Leonteq and VP Bank launch first products under new issuance model
Together with VP Bank as a guarantor, Leonteq has launched the first products under its new issuance model. According to the press release, it enables private, business and retail banks to easily go from being intermediaries to producers of structured investment products. The issuances are processed through the newly established enterprise structuringHUB SA, which is independent from Leonteq and has its headquarter in Luxembourg.
With this new white-labeling issuance model, the products are guaranteed by sponsors. Leonteq will take on hedging in the initial phase.
Leonteq CEO Lukas Ruflin commented: “The new issuance platform significantly reduces time-to-market and costs to join our ecosystem and allows banks to offer their own tailor-made products with a best option price sourced from independent hedge counterparties.” This innovative issuance model enables VP Bank to “provide structured products in a highly automated and efficient manner,” according to CEO of VP Bank Paul Arni. Leonteq and VP Bank entered into a collaboration for the creation and distribution of structured products in January 2022.
Unlike a complete white-labeling partnership, sponsors only provide the usual commercial services. The structured products and associated hedge positions will be recognized on the balance sheets of structuringHUB and not on those of the sponsors. According to Leonteq, this decreases complexity.