The French bank has released a new product into SG Markets single-dealer portfolio as it continues to expand its electronic capabilities to serve the structured products market.
Societe Generale has launched a new application programming interface (API) to expand client access to the products available in its single-dealer platform, SG Markets, via channels of their choice.
With the new SG Markets API, the bank provides clients an easy way to price bespoke products, and access termsheets and regulatory documentation (Kid, target market, etc) directly from their own systems, according to David Wood (pictured), head of electronic business equity, derivatives and cross asset at SG.
“The process for connection is very simple and highly standardised, in many ways we have taken the concept of the ‘email pricing’ model that has developed in Asia, and enhanced this with modern technologies whilst avoiding some of the limitations and issues that resulted in Asia,” said Wood. “We see the future as a ‘multi-channel’ environment, with electronic platforms connecting and providing joined up services to enhance the user experience.”
The new SG Markets API provides private banks and wealth managers with new way to access the advanced features and pricing of SG Markets SP via a multi-channel set up including SG Markets Web portal, or clients’ own or third party systems. The new tool is also a ‘self-service’ solution, “where clients can connect without the need for support from IT team”.
Another functionality recently added to the platform is the SG Markets SP Optimiser, which enables users to find the top basket combinations from a large group of stocks or indices, according to Wood. Leveraging a proprietary algorithm, the Optimiser is able to calculate several thousand combinations of underlying’s, and within a few minutes propose the combinations that provide the highest return for the investor.
“The Optimiser provides the flexibility to allow any combination of supported underlyings, the ability to fix one or more underlyings in a basket or ensure each proposed combination contains unique stocks,” said Wood. “We find clients are using this to seek alternative investment products to propose to their investors. For example after pricing a worst of autocall on a basket of oil & gas producers, our clients can now easily input lists of other stocks from their own approved research opinion to find new ideas.”
Societe Generale is the third most active issuer of structured products globally with 120,135 products –excluding non-retail products, worth an estimated US$6.3 billion marketed year to date (compared to 120,112 products/US$6.7 billion in 2017).