ETCs are open-ended securities that are traded on regulated exchanges. ETCs enable traders gain exposure to commodities without trading futures or taking physical delivery. ETCs are undated, zero coupon notes that aim to track the underlying commodity index or individual commodity. ETCs thus combine features in Contracts for Differences and transferrable securities. (source: ETF securities and UK FSA).
ETCs are similar to ETFs because they are both open-ended, continuously traded and have multiple market makers. The main difference between ETCs and Exchange Traded Funds (ETFs) is that ETCs use an undated, zero coupon note structure, whereas ETFs typically use a fund structure.
The ETF Securities group owns/manages four issuing companies which issue the ETC securities that Saxo Bank offers. These are traded on the London Stock Exchange and various other exchanges throughout Europe, known as Exchange Traded Commodities (ETCs).
All of the ETCs and issuing companies are ring fenced, thus any credit issue with any ETC or issuing company will not affect the assets of any other ETC or issuing company. For example, if there are credit issues with Commodity Securities Ltd. then none of the other issuing companies, or ETCs issued by them, are affected.