Commodities securitization converts exposure to physical resources into a security. A single compartment of a Luxembourg SPV, walled off from the rest, holds the exposure and issues a note under an ISIN of its own, so commodity exposure can be held through a custodian rather than through physical ownership or a futures account.
Taking commodity exposure normally means holding the physical asset, running a futures account or buying into a product someone else has built. MTCM opens a compartment for it in one of six Luxembourg SPVs, ring-fenced from every other deal, and issues a note against it under an ISIN of its own. The compartment can hold offtake rights, forward contracts, an interest in a producing asset or a defined index exposure. Every compartment draws its ring-fence from the Luxembourg Securitization Law of 22 March 2004 and is bankruptcy remote, so trouble elsewhere on the platform cannot reach the position. Legal advice on the platform comes from GSK Stockmann, and the audit from PwC and Atwell.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Gold, silver and platinum group metals, held physically or through contracted rights.
Copper, aluminium, nickel and other base metals under identified contracts.
Crude, refined products, gas and power under offtake or supply agreements.
Grains, softs and other agricultural output under contracted arrangements.
Contracted rights to future production from an identified operation.
A defined share of production or revenue from a producing asset.
Interests in identified projects at pre-production stage.
Warehoused stock held under documented title and custody arrangements.
Contracted exposure to a defined price reference rather than the physical asset.
Lithium, cobalt, rare earths and other inputs to the energy transition.
Commodities securitization converts exposure to physical resources into a security. One compartment of a Luxembourg SPV, ring-fenced by statute, takes the exposure and issues a note under its own ISIN, so it can be held through a custodian rather than physically or through a futures account.
It can. The compartment may hold title to the commodity in storage, hold contracted rights such as an offtake or streaming agreement, or take exposure to a defined price reference. Which route is used is decided when the compartment is structured.
Precious and industrial metals, energy commodities, agricultural output, transition metals and critical minerals. The compartment can hold the asset, contracted rights to future production, or a documented price reference.
Through the storage and custody arrangements agreed at structuring, and through independent inspection. Title, storage and valuation arrangements are reviewed as part of the compartment’s audit rather than taken on trust.
No. MTCM is a securitization boutique, not a broker, a dealer or an asset manager. MTCM structures and administers the compartment. Trading and operating decisions stay with the originator or the counterparty they appoint.
Producers and traders that need to finance or transfer a position, family offices seeking resource exposure in custody-eligible form, and wealth managers whose clients want commodity exposure without a futures account.
| Route | What the compartment holds | What it needs in place |
|---|---|---|
| Physical | Title to the commodity in storage | Custody, insurance and verified title |
| Contracted | Offtake, streaming or royalty rights | An identified counterparty and a supply agreement |
| Reference | Exposure to a defined price or index | A documented reference and a regulated counterparty |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.