The launch in the Nordics is part of the company’s plan to “actively expand” into new markets and leverage its fund derivatives and QIS capabilities.
Marex Financial Products has entered the Nordics market via a series of long-term initiatives. In addition to being able to provide the Nordic markets with a wide range of sophisticated OTC capabilities and bespoke indices, the firm has also listed its first Marex issued products on the local NGM exchange through a collaboration with Strivo.
“We want to have strong partnerships with local distributors. By offering competitive products on all asset classes while also having a local presence and local capabilities such as listing, we want to cement our commitment to the Nordic market,” said Marex’s head of Financial Products, Nordics sales, Patrick Stockenvall.
Stockenvall joined the company in March 2024 from Credit Suisse where he was CEO of the Sweden branch for the Swiss bank since 2016. In his new role, Stockenvall, a structured products veteran with an equity derivatives track record of over 20 years at Societe Generale, RBS and Credit Suisse, will be responsible for Marex’s activities in the region.
We want to leverage our agility and product knowledge to deliver innovative structured products and solutions to clients in new markets - Joost Burgerhout
The launch in the Nordics is part of the company’s plan to actively expand into new markets with a focus on providing “flexible and attractively priced structured products”, particularly targeting the demand for fund derivatives and lighter-end QIS products, according to Joost Burgerhout, head of Marex Financial Products.
“The structured products market in the Nordics offers an important market opportunity for us, our setup and expertise can provide added value to clients in the region,” said Burgerhout.
“We want to leverage our agility and product knowledge to deliver innovative structured products and solutions to clients in new markets.”
Left to right: Nilesh Jethwa and Joost Burgerhout
SRP data shows that the non-banking issuer has listed a number of structured warrants on the NGM exchange since September 2024, all of them offering leveraged upside/uncapped participation via growth and income as well as growth structures to in-house developed indices. These include the Marex 18% Risk Control Index on Global Aktiefond, Marex 4% Risk Control Index on First High Yield and Marex 18% Risk Control Index on LF Real Estate. The initial range includes also third-party underlyings such as the Solactive Nordic HY Bonds 3% VT Index, and Solactive Nordic HY Bonds II 3% VT Index.
Marex’s proprietary indices are being calculated by Compass Financial Technologies which reached an agreement with the UK-based issuer in mid-2022 to deliver BMR compliant crypto indices targeted at institutional clients.
Despite the limited growth of the Nordics market over the last few years due to regulatory restrictions, Burgerhout believes that there is scope to grow the market as structured products are well known by the professional and retail investment community in the Nordic region.
“Our strategy of geographic expansion goes beyond the Nordics as we are also exploring opportunities in other markets, said Burgerhout. “We have ambitious plans for Apac where we have made key hires to build out our presence and capabilities.”
Product trends
Looking at product trends, Marex has observed increased demand for fund-linked structured products, particularly in a higher interest rate environment, as these products can offer capital protection and yield enhancement.
We see renewed interest and momentum in the crypto market, particularly with the recent regulatory developments in the US - Nilesh Jethwa
Marex also sees the crypto market as an area of diversification and opportunity, where they can provide access to clients that may not be able to work with more traditional, pure-play banks.
“Our regulated status and investment-grade rating can provide a level of trust and credibility that some digital-native crypto players may lack,” said Burgerhout. “This allows us to serve clients in this emerging space like no other issuer.”
Marex is ahead of the curve in this area, having launched one of the first structured notes on a blockchain platform back in 2018, and is seeking to leverage its position in this part of the market.
“We see renewed interest and momentum in the crypto market, particularly with the recent regulatory developments in the US, and we have positioned ourselves as a trusted provider of crypto-related structured products and solutions,” said Nilesh Jethwa, CEO of Marex Solutions.
Beyond cryptos, Marex emphasises the importance of diversification for their clients, noting that they can provide a valuable alternative to the pure-play banks, especially in times of market volatility when Marex performance may be less correlated to the broader financial system.
“We also want to leverage our expertise in areas like commodities and FX, in addition to our equity capabilities, to offer a diversified catalogue to meet the increasing demand for tailored solutions to meet client needs,” said Jethwa.
Opportunities
According to Jethwa, the market environment has become more uncertain, with increased volatility, but also a renewed sense of bullishness in certain sectors.
“This dynamic has led to a greater demand for structured products that can provide clients with participation in the upside of the market, while also offering some downside protection or yield enhancement,” he said.
“Our expertise in structuring and delivering these types of solutions, particularly in a higher interest rate environment, positions us well to capitalise on the evolving market trends.”
The company has started to tap into new areas of the market such as fund derivatives to continue developing the institutional side of Marex Financial Products with a dedicated team led by Walter Cegarra.
Beyond expanding its geographic footprint, with plans to further grow its presence in markets like the Nordics, APAC, and the US, Marex continues to emphasise the importance of maintaining strong regulatory standards and governance practices.
“We believe that our market responsiveness and institutional credibility will be a key differentiator as we pursue new growth opportunities in the structured products space,” said Jethwa.
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