First Exchange Traded Products (ETPs) listed on SIX Swiss Exchange
Source Ltd and Deutsche Bank db ETC AG list the first products in SIX Swiss Exchange's new ETP segment
ETPs track the price movement of an underlying asset either with or without leverage. Their payoff profile is symmetrical, i.e. the product's performance mirrors that of the underlying asset. From a regulatory perspective, ETPs are collateralized, non-interest-bearing bearer debt securities. As such, ETPs are not investment funds and are not governed by the Swiss Federal Collective Investment Schemes Act (CISA). They must, however, go through a listing procedure with SIX Exchange Regulation, SIX Group's independent supervisory authority; the rules on their admission and on maintaining their listing were approved by the Swiss Financial Market Supervisory Authority FINMA.
Source Ltd is launching 15 products, of which 14 ETPs replicate various commodities indices and one tracks the price of physical gold. db ETC is launching 14 new ETPs, of which ten also replicate various commodities indices and four reflect the price movements of precious metals.
For ETPs, SIX Swiss Exchange is appointing at least one market maker per product to guarantee continuity and liquidity of trading. Market making for Source products will be carried out by Nyenburgh Holding B.V, and for db ETC by Deutsche Bank AG, Frankfurt.
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