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BOOST 3x ETPs top trading records in Italy last week

Friday 22nd November '13

  • BOOST ETPs were the most traded ETPs in Italy (on a % per product basis)
  • BOOST ETPs traded EUR 4.8m last week with Boost Natural Gas 3x Leverage Daily ETP trading (3NGL) EUR 3.3m, ranking in the top 10 ETPs in only the 2nd week of trading
  • BOOST grabbed approximately 6.1% market share in Italy last week by value
  • Short and Leverage ETFs and ETCs are some the most traded ETFs and ETPs on Borsa Italiana last week, with FTSE MIB and Natural Gas being the most popular
BOOST ETP, the award winning and independent Exchange-Traded Product (ETP) listed eight new 3x Short and 3x Leveraged ETPs on the Borsa Italiana for the first time on 31 October 2013. Boost ETPs grabbed 6.1% market share in the ETP segment of Borsa Italiana’s ETFPlus platform. With only 8 ETPs available initially, Boost’s 0.77% market share per ETP puts its products as the most traded ETPs in Italy last week, after only two full weeks of trading. The most traded products were Boost Natural Gas trading (3NGL) and Boost FTSE MIB 3x Short Daily ETP (3ITS).

BOOST ETP’s list of S&L ETPs available on Borsa Italiana are: 
Product Name ISIN Ticker
Boost FTSE MIB 3x Short Daily ETP IE00B873CW36 3ITS
Boost FTSE MIB 3x Leverage Daily ETP IE00B8NB3063
Boost ShortDAX 3x Daily ETP IE00B8GKPP93
Boost LevDAX 3x Daily ETP IE00B878KX55
Boost EURO STOXX 50 3x Short Daily ETP IE00B8JF9153
Boost EURO STOXX 50 3x Leverage Daily ETP IE00B7SD4R47
Boost Natural Gas 3x Short Daily ETP IE00B76BRD76
Boost Natural Gas 3x Leverage Daily ETP IE00B8VC8061

Demand for transparent, liquid and robust 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), 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 and ETPs are extremely popular with Italian investors. Last week, two of the top three equity ETFs traded on Borsa Italiana were Short & Leverage ETFs. The 2x Short FTSE MIB ETF and the 2x Leverage FTSE MIB ETF totalled 22% of ETF turnover last week.

Nine of the top fifteen ETPs traded on Borsa Italiana last week were also Short and Leverage ETPs; these nine ETPs made up 33% of ETP trading volumes. The most popular ETP on Borsa Italiana last week was the 2x Leverage Natural Gas ETC while the 8th most popular ETP was Boost Natural Gas 3x Leverage Daily ETP (3NGL).

BOOST is the first ETP/ETC issuer of 3x Short and 3x Leveraged commodity and equity ETPs on the Borsa Italiana ETFplus market. The eight ETPs are designed to return 3x the daily movement, long or short, of the relevant benchmark index. For example, if the FTSE MIB rises by 1% on a particular day, then "3ITL" will rise by 3% and "3ITS" will fall by 3%. However, if the FTSE MIB falls by 1% then "3ITL" will fall by 3% and "3ITS" will rise by 3% (less fees and adjustments).

Co-CEO, Hector McNeil commented: 

“For the second week running BOOST’s products have set the pace on the Borsa Italiana. All our recent listed products most notably 3 times short and leverage ETPs tracking FTSE MIB & Natural gas have seen significant rises in trading volumes. This has also resulted in significant growth in assets under management. BOOST also saw activity in its ETPs tracking 3 times short and leverage DAX and EuroSTOXX50.”

“BOOST is extremely pleased to double its ETC/ETN market share on ETFPlus in little over two weeks of being listed. This placed Boost into third place in terms of issuers. Boost is determined to become one of the key issuers and continue to add highly liquid and value added clients to Italian investors.”

The listing of the eight new 3x leveraged and 3x short ETPs follows BOOST listing 44 ETPs on the London Stock Exchange in December 2012 and throughout 2013. Throughout 2013 BOOST has worked hard to develop its educational materials to help investors better understand short and leveraged ETPs/ETF structure, 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 will also be offered to Italian investors.

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
  • get short the market efficiently and cheaply without having to arrange and finance complex stock borrowing positions

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.