Leonteq Launches Its First Exchange-Traded Product

Switzerland-based fintech Leonteq has announced the introduction of its ETP+ label, which aims to improve safety for investors, and launching its first exchange traded product (ETP) under the new label.

The ETP+ label offers innovations for the ETP market in Switzerland. Both ETP+'s custodian and collateral agent are based in Switzerland. In addition, daily independent checks are carried out, which significantly reduces the issuer risk.

Leonteq is partnering with SIX to reduce issuer risk and protect the interests of ETP+ investors by collateralising all ETP+ liabilities throughout the product lifecycle. Under this agreement, the collateral will be held at SIX SIS, while SIX Repo, in its role as collateral agent, will be responsible for the daily verification of the collateral. The collateral solution for ETP+ is based on a framework that has been established with SIX since 2012.

According to a SIX representative, the service meets high standards of security and offers additional investor protection. Leonteq is a long-standing user of SIX's collateral management service and this cooperation will be further deepened with Leonteq’s first ETP issuance on SIX Swiss Exchange.

Leonteq is the first issuer of ETP products on the Swiss market to be licensed by FINMA as a securities firm. According to a Leonteq representative, with SIX, investors can rely on a reputable Swiss-based counterparty and be assured that their investment is safeguarded.

(Source: The Paypers)