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Trading ETPs in multiple currencies

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Leverage Shares entrusts the pricing and quoting of its ETPs on European Exchanges to specialized third-party market makers, some of which we hire, like BNP Paribas and Virtu Financial, and others simply arbitragers and liquidity providers. When an ETP, such as 3TSL, is based on a US asset but presented on a European exchange in GBP, it’s crucial to understand how its intrinsic value is translated from its original USD form.

Here’s where the expertise of these market makers becomes paramount. They have privileged access to interbank foreign exchange (FX) rates, which are the ultracompetitive rates at which the world’s largest banks exchange money. Leveraging these rates, the market makers can efficiently price and quote the ETPs in multiple currencies, ensuring accuracy and minimal cost for investors trading on exchange.

This becomes particularly important when you contrast it with the common FX experience of individual investors. If an investor, for instance, with a GBP local currency account, decides to trade the USD variant of an ETP through their broker, they might face significant added fees. Some brokers can charge a hefty FX fee of as much as 1.5% on top of the trade value (up to 100x more expensive than interbank rates)! With the market makers’ utilization of the interbank FX rates, such exorbitant charges can be bypassed when trading Leverage Shares ETPs in the investors’ local currency. (Please reach out to your broker for more details about their fee structure).

Lastly, arbitrageurs monitor the market to ensure that there’s a tight alignment between the ETP’s quoted price and its intrinsic value based on the underlying asset and interbank FX rate. In essence, by collaborating with, and taking full advantage of Europe’s large network of market makers, arbitrageurs, and liquidity providers, Leverage Shares ensures that investors access competitive, fair, and transparent prices with minimal added costs.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Sandeep Rao

Research

Sandeep joined Leverage Shares in September 2020. He leads research on existing and new product lines, asset classes, and strategies, with special emphasis on analysis of recent events and developments.

Sandeep has longstanding experience with financial markets. Starting with a Chicago-based hedge fund as a financial engineer, his career has spanned a variety of domains and organizations over a course of 8 years – from Barclays Capital’s Prime Services Division to (most recently) Nasdaq’s Index Research Team.

Sandeep holds an M.S. in Finance as well as an MBA from Illinois Institute of Technology Chicago.

Julian Manoilov

Marketing Lead

Julian joined Leverage Shares in 2018 as part of the company’s primary expansion in Eastern Europe. He is responsible for web content and raising brand awareness.

Julian has been academically involved with economics, psychology, sociology, European politics & linguistics. He has experience in business development and marketing through business ventures of his own.

For Julian, Leverage Shares is an innovator in the field of finance & fintech, and he always looks forward with excitement to share the next big news with investors in the UK & Europe.

Violeta Todorova

Senior Research

Violeta joined Leverage Shares in September 2022. She is responsible for conducting technical analysis, macro and equity research, providing valuable insights to help shape investment strategies for clients.

Prior to joining LS, Violeta worked at several high-profile investment firms in Australia, such as Tollhurst and Morgans Financial where she spent the past 12 years of her career.

Violeta is a certified market technician from the Australian Technical Analysts Association and holds a Post Graduate Diploma of Applied Finance and Investment from Kaplan Professional (FINSIA), Australia, where she was a lecturer for a number of years.

Oktay Kavrak

Head of Communications and Strategy

Oktay joined Leverage Shares in late 2019. He is responsible for driving business growth by maintaining key relationships and developing sales activity across English-speaking markets.

He joined Leverage Shares from UniCredit, where he was a corporate relationship manager for multinationals. His previous experience is in corporate finance and fund administration at firms like IBM Bulgaria and DeGiro / FundShare.

Oktay holds a BA in Finance & Accounting and a post-graduate certificate in Entrepreneurship from Babson College. He is also a CFA charterholder.