Vontobel has listed leveraged products in Finland, a move that follows its launch in Sweden at the beginning of this year. The Swiss bank listed a range of open-end turbo warrants and bull & bear certificates geared towards both private and institutional investors in Finland on the Nordic Growth Market (NGM) in Stockholm.
“The Finnish retail derivatives market is mature, with a long history of leveraged products,” said Heiko Geiger (pictured), head public distribution, Germany and Austria, at Vontobel Europe. “We provide high liquidity to our markets and tight spreads, which leads to smooth and transparent trading for our clients. We are also driven by the demand for interesting underlyings so provide market access to the big indices, local and global stocks as well as commodities and currencies.”
The bank is making its debut with a range of open-end turbo warrants (put/call) on single shares (including Adidas, Airbus, Alibaba, Bayer, BMW), commodities (Brent crude oil futures, silver and gold troy ounce), single indices (such as the DAX, DJ Industrial Average, Nasdaq 100 and S&P 500) and currency pairs (euro/US dollar), as well as a suite of bull & bear certificates, which are the dominating product in the Finnish leveraged products market, said Geiger.
“Initially our palette of underlyings is adjusted to the Finnish retail market, but we continuously observe the client flow as well as client demand,” said Geiger. “With an initial range of over 200 bull & bear certificates on indices and on leading Finnish, German and US equities, as well as on commodities, investors will be able to execute their trading strategies in accordance with their individual risk profile in rising or falling markets.”
The leverage factor on the long/short performance of the bank’s bull & bear catalogue in Finland ranges between three and 15 times. From a historical perspective, the Finnish market is regarded as an established market for leverage products and has been experiencing solid growth for years, with open-end turbo warrants and bull & bear certificates accounting for 70% of the market, said Geiger.
The Frankfurt branch of Bank Vontobel Europe will be responsible for the distribution, pricing and trading of the products. The issuer is Vontobel Financial Products.
Vontobel leads the European issuance and sales rankings of traditional structured products this year with more than 5,000 products marketed and more than €4.6bn sold, according to SRP data. Including flow and leverage products, the Swiss bank was the seventh most active provider in terms of issuance (113,840 products) while leading the sales ranking with over €5.2bn worth of sales.
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