The past week has seen three fintech providers striking deals across Europe, US and Apac while the Singapore regulator has tightened cryptocurrency trading.
VP Bank, a Liechtenstein-headquartered bank, will use Leonteq’s technology platform to issue and trade in structured products, and market these products to its clients, as part of a ‘new, innovative white-labelling issuance model,’ the bank said in a statement today (17 January).
The partnership will enable the private bank, which already offers structured products through third parties, to ‘assume the role of guarantor and take charge of distribution’.
Leonteq will in turn provide an international distribution mandate, giving VP Bank (as a guarantor) access to a global network of investors. VP Bank clients will then be able to choose from a range of products. The first guaranteed structured products are scheduled to be launched on the Leonteq platform in the first quarter of 2022.
‘This collaboration, and the fact that we can assume the role of guarantor ourselves, mean that in future, we will be able to offer our clients a comprehensive and attractive range of structured products,’ said Paul Arni (pictured), CEO of VP Bank.
Singapore discourages cryptocurrency trading by general public
The Monetary Authority of Singapore (MAS) today issued guidelines clarifying that digital payment token (DPT or known as cryptocurrency) service providers ‘should not engage in marketing or advertising’ their products to the general public in Singapore.
‘MAS has consistently warned that trading DPTs is highly risky and not suitable for the general public, as the prices of DPTs are subject to sharp speculative swings,’ stated the financial watchdog.
There are not regulatory restrictions on the use of cryptocurrency-linked derivatives, which include contracts for differences (CfDs) and futures contracts, as long as they are offered by an approved exchange under the Securities and Futures Act.
Service providers should not promote such products to the public as a convenient unregulated alternative to trading in DPTs, and should not mislead the public that the derivatives are less risky than DPTs, stated the regulator.
DelphX adds Bank of New York Mellon as custodian
US technology and financial service platform DelphX Capital Markets (DelphX) has announced that its special purpose vehicle Quantem Capital has signed Bank of New York Mellon as collateral account bank and paying agent for the new DelphX structured product issuance facility, collateralised put options (CPOs) and collateralised reference notes (CRNs).
The bank will serve as issuing and paying agent, registrar and transfer agent, as well as the collateral account bank for the DelphX platform, handling all assets and transactions related to CPO and CRN transactions. Included in these roles, the custodian will settle and safekeep trades, manage the collection and payment of principal and interest to holders, and provide online access and reporting on cash and securities positions to participants.
‘A trusted agent is an essential requirement in our platform, because the movement and holding of funds and assets sits with a third-party entity in order to ensure greater transparency and safety,’ said DelphX CEO Patrick Wood (right).
The Canada-listed fintech is working on additional partnerships that will complete the commercialisation cycle for the launch of the DelphX platform.
Bursa Malaysia derivatives record new trading volumes in 2021
A record high of 18.4 million contracts were traded in 2021 surpassing the previous peak of 18.2 million contracts in 2020, according to the local exchange. Crude palm oil futures (FCPO) continued to be actively traded – registering 15.6 million contracts in 2021, up 6.8% year-on-year.
The bourse highlighted the launch of key products during the past year, which included the new east Malaysia crude palm oil futures (FEPO) contract, the revamped crude palm kernel oil futures (FPKO) contract and the revamped three-year Malaysian government securities futures contract (FMG3) and 10-Year Malaysian government securities futures contract (FMGA).
Furthermore, the after-hours (T+1) trading session that was introduced on 6 December has seen a total of 51,513 contracts traded during the T+1 session during the month, contributing five percent of the day and night average daily trading volume in the same period.
Taipei Fubon Bank partners with Avaloq to scale PB business
The Taiwanese commercial bank, which has total assets of TWD3.6 trillion (US$130.8 billion), is working with Avaloq to build a wealth management platform for its private banking business in Hong Kong SAR, Singapore and Taiwan, according to Avaloq.
The platform will incorporate financial products such as equities, currencies, mutual funds, dual currency investment and structured products like equity-linked notes. Meanwhile, the initial deployment will focus on customer relationship management (CRM), know-your-customer (KYC), regulatory compliance and product management.
‘For Taipei Fubon Bank, the key considerations of the selection process were effectiveness and adherence to regulatory requirements,’ stated the Swiss software provider in an announcement. ‘Avaloq’s platform ticks both these boxes as it is compliant with key financial regulations. Also, it enables quicker time to market with comprehensive investment solutions, for onshore as well as offshore private banking offerings.’