Deutsche Börse Launches Five New Energy Commodity ETCs from BNP Paribas

Deutsche Börse has announced that five new Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term traded commodities (ETCs) issued by BNP Paribas Arbitrage Arbitrage Arbitrage is defined as the practice of taking advantage of a price difference between two or more markets.In particular, this involves the simultaneous buying and selling of securities, currencies, cryptos, or commodities in different markets. Arbitrage has the effect of causing prices of the same or very similar assets in different markets to converge over time.In order for arbitrage to occur, there must be a uniform set of conditions that need to be met. For example, the same asset does not t Arbitrage is defined as the practice of taking advantage of a price difference between two or more markets.In particular, this involves the simultaneous buying and selling of securities, currencies, cryptos, or commodities in different markets. Arbitrage has the effect of causing prices of the same or very similar assets in different markets to converge over time.In order for arbitrage to occur, there must be a uniform set of conditions that need to be met. For example, the same asset does not t Read this Term Issuance B.V. have been tradable on Xetra and Börse Frankfurt since Friday.

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Each of the five new BNP Paribas ETCs enable investors to participate in the performance of various energy types including petrol, diesel, heating oil, natural gas and WTI crude oil.

The corresponding reference index from the Rogers International Commodity Enhanced Indices commodity index family tracks the respective futures contracts with varying maturities. The limited term of the futures contracts requires a switch prior to expiry in exchange for a futures contract with the next expiry date (rollover).

Possible losses as a result of the rollover 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.

Deutsche Börse’s product range in its ETF and ETP segment currently comprises 1,148 ETFs, 191 ETCs and 136 ETNs. Earlier this month, Finance Magnates reported that a new Brent Crude exchange traded commodity (ETC) issued by BNP Paribas Arbitrage Issuance is also now tradable on Xetra and Börse Frankfurt, adding to the recently introduced Boost ETCs and ETNs.