Trading is expected to begin next week on London-based ETF Securities new platform, with an initial 18 currency ETCs (exchange traded commodities) listed on the London Stock Exchange.

The ETCs provide long or short passive exposure to G10 currencies versus the dollar. They also provide exposure to local interest rates in addition to FX movements between the relevant currency and US dollars. All will be fully collateralised in order to mitigate counter-party risk and will be listed in the ETC segment of the LSE.

ETF Securities says it is launching the platform to meet investor demand for secure, transparent and liquid exchange traded products. With commodity ETCs having nearly tripled in 2009 and volumes having doubled, it is clear, the firm says, that investors have widely accepted the ETC structure as a vehicle for exposure to commodities. This is now been extended to include currencies.

Currency ETCs require no foreign currency account and no trading or management of futures or forward contracts as ETCs are priced off newly launched Morgan Stanley Foreign Exchange Indices.