The expected launch of the integrated multi-issuer investment products distribution system (IPDS), known as the Land initiative has collapsed, according to sources. The platform was announced in a letter of intent signed by Leonteq, DBS, Avaloq and Numerix in March 2015.

The platform has not been built, according to a source close to the project. "[It is] such a massive project, it takes time and we haven't put down on paper what the timelines are going to be," said the source. "Internally, we have a timeline, but we're not making that public. The plans to move into a digital platform are continuing, but do not involve Leonteq."

According to another market source, Avaloq and Numerix have pulled out of the deal, while DBS and Leonteq will go their separate ways.

A senior executive from a wealth management company added that the project was flawed from the start as, "there are too many vested interests with that kind of initiative" and distributors want "absolute neutrality". "What can the Land initiative bring to the table that other platforms, such as FinIQ and Contineo, haven't already?" said the wealth manager.

The initiative followed an agreement between Avaloq and Leonteq in 2014 to further automate the processing of structured investment products between The two firms. The Swiss company also announced a product partnership with DBS in the origination and distribution of equity derivatives-linked structured products at the end of 2014.

Leonteq announced in its 2015 half-year results that the cooperation with DBS saw turnover of CHF950m in the first half of 2015, from more than 800 DBS products issued through Leonteq's platform. On the back of this agreement, Leonteq reported that its business in Asia picked up in the first half of 2015, increasing total operating income by 15% to CHF10.8m, while in Europe posting total operating income of CHF48m (up 22%) in the same period. Total operating income in Switzerland increased 33%, to CHF52.8m.

Multi-issuer platforms in Asia-Pacific have been in the spotlight recently with a myriad of competitive outfits entering the market such as Vontobel's Deritrade, which was launched in March 2014, the FinIQ EQ Connect platform, launched by the specialist software provider in association with Thomson Reuters in December 2014, and Contineo, a platform backed by a consortium comprising technology firm AG Delta and six investment banks - Barclays, BNP Paribas, Goldman Sachs, HSBC, JP Morgan and Societe Generale.

Leonteq, Numerix and DBS declined to comment, while Avaloq did not return calls by press time.

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