The European Structured Investment Products Association (Eusipa) has released a reference handbook on structured products. Inside Structured Products, which is directed at professionals in the banking and asset management sector on both sell- and buysides, systematically refers to the Eusipa map, the global industry standard for structured products.
"With this book we want to give background information on the technical structures behind the products, by way of a reference standard," said Thomas Wulf (pictured), secretary general, Eusipa. "When you look at the Eusipa map and you want to go into more details, you can find that in the book. You can see the functioning; the composure of single payoffs; how a payoff is calculated, including the mathematical background."
Given the technical depth and details, the book is addressed at professionals and not suitable for retail investors, according to Wulf. "The main idea is salesforce education. It is aimed at people working at the distribution interface with customers, manufacturing teams and generally new joiners into professional roles who want to quickly find their way into this topic. It is far too technical to be given to retail investors."
Many European markets have their own characteristics, whether that is listed certificates in Austria, Germany and Switzerland, structured funds in Belgium or credit linked products in the Nordics. The book, which was created in collaboration with Derivative Partners, tackles those regional differences too, according to Wulf.
"The markets may be different, but the payoffs, the composure of single products is of course comparable. An option is an option whether you are in France or in Germany or Sweden," said Wulf.
"There may be differences in the distribution, differences in investor preferences, or differences in how regulation kicks in across markets, however, the technical features remain similar.
"We deliberately based it on the Eusipa map, which already included, at least from the markets of our members, the different features, so you will find the book is following this principle. It may well be that from, say, an Italian or Dutch point of view, one of the payoffs is not relevant because it is not prevalent in your country, but still it is something that is part of the overall scheme of structured products offered and traded and invested in Europe," said Wulf.
Eusipa is the European umbrella organisation for issuers of listed structured investment products on the retail market. The members of Eusipa are national associations from Austria, Belgium, France, Germany, Italy, Sweden, Switzerland, The Netherlands and the United Kingdom.
Photograph shows, left to right, Martin Raab, executive director, Derivative Partners; Heike Arbter, president, Eusipa; Thomas Wulf, secretary general, Eusipa; Daniel Manser, CEO, Derivate Partners.
Click the link to view a preview of Inside Structured Products.
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