UBS to launch platinum exchange-traded notes NEW YORK, May 8 (Reuters) - Investment bank UBS will soon launch two exchange-traded notes offering long and short trading strategies in platinum, underscoring strong investment demand for the precious metal.
The two ETNs -- UBS E-Tracs Long Platinum ETN and UBS E-Tracs Short Platinum ETN -- will begin trading soon on the NYSE Arca platform, according to CNBC television and NYSE Euronext exchange data.
A UBS representative declined to comment.
On April 4, UBS said it was launching eight commodity-linked investment notes to give investors better access to the commodity markets. The two platinum ETNs will be a follow-up to that April launch.
On Thursday, the U.S. platinum contract for July delivery on the New York Mercantile Exchange ended 3.7 percent higher at $2,042 an ounce, boosted by anticipation of the new platinum ETNs, dealers said.
On March 4, July platinum scaled a record high $2,299 an ounce.
ETNs trade on exchanges throughout the day and have some similarity to exchange-traded funds. ETFs and ETNs broaden market participation by providing easier access to investors.
Exchange-traded notes, unlike exchange-traded funds, do not purchase physical platinum to back the number of shares sold.
Hedge funds, wealthy and sophisticated investors have increasingly used commodity-related ETNs and ETFs in hopes of higher returns than stocks and bonds. (Reporting by Frank Tang; Editing by Walter Bagley)
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