The issuance of Structured Investment Products from Swiss family-controlled Bank Vontobel on the Danish market also marks the introduction of Handelsbanken as Issuer & Paying Agent in Denmark for its custody business. Handelsbanken uses the VP Securities solution for automated issuance of these SIPs and the partnership’s multi-currency potential has Nordic perspectives.

Just recently, Vontobel, one of Europe’s leading issuers of structured products, introduced a series of Structured Investment Products (SIPs) in DKK on the Danish market. Vontobel specialises in wealth management, active asset management and investment solutions on a global scale, and the SIPs in Denmark were issued by Handelsbanken through its Nordic Custody Solution.

Vontobel’s initial product offering will be extended continuously, according to market development and client demand – enabling private and institutional investors in Denmark to execute individual trading strategies in accordance with their individual risk profiles. Leverage products are suitable for rising or falling markets and can also be used for portfolio hedging. These financial instruments enable investors to trade actively in a wide range of markets, in both bull and bear scenarios.

Developing and selling structured products is at the heart of Vontobel’s DNA. We have 30 years’ experience in this sector. Investors can rely on our strong know-how, successful platform strategy and market-making experience within structured retail products, as well as our well-known agility and fast-growing expansion in various European markets. The integrated trading environment, as well as cost-efficient processes and innovative platforms, are key factors behind our European success,

says Head of Vontobel Investment Banking Roger Studer, who also serves as a Vice President of the European Structured Investment Products Association (EUSIPA).

Handelsbanken offers a variety of account operator models and, with its Nordic approach, is experiencing a surge in interest from clients wanting to go directly to the Nordics. Handelsbanken’s introduction as Issuer & Paying Agent in Denmark is part of a Nordic strategy, and Handelsbanken, as custodian bank, uses automation and multi-currency solutions to cover all Nordic markets.

“We’re proud to support the truly Nordic business model from Handelsbanken, which keeps all processes within the Nordic region. The partnership between Handelsbanken and VP Securities concerning the Danish market holds promising perspectives, in terms of both automation and pan-Nordic solutions. VP will offer issuance as one process and one CSD relation, reaching out to all Norwegians, Danes, Swedes and Finns. This will naturally appeal to international clients, as they will no longer require individual processes for each Nordic country.”

says Henrik Ohlsen, Customers & Communications Director at VP.

Issuance of SIPs in Denmark by Handelsbanken is handled by VP as a solution designed to meet the requirements of customers issuing Nordic SIP instruments such as warrants, certificates and mini-futures.

From my dialogue with Handelsbanken it is obvious that the bank is a strong advocate of harmonisation and standardised solutions in the Nordics – we are basically travelling that same route. By aiming for an automated pan-Nordic solution and combining it with support for a range of account operator models, Handelsbanken has an interesting Nordic offering. Clients are looking for reduced complexity, greater transparency and lower costs. We support these objectives for all the Nordic markets.

says Product Manager Morten Skanning from VP.

For 20 years, Handelsbanken has offered pan-Nordic custody services, and the aim is to be the strongest partner in terms of generating value and customer satisfaction.

For more information please contact VP or Jonas Modigh, Vice President Head of Sales, Securities Services, Handelsbanken.

What are the most traded types of Warrants & Certificates, why are leverage products with knock-out the most traded type, how can I invest in Warrants & Certificates, and should I start trading them?

Alexandre Atlani, Head of Warrants & Certificates at Euronext answers these questions.

Listen to the full interview, watch the video:

And check out part 1

What are the most traded types of Warrants & Certificates?

By far leverage products are the most traded product types, with about 95% of the volumes in 2022.

Within leverage products, products with knock-out, also known as turbos, represent about three quarters of the volumes. And leverage products without knock-out, mostly warrants, represent about 20% of the volumes.

Why are leverage products with knock-out the most traded product type?

We can think of a few reasons for that.

• There is a wider range of turbos available for investors to choose from.
• Turbos cover a wider range of underlyings and they are usually easier to understand.
• Although they can be considered riskier than other products because of the knock-out barriers, turbos are usually only sensitive to the price of the underlying while for the other product types, there can be many factors influencing their price.

How can I invest in Warrants & Certificates?

Warrants and certificates are listed and traded on an exchange like Euronext, regardless of their underlying.

For example, to trade on warrants and certificates whose underlying is a US stock, there is no need to invest on a US market. This product is listed on Euronext and can be traded the same way the share of a company listed on Euronext can be traded.

In general, warrants and certificates trade on Euronext in euros, regardless of the currency of their underlying.

Investors can send their orders via their online banks or brokerage accounts who usually charge relatively modest fees and commissions on these instruments, in opposition to trading securities on foreign markets.

To help keep fees as low as possible, Euronext does not charge any client fees to its trading members for all orders on warrants and certificates below €6,000.

Finally, the warrants and certificates of some issuers can trade between 08:00am and 10:00pm CET.

Investors are invited to check with their financial intermediary if they offer access to these extended trading hours. 

So should I start trading Warrants & Certificates?

The world of warrants and certificates can be fascinating because of the diversity of product types, strategies, underlyings and geographical regions covered.



But investing in these instruments can be risky. Yes, you can make some good or very good returns on investment, but as well you can lose some or all the money invested. Therefore, it is essential to understand the products you are interested in investing in. To that goal, issuers are a fantastic source of knowledge and support.

They offer a lot of educational content, websites and call centres where specialists are available to answer all questions about warrants and certificates.

So make sure you feel confident in your understanding of warrants and certificates before investing!

Euronext Sustainability Week was an entire week dedicated to Sustainable Finance, with public opportunities for debate and moments of direct dialogue between companies and investors. Furthermore, companies have the opportunity to discuss their sustainability strategies with national and international institutional investors.

During Euronext Sustainability Week, experts and opinion leaders will share their strategic vision, witnessing concrete plans in terms of sustainable growth, financing instruments and sustainable investment strategies.

This pan-European event took place in over nine locations, featuring 40 internal and external events with more than 2,800 attendees and 120 speakers. The Sustainability Week provided a platform for fostering discussions on sustainable finance and raising public awareness in this crucial area. In this occasion, amongst other initiatives, Euronext launched the Euronext Foundation to support projects in the field of financial literacy, diversity and inclusion in finance and marine resources. 



It was also the occasion to foster a culture of ESG consciousness and encourage stakeholders to integrate ESG considerations into their decision-making processes. We took the time to reflect on the progress we have made and the work that still lies ahead. Together with our communities, we are Eempowering Sustainable Growth to Shape Capital Markets for Future Generations.

 

Replays of the webinars