Deutsche Börse Group announced today that a new exchange traded commodity (ETC) issued by BNP Paribas Arbitrage Issuance is now tradable on Xetra and Börse Frankfurt, adding to the recently introduced Boost ETCs and ETNs, as reported by Finance Magnates.
The BNP Paribas RICI Enhanced Brent TR Index ETC enables investors to participate in the performance of Brent crude oil. The reference index contains Brent crude oil futures contracts with differing maturities and is denominated in US dollars.
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The limited maturity of the futures contracts requires a switch prior to expiry in exchange for a futures contract with the next expiry date (roll-over). Possible losses as a result of the roll-over are minimised using a selection procedure.
According to the Börse’s statement, only contracts expiring in June or December are bought for the index. A rollover takes place twice a year and takes five trading days.
The ETCs, which refer to indices in the Nasdaq Commodity Index Family, enable investors to participate in the rising or falling performance of one-month futures contracts on WTI oil and Brent oil with a leverage factor of up to three.
Deutsche Börse’s product range in its ETF and ETP segment currently comprises 1,127 ETFs, 186 ETCs and 136 ETNs together with an average monthly trading volume of around €15 billion, making Xetra Europe’s primary trading venue.