Boost ETP is listing eight exchange-traded products on the Borsa Italiana for the first time, including the first 3x short and 3x leverage ETPs tracking FTSE MIB.
Boost ETP’s UK platform, listed on the London Stock Exchange, totals 44 short and leverage ETPs tracking the world’s most liquid equity and commodity indices. Boost ETP has listed eight ETPs on Borsa Italiana, bringing the total listings to 52.
Boost ETP’s list of S&L ETPs to be made available on Borsa Italiana are:
Boost FTSE MIB 3x Short Daily ETP (3ITS)
Boost FTSE MIB 3x Leverage Daily ETP (3ITL)
Boost ShortDAX 3x Daily ETP (3DES)
Boost LevDAX 3x Daily ETP (3DEL)
Boost EURO STOXX 50 3x Short Daily ETP (3EUS)
Boost EURO STOXX 50 3x Leverage Daily ETP (3EUL)
Boost Natural Gas 3x Short Daily ETP (3NGS)
Boost Natural Gas 3x Leverage Daily ETP (3NGL)
S&L ETFs and ETPs are extremely popular with Italian investors with products already available with leverage factors of -1x, -2x and +2x. With the launch of Boost ETP’s products, Italian investors now have local access to 3x short and 3x leverage ETPs for the first time.
The two most popular equity ETFs traded on Borsa Italiana in September 2013 were short and leverage ETFs. In August the 2x Short FTSE MIB ETF traded a total of EUR 568m, equal to 11.9 per cent of total ETF turnover. The 2x Leverage FTSE MIB ETF traded a total of EUR 460m, equal to 9.6 per cent of total ETF turnover.
The two most popular commodity ETCs traded on Borsa Italiana in August were also short and leverage ETCs. In August, the 2x Leverage Natural Gas ETC traded a total of EUR 47.8m, equal to 12.62 per cent of total ETC turnover. The 1x Short Natural Gas ETC accounted for EUR 31.2m equal to 8.23 per cent of total ETC turnover.
Boost co-chief executive Nik Bienkowski says: “Italian investors are very familiar with ETFs that track short and leverage daily returns. The 2x Leverage and 2x Short FTSE MIB ETFs and the 2x leverage and 1x Short Natural Gas ETCs were the most traded ETFs and ETCs on Borsa Italiana in September and August. Boost believes that 3x ETPs are the natural progression in the evolution of the Italian ETP market.”
KCG will act as the official market maker for the eight new ETPs.
Aidan Hsu, head of European ETFs at KCG, says: “KCG is very pleased to continue as Boost ETP’s market marker of choice as it extends its offering into Italy. ETPs, particularly leveraged products, have been popular with investors and traders in this market, seeking transparent and quality investments. We look forward to continuing our collaboration with Boost ETP as we combine our advanced technology with exceptional client service to provide efficient and liquid markets for the Borsa Italiana listed ETPs.”