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. Collateralisation to safeguard investor interests 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. First ETP issuer licensed as securities firm by FINMA 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.

ETP+ on the FuW Swiss 50 Index NTR Leonteq is launching its first ETP+ on the FuW Swiss 50 Index NTR, which was developed by the editorial staff of Finanz und Wirtschaft (FuW). The FuW Swiss 50 Index NTR, which includes the 50 largest tradable Swiss companies, gives investors access to a representative image of the Swiss stock market. The companies in the index are selected every six months based on freely tradable market capitalisation and by taking minimum liquidity requirements into account.

The top 25 companies are double-weighted, while the remaining 25 companies are single-weighted, resulting in broader diversification compared to market-cap-weighted indices. The index is a net total return (NTR) index, meaning that net dividends are automatically reinvested. The ETP+ on the FuW Swiss 50 Index NTR is listed on the SIX Swiss Exchange, and is available to Swiss private and institutional investors with a minimum investment of CHF 26.

In addition, the ETP on the FuW Swiss 50 Index NTR is currently the only equity-based ETP on the SIX Swiss Exchange. According to a Leonteq representative, the company will be expanding its collaboration with Finanz und Wirtschaft, a financial newspaper in Switzerland. The first ETP+ issued by Leonteq in cooperation with FuW is a ‘made in Switzerland’ product, giving investors access to an offering with exposure to the Swiss equity market.

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