By choosing to distribute their products by means of exchange trading, issuers reach a much larger pool of potential investors. Thus through their innovative products and attractive pricing, they can broaden their client segments in a targeted manner.
Compared to distribution via the OTC market, the standardized procedure for on-exchange trading means that issuers can bring their structured products to market quickly and efficiently. Thanks to the launch of Connexor Distribution (once IBT), newly registered structured products can provisionally be admitted to trading already one day after registration. This allows issuers to respond rapidly to current trends and events and to list the corresponding products in a timely manner.
Choosing on-exchange trading affords issuers the opportunity to differentiate their products from others on the market. For example, issuers with a strong presence in the futures markets are able to offer a particularly wide range of commodity-based structured products at favorable conditions for investors. By the same token, issuers that are heavily involved in the foreign exchange markets can offer products that have exchange rates as their underlying instrument.