Kyoto Protocol (1997)
provides a framework for the reduction of global GHG emissions through the
establishment of emissions trading schemes. In January 2008, the European
Commission announced proposals to improve and extend the EU ETS post-2012.
The EU ETS is currently the largest and most liquid GHG trading market, with
approximately 80% of global turnover in CO2 allowances and credits in 2007.
Total EU ETS trading activities were valued at approximately EUR 30 billion in the
first half of 2008, equivalent to 750 million tonnes of CO2, an increase of 80%
over the same period in 2007. Germany, UK and Italy are currently in the list of
the top ten emitters in the world.
ETFS Carbon is the newest ETC to be added to the range of ETCs which are issued
by ETFS Oil Securities Limited and which are backed by matching Energy
Contracts purchased from an entity of Shell Trading. Shell Trading is the principal
trading and shipping business within the Shell Group. ETFS Brent Oil 1mth (OILB)
and ETFS WTI Oil 2mth (OILW) were the world’s first oil ETCs when they first
started trading in July 2005. Last year, ETF Securities added to the Oil Securities
platform when six more ETCs were added, providing exposure to a range of both
Brent and WTI dated oil contracts. In total, there are nine ETCs issued by ETFS
Oil Securities Limited.
ETF Securities now offers more than 120 ETCs, issued by four different issuers,
which give investors the flexibility to implement different investment strategies
using physical, long, forward, leveraged and short exposures in a wide range of
commodity sectors. ETCs are simple to access as they are traded in three
currencies (USD, Euros and Sterling) and are listed on five major European
Exchanges including the London Stock Exchange, Euronext Paris, Euronext
Amsterdam, Deutsche Borse and Borsa Italiana. ETFS assets under management
have grown to US$6.5 billion with trading volumes reaching over US$4 billion
monthly.
Commenting on the launch of Carbon Securities, Nik Bienkowski, Chief
Operating Officer of ETF Securities, said:
“We are very pleased to be able to offer the first carbon ETC in Europe. ETFS
Carbon is an exciting new development for investors to gain exposure to the
carbon emissions trading market through a listed product on the London Stock
Exchange. This development recognises the rising importance of carbon
emissions trading and more importantly global warming.”
“ETCs were designed to be simple and accessible tools for all types of investors.
Currently most investors cannot invest in carbon emissions allowance futures due
to limited market access, but our response to this problem in the form of ETFS
Carbon creates a practical and accessible answer for investors.”
*Total return is the return that an investor can earn by holding a long only, fully
collateralised position in commodity futures.
For further information, please contact:
Helen Burden
ETF Securities Ltd
Tel: +44 (0) 20 7448 4330
ETF Securities continues its series of conference calls for finance
professionals:
Title: Introduction to ETFS Carbon
- ETFS Carbon and the EU Emissions Trading Scheme (EU ETS)
- Regulatory Background to the EU ETS
- Supply and Demand in Emissions Allowances
- Summary and Concluding Comments
- Question and answer session
Date: 4th November 08
Time: 11:00am and 15:00pm London Time
Click here to register
Notes to editors:
The management of ETF Securities Limited pioneered the development of
Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF
Securities created the world’s first entire ETC platform which was listed on the
London Stock Exchange in September 2006. Since then, ETF Securities has listed
its ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy)
with each exchange creating a separate ETC segment. With Classic, Forward,
Short and Leveraged ETCs available, investors can execute most trading and
investment strategies previously not possible.
To learn more about ETF Securities go to: www.etfsecurities.com
This advertisement does not constitute or form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for, any transferable securities to be issued by ETFS
Oil Securities Limited or any other securities, nor shall it or any part of it nor the fact of its distribution
form part of or be relied on in connection with any contract or investment decision relating thereto.
Any offer, invitation or solicitation shall be made solely by means of the prospectus and recipients of
this advertisement who are considering a purchase of securities following distribution of the
prospectus in connection therewith are reminded that any such purchase should be made solely on
the basis of the information contained in such prospectus and any supplementary prospectus(es). This
advertisement does not constitute any recommendation regarding the securities of ETFS Oil Securities
Limited.
The communication of this press release is not being made by, and this press release has not been
approved by, an authorised person for the purposes of section 21 of the Financial Services and
Markets Act 2000 (the “FSMA”). Accordingly this press release is not being distributed to, and must
not be passed on to, the general public in the United Kingdom. The communication of this press
release or any other document issued in connection with the offer and sale of the ETCs is only being
made to and directed at those persons in the United Kingdom falling within the definition of
Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the “Order”), or high net worth entities, and other persons to
whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any
person to whom it may otherwise lawfully be made (all such persons together being referred to as
“relevant persons”). The communication of this press release (or any other document issued in
connection with the offer and sale of the ETCs) must not be acted upon or relied upon by persons who
are not relevant persons. Persons distributing this press release must satisfy themselves that it is
lawful to do so. All applicable provisions of the FSMA must be complied with in respect of anything
done in relation to the ETCs in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. Oil Securities have not been and will not
be registered under the US Securities Act or any other applicable law of the United States. Oil
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. The Issuer has not
been and does not intend to become registered as an investment company under the Investment
Company Act and related rules. Oil Securities and any beneficial interest therein may not be reoffered,
resold, pledged or otherwise transferred in the United States or to US persons. If the Issuer
determines that any Security Holder 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 Oil
Securities held by that Security Holder in accordance with the provisions described in the Prospectus.
Oil Securities may not 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 Oil
Securities held by that Security Holder in accordance with the provisions described in the Prospectus."
ETF Securities Limited and the Issuer are each regulated by the Jersey Financial Services Commission
To obtain a copy of the prospectus please visit the website at
www.etfsecurities.com
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