UBS is the latest Swiss structured products provider to join Vontobel’s “click and trade” multi-issuer platform deritrade to distribute its range of structured investment solutions in Switzerland.
With the addition of UBS, the platform now has five major industry players using the Swiss bank’s multi-issuer platform including Deutsche Bank, Morgan Stanley, Société Générale and Vontobel.
A UBS spokeswoman told SRP that to become a member of Vontobel’s deritrade as a product provider on the platform will increase the bank’s distribution capabilities.
“Besides our own wealth management division, we also serve other banks, asset managers, retail clients etc,” she said. “The opportunity to offer our products on Vontobel’s platform provides us with an additional sales channel.”
The Swiss bank said that all structured products listed on deritrade are fully compliant with the investor protection rules set out in the European Markets in Financial Instruments Directive (Mifid), including the provision of price comparison.
As reported, with the opening up of deritrade and the platform’s issuer-neutral structure, Vontobel is aiming at managing the entire structured products process chain – from the design phase through to distribution – more efficiently.
Gerhard Meier, who heads the multi-issuer platform at Vontobel, told SRP that the bank’s aim is to build a platform where private banking clients can choose the most suitable pricing and build the products that fit their clients’ risk profisle, and that the resulting cost savings should generate added value for clients, while increasing the attractiveness of structured products compared with other asset classes.
“We believe this is the most efficient and cost-effective way to build a product in the primary segment based on clients’ needs,” he said. “This approach not only reduces the cost of the product but also the minimum investment amount, making it accessible to the average private banking client. The platform offers price competition for the benefit of the end investor.”
Meier added that the development of deritrade is a consequence of both client demand and regulation and that the fully automated multi-issuer offering from Vontobel also provides price transparency and is therefore in line with new regulatory requirements. “We have now new rules on best execution set by the new Markets in Financial Instruments Directive (Mifid II) and deritrade shows our commitment to help the industry develop in the right direction.”
Meier also told SRP that Vontobel is seeking to increase the pool of issuers providing pricing through deritrade and that the bank is currently in talks with other issuers.