In this week’s roundup, we also look at Spectrum Markets’ performance in Q2, the acquisition of Bank Degroof Petercam, and HK-listed structured product activity in July.

On 8 August, NewEdge Wealth, the US registered investment advisor introduced NewEdge Investment Solutions platform, which is ‘designed to provide third-party financial professionals and institutions with access to many of the same strategies it utilises to help their own ultra-high-net-worth (UHNW) clients achieve their goals’.

We believe we have unlocked several investment strategies that adapt to the ever-changing market landscape - Rob Sechan, NewEdge Wealth

The new platform aims to provide investments ‘that are hard to get into, find or have structural advantages themselves’, stated the firm, a division of NewEdge Capital Group.

The company highlighted its ‘innovative approach to investing in structured notes and creating managed investment strategies that utilise them’.

‘In combination with providing NewEdge Wealth's ultra-high net worth clients with a highly personalized approach to wealth strategy, we believe we have unlocked several investment strategies that adapt to the ever-changing market landscape,’ said Rob Sechan (pictured), CEO and co-founder of NewEdge Wealth.

‘Our strategies are designed to deliver superior outcomes while producing returns which may be difficult to achieve through conventional equity and bond markets,’ he added.

Spectrum posts record half year trading vol despite fall in Q2

Spectrum Markets revealed a dip in trading activities in Q2 ‘against a backdrop of low volatility in equity markets’, although trading levels for the first half of the year remain positive, according to the pan-European securitised derivatives exchange headed by CEO Nicky Maan (right).

The number of securitised derivatives traded on Spectrum in Q2 2023 hit 340 million, a little below the 357 million recorded in Q2 2022. ‘This came amidst a wider pull-back in trading experienced across the industry, and the relatively small decline underlines Spectrum’s continued resilience,’ stated the report.

By asset class, 79.2% of the traded volume were on indices, 14.9% on currency pairs, 4.1% on commodities, 1.5% on equities, and 0.3% on cryptocurrencies with the most traded underlyings being the Dax 40 (25.3%), S&P 500 (20.8%) and Nasdaq 100 (18.8%).

In H1 2023, the volume of securitised derivatives ‘remains positive’ at 787 million, a 19.8% increase year-on-year (YoY). Additionally, the total value of its order book turnover rose to €1.77 billion from €1.65 billion year-on-year.

Indosuez to acquire Bank Degroof Petercam

On 4 August, Indosuez Wealth Management said it has signed an agreement to acquire a majority stake in Bank Degroof Petercam and a long-term partnership with CLdN.

The proposed acquisition is being carried out in partnership with the CLdN group, Degroof's core shareholder, which will retain a stake of around 20%, reflecting ‘the desire to preserve its roots and domestic presence in Belgium’, according to the announcement.

As a result, the wealth arm of Crédit Agricole will gain access to a new client base in Belgium and internationally. ‘It would expand its expertise in financial management advice and fund offerings, particularly ESG funds, by capitalising on the expertise of the Degroof Petercam Asset Management company and in investment banking activities’, stated the buyer.  

With over 150-year history, Degroof, which distributes structured products, has client assets totalling €71 billion.

HKEX-listed structured product activities slowdown in July

On the Hong Kong Exchanges and Clearings (HKEX), there were 5,584 derivative warrants (DWs), 3,982 callable bull/bear contracts (CBBCs) and five inline warrants listed as at the end of July. It represented a decline across all compared with a year ago when the respective figures were 7,449, 4419 and 44, according to the latest monthly report from the exchange.

In July, 566 DWs and 1,636 CBBCs went listed on the bourse, a plunge from 812 and 2,148 YoY, respectively. Meanwhile, the turnover of DWs dropped 3.1% to HK$122.8 billion in July and that of CBBCs fell 17.2% to HK$113.7 billion YoY. They represented 6.0% and 5.6% of the total markets, respectively. Inline warrant activities remain unnoticeable as they only generated less than HK$3 billion turnover during the month.

Moreover, the average daily turnover of leveraged & inverse products for the first seven months of 2023 was HK$2.2 billion, up 10% YoY.