The initiative centers on a collateralization structure where assets are held at SIX SIS AG, with SIX Repo AG conducting daily inspections. This model leverages an existing framework established in 2012, providing investors with a layer of security typically absent in traditional exchange-traded products. According to Nerin Demir, head of repo and collateral management at SIX, the triparty solution meets high security standards to enhance investor protection.
Leonteq Debuts ETP+ Label to Bolster Swiss Investor Protection
Leonteq has unveiled its ETP+ label, a new framework aimed at mitigating issuer risk through independent daily collateral monitoring. By partnering with SIX Group to manage assets, the firm seeks to distinguish its offerings from standard special-purpose vehicles that lack regulatory supervision and proven capital track records.
Alongside the launch, the company introduced its first product under the label: an ETP linked to the FuW Swiss 50 Index NTR. This index tracks the top 50 tradable Swiss companies, employing a methodology that double-weights the top 25 firms to ensure broader diversification than standard market-cap-weighted indices. The product is listed on the SIX Swiss Exchange, with a minimum investment threshold set at SFr26. Leonteq, which holds a FINMA securities firm license and an investment-grade rating from Fitch, maintains a capital base of approximately SFr890 million ($935 million). Alessandro Ricci, head of investment solutions at Leonteq, stated that the move underscores the firm's focus on providing a Swiss-based, reliable counterparty for both retail and institutional market participants.
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