Simply the best?
Distributors of European retail structured products now need to conduct suitability and appropriateness tests and ensure they have achieved the best possible result for their customers based on a variety of factors including price. What implications does this have for the structured product market? By Ryan Davidson
A retail distributor gets a call from an investment bank about a new structured fund it has just created. The product offers a full capital guarantee and uses a proprietary algorithm to go long those stocks from a selected universe with the best valuation and earnings momentum and short those with the worst outlook. There are also some fancy bells and whistles that lock in positive performance under certain circumstances. Before November 1, the distributor could, if so inclined, decide to sell
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Trading platforms
Electronic trading of corporate bonds still work in progress
Industry members discuss the growth of electronic trading of corporate bonds
A range of investable indices to meet client needs in alpha and beta generation
Sponsored video: Societe Generale
Japan FSA threshold for trade execution 'extremely high'
Only banks with ¥6tn in derivatives must trade swaps electronically
QIC first Australian buy-side firm to execute on a Sef
Money manager looks to access all liquidity pools
Market hits back at Hong Kong plans to bar retail access to dark pools
SFC proposals to keep retail investors on the lit market come under fire
Korea clearing structure in question after HanMag trading error
Korea trading snafu casts doubt on KRX's default fund structure
Prop shops to rival dealer market-makers on broker Sefs
Impartial access rules for Sefs allow firms to gatecrash interdealer market
Australian dark pool rules shift liquidity back to the lit market
Decline in broker-dealer dark pool volumes after Asic introduces requirements for price improvement
Most read
- Top 10 operational risks for 2024
- The American way: a stress-test substitute for Basel’s IRRBB?
- Filling gaps in market data with optimal transport