What are Exchange Traded Commodities?
ETCs are open-ended securities that you can trade on regulated exchanges. ETCs enable you to gain exposure to commodities without trading futures or taking physical delivery. ETCs are undated, zero coupon notes that aim to track the underlying commodity index or individual commodity. ETCs thus combines features in Contracts for Differences and transferrable securities. (source: ETF securities and UK FSA). ETCs are similar to ETFs because they are both open-ended, continuously traded and have multiple market makers. The main difference between ETCs and Exchange Traded Funds (ETFs) is that ETCs use an undated, zero coupon note structure, whereas ETFs typically use a fund structure. The ETF Securities group owns/manages four issuing companies which issue the ETC securities that Saxo Bank offers. These are traded on the London Stock Exchange and various other exchanges throughout Europe, known as Exchange Traded Commodities (“ETCs”). All of the ETCs and issuing companies are ring fenced, t
