Latest: Spectrum joins Italian association, Leonteq buys BX Swiss stake

Spectrum Markets, the pan-European trading venue for securitised derivatives, has become an associate member of the Italian Association of Certificates and Investment Products (Acepi). The Frankfurt-based company is the first multilateral trading facility (MTF) to join the association.

Joining forces with a leading association such as ACEPI is a meaningful step forward for us, proving our dedication to fostering transparency, supporting retail investors, and advocating for industry interests - Nicky Maan, Spectrum

Acepi represents major issuers and stakeholders in the Italian securitised derivatives industry, aiming to foster the culture and conscious use of investment products, with a particular focus on certificates. Established in 2006, Acepi engages in regulatory discussions and actively works to enhance education among financial advisors and private bankers.

‘Joining forces with a leading association such as ACEPI is a meaningful step forward for us, proving our dedication to fostering transparency, supporting retail investors, and advocating for industry interests,’ said Nicky Maan (pictured), CEO of Spectrum Markets.

‘This membership, which follows the announcement of Spectrum being a supporting member of the German Association for Structured Securities (BSW - Bundesverband für strukturierte Wertpapiere) reinforces our effort to be an active part of the change. After Germany, Italy is the second largest securitised derivatives market in Europe, and it is very important for us to see how the industry is embracing innovation and change.’

Innovator launches seven defined outcome ETFs

Illinois-based Innovator Capital Management has added seven defined outcome exchange-traded funds (ETFs), including six defined income ETFs and the second in its suite of defined protection ETFs, which are designed to offer a 100% buffer against loss.

The Equity Defined Protection ETF (AJAN) is the second ETF in its suite, on the heels of the launch of Innovator Equity Defined Protection ETF (TJUL)’s in July 2023. The Defined Protection ETFs are designed to provide investors with market exposure up to a cap, and a 100% buffer against losses in the SPDR S&P 500 ETF, over a two-year outcome period.

‘Unlike many insurance or bank products offering similar exposures, the suite of Defined Protection ETFs is structured without credit risk, while also providing investors with valuable tax efficiency,’ stated the US firm, which intends to launch a new defined protection ETF at the start of each calendar quarter over two years, until the suite of eight ETFs is complete.

On the same day, Innovator also expanded its existing suite of Defined Income ETFs, launching six new offerings, which aim to provide investors with a protective barrier or buffer against market losses, while also generating high levels of investment income.

“After the market’s run up at the end of 2023, the idea of locking in gains and putting a buffer in place is one that appeals to many investors,’ said Graham Day (above right), CIO at Innovator ETFs, adding that many of these strategies have historically been locked behind high-fee, tax-inefficient and illiquid investment structures.

Leonteq acquires 10% stake in BX Swiss

Leonteq has acquired a 10% stake in the Swiss stock exchange BX Swiss for ‘a single-digit million amount’, which created the basis for a long-term strategic partnership, according to the Swiss bank.  The shares were acquired from the Boerse Stuttgart Group.

BX Swiss will benefit from Leonteq's ecosystem for investment solutions, which facilitates connectivity and collaboration with local and global players in the Swiss financial services sector. In return, Leonteq will gain access to the ecosystem of Boerse Stuttgart Group, the sixth largest exchange group in Europe.

Leonteq has been operating as an issuer on the BX Swiss, the second largest stock exchange in Switzerland, since 2021 and has successfully listed structured products in the regulated trading segment of deriBX and listed exchange-traded products.

The two companies will also work together to offer private and institutional investors efficient and cost-effective financial services through their digital platforms and products. For example, BX Swiss displays real-time prices for all securities tradable on its platform free of charge. In addition, both Leonteq and BX Swiss have been committed to transparency and knowledge transfer in investment products and investment topics since their foundation.

Singapore’s listed structured products deliver mixed results

Listed on Singapore Exchange (SGX), daily leverage certificates posted turnover of SG$342m ‘amid recovery of Chinese market’ in November, down 13% month-on-month. In the first 11 months, the turnover declined 10% to SG$4 billion year-on-year. In the meantime, the number of active accounts dropped 6.9% to 636 in November. ‘However, retail client acquisition remained strong with 48% of active DLC retail accounts being new or reactivated clients,’ stated the bourse.

Meanwhile, structured warrants turnover rose 32% to SG$301m in November month-on-month, highest since March 2023. The number of active accounts increased 6.3% to 302 in November. ‘Market watchers believe the central bank is done with its interest rate hike cycle and could potentially cut rates in the first half of next year,’ stated SGX. ‘These expectations have helped fuel a rally in equities in recent weeks that sent major indices such as the S&P 500 to its highest level since March 2022 and the [S&P DJI] to its highest since January of last year, as of mid-December.’

CGS CIMB fully acquired by Chinese securities house

CGS International Holdings, a subsidiary of state-owned China Galaxy Securities, has acquired a 25% stake in CGS-CIMB Securities from Malaysia’s CIMB Group on 29 December 2023, making it the sole owner of the Singapore-headquartered investment bank.

Prior to the purchase, CGS CIMB Securities was a 75%-25% joint venture between CGS International and CIMB Group. The broker will continue to offer services and products such as equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products and prime brokerage services.

CGS CIMB also owns a market share of structured notes in Thailand. For the first 11 months of 2023, the issuer collected THB5.6 billion (US$161.9m) from 2,397 structured notes in the country, translating to 5.5% of the market, following Kiatnakin Phatra Securities (THB22.0 billion), Krungthai Bank (THB18.3 billion), InnovestX Securities (THB14.2 billion), Siam Commercial Bank (THB12.3 billion), Kiatnakin Bank (THB9.3 billion) and Bualuang Securities (THB7.1 billion), according to SRP data.