Leonteq partners with SIX, debuts ETP+ label

arrangement, collateral is held at SIX SIS, with SIX Repo, in its function as collateral agent, being responsible for daily inspections of the collateral.

The collateralisation technique used for ETP+ is based on an established framework with SIX that has been in place since 2012.

Nerin Demir (pictured), head repo & collateral management at SIX said: ‘Our [Triparty Collateral Management solution] meets the highest standards of security and offers additional investor protection.’ developed by the editorial team of Finanz und Wirtschaft (FuW).

‘The first ETP+ issued by Leonteq in cooperation with FuW is an authentic ‘made in Switzerland’ product, giving investors access to an attractive offering with exposure to the Swiss equity market, said Alessandro Ricci, head investment solutions at Leonteq.

The Swiss structured products specialist provider is also launching its first exchange traded product (ETP) linked to the FuW Swiss 50 Index NTR under the new label.

ETP+ uses a ‘reputable custodian and collateral agent’, both based in Switzerland, and provides daily independent checks, which serve as key mitigators of the issuer risk. In combination with This new setup is aimed at offering a ‘compelling differentiation to existing ETP providers’ by combining Leonteq as a regulated securities firm with an investment grade rating and the company’s ‘strong capital position’.

Leonteq is partnering with the Swiss SIX Exchange to reduce issuer credit risk and to protect ETP+ investors' interests by collateralizing any ETP+ liabilities over the product lifecycle. Under this

Leonteq, is the first issuer of ETP products in the Swiss market which is licensed as a securities firm by the Swiss Financial Market Supervisory Authority (Finma).

Furthermore, the company has an investment grade rating assigned by Fitch Ratings Ltd., a strong capital base totalling around CHF 890 million, and a proven track record spanning more than 15 years. Thus, Leonteq differentiates from existing ETP issuers which tend to be special purpose vehicles without a proven track record, rating or regulatory supervision and only with minimum paid-in capital.

Etp Launch

On the back of the announcement, Leonteq has launched its first ETP+ on the FuW Swiss 50 Index NTR, an index

With the FuW Swiss 50 Index NTR, which includes the top 50 tradable Swiss companies, investors have access to a close representation of the Swiss equity market. Every six months, the companies in the index are selected according to their free float market capitalisation and considering minimum liquidity requirements.

The top 25 companies are doubleweighted, while the remaining 25 companies are single-weighted, resulting in a broader diversification compared to market capitalisation weighted indices.

The index is a net total return index, meaning that net dividends are automatically reinvested. The ETP+ on the FuW Swiss 50 Index NTR is listed on SIX Swiss Exchange and is available to Swiss retail and institutional investors with a minimum investment amount of CHF26.

The new ETP on the FuW Swiss 50 Index NTR is currently the only equity based listed ETP at SIX Swiss Exchange.