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Following its announcement last week, Boost, a London-based provider of short and leveraged exchange-traded products (ETPs), has listed five new products on the London Stock Exchange (LSE) offering exposure to the FTSE 250 and FTSE 100 indices.
The products, based on specialist short and leveraged versions of their parent FTSE indices, offer -1x and 2x exposure to the daily change in the mid-cap FTSE 250 and 2x, -2x and -1x exposure to the daily change in the large-cap FTSE 100.
The short and leveraged FTSE 250 ETPs are the first of their kind, while the FTSE 100 ETPs complement the provider’s existing -3x and 3x ETPs and will compete against similar products from ETF Securities, Deutsche Asset & Wealth Management, ComStage and RBS.
Demand for short and leveraged ETPs has increased over the past few years with global assets rising to just under $50 billion as many financial markets have trended sideways, resulting in volatile but poor long-term returns.
Commenting on the launch, Hector McNeil, Co-CEO, said: “Boost is continuing to lead the development of the European short and leveraged market. The addition of the unique FTSE 250 ETPs and providing the most comprehensive platform of FTSE 100 short and leveraged ETPs will add significant value to the UK investor community. This is especially the case when we see other European issuers consolidating their offerings”.
The new products will be supported by Boost’s designated market maker, KCG, formally known as GETCO.
Aidan Hsu, ETF Trader at KCG, said: “KCG is delighted to build on our partnerships with Boost and the LSE to provide liquidity to these new and exciting products on this leading global venue. As the current market makers for all the existing Boost ETPs and the market maker on the LSE, KCG will also facilitate OTC trades for counterparties and clients.”
Sudir Raju, Managing Director, ETP Relationships at FTSE, added: “The FTSE Short and Leveraged indices are ideal for use in ETPs due to their highly transparent, rules based methodologies. We are delighted to be extending our relationship with Boost through the use of further FTSE indices in their new ETPs.”
Boost’s new products are as follows:
Boost FTSE 250 1x Short Daily ETP (1MCS)
Boost FTSE 250 2x Leverage Daily ETP (2MCL)
Boost FTSE 100 2x Leverage Daily ETP (2UKL)
Boost FTSE 100 2x Short Daily ETP (2UKS)
Boost FTSE 100 1x Short Daily ETP (SUK1)