Leonteq opens Lisbon office; Luma adds API functionality; Halo pushes annuities offering; FTSE Russell expands ESG range;
Pan-European trading venue for securitised derivatives Spectrum Markets has hit the milestone of one billion securitised derivatives traded on the platform since it launched nearly two years ago.
The growth has been driven by new users as well as increased trading activity, especially among younger traders, and those seeking to profit from higher levels of market volatility and a rapidly-evolving macro and corporate landscape.
Trading volumes on Spectrum have accelerated significantly since launch, with over 750 million securitised derivatives traded in the last 12 months, compared to just under 280 million in the first year of operation, representing an annual increase of more than 170%.
The decision to focus on listing a smaller selection of the most popular products has delivered a concentrated trading activity across the range.
Average reference trading for products listed on Spectrum is higher by double-digit multiples when compared against wider European industry averages for similar instruments, stated the firm, adding that investors continue to take advantage of Spectrum’s 24/5 offering, with more than one third of all trades taking place outside of traditional hours (ie between 17:30 and 9:00 CET).
Leonteq launches branch in Portugal
Leonteq has opened an office in Lisbon as part of its service centre initiative launched in 2020 to ‘support and facilitate future business growth in a more cost-efficient way as the company continues to expand and evolve’.
The Swiss structured products provider chose Lisbon as its newest location due to several factors, including talent and sourcing opportunities, political stability, quality of life, time zone and cost considerations.
The company’s onsite presence was established through a phased approach which started by establishing a serviced office set-up and was completed in the fourth quarter of 2020 – this phase included hiring a small number of external IT development specialists and other personnel in shared services functions. Phase 2 was launched in the first quarter of 2021 to launch a Leonteq office with up to 100 designated roles along the entire value chain.
Leonteq has now received regulatory approval to open its Portugal branch and will commence operations today (1 October). Leonteq Securities (Europe) GmbH – Sucursal em Portugal is included in the CMVM’s list of financial intermediaries authorised to operate in Portugal and will transition its current 50 external specialists to permanent Leonteq employees.
The Portugal branch is co-managed by Manfred Schwientek, general manager Leonteq (Europe), and Fabian Muff, head of operational management and controlling.
‘This extension comes as a natural next step within our growth strategy and enables us to continue investing in key initiatives while protecting our profitability over the long-term,’ Lukas Ruflin (pictured), CEO of Leonteq.
Luma adds API Pricing feature to platform
The US structured products and annuities platform has introduced an enhancement that employs API technology to automate the pricing of customised products.
The new API pricing feature enables a consistent and transparent price discovery process for financial professionals on a global scale that uses Luma’s Creation Hub module to tailor products that meet the risk profile of individual clients.
The firm’s Creation Hub was developed as a tool for advisers to create their own competitive advantage and increase their value to their respective clients.
With the addition of API technology for automated pricing now included within the hub, Luma aims to deliver efficiency to its clients amid a disorganized, multi-system process.
‘Multi-issuer API pricing capabilities for the customisation of structured products has long been offered to financial professionals in Europe and Asia,’ said Tim Bonacci (pictured), chief executive officer of Luma Financial Technologies. ‘As a global firm, we viewed it as a vital step to offer these capabilities to our clients in all geographies.’
The addition of the automated pricing feature follows the recent release of Luma Compare, a new tool that allows advisors to instantly compare various annuities and now structured products.
Halo broadens annuity offering, onboards Great American Life
The US structured notes platform is expanding its digital annuities platform by welcoming life insurance firm Great American Life as one of its partners.
Financial professionals will now be able to access, purchase, and manage Great American Life's extensive suite of annuities through the Halo platform.
Great American Life adds to the growing number of carriers and annuities offerings on Halo's marketplace for financial advisers. Other partners include Allianz Life and AIG Life and Retirement.
Halo also provides access to market-linked CDs, buffered ETFs, and an educational suite for clients to build on their knowledge of structured products.
FTSE Russell launches new US ESG series
FTSE Russell has launched the Russell US ESG Indexes, designed to integrate ESG into institutional-grade US equity indexes.
The six new indexes are constructed using ESG screening criteria and use a target exposure approach to exercise ‘complete and precise control over both investability and ESG objectives’.
Based on FTSE Russell’s US equity benchmarks, the Russell 1000, Russell 2000 and Russell 3000 indexes, the new index series contains two sub-groups: the Russell ESG Screened Target Exposure Indexes and the Russell ESG Enhanced Target Exposure Indexes. Currently, the Russell US indexes capture 98% of the US investable market capitalization and are tracked by US$10.6 trillion in passive and active funds.
The ESG Screened versions are for investors who want to remove harmful products or controversial activities and still maintain broad US market exposure. The ESG profile of the underlying index is improved by eliminating exposure to companies involved in the following business operations: Controversial Weapons, Firearms, Tobacco and Fossil Fuels. In addition, companies with the highest ESG controversies are excluded.
The ESG Enhanced versions are designed for investors seeking ESG score enhancement alongside the risk and return characteristics of the underlying benchmark