Source, a provider of exchange-traded products for European investors, is launching 13 exchange-traded funds and 22 exchange-traded commodities.
Source, a provider of exchange-traded products for European investors, is launching 13 exchange-traded funds and 22 exchange-traded commodities.
The launch represents the first product offering of Source, an open architecture platform created by Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley to enhance the performance and trading environment for exchange-traded products in Europe.
By creating common standards and augmented design features, Source’s products aim to offer investors improved liquidity, reduced credit risk, increased transparency and more efficient competition.
Despite recent market turbulence, demand for ETFs and similar products continues to grow, with net European inflows of over EUR47bn in 2008. Source believes that the market has even greater potential, and that improved product design and an enhanced trading environment are critical for further growth.
Source will focus all trading on a single stock exchange, Deutsche Börse, which aims to offer efficient total return products and allow multiple brokers to participate on an equal footing.
Ted Hood, chief executive, says: ‘Source is very excited about the growth prospects of the European market for exchange traded products. We are convinced that we can bring about even greater growth by offering investors improved products and providing an enhanced trading environment. We will achieve this by creating common product standards focused on increased liquidity, reduced credit risk, greater transparency and more efficient competition.’
