Over the past week, SRP’s news desk covered a series of Q3 2024 earnings releases, focusing on the performance of the structured products businesses of the various banks.
In the US, Ramond James Financial has closed its FY24 ended 30 September with a record US$5.6 billion traded notional of structured products, compared to US$3.7 billion and US$3.5 billion for the prior fiscal years.
The annualised sales which represented over 50% growth was strengthened by a recent partnership with Arrow Investment & Analytics, a valuation and analysis start-up founded by former Morgan Stanley executives.
Across the border, Canada saw a total of 2,314 structured notes publicly offered and issued by a group of six banks for Q3 2024, a slight decline from 2,404 quarter-on-quarter (QoQ), according to the issuers’ websites.
During the quarter, BMO Capital Markets introduced non-principal protected notes on single stock, ETF with decrement overlay, according to our Canada Market Review, Q3 2024.
In Europe, J.P. Morgan Structured Products BV, the structured note issuance vehicle of JPM whose primary activities are in Europe, the Middle East and Africa (Emea), has posted net profit of US$11.6m for H1 2024, compared to US$11.7m in the prior-year period.
Amundi has reported an adjusted net income of €337m (US$365m) in the third quarter of 2024, up 16.1% year-on-year (YoY). Adjusted net income for the first nine months of 2024, at €1 billion, increased by 10.4% compared to 9M 2023.
At the same time, BNP Paribas has posted net revenues of €11.9 billion (US$13 billion) for the third quarter of 2024, an increase of 2.7% compared to the prior year quarter.
Value for money is not an easy concept to put into consistent practice […] in order to try and tackle it, the EU is reverting to its usual instincts of extremely detailed and prescriptive rules and methodologies - Tim Mortimer, FVC
On the regulatory side, value for money (VfM) testing as part of investor protection has become a central focus for financial regulators in recent years.
“Value for money is not an easy concept to put into consistent practice […] in order to try and tackle it, the EU is reverting to its usual instincts of extremely detailed and prescriptive rules and methodologies,” wrote FVC’s Tim Mortimer.
In people news, Barclays has promoted Hamza Hoummady as head of rates business for Emea as part of its reboot of rates trading in the region. Based in London, he will report to Hossein Zaimi, global head of macro since May.
Meanwhile, Swiss structured products specialist provider Leonteq has launched a Shari’a-compliant structured product offering on its digital investing platform, LYNQS.
The announcement follows the opening of its office in Dubai in 2021 as part of growth ambitions to service the broader Gulf Cooperation Council (GCC) market as well as the launch of Shari’a-compliant trust certificates in 2022.
In Poland, Bank Millenium’s latest public offer - Farmaceutyczny Gigant I - promises a guaranteed return of at least 4.80% after two years. The structured deposit features the shark fin payoff and offers access to the share of Eli Lilly & Co.
Société Générale Private Banking (SG PB) continues to capitalise and promote its ESG range of structured products which was introduced in 2018 via its 10-year Cristal Solidarité note flagship offering.
In Asia Pacific, the sales volume of structured products surged 12% YoY in the first nine months of the year in Asia Pacific ex-China. Year-to-date, estimated sales gathered by autocallable products stood at over US$30 billion in the region, overtaking US$26.2 billion recorded in 2023.
South Korea saw 20 local securities houses actively issuing equity-linked securities (ELS) in the third quarter of the year led by Shinhan Securities and NH Investment & Securities, dropping from 22 issuers seen from last year’s same time, SRP data shows.
Major financial firms in South Korea have seen growth in groupwide and affiliated securities house net profit for the period from July to September.
In terms of digital assets, Hong Kong’s broker Victory Securities has secured the requisite regulatory consent from the Securities and Futures Commission (SFC) to market and distribute cash-settled virtual asset structured products to qualified professional investors, the first licensed broker getting such approval.
Image: Nuttapong punna/Adobe Stock.
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