Source tackles oil correlation gap

Source has launched T-ETC, the first enhanced oil product to be offered in the European exchange-traded product market. “The big issue in oil is the shape of the curve, and everyone has a different way of dealing with that,” says Michael John Lytle, director of marketing at Source.

The US Treasury Bill commodity product is linked to the S&P GSCI Crude Oil Enhanced index, which adjusts exposure to the futures curve each month, moving between the front-month and six-month futures contract