ETP provider GraniteShares has seen a surge in the value of money traded in its Glencore, Rio Tinto, Shell and BP leveraged exchange traded products (ETPs) as global economies recover and talk of a commodity super cycle intensifies.
In May 2021 the GraniteShares 3x long ETPs of these stocks saw £7.1 million traded versus £5.3m traded in April, a 33% increase in trading volume over a single month. In the meantime, the firm’s 3x short ETPs of these stocks, traded £1m in May compared to £0.26m in April, a 300% increase.
According to CEO and founder Will Rhind, the increasing trading activity further supports the fact that investors are getting more comfortable expressing their views on single.
‘Oil prices have been recovering as Covid-19 vaccination programmes develop around the world and economies recover. A post-coronavirus economic rebound has also helped drive surging prices in a range of commodities,’ he said. ‘All of this makes mining and commodity stocks increasingly appealing.’
GraniteShares currently offers 54 ETPs listed on the LSE including a suite of index ETPs tracking FAANG stocks and a suite of short and leveraged single stock daily ETPs tracking a selection of FTSE 100 companies and popular US tech stocks.
BBVA debuts deposit-like structure linked to ESG risk control prop index
BBVA has expanded its offer of sustainable products aimed at Spanish investors with the launch of a new ‘financial contract’ linked to the Solactive BBVA ixESG Global Leaders EUR Risk Control 6% Index.
From 4 to 22 June, BBVA’s retail customers in Spain can invest in a sustainable financial contract linked to an ESG investment strategy.
The new Dual 95/5 Non-Guaranteed Index Sustainable Financial Contract, described by the Spanish bank as ‘a single, indivisible package consisting of an interest rate-linked product plus one or more financial derivatives’, will return 95% of the amount invested after six months alongside a 1.55% on this amount, while the remaining 5% of the capital will participate on the performance of the Solactive BBVA ixESG Global Leaders EUR Risk Control 6% Index over three years.
The index which was launched in November 2020 in partnership with Solactive, applies dynamic methodology in the selection of leading ESG companies, and comprises ten stocks from different countries including Nvidia, Kinnevik, Align Technology, Wheaton Precious Metals and Mettler-Toledo – it also incorporates a risk control mechanism to maintain the volatility of the index at a 6% level.
This is the first time the bank uses one of the sustainability thematic investment strategies developed by its Quantitative Investment Strategies team. BBVA introduced its range of sustainable financial contracts in 2019 which invest the product proceeds on a portfolio of bonds and/or shares of companies considered to be sustainable.
Simon Markets adds new index-annuity carrier to insurtech platform
Simon Annuities and Insurance Services, the insurtech module within Simon Markets multi-issuer structured products platform, has announced the addition of Nationwide as the latest carrier to join its pool of indexed annuity providers.
Under the agreement a number of Nationwide annuities will be made available in Simon’s Marketplace including the Nationwide Peak 10 - the latest in the firm’s suite of Peak FIAs, which feature the J.P. Morgan Cycle Index and AllianceBernstein Growth and Value Index, and the Nationwide Defined Protection Annuity (DPA) an index annuity offering access to various index strategies including the S&P 500 Price Index, MSCI EAFE, NYSE Zebra Edge, and JP Morgan Mozaic II Index.
According to Nationwide’s sixth annual Advisor Authority study demand for annuities is ‘growing as retirees today seek solutions to incorporate predicable streams of guaranteed income and protect their portfolios against market risk’.
Craig Hawley, head of annuity distribution at Nationwide, said the agreement with Simon is part of the firm’s efforts to incorporate ‘smart technology into the financial professional’s day-to-day workflow’.
Leonteq on track to achieve record profits in H1 2021, adds BIL
The Swiss structured products specialist provider has announced today that it expects to generate record profits for the first half of 2021 with CHF800m (US$890m) capital base by end-June 2021. Leonteq will publish its half-year 2021 results on 22 July 2021.
Following a strong start of the year, Leonteq has registered ‘high levels of client activity across its increasingly diversified business and achieved strong fee income in the year to date’. According to the firm, its continued ‘focus on disciplined risk management’ has contributed to a ‘substantial positive net trading result in a favourable market environment in the same period’.
The announcement follows the recent addition of Banque Internationale à Luxembourg (BIL) to its multi-issuer platform which will now offer investors in Emea and select Apac countries a range of payoffs and underlyings from this European issuer.
At the end of July 2020, Leonteq and BIL agreed to work together around structured investment products. After completion of the first phase of development and implementation, BIL’s products will be available for distribution in more than 30 markets under a Swiss Issuance Programme. Under the cooperation agreement, BIL acts as the issuer of structured investment products, while Leonteq provides services along the value chain.
The new product offering by BIL consists of a wide range of payoffs and underlyings and will also be available for Leonteq’s clients on LynQs, Leonteq’s one-stop-shop for structured products. In addition, BIL will offer its products to its own clients.
In a second phase, Leonteq and BIL will extend the cooperation aimed at offering products under a European Prospectus.
Six consolidates Swiss and Spanish trading platforms
Following the acquisition of Bolsas y Mercados Españoles (BME) in 2020 and, subject to regulatory approval, Six Swiss Exchange, will migrate BME’s current trading platform to a version of its existing platform in a move to establish the future trading platform technology set-up for both companies.
In a first step, trading and trading-related services for equities, equity-like and fixed income instruments will be harmonised on the Six trading platform by ‘extending and optimising the current capabilities to also address the Spanish market’s needs’. The scope of the harmonisation process does not include derivative instruments.
The migration of equities, equity-like and fixed income instruments is expected to be completed between Q4 2022 and Q2 2023. The next step will include a consultation with Spanish market participants to ‘further refine the scope of the project, leading to detailed specifications and project plan’.
The Spanish market will continue to be hosted in Madrid and the Swiss market will continue to be hosted in Zurich. With the acquisition in mid-2020, the biggest structured products market in Europe expanded its coverage to the Spanish exchange which offers structured listed products including warrants, inline, bonus, turbos, discount, stay high/stay low, multi (leverage) and other certificates from a number of providers including Banco Santander, BBVA, La Caixa, BNP Paribas and Société Générale – the French bank recently transferred to its books Commerzbank’s ETP business.
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