Leonteq AG (SIX: LEON) announced today that it has launched the first products with VP Bank as sponsor and structuringHUB as issuer under the newly created innovative white-labelling issuance model specifically designed to reduce time-to-market and costs for banks to join the Leonteq ecosystem.
Leonteq has launched a new standardised issuance model for private, commercial and retail banks allowing them to easily transform from an intermediary to a producer of structured investment products. This innovative business offering provides fast time-to-market based on a simplified cooperation design triggering limited investment costs. It enables banks to create their own customised and tailor-made investment solutions and provide them directly to their clients. Banks joining Leonteq’s ecosystem for investment solutions as a sponsor get access to state-of-the-art services and digital tools. Leonteq will act as the initial hedger and, at a later stage, plans to offer best option prices via its balance sheet light business, including its Smart Hedging Issuance Platform (SHIP).
To bring this new business model to life, structuringHUB SA has been established as a standalone securitization undertaking in Luxembourg independent from Leonteq. It will issue structured products which will be guaranteed by the sponsors. Leonteq will act as the arranger, providing its long-standing expertise as well as its full technology platform and a broad range of services along the entire value chain.
Compared to a fully-fledged white-labelling partnership, sponsors will get access to the product and service offering of Leonteq while only providing standard commercial banking services in the context of the issuance by structuringHUB. The complexity is reduced due to the fact that the structured products and related hedge positions are recognized on the balance sheet of structuringHUB rather than the balance sheet of the sponsors. At the same time, all documents and processes are standardized.
VP Bank as first sponsor under the new white-labelling issuance model
As announced on 17 January 2022, Leonteq and VP Bank AG have launched a cooperation for the manufacturing and distribution of structured products. In the weeks since, VP Bank has become the first sponsor under this new white-labelling issuance model and will utilise Leonteq’s LynQs platform to price, trade and distribute VP Bank-guaranteed structured products issued by structuringHUB to its clients. The first VP Bank-guaranteed structured products are available on Leonteq’s platform today.
Lukas Ruflin, CEO of Leonteq, stated: “We are pleased to launch our newest innovative white-labelling business model and welcome VP Bank, a leading bank for private clients and intermediaries, onto our service and technology platform as the first sponsor within this new offering. 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.”
Paul Arni, CEO of VP Bank, said: “The innovative issuance model of Leonteq enables us to provide structured products in a highly automated and efficient manner. This allows us to improve our client offering and demonstrate investment expertise via tailor-made structured products, while limiting the complexity of the issuance process.”
structuringHUB SA is a CSSF regulated standalone securitization undertaking in Luxembourg, independent from Leonteq and its prudential supervision and governance framework. The structuringHUB issuance platform has been envisioned, designed and launched by Leonteq. structuringHUB is audited by PricewaterhouseCoopers, Luxembourg and the corporate service provider is a subsidiary of BDO Luxembourg (CF Fund Services SA).
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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 classes. Leonteq acts as both a direct issuer of its own products and as a partner to other financial institutions. Leonteq further enables life insurance companies and banks to produce capital-efficient, unit-linked pension products with guarantees. The company has offices and subsidiaries in 13 countries, through which it serves over 50 markets. Leonteq AG is listed on the SIX Swiss Exchange (SIX: LEON).
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