Derivative Partners will continue to invest in its information and data service following the management buy-out by managing partner Daniel Manser (pictured) and Patrick Walther of a majority stake held by a group of shareholders around founder Eric Wasescha.
After offloading the Swiss information provider for structured products and exchange-traded funds (ETF)'s multi-issuer trading platform, derivative.com, to Vontobel, the company has focused on its structured products data for Switzerland which is supported by a partnership with the Swiss Six Exchange, according to Daniel Manser (pictured), chief executive at Derivative Partners.
"Additionally, we have been developing our quantitative team, which provides risk analysis and value-at-risk (VaR) reports as the second pillar of what we offer," said Manser. "This is complemented with our reports and publications (Payoff magazine), which provides coverage and education around domestic structured products and exchange-traded funds (ETF). This is also a very important area of growth for us, if we take into account the new regulatory requirements around fair value calculations. Investment banks are outsourcing this kind of service and we are well positioned to provide a comprehensive service."
The services offered range from data and research to quantitative analysis, legal documents, as well as specific IT for specialist publications and events. "We are developing a new service around legal document generation to support our clients around the Kid for Priips regulation in Europe," said Manser. "Our IT capabilities also allow us to work on technology projects for our clients around software they want to implement in their structured products platforms."
Derivative Partners' main client base comprises Swiss investment banks, as well as professional investors and advisers with a special emphasis on structured products, sccording to Manser. "We remain committed to the structured market as suggested by our SSPA membership and will continue supporting any initiatives to educate investors and help the market grow," said Manser.
The management buyout will not bring any major changes to the company's day-to-day work, but will change the management structure and ownership as we have acquired the shares of 16 stakeholders, said Manser. "The new set up will provide us with more flexibility and speed to continue growing our firm," said Manser.
Derivative Partners' plans are to capitalise on the opportunities new regulation has brought forward. "The market has gone through a significant overhaul and we see a shift towards OTC with the exchange set up losing some of its previous traction," said Manser. "The negative interest rate environment in Switzerland has boosted the structured products market because there is no better alternative around investment products for Swiss investors seeking yield enhancement by getting exposure to the capital markets. Our forecast for the structured markets in Switzerland is that it will remain stable. We are not expecting any sudden shift but we are confident the market will continue providing opportunities for us as a business and also for the wealth management market.
Derivatives Partners is also working with the European Structured Products Association (Eusipa) in the publication of a structured products book (The World of Structured Products), which will be available in English during the first half of 2016. "The book is aimed at professional investors but we are also hoping that it can be a teaching tool to educate end investors," said Manser.
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