In this week, we look at the latest developments at Luma, Eurex, Leonteq, Spectrum and Syntax.

Luma Financial Technologies, a multi-issuer structured products and annuities platform, has expanded its partnership with Yieldstreet, a private market investment platform, to bring the company’s offerings to its customer base.

In doing so, Luma is broadening registered investment advisors (RIAs) access to alternative investment products, spanning from initial purchase of products to full lifecycle management, all in one place.

Through the partnership, Luma users receive educational training, post-trade advisor management and reporting tools for a diverse selection of private market solutions such as real estate, private equity, art, supply chain financing.

To date, Yieldstreet has provided 450,000 members access a selection of alternative asset classes, which were traditionally accessible only to institutions and high-net-worth individuals, according to the New York-based firm.

Leonteq upgrades LynQs mobile version in Asia

LynQs, Leonteq’s digital platform for structured products, has rolled out a mobile version for its quote module in Singapore and Hong Kong SAR on 24 January.

The new LynQs mobile version is ‘one of the first click n’ trade platforms that is accessible via mobile devices in Asia’, according to the Swiss provider. 

The application allows users to design popular structures such as fixed coupon notes, equity-linked notes, bonus enhanced notes and digital notes. With five issuers onboard, users can access indicative term sheets and other product-related documentation, place product offers and launch rebalancing instructions for eligible actively managed certificates (AMCs).

Offering digital solutions offered through LynQs was one of Leonteq’s key growth initiatives that come with significant investment in 2023, along with its retail flow business, CEO Lukas Ruflin said in December when Leonteq announced a profit warning for the full year.

In March 2023, the Swiss structured product specialist launched a dedicated version of LynQs for external asset managers, wealth managers and multi-family offices primarily based in the two Asian financial hubs.  

Eurex introduces new ESG indices futures

Eurex has listed futures on socially responsible investing (SRI) indices with an aim to ‘serve new user groups with stricter ESG mandates’. The underlying indices comprise the STOXX Europe 600 SRI, MSCI SRI Europe, MSCI SRI USA, MSCI SRI World and MSCI SRI EM, which offer exposure to Europe, USA, world and emerging markets.

Starting trading on 22 January, the futures on SRI indices calculated by Stoxx and MSCI, both strategic partners in Eurex’s offering of derivatives on ESG indices, according to the bourse. They’re supported by a liquidity provider scheme, offering regular rebates and revenue sharing elements.

The new futures provide broad exclusions combined with a best-in-class selection approach. With now more than 500 funds tracking SRI indices, these indices have a long-standing history. The top 10 SRI ETFs account for more than US$ 45 billion total assets under management (AuM).

‘Our offering will certainly appeal to new user groups that have stricter ESG mandates and need to invest responsibly, such as asset managers who invest on behalf of endowment funds or foundations,’ said Randolf Roth (right), member of the executive board at the European exchange.

Spectrum reports €3.62 billion turnover for 2023

Spectrum Markets, the pan-European trading venue for securities, has released its full year 2023 business update ‘revealing continued growth despite more challenging market conditions and a wider trading uncertainty’.

Trading volume for the year grew by 14%, with 1.62 billion securities traded in 2023 compared to 1.42 billion the year before. This volume was executed across nearly 2.5 million trades, with 33.9% of those taking place outside of traditional hours (ie. between 17:30 and 9:00 CET).

Spectrum reported a nine percent increase in the total value of order book turnover of €3.62 billion in 2023 year-on-year (YoY).

Following the onboarding of Unicredit Bank as member, the trading venue now has live issuers including Intermonte and Société Générale.  In 2023, 84.3% of the traded securities were on indices, 9.9% on currency pairs, 4.1% on commodities, 1.5% on equities, and 0.2% on cryptocurrencies. The most traded underlyings last year were DAX 40 (29.4%), Nasdaq 100 (20.2%) and S&P 500 (18.9%).

At the year-end, Spectrum joined the Italian Association of  Certificates and Investment Products (Acepi) as an associate member in a push for the Italian market.

Syntax introduces custom direct indexing platform for advisors 

The US data provider on 23 January launched its new wealth platform, Syntax Direct, which ‘puts advanced index creation and management capabilities in the hands of financial advisors and wealth managers’, stated Syntax.

The platform offers financial advisors a front-to-back solution that covers the index development process, from custom indexed portfolio creation to the immediate production of daily index files that support efficient asset management. Key features support performance analysis, compliance requirements, marketing and record keeping.

Syntax’ patented Affinity Data drives key functions of the platform, providing fully documented and compliance-friendly outcomes. ‘All of our data is reliably sourced, cited and archived to provide optimal transparency and eliminate ‘black box’ opacity,’ said Syntax COO, Jonathan Chandler (right).

Advancements in technology and innovations in custodial accounting has enabled what was once the purview of the ultra and high-net-worth individuals to become increasingly available to the broader investment community. Custom direct indexing is the next major secular change, according to Syntax.

Image: Vectorfusionart/Adobe Stock