SRP is gearing up for the Derivia Intelligence Middle East Conference, which will be held in Dubai on 20 November.

The one-day event includes a global market overview as well as panel discussions about, among others, the role of structured products in portfolio management, the development of sukuk products, leveraging tech solutions to increase buyside adoption, index innovation, and more.

The conference will be concluded with SRP’s first Middle East awards, which recognise the most outstanding innovations and achievements in the region’s structured products industry.

The AMC structure allowed us to build a track record more quickly than following the traditional fund approach - Evelyne Pflugi, The Singularity Group

Also this week, we interviewed Evelyne Pflugi, CEO and co-founder of The Singularity Group (TSG) about the benefits of actively managed certificates (AMCs) and why wealth management and high-net-worth clients are more open to this type of product.

“The AMC structure allowed us to build a track record more quickly than following the traditional fund approach,” Pflugi said.

SRP analysed the capital returns delivered in France over the last three years. Our research shows that, overall, the performance has improved this year, with a greater tendency toward higher returns.

In the Netherlands, Wilgenhaege Asset Management and Van Lanschot Kempen, two local providers, collaborated for the launch of Nationale Nederlanden 14.5% 2024 – 2029. This five-year Athena autocall accumulates a 14.5% pa coupon if the underlying share of NN Group closes at or above its initial level on any annual valuation date.

Another Athena structure was seen in France, where Marex teamed up with Goldman Sachs for a five-year note that tracks the evolution of the BNP Paribas share while United Overseas Bank (UOB) rolled out the first US dollar-denominated structured fund in Thailand.

“It has a simple bonus-enhanced payoff with capital protection element,” said Gidon Kessel, UOB’s head of deposit and wealth management.

Third quarter 2024 earnings were reviewed from Société Générale and DBS. The former’s equities business registered its second best Q3 ever, notably on the back of growing client activity in listed products and financing combined with strong performance in derivatives throughout the summer volatility peaks.

Volatility also played a key role at DBS, with the bank’s markets trading income reaching its highest levels in 10 quarters, as FX, interest rates and equity derivatives benefitted from market movements.

Monex left its mark at this year’s SRP Americas conference by taking home three awards – including Deal of the Year for its Guaranteed Minimum Rate Double No Touch.

Double No Touch products are delivering the highest realised returns for Monex’s clients, according to Alan Huitrón Fernández, senior derivatives trader at the bank. “For this product the structuring strategy was to incorporate minimum rates which has helped them to gain traction among investors,” he said.

Goldman Sachs, another winner at SRP Americas 2024 (Best Hedge Provider and Most Innovative Product), has delivered US$12.5 billion traded notional of its self-issued structured notes registered with the US Securities and Exchange Commission (SEC) in the first nine months of the year following a strong third quarter, SRP data shows.

The US bank has seen an increase in its business among both notes and OTCs and given the strong performance of the equity market, many notes were autocalled this year, “which is a natural tailwind”, said Nolan Thompson, vice president, private investor product group at Goldman.

BMO Capital Markets hired three former Credit Suisse bankers to build its equity derivatives business in Asia.

Min Park joined BMO as managing director, head of equity derivatives, Asia, based in Hong Kong. Park will manage Carven So and Gabriel Tam, who also joined the Canadian bank as part of its newly built equity derivatives desk.

Turnover of structured products traded on the SIX Swiss Exchange reached CHF655m (US$743m) in October, up 7.8% compared to September and an increase of 14.1% year-on-year.

Finally, BNP Paribas teamed up with Nasdaq and Salt Financial for the launch of the Nasdaq Night Owl Index which will be available through fixed index annuities (FIAs) issued by AuguStar Life Insurance Company. The night effect is ‘a well-known phenomenon’ whereby overnight markets have historically outperformed the daytime trading session on a risk-adjusted basis, according to the French bank.

Image: Tampatra/Adobe Stock.

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