New ETC from Xtrackers on Xetra: access to the spot price for EU CO2 emission certificates
New ETC from Xtrackers on Xetra: access to the spot price for EU CO2 emission certificates
Since Thursday, a new exchange-traded commodity from Xtrackers (Jersey) ETC Plc has been tradable on Xetra and via the trading venue Börse Frankfurt.
The Xtrackers Physical Carbon EUA ETC Security is aimed at professional investors and tracks the performance of the spot price for EU CO2 emission certificates. The reference market for the spot price is determined on the European Energy Exchange (EEX). The ETC is physically secured by the possession of the emission certificates.
Emissions trading is a market-based instrument of environmental policy to combat pollution. Companies that emit carbon dioxide (CO2) must have so-called emission rights in the form of certificates, which in this case are issued by the EU. A certificate certifies the emission of one tonne of carbon dioxide. If a company wants to emit more carbon dioxide than it owns certificates, it can buy the emission rights from other companies. The number of emission allowances issued by the EU is limited.
Name | Asset class | ISIN | Ongoing charges | Reference index |
Xtrackers Physical Carbon EUA ETC Security | ETC | 0.79 per cent | EEX Carbon EU Allowances Spot |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,132 ETFs and 437 ETPs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.