INTERVIEW-ETF Sec: eyes $1 bln assets in Japan by end-2010 ETF

TOKYO, Aug 24 - ETF Securities Ltd, an operator of commodity exchange-traded funds (ETFs), said it aims to have $1 billion in assets under management in Japan by the end of 2010 as it makes its debut on the Tokyo Stock Exchange on Monday.

The London-based company launches five new ETFs on the Tokyo bourse on Monday -- Physical Gold, Physical Silver, Physical Platinum, Physical Palladium and a Physical PM Basket ETF.

ETF Securities is planning to expand its foothold in Asia, eyeing listing in Singapore, then Hong Kong within the next 18 months, said Hector McNeil, its global head of sales and marketing.

ETF Securities has a business model that should see little impact from U.S. moves to tighten regulations on positions in U.S. futures markets, McNeil told Reuters in an interview.

Exchange-traded funds have become a top target in U.S. regulators' efforts to rein in excessive speculation in oil and other commodity markets, the Wall Street Journal reported on Saturday.

"Obviously CFTC is particularly focused on futures and not on physical assets ... So we feel quite confident that our products are robust from all aspects, McNeil said.

"And in fact we have several products (registered) in the U.S. currently and we've been given no indication that they will be affected," he said.

"Clearly we'll keep an eye on that," McNeil said of the development. "I think they (U.S. regulators) realise that if they push too hard investors will look elsewhere. I think the last thing they want to do is to drive investment offshore."