Exchange Traded Product (ETP) Entrepreneurs to launch new independent platform “BOOST ETP”

BOOST’s founders and owners are Hector McNeil and Nik Bienkowski who have been in the European ETP market since its genesis. McNeil and Bienkowski were Managing Partners at ETF Securities (ETFS). They were instrumental in growing ETFS from $50 million of AUM to $22 billion when they left in September 2010 and October 2010 respectively. Both are still significant shareholders at ETFS, the world’s leading Exchange Traded Commodities (ETC) provider.

The opportunity to launch one of only a few European independent ETP issuers has arisen from the significant changes currently affecting the ETP world. In a market dominated by large investment banks and diversified financial institutions significant questions are being asked about their respective ETP business models. Investors and regulators have been looking for more transparency around practices such as stock lending, collateral management and use of in-house hedging techniques. As a result innovation has slowed and is expected to slow further due to funding cuts, bank’s requirements to reduce staff numbers and non-core assets. This has left a significant opportunity for an independent, nimble and focused player such as BOOST.

BOOST’s origins and independence are very similar to the many successful ventures that have become a feature of the US ETP market which is divided between large fund management companies and many more specialised ETP providers. There are very few banks that have set up as ETP providers in the US, mainly because US regulations would not allow the European integrated bank provider model. Due to the potential for European regulators to follow the US model, BOOST plans to lead the way in the European ETP market, regardless of the outcome.

BOOST expects significant industry consolidation across the ETP sector and wants to position itself to take advantage of these opportunities as they arise.

Mr Bienkowski, Co-CEO, had this to say ‘We are very excited to launch BOOST at this time. We feel that investors are ready for the dynamic product range we are about to bring to the market. Key to BOOST’s uniqueness will be our product focus and independence. We want to deliver products investors want and need in an independent structure they can trust’.

Mr McNeil, Co-CEO, also commented, ‘According to the ETFGI report, at the end of Q3 2012, the European ETP industry had 1,920 ETPs, but out of the 46 different providers only one independent ETP provider made it into the list of top 20 providers by assets. BOOST will add significant value to the European ETP market by bringing added value products delivered through a model free from conflicts of interest. Through the experience and dedication of our team we will bring a breath of fresh air to the market dominated by large, institutional and banking conglomerates.’