Indiana Grain Company, LLC

Posted: 03/10/10

By: tomgrisafi

Swiss bank UBS has launched a series of 69 exchange-traded notes on the London Stock Exchange track the performance of the UBS Bloomberg Constant Maturity Commodity Index (CMCI) and its sub-indices.

The notes will reflect underlying price moves in a number of commodities including crude oil, sugar and gold, and commodity baskets such as energy, livestock and food.

The return on the exchange-traded commodities (ETCs) is directly linked to the performance of the relevant index, the bank said in its release, which is based on the performance of the underlying commodity.

The ETCs allow investors to gain exposure to commodities without taking physical delivery of them, which can be expensive. Unlike some exchange-traded products, they are not physically backed.

Each index is available in U.S. dollars, sterling and euros, the bank said.

"Up until recently, the market for commodities investment has been largely restricted to sophisticated investors," Zak Cherkaoui, commodity index structurer at UBS, said in the release.

"A broader investor base in the UK will now be able to gain exposure to the commodities market."

Be the first to comment on this blog!