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Boost ETP trades record USD57m notional value last Friday


Exchange-traded product provider Boost ETP is experiencing rising investor demand for its short and leverage (S&L) ETPs. 

Last Friday, 26 July 2013, a single investor traded USD19m of Boost Euro Stoxx 50 3x Short Daily ETP (3EUS) which is the equivalent to a total notional exposure value of USD57m. 
Over the past two weeks, up to 26 July, 3EUL (Boost Euro Stoxx 50 3x Leverage Daily ETP) has risen 7.9 per cent, outperforming other 3x leverage equity ETPs on the Boost platform by at least 5.7 per cent.  Given recent US earnings news and the potential for Eurozone equity earnings to underperform in comparison, Boost believes this large short position executed using Boost’s 3EUS on Friday was positioned for this news flow.
Recently, trading volumes of Boost ETPs have risen dramatically with increased interest in products providing exposure to short WTI, short Euro Stoxx 50, leverage FTSE 250 and leverage FTSE 100.
Increased investor interest in the Boost platform matches the rise in global S&L ETP volumes and assets under management (AUM).  Global S&L ETP assets rose by USD6.8bn (15 per cent) in the first six months of 2013 to USD50.9bn, as investors continue to increase usage of S&L ETPs. On-exchange traded volumes for S&L ETPs have also increased this year. Increasing from USD114bn to USD195bn per month, representing a 71 per cent increase.
As a result of this increased usage and interest in S&L ETPs, Boost recently launched 16 new S&L ETPs, taking its platform to 36 ETPs today.  The new launch included the world’s first FTSE 250 S&L ETPs, Europe’s first S&L Japanese equity ETPs tracking the TOPIX index, plus additional leverage factors (-1x, -2x and +2x) of existing products. Boost now offers five different leverage factors on its most popular indices of FTSE 100 and gold, including -3x, -2x, -1x, +2x and +3x.
Nik Bienkowski (pictured), co-chief executive, says: “Boost ETP has launched a platform of 36 short and leveraged ETPs providing a range of leverage factors to the world’s leading equity and commodity indices.  With Boost’s experience in the European ETP market, we work closely with our clients and service providers to deliver a world class, robust, transparent, independent, cost effective and liquid product.  Last week’s USD57m notional trade to short European equities demonstrates this liquidity.
“Growth of the short and leveraged ETP market has outpaced the growth of the overall ETP market by 10 percentage points this year, having grown to USD51bn. As a result of growing demand for transparent products, as well as growing demand for short and leveraged ETPs, Boost ETP will continue to innovate and provide market leading solutions for investors.  Boost believes that independent ETP providers will continue to increase market share, and Boost is poised to benefit from this growth.”

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