Fierce competition and active regulation for product providers in Germany

With structured product volumes in Germany having fallen steadily all year, the arrival of new entrants competing for a slice of a smaller market suggests 2014 could be a tough year for profitability. By Michael Marray

The competition for market share in the German structured products market has been fierce during 2013 in an environment where the total volume of products outstanding fell from €100 billion at the beginning of the year to €90 billion entering the final quarter. The difficulty in structuring attractive payouts in the face of current low interest rates, combined with the fact that many retail investors missed the recent gains in the country's main Dax index, means few providers believe volumes