Basler Kantonalbank and Vontobel have agreed a technology and distribution partnership with Vontobel to expand its structured investment products offering. Basler Kantonalbank will become the seventh issuer to use Vontobel’s digital distribution platform Deritrademulti-issuer platform (MIP).
The agreement is a first of its kind since allows a third-party, by means of white-labelling, to access Vontobel`s existing automated production platform in order to issue structured products under their own brand name. Basler Kantonalbank is already among a number of Swiss banks that have given their relationship managers access to Deritrade MIP in order to support their advisory services, and has marketed over 600 structured products in the Swiss market
The implementation of the deal is already at an advanced stage, and production is scheduled to commence in July, initially for four different types of products on equities. ‘In addition to servicing our existing client base, becoming an issuer on Deritrade MIP will expand the target market for potential buyers of our structured investment products,’ said Luca Pertoldi (pictured), head of distribution commercial clients at Basler Kantonalbank. ‘Vontobel’s state-of-the-art process and production infrastructure allows us to guarantee that we can meet the highest standards in terms of speed and quality with our structured investment products without having to make additional investments in our own IT infrastructure."
The Deritrade MIP platform is used by over 60 banks and 500 asset managers with more than 4,000 users which used the platform to create tailor-made bespoke products. Deritrade MIP’s products are selected using the ‘best execution’ principle within an open architecture aimed at full comparability with users receive directly comparable pricing offers from up to six different product providers in a matter of seconds.
Currently there are seven issuers on this platform including Vontobel, JP Morgan Chase, Deutsche Bank, Morgan Stanley, Société Générale, UBS and Zürcher Kantonalbank (ZKB). In 2017, the issuance volume going through Deritrade stood at CHF4.6bn.
Last year, Vontobel joined the Swiss Dots platform for over-the-counter (OTC) structured products, adding some 10,000 leverage products to the platform's existing range. The Swiss bank was the most active European issuer - with 11,472 products in 2017 - and topped the sales volume ranking with €8.9bn volume sold during the course of the year, according to SRP data. Vontobel reported that its financial products business which houses the Deritrade platform had a market share of 25% in its home market and of over 10% in Europe (measured in terms of the exchange-traded volumes).
The bank's financial products business has driven the international expansion of the bank's investment and leverage products business with entry debuts in France's Euronext certificates market and the Netherlands in 2017 which was followed by its launch in Hong Kong.
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Related stories:
SRP 3-minute Q&A: Eric Wasescha, Vontobel
Vontobel Financial Products outpaces rivals in Europe, reports 29% increase in pre-tax profit
Vontobel taps Leonteq Hong Kong CEO in structured products push
Vontobel remains on course to retain its European lion share, Asia expansion on track