Exchange-traded product provider Boost ETP has signed up Morgan Stanley as a new authorised participant (AP).
Boost ETP now has six APs, all of which are world class ETF market makers (MMs).
December 2012 saw Boost list a platform of 3x short and 3x leverage ETPs consisting of 10 ETPs and 10 exchange-traded commodities (ETCs) on the London Stock Exchange, the first of its kind in Europe.
The ETCs and ETPs are designed to return 3x the daily movement, long or short, of the relevant benchmark index. For example, if the FTSE index rises by one per cent on a particular day, then “3UKL” will rise by three per cent and “3UKS” will fall by three per cent. However, if the FTSE index falls by one per cent then “3UKL” will fall by three per cent and “3UKS” will rise by three per cent (less fees and adjustments).
Global short and leveraged ETP assets rose by USD5.1bn (11.5 per cent) in the first five months of 2013 to USD49.3bn. As a result of this increased usage and interest in S&L, Boost is seeing an increase in investor interest, and as a result, an increase in APs and MMs wanting to join the Boost ETP platform.
According to BOOST’s report, globally exchange traded volumes have also increased for S&L ETPs, increasing from USD113bn to USD154bn per month since 31 Dec 2012 to 31 May 2013, representing a 36 per cent increase.
Boost ETP currently works with more than 17 MMs and investment banks.
Hector McNeil (pictured), co-chief executive of Boost ETP, says: “Boost is very happy and excited to welcome Morgan Stanley to our platform of ETPs and ETCs. Morgan Stanley are a world class ETF market maker who will enhance the liquidity of Boost’s products.”