ETN
THE CERTIFICATEETN extension
Exchange Traded Notes (ETN) are financial instruments issued against the issuer’s direct investment in the underlying (other than commodities) or in derivative contracts on the same. The price of the ETN is therefore directly or indirectly linked to the performance of the underlying. ETN, in fact, means a securitized derivative financial instrument issued by a vehicle company that replicates a stock, bond, currency index or individual currencies, rates, etc. The criterion that distinguishes ETNs from ETCs is exclusively the nature of the underlying: when it is a commodity we refer to ETCs, while in all other cases to ETNs. However, both instruments share the same characteristics with regard to the issuer and the structure of the transaction.
Exchange Traded Notes (ETN) are financial instruments issued only by specialized and regulated companies, and have only authorized banks or financial intermediaries as interlocutors.