MUTB appointed trustee for Nomura’s first ETN-JDR foray
24 January 2013
By David Macfarlane
Tokyo Stock Exchange (TSE) has publicly announced the listing approval of four new Exchange Traded Notes (ETNs) created by Nomura Europe Finance NV (NEF) in the form of Japanese Depositary Receipts (JDRs).
Mitsubishi UFJ Trust and Banking Corporation (MUTB) has been appointed by NEF as trustee for its JDR programme. According to TSE’s announcement, the ETN-JDRs will be listed on Monday, February 18, 2013.
JDRs are negotiable securities, which indicate ownership of shares issued by foreign companies. They are listed and traded on the Japanese Stock Exchange. JDRs make it easier to distribute foreign stocks, bonds and exchange-traded funds (ETFs) within Japan.
ETNs are a type of security that combines both the aspects of bonds and ETFs.
Nomura will become the second provider of ETNs in the form of JDRs in the Japanese market following Barclays Bank in August 2011 (Barclays Bank currently lists ten ETN-JDRs linked to commodity indices and VIXs).
The ETN-JDRs to be listed are:
NEXT NOTES HSI Leveraged ETN
NEXT NOTES HSI Short ETN
NEXT NOTES KOSPI200 Leverage ETN
NEXT NOTES F-KOSPI200 Inverse ETN
Kazuhiko Inaba, senior chief manager, listed trust business development section, frontier strategy planning and support division at MUTB, said: “NEF evaluated not only our expertise on the trustee service side but also the quality of our overall JDR services, which included the structuring of the scheme and the support we can offer in terms of marketing.
“We expect the AUMs of the new ETN-JDRs to grow quickly and we anticipate substantial trading volume of the products.
“The ETF/ETN market in Japan is now attracting a lot of interest. A good number of asset management firms are now looking to list ETF-JDRs on the TSE.”
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