Latest: Luma adds AMC issuer to platform

Dynamic Capital Group is a specialist issuer of structured products, especially actively managed certificates (AMCs), tracking certificates and credit linked notes (CLNs), providing access to a wide range of bankable and non-bankable assets.

Our products enable investors to access traditional and non-bankable and esoteric assets - Roman Studer, Dynamic Capital Group

“The addition of Dynamic Capital Group further diversifies the broad range of issuers available to Luma’s clients and complements the structured products already on the platform, which range from traditional underlying’s to more alternative non-bankable assets,” said David Wood, managing director of Luma’s International Business.

‘Our products enable investors to access traditional and non-bankable and esoteric assets, and we are excited to be able to service a broader range of clients through Luma’s platform,’ said Roman Studer (pictured), head of product development at Dynamic Capital Group.

The move follows the recent addition of Swiss specialist structured product firm Finanzlab to the platform, as the firms continues its expansion into Europe.

Goldman joins UK structured products industry association

The UK Structured Products Association (UKSPA) has added Goldman Sachs to its ranks as a new member. This brings the total membership of the UK association to 18 firms.

The US investment bank which issues both securities-based structured products and also structured deposits via their subsidiary, Goldman Sachs International Bank, has been a top issuer of products in the UK market since 2014. It has more than 140 live products sold in the country’s retail market.

The association has acted as the ‘voice of the UK structured product industry’ on a number of regulatory fronts such as the post-Brexit Priips divergence, and the transition from Libor. The UKSPA also launched Portfolio Optimiser tool for advisers and wealth managers to see how structured products can complement and enhance a wider investment portfolio.

Precious metal ETP provider goes live on Six

Six Swiss Exchange has added Ridgex Investments, its sixth new issuer of exchange-traded products (ETPs) in 2021.

The four new precious metal ETPs listed by Ridgex bring the total number of ETPs trading at Six Swiss Exchange to 74.

‘In 2006 we admitted the world’s first gold ETF to trading on a stock exchange and four years later in 2010 we added collateralized debt bearer securities, ETPs, on precious metals. During the past 15 years the product offering has been growing steadily to 61 products – a world leading selection,’ said Christian Reuss (right), head of the Six Swiss Exchange.

Demand for ETPs trading at Six is increasing strongly, according to Reuss. Since the beginning of the year, CHF 3.1 billion (US$2.8 billion) have been traded which represents a rise of 279% compared to the whole previous year. There have been 126,468 trades in ETPs executed at SIX, an increase of 330% compared to the whole previous year.

With the new Ridgex physical precious metal products, investors get access to 11 ETPs and 50 ETFs on precious metals available at Six.

Samsung Securities deploys 2x leverage/short Hang Seng plays

Hang Seng Indexes Company has licensed the HSTECH Gross Total Return Index, HSTECH Short Index, HSTECH 2x Short Index and HSTECH TR 2x Leveraged Index as the underlyings of reference for new exchange-traded notes (ETNs) listed by Samsung Securities.

The South Korean company listed the four new ETNs on the Korea Exchange on 28 July 2021. Samsung Securities is the largest provider in South Korea’s structured product market with a 11.3% market share across 1,210 products sold at KRW5.13 trillion (US$4.59 billion). Samsung Securities topped the ranking in 2020 with a 21.9% market share. 

Hang Seng Indexes has expanded its range of underlyings recently with a number of launches targeted at the structured products market including the HSCEI ESG NTR KRW Hedged 40 Points Decrement Index, a new index denominated in Korean won (KRW) that offers exposure to the HSCEI ESG Index (Net Total Return Index) while hedging the associated currency exchange rate risk.

The index provider has also rolled out new thematic indices such as the Hang Seng New Consumption Index and Hang Seng Shanghai-Shenzhen-Hong Kong New Consumption Index.

Eurex, Capitalab execute first compression in SX5E equity derivatives

Capitalab, a division of Aurel BGC and BGC Brokers, entities within the BGC Partners group of companies, have collaborated with Eurex to execute the first compression in equity index derivatives in Europe, a move aimed addressing the industry-wide challenge of high cost of underlying capital for trading derivatives.

Capitalab now offers compression of exchange-traded European equity index derivatives, starting with Eurostoxx50 index options listed at Eurex. This new service enables Eurex participants ‘to proactively reduce their open positions and lower the capital costs of derivatives’. 

These positions are netted against each other multilaterally, so each participant's position is reduced - risk parameters set by the participants ensure that the portfolio's risk position only changes within a predefined tolerance, said Eurex CEO Michael Peters.

‘[We] expect the service to provide significant capital relief, especially as client participation gains momentum,’ said Jean-Pierre Aubin (right), co-global head of brokerage at BGC Partners and CEO of Aurel BGC.

As a first stage, it is expected that one compression run per month will be conducted. Extension to additional products will depend on market demand. Eurostoxx50 index options are the fifth most traded options contracts worldwide. Open interest in Eurostoxx50 index options currently stands at 34 million and €1.1 trillion notional outstanding.