100 trading days after the launch of Xetra-Gold by Deutsche Börse Commodities, the physically backed bond has successfully made its mark on the market. Of the 48 exchange-traded commodities listed on the Frankfurt Stock Exchange, Xetra-Gold has the highest turnover.
From the beginning of the year to the end of April 2008, the certificate recorded turnover of €248 million, which equates to 38 percent of all turnover chalked up by the fledgling segment for exchange-traded commodities (April 2008: €648 million).
In second place are Lyxor Gold Bullion Securities (€140 million: 21 percent market share) followed by ETFS Physical Gold (€90 million: 14 percent market share). The rest is distributed among the remaining products in the segment.
According to Martina Gruber, managing director of Deutsche Börse Commodities, "Customers have reacted very positively to the product from the outset, showing a high level of acceptance." Xetra-Gold initially attracted the attention of primarily private investors, but now institutional investors such as insurance companies and pension funds are increasingly showing interest, appreciating the conformity of the product with a key EU Directive – the UCITS. Steffen Orben, managing director of Deutsche Börse Commodities added, "The sales success has been attributable to the product's unique features, which they will also be including in their new products."
About Deutsche Börse Commodities
Deutsche Börse Commodities GmbH is a joint venture set up by Deutsche Börse and its partners Bankhaus Metzler, Bank Vontobel, Commerzbank AG, Deutsche Bank AG, DZ Bank AG and Umicore AG & Co. AG in November 2007. The aim of the company is to offer innovative types of securitization for commodities and to ensure cost-effective trading in an alliance with the partners. The first product is Xetra-Gold, a physically backed bearer bond, with each unit certificate representing one gram of gold. The gold – at present just over 7 tons – is currently deposited at Deutsche Börse subsidiary Clearstream. -- www.deutsche-boerse.com
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