On 4th June 2009, Société Générale launched the first Lyxor ETN product range on NYSE Euronext .
This instantaneous exposure to the evolution of commodity prices, in a single transaction:
- 1. replicates the profit and loss profile of the major investment strategies on the commodities markets (long, short, leverage): Lyxor ETNs follow the prices of commodities or reference indices on these markets and these strategies excluding fees.
- 2. offers issuers proper security and protection against counterparty risk. This objective is ensured thanks to an innovative collateralisation mechanism that protects the value of the issued securities and secures investors with a high quality issuer signature.
ETNs track the performance of market benchmarks or strategy. The objective is to provide investors with an exposure to markets that are otherwise difficult to gain exposure to.
ETNs accurately track the performance of the underlying market benchmark
Liquid
ETNs are open-ended securities, and therefore are not limited to on-exchange volumes
Accessible
ETNs are traded and settled on the Paris stock exchange, the same as any equity, and can be purchased and held in ordinary brokerage or custodial accounts
Simple
ETNs do not involve any of the difficulties with buying and then managing a futures position (eg. worrying about margin calls, contracts expiring and rolling positions) or in buying and storing physical assets.
Transparent
ETN pricing is based on a transparent formula with the pricing updated daily by the issuer
Guaranteed pricing
ETNs are priced using published settlement prices (rather than "best-efforts" pricing)
