Leonteq Lists ETP with Innovative Collateralization Mechanism on SIX Swiss Exchange

The new ETP from Leonteq Securities is the first product to use SIX's innovative collateralization solution Triparty Collateral Management (TCM). This decisively minimizes issuer risk and offers additional protection in times of economic and geopolitical uncertainty. And with the FuW Swiss 50 Index NTR as the underlying of the new ETP, investors are given an attractive opportunity to invest in the 50 largest companies in Switzerland.

With the launch of this innovative product, Leonteq is already this year’s seventh new ETP issuer to join SIX Swiss Exchange. This will give investors an ever-wider choice of products tradable within the reliably regulated framework of the Swiss exchange to shape their portfolio as they wish. At the same time, Leonteq will take over the market making for its own product and thus ensure liquid trading. The listing will also mark the second ETP market maker to join the Swiss exchange this year.

TCM for investor protection and process efficiency

SIX’s pioneering collateral mechanism TCM protects investors’ security interests by reducing an issuer’s risk of default. Collateral held in pledge form is held at SIX SIS Ltd, and SIX Repo Ltd, in its role as collateral agent, is responsible for the daily control of this collateral. Furthermore, TCM opens additional usage possibilities for issuers and contributes to the reduction of operational risks and costs (see box below).

Christian Reuss, Head SIX Swiss Exchange, comments: “We warmly welcome Leonteq as new ETP issuer and are pleased to be the partner of choice for this product listing.”

Nerin Demir, Head Repo & Collateral Management in the Securities Services business unit of SIX, adds: “With our innovative collateralization solution Triparty Collateral Management (TCM), we free our issuers of time-consuming routine work and thus allow our customers to focus on their core competencies.”

Alessandro Ricci, Head Investment Solutions of Leonteq states: "We are pleased to launch our ETP+ label and to be the first ETP issuer which is licensed as a securities firm in Switzerland. With Leonteq, investors can rely on an issuer which has a strong capital base and investment grade ratings assigned by two reputed rating agencies. The first ETP issued by Leonteq in cooperation with FuW is an authentic ‘made in Switzerland’ product, giving investors access to an attractive offering with exposure to the Swiss equity market.”

Growing range of ETPs

With today's listing of the ETP by Leonteq, investors can choose between a total of 184 ETPs from 17 different issuers that are traded on SIX Swiss Exchange. ETPs are collateralized, non-interest-bearing debt rights (debt securities) made out to bearer and replicate the performance of an underlying asset. SIX Swiss Exchange publishes all relevant trading information and additional statistics on listings, indices, turnover figures and details on the performance of the traded securities. Discover more.

About Leonteq Securities Ltd

Leonteq is a Swiss fintech company with a leading marketplace for structured investment solutions. Based on proprietary modern technology, the company offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product categories. Leonteq has offices and subsidiaries in 13 countries, through which it serves over 50 markets.

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