Is it legal to trade unlicensed gold ETFs in Germany?
Is it legal to trade unlicensed gold ETFs in Germany?
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maxschlepzig · External communityPost link
External question — Personal Finance Stack Exchange
Author: maxschlepzig
Original post: https://money.stackexchange.com/questions/157617
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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In Germany, gold ETF aren't licensed because apparently they violate diversification which is required by law (cf.
German
Wikipedia
articles
which cite an upper limit of 30 % for a fund).
Thus, as a proxy, some people who seek the (perceived) stability (and negative correlation) of gold turn to gold ETC such as Xetra Gold (ISIN DE000A0S9GB0,
German Wikipedia
), although they are just bearer bonds, i.e. the gold isn't protected funds property in the case of issuer insolvency.
However, when I enter the ISINs of two such gold ETF (i.e. US78463V1070 and CH0139101593) in the order mask of my online broker, it offers me to trade them at German regional exchanges. I haven't tried to place an order that way, thus, such an order might be unconditionally rejected.
Also, online securities information portals such as Onvista also list those ETF on German regional exchanges and list some trading volume for the past month:
https://www.onvista.de/fonds/handelsplaetze/SPDR-GOLD-SHARES-TRUST-EUR-ACC-Fonds-US78463V1070
https://www.onvista.de/etf/handelsplaetze/ZKB-Gold-ETF-AA-CHF-Dis-ETF-CH0139101593
How is this possible?
Is it legal to trade such unregistered ETF at a German exchange for the seller/buyer?
Doesn't the participant/exchange get in trouble when they clear those trades?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: maxschlepzig Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/questions/157617 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. In Germany, gold ETF aren't licensed because apparently they violate diversification which is required by law (cf. German Wikipedia articles which cite an upper limit of 30 % for a fund). Thus, as a proxy, some people who seek the (perceived) stability (and negative correlation) of gold turn to gold ETC such as Xetra Gold (ISIN DE000A0S9GB0, German Wikipedia ), although they are just bearer bonds, i.e. the gold isn't protected funds property in the case of issuer insolvency. However, when I enter the ISINs of two such gold ETF (i.e. US78463V1070 and CH0139101593) in the order mask of my online broker, it offers me to trade them at German regional exchanges. I haven't tried to place an order that way, thus, such an order might be unconditionally rejected. Also, online securities information portals such as Onvista also list those ETF on German regional exchanges and list some trading volume for the past month: https://www.onvista.de/fonds/handelsplaetze/SPDR-GOLD-SHARES-TRUST-EUR-ACC-Fonds-US78463V1070 https://www.onvista.de/etf/handelsplaetze/ZKB-Gold-ETF-AA-CHF-Dis-ETF-CH0139101593 How is this possible? Is it legal to trade such unregistered ETF at a German exchange for the seller/buyer? Doesn't the participant/exchange get in trouble when they clear those trades?
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