Switzerland has biggest market share for structured products

The Swiss Structured Product Association (SVSP) introduced five new members on Thursday and gave a market overview about structured products. The new members, namely Hypo-Vereinsbank, Goldman Sachs, Merrill Lynch, Julius Baer and Sal. Oppenheim, joined the association in April. SVSP was founded by ABN Amro, Credit Suisse, UBS, Vontobel and the Zurich Cantonalbank. SVSP-members now have a global market share of 90 percent, said the President of the Association, Roger Studer. He also confirmed that talks were being held with the remaining issuers, namely Bank Leu, Dresdner Kleinwort Wasserstein, Deutsche Bank, Sarasin, Citibank, Cantonal Bank of Vaud, JP Morgan, Banca del Gottardo, BZ Bank, OZ Bankers and Société Générale.

In recent years the segment of structured products has been on a continous growth path. End of last May, for instance, volumes grew by 66 percent to 237 bln Swiss Francs. Switzerland is currently the biggest market for structured products worldwide. Structured products make 5.3 percent of the total assets under management in the country. SVSP estimates that around 600 000 investors hold structured productions in their portfolios.

For the coming years SVSP estimates a continous growth of 20 percent per year. Notwithstanding the risk of structured products, they are also taken into consideration for long-term pension investment. Also, the MiFID regulation will allow the so-called "EU passporting". New markets, such as Spain, France, Scandinavian countries and Eastern Europe offer some considerable growth potentional, but Switzerland will probably maintain its strong position.

Source: Neue Zürcher Zeitung





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