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Italy’s First 3x Short and 3x Leverage Silver ETCs Listed on Borsa Italiana

Thursday 28th November '13

  • BOOST lists silver ETCs due to the success of its recent listing of 8 ETPs, which included natural gas
  • 71% of trading in Short and Leverage Silver ETCs in Europe occurred on Borsa Italiana in 2013
  • Trading in Silver ETCs on Borsa Italiana reached its highest level last week since November 2012, with $80m traded in October
BOOST ETP, the award winning and independent Exchange-Traded Product (ETP) provider announced today that it has listed two more ETCs on Borsa Italiana following on from its successful listing of 8 ETPs four weeks ago. BOOST ETP has now listed ten ETPs on Borsa Italiana, bringing BOOST’s total listings to 54, including the UK. 

BOOST’s new ETCs available on Borsa Italiana this week are: 

Product Name ISIN Ticker
Boost Silver 3x Short Daily ETP IE00B8JG1787 3SIS
Boost Silver 3x Leverage Daily ETP IE00B7XD2195 3SIL

Demand for transparent, liquid and robust Short & Leverage (S&L) ETPs has increased over the past few years with global S&L ETP assets rising to around $52bn (Boost ETP Short & Leveraged Global ETP Report, 31 October 2013). Demand for ETPs has increased as many financial markets have trended sideways, resulting in volatile but poor long term returns. Investors have increasingly needed to focus on tactical and hedging opportunities to ensure they preserve and grow their capital.

S&L ETFs/ETPs are popular in Italy, with products already available in 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. In addition, Italian investors have shown a passion for trading commodities, and in particular natural gas and silver. Leverage Natural Gas is the most popular ETC on Borsa Italiana and Silver has consistently been second, with 71% of all S&L Silver trading in Europe occurring in Italy. Last week, silver trading reached its highest since November 2012.

BOOST is the first ETP/ETC issuer of 3x Short and 3x Leveraged ETPs on the Borsa Italiana ETFplus market. BOOST’s ETPs are designed to return 3x the daily movement, long or short, of the relevant benchmark index. For example, if the NASDAQ Silver Index rises by 1% on a particular day, then "3SIL" will rise by 3% and "3SIS" will fall by 3% (before fees and other adjustments). However, if the NASDAQ Silver Index falls by 1% then "3SIL" will fall by 3% and "3SIS" will rise by 3% (before fees and other adjustments).

Throughout 2013, BOOST has worked hard to develop its educational materials to help investors better understand the S&L ETP/ETF structure, the benefits and risks. Educational tools include the ‘Adviser/Investor Tool Kit’ which includes a Tutorial and Test, a Returns Simulator, various fact sheets and FAQs. BOOST also provides regular conference calls and face to face educational opportunities for investors. These tools and events are also be offered to Italian investors.

Co-CEO Nik Bienkowski commented:

“BOOST is very proud to be listing Italy’s first 3x Short and 3x Leverage Silver ETCs on Borsa Italiana. The latest listing from BOOST comes shortly after its successful listing of 8 ETPs on 31 October. Since then, BOOST has taken approximately 6% market share in only a matter of weeks with the Boost FTSE MIB 3x Short Daily ETP (3ITS) and Boost Natural Gas 3x Leverage Daily ETP (3NGL) being the most popular so far.

Italian investors are very familiar with ETPs that track Short and Leverage daily returns. Hector and I assisted with the launch of Italy’s first ever Short and Leverage ETCs in 2008, and look forward to continuing our relationship with the Italian market.”

BOOST specialises in providing sophisticated investors with short and leveraged ETPs which give investors instant exposure to liquid underlying markets in one single trade. Investors can now get exposure to leveraged returns without having to borrow the additional funds to gain the additional long exposure, or the need to borrow the underlying shares and then sell those shares in order to short the market. BOOST will be providing significant educational support to the investment community with the aim of ensuring investors can maximise their usage of the products.

The new ETPs will help expand the investment horizons of investors and will allow them to execute a wide variety of strategies which will include:

  • Leverage the daily returns of an investment for the same capital as a non-leveraged trade
  • Hedge existing positions in one simple trade
  • Use a long or short strategy to take advantage of any short term rises or falls in the market, especially in a sideways trending market
  • Use in pairs to trade and take advantage of undervalued assets
  • Het short the market efficiently and cheaply without having to arrange and finance complex stock borrowing position

Similar to Exchange Traded Funds (ETFs), BOOST ETPs are liquid, accessible and simple. BOOST ETPs can be created and redeemed on a continuous basis by market makers, matching the tremendous liquidity of the underlying markets tracked, and can be traded by investors on a regulated Exchange in the same way as any equity. BOOST ETPs will provide accurate and transparent leveraged and short exposure to recognised benchmarks in a single trade. In addition, BOOST leveraged and short ETPs require no borrowing of stock or funds to gain the relevant exposure. BOOST ETPs are simply priced off transparent indices published by world class index providers.

BOOST ETPs will be backed by a robust risk management system where (i) depending on the credit rating of BOOST's counterparties, the mix of sovereign bonds held in the posted collateral will slowly increase, and (ii) no cash or collateral will be delivered by BOOST to a counterparty unless BOOST has received payment first.