Commerzbank/SG listed products transfer almost complete

The move comes after Commerzbank agreed to sell the Equity Markets & Commodities (EMC) division to Société Générale in 2018. 

During the course of this transition, Commerzbank's issuing and trading systems will be integrated into those of Société Générale. In addition, Commerzbank’s listed products team will be merged with the Société Générale team.

More than 80,000 flow products – including (capped) bonus, discount and express certificates listed in Austria, Belgium, Germany, France, The Netherlands, Spain and Portugal – will be transferred to the French bank as well as all leverage products issued by Commerzbank.

In Spain, the German bank has announced the transfer of its range of investment and leverage certificates which includes more than 4,600 structures such as bonus with cap or without cap, reverse convertibles (classic/plus), warrants (close/open end) and turbo warrants (close/open end) some of them with a quanto feature.

‘With the transfer of Commerzbank’s systems, services and teams to Société Générale a new issuer will be created offering the best of both worlds. [The new issuer] will offer a wider range of products, as well as better services and tools,’ stated Commerzbank in an update to investors.

There are eight live products issued by the German bank in Spain that will be transferred to Société Générale’s books – a combination of reverse convertible/digital structures linked to single shares (Société Générale, Santander, International Consolidated Airlines, CaixaBank, Bayer, ArcelorMittal) with investment terms of less than one year (three), between three and six years (four) and more than six years (one), worth an estimated US$89.6m.

Commerzbank’s activities in Spain’s structured products market come to an end a decade after it sold its first listed product in the Iberian market.

In Portugal, Commerzbank offered three types of leverage certificates (warrants, turbo warrants and factor certificates), listed on the Frankfurt and Lisbon stock exchanges. SRP database shows 268 live leverage products issued by Commerzbank - listed on the Euronext Lisbon stock exchange.

There are in total 9,455 live warrants (close and open end) available, of which 8,491 are listed on the Frankfurt stock exchange, and the remainder on the Lisbon exchange.

The proportion of call/put certificates is around 47%-53%. There are 1,538 products linked to European shares, 113 to Asian, 46 to Portuguese and 1,433 to American shares. European indices are used in 3,374 products, 88 are linked to Asian indices, 1,715 to American indices and 640 to precious metals and 81 to FX

As for product types, there are 1,954 turbo warrants (close and open end) that are available to Portuguese investors, with 1,690 listed on Frankfurt and 264 on the Lisbon stock exchange. The proportion of call/put certificates is around 30%-70%.

There are 338 products linked to European shares, 13 to Asian, 17 to Portuguese and 64 to American shares. European indices are used in 442 products, 73 are linked to Asian indices, 307 to American indices and 441 to precious metals. There are also 421 factor certificates linked to different underlyings.

“The integration of the EMC business of Commerzbank to Société Générale is an ongoing process which has taken place gradually from the 2nd quarter of 2019," said a spokesperson for  Société Générale. "Last week-end the certificate business has been migrated to  Société Générale, including the teams and the relevant systems. This means that since Monday, March 30th,  Société Générale is offering all products and services of the former Commerzbank certificate business.”