Copper fabricators write SEC against ETFs
Oct 25, 2012 | 06:37 PM
| Andrea Hotter
NEW YORK A group of copper market participants opposed to the launch of physically backed exchange-traded funds (ETFs) has reiterated its objections in a letter to the Securities and Exchange Commission (SEC) ahead of the agencys Dec. 14 decision, according to a document filed with the SEC.
The letter, written by New York-based attorney Robert Bernstein, of Vandenberg & Feliu LLP, and seen by AMM referred to a recent market commentary published by German copper producer Aurubis AG, which Bernstein said provided additional evidence of growing and significant industry opposition to the ETFs.
"Aurubis states that if physically backed ETFs on the market are successful, about 180,000 tonnes of copper will most likely have to be collected for it," according to the letter.
"This would probably lead to significant price effects in light of the (London Metal Exchange) copper inventories, which currently amount to about 211,000 tonnes," the letter quoted Aurubis as saying.
Aurubis has, until now, remained silent on the matter of ETFs, but its recent public market comment on copper made its hostility to the proposed products clear.....
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