Derivatives exchange Eurex will launch futures and options on Xetra-Gold, an exchange-traded commodity in Germany.
The new gold contracts are set tolaunch on 28 September 2010.
Xetra-Gold is a zero-coupon bond denominated in euro and issued by Deutsche Börse Commodities.
Launched in December 2007, Xetra-Gold is traded on Xetra, Deutsche Börse’s pan-European electronic trading platform for the cash market.
“Commodities are a widely used asset class for its diversification benefits and low correlation to other markets. In particular, gold tends to be a popular investment as it’s considered a safe haven during uncertain economic times.
”Combining two benchmark currencies, euro and gold, in a single product, Xetra-Gold has proven to be a highly liquid and widely traded instrument among European investors. The new futures and options give our members further access to the gold market and will provide more flexibility to suit their specific needs,” says Peter Reitz, Eurex executive board member.
The new contracts will be denominated in euro and will be physically settled with the delivery of the underlying Xetra-Gold ETC.
