Leonteq AG, DBS, Avaloq and Numerix have agreed to launch an integrated multi-issuer investment products distribution system (IPDS) with the aim of enhancing the offering and distribution of structured products and with the Asia-Pacific region as its initial prime focus.

“We plan to offer in a first phase structures like equity-linked notes and fixed coupon notes which are the two most popular flow payoffs in Asia. With a focus on worldwide equity coverage, the platform soon after will be enriched with further payoffs over time,” said Yann Besnard (pictured), head of the business innovation division and a member of the executive committee at Leonteq AG. “We will initially focus on the Singapore and Hong Kong markets as these are the most active. The rollout of the platform will be done in phases with a first release in the second half of 2015.”

Besnard also added that the core differentiating factor of the platform will be the digitalisation of the full value chain to private banks in the investment products arena. The main elements covered in this context are pre-trade analytics, multi-issuer price requests, standardised documentation, trade processing, direct booking and product set-up within the core banking system, lifecycle management as well as post-trade analytics. All these services will be fully automated and integrated into the workflow process through DBS.

“The IPDS is the outcome of an analysis of private banking needs and was designed and driven to automate their workflows from A to Z in the investment product arena,” said Besnard. “We are convinced this buy-side driven solution supporting the trend towards digitalisation as well as integration of workflow processes within a bank’s different business units will be the way forward in the fast-changing private wealth management sector.”

Besnard declined to reveal details of the pricing structure for the platform.

The implementation of the platform builds on earlier collaboration between the parties involved. In June last year, Avaloq and Leonteq  agreed to further automate the processing of structured investment products in building an upgradable interface between Avaloq's banking suite and Leonteq products and a services platform for Leonteq customers using the Avaloq banking suite. In Novemeber, Leonteq announced the launch of a product partnership with DBS in the origination and distribution of equity derivatives structured products.

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