Structured products offer member firms, whether as issuers or brokers, an exciting new product and the opportunity to develop a new, profitable line of business.
Structured products, utilising the securitised derivative wrapper, listed and traded on the London Stock Exchange represent the latest innovation in this rapidly growing asset class. They carry a number of features that make them an attractive proposition:
This is both a standardised and a bespoke market where issuers will liaise with clients in producing tailored products as well as issuing more standardised products available to all investors. The way in which the securitised derivatives issuance process takes place means that there can be as little as 48 hours between conception and issuance of some products.
Access & liquidity
All those who currently access UK equity markets automatically have access to the London Stock Exchange Structured Products Platform. It is a single access point offering electronic and telephone execution, no central counterparty and T+3 CREST settlement. All issuers are obliged to maintain continuous prices throughout the lifetime of the products and adhere to standard market maker obligations (minimum size, maximum spread).
Diversity & competitiveness
The platform already has five providers with more in the pipeline. All issuers are major investment banks with a global reach allowing them to access a huge variety of assets and price products competitively. All have significant pan European experience in issuing such product despite the relative youth of the UK securitised derivative market. The single platform means that those looking for bespoke product can easily put out to tender and compare products.Disclaimer Securitised Derivatives are not suitable for all investors - they may be highly geared and therefore volatile. You should not deal in Securitised Derivatives unless you understand their nature and the extent of your exposure to risk. Since this disclaimer cannot cover all the risks and other significant aspects of these instruments, you should consult an appropriately qualified financial advisor if you are in any doubt. Information on this website does not constitute professional, financial or investment advice and must not be used as a basis for making investment decisions and is in no way intended, directly or indirectly, as an attempt to market or sell any type of financial instrument.