This year we mark the 20th anniversary of SRP. The structured products industry has been in a perennial state of change pretty much since its inception. The seismic shifts seen in our industry happened because of specific decisions and market events that helped the structured products market to carve its own space in the financial markets.

As we celebrate 20 years of SRP, we look back at 20 of the top stories that defined and shaped the structured products market throughout two decades of change, disruption and innovation.

We are excited about all that we have achieved in that time to better serve the structured products community and bring transparency to the market. We invite you to join us as we celebrate the industry’s achievements and future endeavours and are thankful for your loyal partnership.

2003

Launch of on-line resource for the Structured Product Market

29 Jan 2003

Companies seeking comprehensive information on the structured retail product market can now access a new, independent, on-line service designed to report on the UK market.

SRP provides a database of over 1,100 individual products from more than 100 companies, dating back to 1997 and representing sales of over £20bn. Analysis of the structured retail products market in 2002 from SRP shows that the market grew by 15% from 2001 with gross sales volumes increasing from £5.47bn in 2001 to £6.27bn in 2002.

2004

Structured Products Association launched in US

8 Jan 2004

The Structured Products Association (SPA) established three months ago in the US has received an 'exceptionally enthusiastic' response from member firms, underscoring “the importance of a representative voice for this asset class within the financial community,” according to founding president and Societe Generale director Keith Styrcula.

The SPA, which is a trade body initially targeting investment banks, has added 200 members in the last five weeks, and expects a final membership of between 2,000 and 3,000.

2005

2004: 'year structured products captured mainstream USA' 

7 Jan 2005

2004 will be regarded as the year structured products went mainstream in America, according to the US Structured Products Association’s winter newsletter. Sales of registered structured products were up more than 20% to more than $12bn.Large retail institutions such as Raymond James, DB Alex Brown, CSFB Private Client Services and Wells Fargo staffed their distribution channels with structured products experts for the first time, and news reports suggested that twice as many private investors held derivatives-based products in their portfolios than in 2000.

2006

Singapore embraces structured products

20 Jan 2006

Structured products are proving popular with retail investors in Singapore, according to local press reports. Providers including OCBC, Standard Chartered and United Overseas Bank (UOB) are offering structured deposits, whilst the country’s first discount certificates were listed in August. Often European banks have partnered with local banks to provide new products to what is a still a growing market. StructuredRetailProducts recently reported on UOB’s launch of a structured fund in tandem with BNP Paribas and on the partnership between OCBC and Allianz to launch the first buywrite income product in Singapore.

2007

International structured products guidelines released 

10 Jul 2007

The final version of a set of international guidelines for managing the provider-distributor relationship within the structured products industry has been published today by a group of industry bodies.

The stated aim of the principles, which will be tailored to suit the conditions of individual countries, is to address issues that financial services firms have ‘in practice found helpful to consider when performing the function of either provider or distributor in connection with the process of delivering structured products to retail investors.

2008

Lehman Brothers case validates emphasis on issuer quality

15 Sep 2008

The structured products industry’s newfound emphasis on the credit quality of the issuer has come too late for some, as investors, advisers and third party issuers begin to digest the impact of today’s Chapter 11 bankruptcy protection filing by Lehman Brothers’ in the US Bankruptcy Court.

After last night’s frantic rescue talks ended in failure, the market opened today to see trade suspended in Lehman’s structured products and a halt on coupons immediately due for payment as a consequence of the filing, which provides the bank with legal protection from debtors in order to reorganise its businesses.

2009

UK Structured Products Association launches 

19 Nov 2009

A group of UK retail structured product providers today launched the UK Structured Products Association (UK SPA). The association lists Citi, Credit Suisse, Legal & General, Morgan Stanley, Prudential, Royal Bank of Scotland, Santander and Skandia as members. These firms have funded the organisation so far. A spokesperson was unable to say whether plan managers are entitled to apply for full membership, but for the moment at least Gilliat, Walker Crips, Jubilee and Meteor sit on a separate independent plan managers and distributors committee.

The association said its role was primarily informative. "The Association gives providers an opportunity to inform and educate the investment community, and we believe its efforts will help them

2010

UK FSA bases RDR definition on Prips

29 Mar 2010

The Financial Services Authority (FSA) has finally published its new rules - known as RDR - to tackle commission bias from advice on retail investment products. "If this market is to survive... people need to know their adviser is acting in their best interests and is well qualified to carry out that role," said Sheila Nicoll, FSA director for conduct policy. "Today's new rules are designed to boost confidence and trust in the retail investment market by removing commission bias, actual or perceived, and exploding the myth that investment advice is free."

2011

Belgian regulator seeks end to ‘complex’ products

15 Jul 2011

A voluntary moratorium from the Belgian Financial Services & Markets Authority is asking distributors to stop selling 'unnecessarily complex' structured products ahead of a public consultation designed to usher in a new regulatory regime. Distributors who sign the moratorium are committed to ensuring every new structured retail product meets criteria on accessibility of the underlying, complexity of investment strategy, payoff (yield should be derived from up to three mechanisms only) and transparency regarding cost, credit risk and market value.

2012

Esma’s PD consultation ends, Mifid consultation extended

4 Jan 2012

The European Securities and Markets Authority (Esma) consultation on the Prospectus Directive Technical Advice which was extended on 13 December to include its proposed advice in relation to the consent to use a prospectus in a retail cascade, and a review of certain provisions of the Prospectus Regulation (809/2004), will end at the end of the week before it is submitted to the European Commission (EC).

2013

BNP Paribas acquires Credit Agricole €12.5bn EQD portfolio 

23 Oct 2013

Credit Agricole CIB has agreed to transfer the administrative and operational management of a €12.5bn portfolio of notional to BNP Paribas GECD from January 2014 in order to ensure the continuity of service for investors in these products including redemptions, secondary market, valuations, reporting and client relationships.

2014

RBS and BNP Paribas hammer out IP&ED business sale 

19 Feb 2014

BNP Paribas and RBS have reached an agreement on the sale of certain assets and liabilities from RBS's Structured Retail Investor Products and Equity Derivatives (IP&ED) business.

The two banks said in a joint statement that following the start of exclusive talks in November 2013, the two banks have reached an agreement for the sale of certain assets and liabilities of RBS's Structured Retail Investor Products & Equity Derivatives (IP&ED) to BNP Paribas Global Equities and Commodity Derivatives (GECD). Yann Gerardin, global head of BNP Paribas GECD, said the acquisition will accelerate the French bank's development in the retail listed products and structured retail products markets, "without modifying its risk profile".

SP industry positions held strong on new Priips/Kid rules

24 Apr 2014

The structured products industry has reacted positively to the introduction of the packaged retail and insurance-based investment products (Priips) rules endorsed by the European Parliament last week. Under the new EU rules, a new pre-contractual information document for retail consumers will be required before they buy an investment product offered to them by a bank, an insurance company or an investment fund.

2015

Banks launch Contineo multi-issuer platform in Asia Pacific 

20 Jan 2015

A consortium of banks including JPMorgan, Goldman Sachs, HSBC, Barclays, BNP Paribas and Société Générale Corporate & Investment Banking (CIB), and technology firm AG Delta are set to launch today a new open messaging network in a move to provide greater access to equity-linked structured products for private banking and wealth management firms.

The new platform will be managed by Contineo Ltd, which is backed and funded by the consortium to support the network and technology. The new platform, which will be led by technology veteran Mark Muñoz as managing director, will allow subscribers to access their counterparties through a web-based interface and a set of open application programming interfaces (APIs).

2016

Esma pushes benchmarks regulation 

16 Feb 2016

The European Securities and Markets Authority (Esma) is seeking input from market players to inform its future proposals on draft Regulatory Technical Standards (RTS) and Technical Advice (TA) of the incoming Benchmarks Regulation (BR) to the European Commission (EC).

The goal of Esma's discussion paper is to improve the governance framework and control over the benchmark process, and ensuring their reliability and protecting users, according to Steven Maijoor, Esma chair.

2017

Index annuity sales hit record $60.9bn in 2016, use of vol control indices surges

15 Mar 2017

Fixed-indexed annuity (FIA) sales in the US hit a record US$60.9bn in 2016, up 12% from 2015 sales of $54.5bn, according to Limra's Secure Retirement Institute Fourth Quarter US Annuity Sales survey, which was released at the end of February.

Esma releases final product governance guidelines 

8 Jun 2017

The European Securities and Markets Authority (Esma) has released the Final Report on product governance guidelines under the Markets in Financial Instruments Directive 2 (Mifid 2) regarding the target market assessment by manufacturers and distributors of financial products.

The requirements on product governance were introduced under Mifid 2 to enhance investor protection by regulating all stages of the lifecycle of products or services in order to ensure that firms which manufacture and distribute financial instruments and structured deposits act in the clients' best interests.

2018

Societe Generale snaps up Commerzbank's EMC business 

3 Jul 2018

Societe Generale has reached an agreement to acquire Commerzbank's equity markets and commodities business (EMC). After completion, the French bank will be responsible for the management of income payments, early redemptions and maturities on Commerz's structured products book, which includes almost 400,000 live products across jurisdictions. In 2017 Commerzbank's EMC business generated €381m gross revenues.

2019

Korean dealers warehouse high levels of exotic risks

4 Jun 2019

Some local securities firms in South Korea – the world’s largest market for autocallable products – are rapidly building up risk in their positions from equity-linked products, raising uncertainties among issuers about their ability to manage market volatility. Mirae Asset Daewoo and Korea Investment & Securities are among a number of firms

End of Libor: US$50 billion worth of structured products waiting for the switch 

22 Nov 2019

The global financial industry is rallying in anticipation of the Libor transition which will send shockwaves to the market as the benchmark underpins more than US$350 trillion of mortgages, loans and derivatives around the world.

The demise of the Libor will have an impact on more than 1,459 live structures worth an estimated US$18 billion, featuring the Libor benchmark.  

2020

ESAs target ESG disclosure standards

28 Apr 2020

A European consultation on ESG disclosure standards is not yet applicable to structured products.

The three European Supervisory Authorities (ESAs) (Eba, Eiopa and Esma) have issued a consultation paper seeking input on proposed environmental, social and governance (ESG) disclosure standards for financial market participants, advisers and products.

2021

Deutsche Bank halts US issuance 

9 Feb 2021

The German investment bank stopped issuing structured products in the US market during 2020.

Deutsche Bank has stopped new issuance of structured products in the US market with SRP data recording no activity throughout 2020 after three years of diminishing sales volumes. These reached a record low of US$17.5m in 2019 compared to US$618m in 2018, and US$1.1 billion in 2017.

2022

US market breaks US$100bn milestone

26 Jan 2022

SRP takes a look at some of the most significant developments in the US structured products market during December 2021. December 2021 was a historic first for the US structured products market as sales volumes for the entire year crossed the US$100 billion milestone. Volumes stood at about US$101 billion and extend over 31,528 products in total.

Looking to the future

As we celebrate 20 years of SRP, we look forward to the future with a new vision and brand to connect the industry with leading market intelligence. 

Thank you for your support over the years and stay tuned as we launch our new brand in 2023.