Latest: Marex makes first foray into DeFi products

Under the collaboration agreement, the two companies have designed and deployed new digital assets products to provide on-chain solutions for professional clients.

Marex’s choice of MEV Capital was driven by the firm's expertise and proven track record in the DeFi market, as it seeks to ‘bring new and exciting opportunities for clients looking to diversify their portfolios and capitalise on the growth of digital assets’.

Our collaboration with Marex is a real leap forward for the institutionalisation of DeFi - Laurent Bourquin, MEV Capital

‘Manufacturing innovative derivatives with MEV Capital's expertise will allow both parties to create new products that combine the best of centralised and decentralised finance,’ said Harry Benchimol (pictured), co-head of derivatives engine, Marex Solutions.

Laurent Bourquin, managing partner of MEV Capital, said: ‘Our collaboration with Marex is a real leap forward for the institutionalisation of DeFi. It will facilitate its access and anchor the positioning of digital assets as a new asset class for the years to come.’

J.P. Morgan introduces HK-listed CBBCs on US indices

The US bank launched its first batch of callable bull/bear contracts (CBBCs) linked to the three major US indices on Hong Kong Exchanges and Clearings (HKEX), including S&P 500, Nasdaq 100 and Dow Jones Industrial Average (DJIA), on 6 February.

The new CBBCs will begin trading on 9 February, allowing investors to gain exposure to the US market during local trading hours. ‘Since launching our US indices warrants in 2020, we have seen an increasing demand for US-based derivative products,’ said Cedric Cheung (right), managing director, head of listed structured products sales for Asia at J.P. Morgan.

US index derivative products are receiving more attention and inflow, reflected in the notional amount sold on HKEX. In 2022, the amount sold tripled from 2021. As US based derivative products are becoming more competitive, J.P. Morgan ‘continues to perform well in this category’, said Cheung.

Last year, the US investment bank was the most active issuer of US indices derivative products based on the notional sold amount in Hong Kong SAR, according to J.P. Morgan.

Demand for US underlyings in HK SAR was first responded by Société Générale which became the first issuer bringing US index-linked CBBCs to the Asia city in September 2022. Since then, the French bank has seen growth in the listed products space.  

European investors bearish on EUR vs GBP

Pan-European trading venue for securitised derivatives Spectrum Markets has reported a sharp increase in bearish sentiment among retail investors towards the Euro compared to the British Pound, in anticipation of last week’s moves from the Bank of England and European Central Bank to increase interest rates.

The SERIX value indicates retail investor sentiment, with a number above 100 marking bullish sentiment, and a number below 100 indicating bearish sentiment.

Spectrum’s SERIX sentiment indicator for derivatives linked to EUR/GBP dropped to 40 for 31 January and 39 for 1 February, as investors positioned themselves ahead of the announcements on 2 February.

The volume of securitised derivatives traded on this currency pair was also roughly double the January average during these two days, reflecting strong interest in the impact of the anticipated rate rises on markets.

'It’s no big surprise that two such closely-watched announcements attracted a lot of trading activity as our retail investors tend to be very responsive to major macro events like these,’ said Michael Hall, head of distribution at Spectrum Markets.

‘While the eventual rate rises themselves were pretty widely anticipated by markets, there was a significant amount of volatility in the lead up to this which created opportunities for investors to act on short-term price movements, while the Euro gained strength overall.’

EQM rolls out direct indexes on managed accounts platform

EQM Indexes has announced the addition of five new direct indexes to the SMArtX Advisory Solutions unified managed accounts (UMA) platform.

The new indexes leverage EQM Indexes research and seek to provide targeted, customisable, tax managed exposure to investment themes and specific market segments – they include the EQM Battery Technology & EV Index; EQM-Emerita Blockchain & DeFi Index; EQM Commodity Equity Dividend Income; EQM Emerging Markets China Lite Index and EQM Sun Energy Index.

EQM Indexes’ direct index models provide low-cost, customisable, direct indexing solutions offering global exposure using US exchange-traded companies.

‘These direct index models are thoughtfully weighted and rebalanced to offer targeted, index-based exposure to important investment themes, giving advisors the ability to further customise these solutions with value-based and individual security and sector constraints, and help optimally manage their client’s tax outcomes,’ said EQM Indexes CEO, Jane Edmondson (right)

‘The expansion of the suite of investment strategies available will provide advisors and asset managers with a new and diverse way to scale distribution while giving clients access to a wider array of strategies,’ said Evan Rapoport, CEO of SMArtX Advisory Solutions.

India’s SIB to offer structured products via new wealth platform

South Indian Bank (SIB) has announced the launch of a new wealth management platform in partnership with Geojit Financial Services.

SIB Wealth is an exclusive service targeted at the bank’s high-net-worth (HNI) customers seeking alternative financial instruments available in the market including structured products, portfolio management services, alternative investment funds, systematic investment plans, mutual funds, bonds and real estate funds.

South Indian Bank has partnered with Geojit Financial Services, an investment services company which will provide the infrastructure of the new service offering.

‘Demand for professional wealth management services has increased in the recent times. This service will help the HNI customer base with appropriate financial products and advisory to enable them to maximise their wealth,’ said Thomas Joseph K (right), EVP & group business head, South Indian Bank.

‘This will enable the bank’s account holders to maximise their wealth through tailored investment solutions,’ said Jones George, executive director, Geojit Financial Services.

SIB Wealth will provide integrated services including strategic plans to meet its clients’ investment needs.