SRP Digest: Product innovation
Subscription may be required to view certain articles.
Earnings season continues. Structured notes registered with the US SEC recorded a 53.4% surge in volumes in December.
The week started with the announcement from the Swiss Structured Products Association (SSPA)?that it is?collaborating with Solactive and the University of Zurich to launch an index tracking structured products.
The index will give exposure to barrier reverse convertibles linked to three equity indices: the S&P500, Eurostoxx 50 and Nikkei 225
The structured products constituents will have a term of one year. At maturity, both the nominal value and the income generated by these products are automatically reinvested in the index according to predefined rules.
In Belgium, Crelan brought to market the Green Bond Restrike Coupon Euro Equity 2030, the first cliquet structure in the local market since 2019. Issued by BNP Paribas Issuance BV and guaranteed by BNP Paribas SA, this five-year green bond offers annual income on the performance of the Eurostoxx 50 ESG index.
As part of its regulatory agenda, the European Securities and Markets Authority (Esma) published a consultation paper seeking feedback on its proposed guidelines on supplements to include new types of securities features into a base prospectus.
On the earning results side of the market, Société Générale’s global markets posted a record in both Q4 2024 and full-year year revenues, which were up 9.5% and 5.6% €5.9 billion, respectively. HSBC’s wealth revenue climbed 16.4% to US$8.76 billion in 2024, partially boosted by sales of structured products.
In Asia, listed structured products in Hong Kong SAR kicked off 2025 with a lukewarm primary market. The issuance of callable bull/bear contracts (CBBCs) issuance slid to 1,688 in January from over 1,700 recorded in the prior month while derivative warrants dropped to 387 from 440 products in December, SRP data shows. Shares of Tencent were back on top in the underlying ranking for derivative warrants, with 58 newly listed products in January.
In China’s structured deposit market, some 1,230 structured deposits were issued in January, up from 883 during the same time a year ago, according to SRP data. The EUR/USD currency pair beat December’s winner, the XAU/USD, becoming the most-favoured underlying in January.
Bursa Malaysia posted a 7.3% increase in listing and issuer services revenue to MYR70.3m (US$15.8m) in 2024 compared to the previous year – the bank’s revenue was partially buoyed by processing fees earned from an increasing number of structured warrants in 2024, the exchange’s latest earnings release showed.
Looking at 2024 maturities, the performance of products linked solely to the flagship Korean index expiring in 2024 delivered a 4.3% average annualised return based on SRP data.
In the US, a class action targeted at Credit Suisse’s XIV notes was granted on the grounds of market manipulation by a judge at a federal court. The proposal of a misrepresentation subclass was denied with prejudice in the meantime.
Zooming in on the overall US market, structured notes registered with the US Securities and Exchange Commission recorded a 53.4% surge to US$11.9 billion notional amount in December compared to the previous year’s period, SRP data shows. The volumes were down 4.9% from November, however.
As a result, the year 2024 saw US$142.0 billion notional collected from around 42,000 issuances, translating to US$3.35m per trade on average. The volume represented another all-time high, reflecting a 41.7% rise from 2023 when the SEC-registered structured notes surpassed US$100 billion for the first time.??