FX market round-up: Coming soon, a pure currency ETF
Further proof that FX has gone mainstream comes with news that Rydex Investments has filed a registration statement with the SEC to launch a currency exchange-traded fund (ETF). When approved, the new ETF, which is based on the level of the euro against the dollar, will trade as a stock on the New York Stock Exchange.
The ETF, which will be listed under the symbol FXE, will have an initial circulation of 100,000 shares, each with a $40 denomination. It will be backed by a grantor trust structure; Rydex will lodge euro deposits in a London bank. This is the same type of structure used to back gold ETFs.