A strong start to the year across key structured products markets saw Korea’s ELS volumes rebound, European investors hold steady, sector‑focused launches gain traction and Switzerland post record listing activity, while issuers and ETF innovators continued to reshape the competitive landscape.

European markets entered the final stretch of January with familiar trends as yield‑enhancement structures dominated issuance, and autocallables remained at the heart of the distribution flow.

The latest Europe Q3 2025 (part 3) review shows a market still anchored to directional rate exposure and steady coupon delivery, where a small cluster of payoff types accounts for the overwhelming majority of volume.

While macro uncertainty continues to limit aggressive repositioning, distributors are clearly leaning on established structures that offer consistent take‑up and reliable client outcomes.

Germany reinforced its position as Europe’s most stable retail investor base. According to the latest survey from the German structured products association, 45% of German investors expect to maintain their market exposure into 2026, underscoring a resilience that stands in contrast to more volatile sentiment elsewhere on the continent. This vote of confidence continues to help sustain a broad set of structures across German distribution networks, including income‑oriented notes and defensive autocalls.

The biggest story of the week came from South Korea, where the ELS market posted a 15% year‑on‑year increase in autocall outstanding, reaching KRW 11.5 trillion. This marks a definitive turnaround after a two‑year decline driven by volatility spikes and regulatory friction. Improved market conditions, combined with investor appetite for structured equity exposure, have revitalised a market that remains one of the most sophisticated and high‑volume engines in global structured products.

Products, issuers

This week’s product wrap showcased two telling thematic directions. BNP Paribas extended its push into electric‑mobility supply chains with a France‑listed note tied to “electric avenue” exposures, tapping into multi‑year investment flows toward battery technology and EV infrastructure.

Meanwhile, Barclays launched an Italy‑listed structure referencing pharmaceutical names, harnessing the defensive qualities and steady earnings profiles that continue to resonate with Italian distributors and retail investors.

Marex remained one of the headline movers of the week, continuing its steady expansion into Europe and the Nordic region. The non‑bank issuer has been gaining traction thanks to its flexible issuance framework and willingness to tailor high‑yield, bespoke structures without the balance‑sheet constraints of traditional banks.

The week came to an end with a notable move on the data and analytics side as LPA acquired Derivative Partners from Avaloq, strengthening its foothold in the Swiss structured products market.

The deal adds another layer to LPA’s recent expansion drive, consolidating its position as a leading provider of analytics, data services and software tools to issuers, distributors and private banks. The acquisition is expected to enhance cross‑market coverage and improve the firm’s ability to service clients seeking deeper insight into complex structured‑product lifecycles.

Beyond issuance, structured products are increasingly being positioned as essential tools for understanding and managing longer-dated volatility, a theme that continues to resonate with both issuers and allocators navigating uncertain macro and rate environments.

On the data side, Morningstar announced the launch of a new benchmark offering targeted exposure to firms linked to generative AI, highlighting the growing intersection between structured products, thematic investing and index innovation.

Elsewhere, a review of the Belgian structured products market points to continued demand for capital-protected and income-oriented structures, supported by a stable distributor landscape and conservative investor preferences.

Listed products, regulation

In the listed products space, Janus Henderson pushed back the launch of its planned autocallable ETF range. The suite, designed to incorporate “stability instruments” that mimic traditional structured‑note mechanics, was slated to be one of the first major attempts to transpose autocall features into an exchange‑traded format.

Despite the delay, the initiative signals the growing issuer interest in listed, scalable and regulatory‑light alternatives to conventional note issuance.

Thailand also signalled a shift in its regulatory landscape as the securities watchdog prepared to introduce formal rules for crypto ETFs, futures and tokenised investment products. The move marks a significant step in aligning Thailand’s markets with growing regional demand for digital‑asset exposure delivered through regulated, structured‑product‑style wrappers. The new rules are expected to open the door to both local and international issuers exploring compliant pathways for crypto‑linked strategies in one of Asia’s most rapidly evolving retail markets.

Regulatory developments also remained in focus. In the UK, the FCA’s forthcoming Consumer Composite Indicator (CCI) rules are set to have meaningful implications for structured products, particularly around transparency, comparability and distribution practices. Market participants are closely assessing how structured notes will be positioned alongside other retail investment products under the new framework.

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