News - Etfs
The FSA has been warned new commodities ETFs launched by investment banks pose a danger to the metal markets.
Metal traders have written to the City watchdog claiming licensing the so-called physically-backed exchange-traded funds (ETFs) could amount to "approving the next financial bubble", writes the Telegraph.
Banks including JP Morgan, Goldman Sachs and Deutsche Bank have said they plan to launch such funds shortly.
Traders' concerns are based on the ETFs' model that will require the investments to be backed by physical metals, such as copper, lead, aluminium and nickel, rather than paper assets offered by futures contracts.
Comments
The big question
Updating your subscription status 
IW Fund Centre
Run in conjunction with Funds Library, the IW Fund Centre combines qualitative and quantitative data on a huge range of funds.
Have your say
This week: What will happen to the eurozone if Greece leaves?
Job of the week
Events
12 Jun 2012 - 12 Jun 2012
The Cumberland Great Cumberland Place, London W1H 7DL
05 Jul 2012 - 05 Jul 2012
Royal Albert Hall, London Kensington Gore London, Greater London SW7 2AP
