First UBS-ETC on Xetra: access to the spot price for EU CO2 emission allowances

An exchange-traded commodity from UBS has been tradable on Xetra and Börse Frankfurt since Friday.

The UBS European Physical Carbon ETC gives investors the opportunity to participate in the performance of the spot price for EU CO2 emission certificates. The reference market for the spot price is the European Energy Exchange (EEX). The ETC is physically collateralised by emission certificates.

Emissions trading is a market-based instrument of environmental policy to combat environmental pollution. Companies that emit carbon dioxide (CO2) must hold so-called emission rights in the form of certificates, which in this case are issued by the EU. One certificate certifies the emission of one tonne of carbon dioxide. If a company wants to emit more carbon dioxide than it has certificates for, it can buy emission rights from other companies. The number of emission allowances issued by the EU is limited.

NameAsset classISINManagement feesReference index
UBS European Physical Carbon ETCETCXS26515396810.75 per centEEX European Emission Allowances EUA Spot Index

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 2,167 ETFs and 438 ETPs. With this selection and an average monthly trading volume of around €15 billion, Xetra is the leading trading venue for ETFs in Europe.

Published on May 31, 2024

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