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Deutsche Launches ETC Platform With New Products

Nick Parmee 15 March 2010

Deutsche Launches ETC Platform With New Products

Deutsche Bank has launched a new Exchange Traded Commodities investment issuance platform with four new products on the Frankfurt Stock Exchange.

The new platform, branded db ETC, will roll out to the rest of Europe in 2010 and include ETCs in gold, silver, platinum and palladium.

Global head of commodities David Silbert said: “Exchange Traded Commodities issued by Deutsche Bank’s db ETC platform offer a simple way for investors to gain exposure to commodities without trading the futures contracts or taking physical delivery of the commodities they track. Our index-linked ETCs offer full collateralisation of the product using physical gold, while competitors use baskets of equity and bonds. Our ETCs also offer fully liquid trading provided by Deutsche Bank as a market maker of the products.”

In addition to dollar ETCs Deutsche Bank will be offering euro-hedged products on the platform. Since commodity products by definition carry dollar exposure, Deutsche Bank aims to make commodities available to investors that want to have access to this asset class without that exposure.

The platform will also provide access to Deutsche Bank’s own commodity indices. These products are already employed by db x-trackers ETFs carrying the word Booster in their name.

Head of db x-trackers Thorsten Michalik said: “We expect to launch more than 30 products before June and will continue to add to the product range on the ETC platform as we launch more products across Europe. We are also planning to launch db ETC on the underlying physical asset classes, for example silver.”

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