Aluminium ETP awaits regulatory approval

* ETP planned by Glencore, Credit Suisse

* Likely to be listed on a Swiss Exchange


By Polly Yam and Nick Trevethan

HONG KONG/SINGAPORE, Aug 17 (Reuters) - A physically-backed aluminium exchange-traded product (ETP) planned by Glencore International [GLEN.UL] and Credit Suisse is likely to be launched on a Swiss exchange, a source familiar with the matter said.

Swiss-based Glencore, the world's biggest commodity trader, and Credit Suisse declined to comment. The size of the ETP, which would allow investors to invest in aluminium without the complications of managing a physical stockpile or repeatedly rolling forward contracts on the London Metal Exchange (LME), would depend on how popular the fund proves to be.

The ETP would buy metal only after investors purchase units.

ETP is an umbrella term covering exchange traded funds (ETF) and exchange traded notes (ETN).

"(The launch) has been waiting for the final approval (from the local regulator) for ages. The ETF can be launched the day the regulator agrees," the source said on Tuesday.

He said the two essential processes of organizing the ETP -- securing suppliers of the metal and finding a warehousing system to stock it -- had been arranged. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For a graphic on global metals stocks, see:

http://graphics.thomsonreuters.com/10/GLB_MTLSTK.html ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Although the fund itself may not have stocked up on any metal yet, market watchers say a steady fall in LME stocks over the past three months may be the result of potential suppliers acquiring material with which they could start the investment vehicle.

"There is no shortage of aluminium and the steady deliveries out of LME warehouses may be low-level buying by someone linked to the ETF putting together a stockpile," a trader in Sydney said.

Several industry sources told Reuters last year that Glencore and Credit Suisse were planning an aluminium ETP. [ID:nLH639020]

ETPs have proven popular for precious metals, as many investors regard them as cheaper, easier and safer than derivatives contracts. [GOL/SPDR]

A senior executive at Russia's UC RUSAL <0486.HK>, the world's biggest aluminium producer, said in April that the firm was also considering an aluminium ETF. [ID:nTOE63B079] (Additional reporting by Pratima Desai in London, editing by Anthony Barker) ((polly.yam@thomsonreuters.com; +852 2843 6933; Reuters Messaging: polly.yam.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))