US commodity ETFs blow hot and cold

Increasing attention has turned to commodity exchange traded funds (ETF) in the US this month as part of the wider investigation by the CFTC into the need for tighter oversight of energy futures markets. Rachel Morison investigates

On September 1, Deutsche Bank announced it was liquidating its PowerShares DB Crude Oil Double Long Exchange Traded Notes (DXO) due to regulatory issues with the New York Stock Exchange (NYSE.) This move followed a similar one by Barclays Capital who stopped issuing new shares in its iPath Dow Jones-AIG Natural Gas ETN (GAZ) in August.
“The DXO became too big for Deutsche Bank to manage and we have also seen this with Barclays Capital and the Barcap GAZ ETF,” says Olivier Jakob managing director