ETCs provide access to Rogers International Commodity Enhanced Indices (RICI) commodity index family…
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Six new exchange traded commodities (ETCs) issued by BNP Paribas Arbitrage Issuance B.V. have been tradable on Xetra and Börse Frankfurt since Monday.
The six new BNP Paribas ETCs enable investors to participate in the performance of the individual industrial metals aluminium, lead, copper, nickel, zinc and tin. The corresponding reference index from the Rogers International Commodity Enhanced commodity index family tracks the respective futures contracts with varying maturities.
The limited term of the futures contracts requires a switch prior to expiry in exchange for a futures contract with the next expiry date (rollover).
Possible rollover losses are minimised through an optimised procedure for selecting futures contracts.
Contracts expiring in March, June, September and December are purchased for the index.
A rollover takes place four times a year and takes five trading days. The indices are denominated in US dollars.