Eurex to offer euro gold contract

Discussion in 'Commodity Futures' started by Dogfish, Aug 12, 2010.

  1. Dogfish


    <b>Eurex to offer euro gold contract</B>

    Futures and options on Xetra-Gold to be launched on 28 September 2010

    The international derivatives exchange Eurex today announced that it
    will launch futures and options on Xetra-Gold, the leading exchange-
    traded commodity (ETC) in Germany by order book turnover. The new
    gold contracts are set to launch on 28 September 2010.

    Xetra-Gold is a zero-coupon bond denominated in euro and issued by
    Deutsche Börse Commodities GmbH. Launched in December 2007, Xetra-
    Gold is traded on Xetra®, Deutsche Börse AG’s pan-European
    electronic trading platform for the cash market.

    "Commodities are a widely used asset class for its diversification
    benefits and low correlation to other markets. In particular, gold
    tends to be a popular investment as it’s considered a safe haven
    during uncertain economic times. Combining two benchmark currencies,
    euro and gold, in a single product, Xetra-Gold has proven to be a
    highly liquid and widely traded instrument among European investors.
    The new futures and options give our members further access to the
    gold market and will provide more flexibility to suit their specific
    needs," said Peter Reitz, Eurex Executive Board
    member. "Furthermore, Eurex Clearing will accept Xetra-Gold as
    collateral starting on 27 August."

    The Xetra-Gold derivatives are the latest addition to Eurex’s
    precious metals derivatives. Since February 2009, Eurex has been
    offering US-dollar denominated gold futures and options based on
    fixing prices of the London Bullion Market. Silver futures and
    options based on the London Silver Fixing followed shortly after in
    June 2009.

    The new contracts will be denominated in euro and will be physically
    settled with the delivery of the underlying Xetra-Gold ETC.
    Additionally, in a separate transaction between the holder of the
    ETC and Deutsche Börse Commodities, he has the right to request
    delivery of physical gold. Expiration dates of the derivatives will
    be on the third Friday of the next three calendar months as well as
    in March, June, September and December.

    In the second quarter of 2010, Xetra-Gold achieved record inflows of
    9.6 tons of gold. Electronic trading volume also totaled 757.3
    million euro, an increase of 55 percent over the first quarter of
    2010. Xetra-Gold is the most traded ETC available on Xetra,
    representing a 37 percent share of order book volume in the ETC

    About Eurex
    The international derivatives exchange Eurex, jointly operated by
    Deutsche Börse AG and SIX Swiss Exchange, organizes markets
    globally. Eurex is home to the Euro zone interest rate and equity
    index benchmark derivatives.

    Eurex’s portfolio of markets includes International Securities
    Exchange, a leading U.S. options exchange. The ECNs Eurex Repo and
    Eurex Bonds round out Eurex’s offering for repo and bond trading. In
    addition, Eurex provides an automated and integrated clearing house,
    Eurex Clearing AG. Eurex’s global liquidity network comprises around
    420 direct exchange members in 26 countries worldwide. For more
    information about Eurex, visit

    About Xetra-Gold
    The Xetra-Gold bearer bond (ISIN: DE000A0S9GB0) combines the
    advantages of physical gold with the transparency and low costs of
    exchange-trading of securities. There is no ongoing management fee.
    Each bearer bond represents the option of delivery of one gram of
    gold and can be bought or sold continuously via the Xetra trading
    platform. Clearstream Banking Frankfurt (CBF), a Deutsche Börse
    subsidiary, stores the gold in its vault. The physical gold is
    supplied, monitored and processed by industry partner Umicore AG &
    Co. KG. The safe custody of the gold reserves at Clearstream meets
    high security standards and saves investors the costs of
    transporting and physically storing the gold.

    Private investors can obtain the underlying gold in physical form
    from their bank if desired. The physically backed debt instrument
    Xetra-Gold was admitted for trading in December 2007 and has since
    become the commodity with the highest turnover of all ETCs listed on
    Deutsche Börse. The product meets the provisions of the European
    UCITS directive.

    About Deutsche Börse Commodities GmbH
    The issuer, Deutsche Börse Commodities GmbH, based in Frankfurt, is
    a joint venture between Deutsche Börse AG and the banking partners
    Commerzbank AG, Deutsche Bank AG, DZ Bank AG, B. Metzler seel. Sohn
    & Co. KGaA, and Swiss-based bank Vontobel. Umicore AG & Co. KG, a
    Group subsidiary of Umicore s.a., which operates several gold
    refineries across the globe and manufactures gold bars, is also a
    partner. The partners bundle their stock exchange, financial market,
    settlement, custody and logistics expertise and provide an efficient
    and transparent market in the financial centre of Frankfurt for gold
    trading in Europe. With just one product, Deutsche Börse Commodities
    GmbH is the second largest issuer of ETCs/commodity certificates
    traded on stock exchanges in Germany.

    Xetra® and Xetra-Gold® are registered trademarks of Deutsche Börse

    For further information please visit
  2. Looks interesting for all the gold bugs out there. But I don't really see its value - for pure price speculation the COMEX futures reign supreme; and for ultimate safety, you can't beat physical. With this you are relying on the exchange to stay solvent and unmolested by the German government in a time of systemic meltdown. Do you really trust your life savings to the Merkel government who banned short selling because they didn't like the price?