These new listed securities are what are known as ETNs (Exchange Traded Notes), which can be traded just as easily as normal shares.
Handelsbanken and DNB already offer a number of ETNs with single shares or the OBX Index as the underlying instrument. There are also a number of listed ETNs that have oil, gold, copper and aluminium as the underlying commodity contracts.
DNB is now extending the range of ETNs it offers on Oslo Børs with several metals, natural gas and CO2. The CO2 securities track the price of CO2 emission permits, while the exposure to natural gas tracks the quarterly forward contract of natural gas delivered through the National Balancing Point (NBP) in Great Britain. In addition, DNB has listed new ETNs with silver, aluminium, copper and zinc as the underlying metals contracts.
DNB has listed three variants of each ETN: a variant without gearing and both bull and bear variants with a gearing factor of two. The bull and bear products offer investors the opportunity to take positions on rising and falling markets respectively.
More about stock exchange listed products:
- ETP (Exchange Traded Products) is a generic term for issuer products that are traded on an exchange just as easily as normal shares. Products in this group differ from shares principally in that they are issued by a bank, investment firm or fund manager, but are traded during exchange opening hours with bid and offer prices in just the same way as normal shares.
- ETF (Exchange Traded Funds) are, as the name suggests, listed funds, and represent the most common type of issuer product in the world today.
- ETN (Exchange Traded Notes) are a financial instrument where the value of the instrument is linked to the performance of an underlying market. The underlying market can, for example, be reflected through a selection of shares, through one or more indices, or through commodity prices. In addition, ETNs may be used to give investors the opportunity of exposure to markets that may otherwise be difficult to access.
- Unlike ETFs, which are funds, ETNs are debt instruments issued with recourse to the issuer’s balance sheet. In practice, this means that in addition to the exposure to market risk that is always associated with investing in securities, investing in an ETN also involves exposure to the credit risk represented by the issuer.
- Brochure: Exchange Traded Products (in Norwegian)
- ETPs listed on Oslo Børs