The power of exchange-traded products

03 July 2024

An exchange-traded product (“ETP”) is a tradeable financial instrument that closely tracks an underlying market, such as indices, currencies, and shares. They are derivative securities that repackage the value of an underlying asset and list it on an exchange for public trading.

ETPs offer investors efficient and convenient access to a variety of asset classes. Their popularity has surged thanks to their transparency and potential for diversification. In recent years, ETPs backed by commodities, crude oil, and cryptocurrencies have gained significant traction as investors seek returns in hard assets.

Benefits of ETPs:

Diversity: ETPs provide access to an entire index or alternative asset class with a single trade.
Accessibility: ETPs can be bought and sold whenever the stock exchange is open, with prices quoted throughout the day.
Cost-efficiency: ETPs offer a cost-effective way to achieve diversification through a benchmark or gain exposure to previously hard-to-access assets.
Transparency: ETP constituents are published daily, enabling investors to see precisely what they own.

Types of ETPs:

ETP is an umbrella term covering several types of exchange-traded financial products. The main types of ETPs include: exchange-traded funds (“ETFs”), exchange-traded commodities (“ETCs”), and exchange-traded notes (“ETNs”).

	ETF	ETC	ETN
Description	A tradeable security that holds the asset, group of assets or sector it tracks	An exchange-traded security that closely tracks a single commodity, a group of commodities or a basket of goods through an index	A debt security, almost like a bond, issued by a financial institution such as a bank
Typical underlying assets	Equity Fixed income Real estate Multi-asset	Commodity Currency	Commodity Currency
Structure	Funds	Secured debt instrument	Unsecured debt instrument

Have any questions about ETPs?

We have considerable experience administering a broad range of ETPs including exchange-traded funds (“ETFs”), exchange-traded commodities (“ETCs”), and exchange-traded notes (“ETNs”).

Stay ahead of the ever-changing market and regulatory dynamics with our single-source offering for Exchange Trade Products (“ETP”) managers.

Our dedicated ETP team of experts with industry specific knowledge, ensure smooth and seamless Authorised Participants (“AP”) onboarding and the administration of the order taking management. We leverage best-in-class technologies to help facilitate smoother interactions and flow with APs.

Contact our team for further information.