ETFS Commodity Securities Limited

Transcription

1 ETFS Commodity Securities Limited (Incorporated and registered in Jersey under the Companies (Jersey) Law 1991 (as amended) with registered number Regulated by the Jersey Financial Services Commission) Registered office: Ordnance House, 31 Pier Road, St. Helier, Jersey JE4 8PW 8 May 2015 Revised Notice of the proposed delisting of 45 classes of ETFS Commodity Securities issued by ETFS Commodity Securities Limited (the Issuer ) and the subsequent relisting of 15 of those classes of ETFS Commodity Securities. Introduction Notice was originally given to investors on 26 February 2015 (the Original Notice ) that application had been made to Deutsche Boerse for certain classes of securities issued by the Issuer to be delisted from that exchange with effect from 26 May 2015 (the Delisting ). In the Original Notice it was explained that for each security that will be delisted, the listing on the London Stock Exchange and at least one other European exchange will be maintained. Further to investor demand and following a review of the securities to be delisted, the Directors have decided that once the Delisting is effective, they will apply to relist 15 classes of securities issued by the Issuer on Deutsche Boerse (the Relisting ). The Relisting is expected to be effective on or around 28 May 2015 and remains subject to the formal listing approval of Deutsche Boerse. Annex 1 to this letter, entitled Securities to be Delisted & Remaining Listings sets out the 45 securities that will be delisted from Deutsche Boerse and the exchanges where these securities will continue to be listed after the effective date of the Delisting. Annex 2 to this letter, entitled Securities that will be subject to the Relisting sets out the 15 securities that will be subject to the subsequent Relisting application on Deutsche Boerse and the additional exchanges where these securities will also continue to be listed after the effective date of the Relisting. Reasons for the Delisting ETF Securities aims to list securities on exchanges where there is sufficient demand, concentrated liquidity and where they can trade with tight bid/offer spreads. In order to achieve this, ETF Securities regularly reviews the securities available to investors and the exchanges where these are listed. The Directors decided to apply to delist certain securities issued by the Issuer from Deutsche Boerse to concentrate liquidity on a smaller number of exchanges and to reduce spreads rather than having listings on a larger number of exchanges with lower volumes. For each security that will be delisted, the listing on the London Stock Exchange and at least one other European exchange will be maintained. Details of the exchanges where listings will be maintained are set out in Annex 1 under the heading Remaining Listings. Reasons for the subsequent Relisting Further to the issue of the Original Notice, demand from investors has led to a re-evaluation of the Delisting and, as a result, the Directors have decided that immediately following the Delisting, application will be made for the Relisting of 15 classes of ETFS Commodity Securities on Deutsche

2 Boerse. The Relisting is expected to be effective on or around 28 May 2015 and remains subject to the formal listing approval of Deutsche Boerse. Based on the above timetable, there will be at least a one-day period between the Delisting and the Relisting where the 15 relevant classes of securities issued by ETFS Commodity Securities will not be listed on Deutsche Boerse. During this time, the Issuer expects liquidity to be provided on Boerse Stuttgart. Details of the securities that will be subject to the Relisting application and the additional exchanges where these securities are also listed are set out in Annex 2. No classes of security issued by the Issuer will be closed as a result of the Delisting or the Relisting. Timescale The Delisting will become effective following the close of trading on Deutsche Boerse on 26 May 2015 (the Delisting Effective Date ). Following the Delisting Effective Date, application will be made to relist 15 classes of securities issued by the Issuer. The Relistings are expected to occur on or around 28 May 2015 and remain subject to the formal listing approval of Deutsche Boerse. Effect of the Delisting From the date of this letter up to the Delisting Effective Date, you can continue to sell your securities on Deutsche Boerse. Following the Delisting Effective Date, you can continue to hold securities that are subject to the Delisting but you will no longer be able to sell those securities on Deutsche Boerse. You will be able to sell those securities on any of the other exchanges on which they remain listed but there may be additional costs associated with using another exchange. Effect of the Relisting Following the Delisting Effective Date, if you hold one of the 15 securities for which a Relisting application will be made, there will be at least one day where the securities cannot be traded on Deutsche Boerse. During this time, the Issuer expects liquidity to be provided on Boerse Stuttgart. It is expected that the Relisting will become effective on or around 28 May Investors in the products that will be Relisted do not need to take any action and can continue to hold their securities. They may wish, however, to consult their broker/advisor to discuss how they can gain access to an alternative exchange if they wish to sell their securities in the gap between the Delisting and the Relisting. Once the Relisting is effective, these products can be traded as normal on Deutsche Boerse and on the additional exchanges where these products are listed as set out in Annex 2. Additional details for holders of securities to be delisted from Deutsche Boerse Following the Delisting Effective Date, for the 30 securities that will be permanently delisted, in order to sell your securities on another exchange, you will need to switch your German ISIN Certificates back to the original Jersey ISIN securities. As part of this process, Clearstream will exchange the German ISIN Certificates for the Jersey ISIN securities that they hold on your behalf. Whilst there are costs associated with switching the German ISIN Certificate of a security back to the original Jersey ISIN security, please note that for two months following the Delisting Effective Date, the Issuer will pay the standard switching cost for investors that switch back to the Jersey ISIN. Following this two month period the investor will be responsible for their own switching costs and any other expense incurred as a result of using a different exchange

3 You should consult your own financial advisor in connection with the consequences of holding the securities in the form of the JE ISIN securities rather than the German ISIN Certificates. For securities that will be subject to the Relisting, once the Relisting becomes effective, securities will once again be available for trading on Deutsche Boerse and so it is not expected that there will be a need to switch to the original Jersey ISIN unless an investor wants to access one of the alternative exchanges as set out in Annex 2 of this letter. Action to be taken You do not need to take any action in response to this announcement. If you hold securities that will be permanently Delisted, you should consult your broker/advisor to discuss gaining access to alternative exchanges following the Delisting or whether it would be more appropriate for you to sell your holding prior to the Delisting Effective Date. If you hold securities that will be subject to the Relisting, you may wish to consult your broker/advisor to discuss accessing Boerse Stuttgart in order to obtain liquidity if you wish to sell your securities after the Delisting Effective Date but prior to the effective date of the Relisting. Further information Annex 3 of this letter contains answers to some of the key questions we believe investors will have in connection with the Delisting and Relisting. Further information is also available on ETF Securities website at Yours sincerely Joseph Roxburgh Director for and on behalf of ETFS Commodity Securities Limited - 3 -

4 Securities to be delisted from Deutsche Boerse Annex 1 SECURITIES TO BE DELISTED & REMAINING LISTINGS Name of Security GERMAN ISIN Remaining listings Exchange codes for remaining listings ISIN on remaining exchanges ETFS Sugar DE000A0KRJ85 London Stock Exchange SUGA GB00B15KY658 ETFS Nickel DE000A0KRJ44 London Stock Exchange NICK GB00B15KY211 ETFS Petroleum DE000A0KRKJ1 London Stock Exchange AIGO GB00B15KYC19 ETFS Precious Metals DE000A0KRKK9 London Stock Exchange AIGP GB00B15KYF40 Euronext AIGPP ETFS Zinc DE000A0KRKA0 London Stock Exchange ZINC GB00B15KY872 ETFS Livestock DE000A0KRKH5 London Stock Exchange AIGL GB00B15KYK92

5 ETFS Daily Short Industrial Metals DE000A0V9XN5 London Stock Exchange SIME JE00B24DKZ36 SIMT ETFS Daily Short Grains DE000A0V9XM7 London Stock Exchange SGRA JE00B24DL387 ETFS Daily Short Lead DE000A0V9YC6 London Stock Exchange SLEA JE00B2NFT088 ETFS Daily Short Energy DE000A0V9XK1 London Stock Exchange SNRG JE00B24DKV97 ETFS Daily Leveraged Tin DE000A0V9ZD1 London Stock Exchange LTIM JE00B2NFV241 ETFS Daily Short Precious Metals DE000A0V9XR6 London Stock Exchange SPMT JE00B24DKY29 ETFS Daily Leveraged Softs DE000A0V9YR4 London Stock Exchange LSFT JE00B2NFTB97 ETFS Daily Leveraged Heating Oil DE000A0V9Y08 London Stock Exchange LHEA JE00B2NFTM03 LHEO ETFS Daily Short Petroleum DE000A0V9XQ8 London Stock Exchange SPET JE00B24DKW05-5 -

6 ETFS Daily Short Platinum DE000A0V9YD4 London Stock Exchange SPLA JE00B2NFT195 ETFS Daily Leveraged Gasoline DE000A0V9YY0 London Stock Exchange LGAS JE00B2NFTK88 ETFS Daily Short Tin DE000A0V9YE2 London Stock Exchange STIM JE00B2NFT203 ETFS Daily Leveraged Lead DE000A0V9ZB5 London Stock Exchange LLEA JE00B2NFTZ32 ETFS Daily Short Livestock DE000A0V9XP0 London Stock Exchange SLST JE00B24DL270 ETFS Daily Short Corn DE000A0V9XW6 London Stock Exchange SCOR JE00B24DK751 ETFS Daily Short Gasoline DE000A0V9XZ9 London Stock Exchange SGAS JE00B24DKB91 ETFS Daily Short Agriculture DE000A0V9XH7 London Stock Exchange SAGR JE00B24DL056 SAGRI - 6 -

7 ETFS Daily Leveraged Grains DE000A0V9YL7 London Stock Exchange LGRA JE00B2NFT757 ETFS Daily Short All Commodities ETFS Daily Leveraged Industrial Metal DE000A0V9XJ3 London Stock Exchange SALL JE00B24DKT75 DE000A0V9YM5 London Stock Exchange LIME JE00B2NFV688 ETFS Daily Short Cotton DE000A0V9XX4 London Stock Exchange SCTO JE00B24DK868 ETFS Daily Leveraged Copper DE000A0V9YU8 London Stock Exchange LCOP JE00B2NFTF36 ETFS Daily Leveraged Precious Metals DE000A0V9YQ6 London Stock Exchange LPMT JE00B2NFV795 ETFS Daily Leveraged Zinc DE000A0V9ZA7 London Stock Exchange LZIC JE00B2NFTY25 ETFS Daily Leveraged Coffee DE000A0V9YT0 London Stock Exchange LCFE JE00B2NFTD12 ETFS Daily Leveraged Sugar DE000A0V9Y81 London Stock Exchange LSUG JE00B2NFTW01-7 -

8 ETFS Daily Leveraged Cocoa DE000A0V9ZE9 London Stock Exchange LCOC JE00B2NFV803 ETFS Daily Short Soybeans DE000A0V9X82 London Stock Exchange SSOB JE00B24DKP38 ETFS Daily Leveraged Soybeans DE000A0V9Y73 London Stock Exchange LSOB JE00B2NFTV93 ETFS Daily Short Cocoa DE000A0V9YF9 London Stock Exchange SCOC JE00B2NFT310 ETFS Daily Leveraged All Commodities DE000A0V9YH5 London Stock Exchange LALL JE00B2NFV571 ETFS Daily Short Copper DE000A0V9XV8 London Stock Exchange SCOP JE00B24DK645 ETFS Daily Short Sugar DE000A0V9X90 London Stock Exchange SSUG JE00B24DKQ45 ETFS Daily Short Coffee DE000A0V9XU0 London Stock Exchange SCFE JE00B24DK

9 ETFS Daily Leveraged Agriculture ETFS Daily Leveraged Platinum DE000A0V9YG7 London Stock Exchange LAGR JE00B2NFT427 DE000A0V9ZC3 London Stock Exchange LPLA JE00B2NFV134 ETFS Daily Leveraged Cotton DE000A0V9YW4 London Stock Exchange LCTO JE00B2NFTH59 ETFS Daily Leveraged Aluminium DE000A0V9YS2 London Stock Exchange LALU JE00B2NFTC05 ETFS Daily Leveraged Corn DE000A0V9YV6 London Stock Exchange LCOR JE00B2NFTG43-9 -

10 Annex 2 SECURITIES THAT WILL BE SUBJECT TO THE RELISTING Securities that will be subject to the Relisting application on Deutsche Boerse Name of Security GERMAN ISIN Additional exchanges where these securities will also continue to be listed ETFS Sugar DE000A0KRJ85 London Stock Exchange ETFS Nickel DE000A0KRJ44 London Stock Exchange ETFS Petroleum DE000A0KRKJ1 London Stock Exchange ETFS Precious Metals DE000A0KRKK9 London Stock Exchange Euronext ETFS Zinc DE000A0KRKA0 London Stock Exchange ETFS Daily Leveraged Gasoline DE000A0V9YY0 London Stock Exchange

11 ETFS Daily Leveraged Copper DE000A0V9YU8 London Stock Exchange ETFS Daily Leveraged Coffee DE000A0V9YT0 London Stock Exchange ETFS Daily Leveraged Sugar DE000A0V9Y81 London Stock Exchange ETFS Daily Leveraged Cocoa DE000A0V9ZE9 London Stock Exchange ETFS Daily Leveraged All Commodities DE000A0V9YH5 London Stock Exchange ETFS Daily Short Coffee DE000A0V9XU0 London Stock Exchange ETFS Daily Leveraged Agriculture DE000A0V9YG7 London Stock Exchange ETFS Daily Leveraged Platinum DE000A0V9ZC3 London Stock Exchange ETFS Daily Leveraged Corn DE000A0V9YV6 London Stock Exchange

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13 Annex 3 KEY QUESTIONS A. GENERAL - Why are securities being delisted? ETF Securities regularly reviews the products available to investors and as part of this has conducted a review of all ETFS Commodity Securities Limited listings on Deutsche Boerse. ETF Securities aims to list products where there is sufficient scale, concentrated liquidity and tight bid/offer spreads. As a result, we have decided to delist certain securities issued by ETFS Commodity Securities Limited from Deutsche Boerse to make sure that we concentrate liquidity on a smaller number of listings and to reduce spreads rather than having a large number of listings with lower volumes. Maintaining these listings which only have small volumes of trading is problematic for our clients as it means that the liquidity on products they do want to trade is reduced and comes at a higher price. - Why will some of these securities be subsequently relisted? As a result of investor demand and following a review of the 45 securities to be delisted, we have decided to apply to relist 15 classes of security on Deutsche Boerse as soon as possible after the delisting is effective. We expect this relisting to be effective on or around 28 May 2015 (subject to the necessary approval of Deutsche Boerse). - Where will the delisted securities continue to be listed? All securities will continue to be listed on the London Stock Exchange and at least one other European exchange. Details are provided in the table at Annex 1 of this document of the exchanges where listings will remain and the relevant ISINs and exchange codes. - Are the securities being delisted because the issuer or class is being closed? No. The securities are not being delisted in connection with any closure of any of the classes or of ETFS Commodity Securities Limited. - When will the delisting become effective? 3 months notice of the intention to delist has been given via the relevant exchanges. The delisting will become effective on 26 May Which securities will be subject to the relisting application? The list of 15 securities which will be subject to the relisting application is set out in Annex 2 of this document. - For the 15 classes that will be relisted, when will the relisting become effective? We expect the relisting to be effective on or around 28 May This is subject to the approval of Deutsche Boerse. - For the 15 classes that will be relisted, what will happen between the delisting and the relisting? We will apply for the relisting as soon as possible following the delisting. There will be at least one days gap between the securities being delisted from Deutsche Boerse and being relisted. During this

14 time, we expect liquidity to be provided on Boerse Stuttgart and also on the other exchanges where these securities are listed, as set out in Annex 2. - Does this mean you are no longer committed to these specific markets? ETF Securities is committed to support all listings where the market has demonstrated clear support for the products, illustrated by the volume of trading. The products being permanently delisted have very low trading volumes so we aim to ensure that the liquidity can grow through another trading venue where the securities will remain listed. - Have you delisted the products because of the low AUM? No. The primary decision criteria is creating better liquidity for clients - Does this mean you will consider delisting more products in the future? Our aim is to create liquidity hubs in order to ensure that, where they trade, our products have superior liquidity. This exercise is a rationalisation of listings for the benefit of investors and is unrelated to any future decision to delist more products. B. IMPACT ON INVESTORS - How will this affect investors? We have carefully investigated the impact on investors in order to ensure that we mitigate any potential concerns and believe that the delisting will have a limited impact on investors for the following reasons: An announcement of the intended delisting and the date on which it would take effect was issued to the market on 26 February 2015, giving investors a 3 month notice period during which they could trade out of their positions with the usual liquidity provided by the market makers; and Most investors are able to trade these products through their broker on another exchange. - What do I need to do before the delisting becomes effective if I hold the securities that will be permanently delisted? During the 3 month notice period, investors can continue to hold and trade their securities as usual. Investors in the products that will not be relisted should consult their broker/advisor to discuss whether following the delisting they can gain access to the exchanges where the securities remain and the likely costs associated with this. Alternatively, these investors may wish to sell their securities on their home exchange during the 3 month notice period to avoid incurring any additional costs of holding and trading securities on a different exchange at a later date. - What do I need to do before the delisting becomes effective if I hold the securities that will be relisted? Investors in the products that will be relisted do not need to take any action. They may wish, however, to consult their broker/advisor to discuss how they can gain access to an alternative exchange if they wish to sell their securities in the gap between the delisting and the relisting. Once the relisting is effective, these products can be traded as normal on Deutsche Boerse. - How do I sell my securities once the delisting becomes effective?

15 For the 30 securities that will not be relisted, investors will still be able to hold their securities but will need to sell them on one of the exchanges where the securities remain listed. They will no longer be able to sell their securities on their home exchange. As a result, their costs of holding and sale may increase but they are not required to sell by a certain date. Holders who currently trade their securities on Deutsche Boerse through trading of German ISIN Certificates will need to convert these back to the original Jersey ISIN securities in order to be able to move and sell securities on an alternative exchange once the securities are delisted and there are additional costs associated with this. For 2 months following the effective date of the delisting (26 th May th July 2015), ETFS Commodity Securities Limited will pay the standard switching cost for investors that wish to switch their German ISIN Certificates back to the original Jersey ISIN securities. Following this 2 month period, the investors can still trade their securities but will become responsible for any costs involved with switching back to the original ISIN security. - How will investors be able to get hold of the delisted products / will there be an extra cost involved? Investors can trade products outside of their own domestic market by asking their broker to execute the order on their behalf. ETF Securities cannot comment on the price structure of each individual brokerage but, at a general level, we do not believe there should be a significant increase in cost, if any. Further information is available on the website of ETFS Commodity Securities Limited at or by to info@etfsecurities.com