Swiss fintech Leonteq enters the market for passively managed exchange-traded securities.
Derivatives developer Leonteq is launching its ETP+ brand where both the custodian and collateral agent are based in Switzerland. All ETP+ liabilities would be collateralized during the product lifecycle, according to a statement Wednesday.
Leonteq becomes the first issuer of ETP products in the Swiss market to be licensed by Finma as a securities firm and is working with SIX SIS AG and SIX Repo AG as collateral agents.
ETP on FuW Swiss 50
The ETP is linked to the FuW Swiss 50 Index NTR which comprises the 50 largest tradable Swiss companies, and was developed by the editors of Finanz und Wirtschaft (FuW) and launched just last week.
The aim was to create a better representation of Swiss-listed companies with a broader diversification compared to market capitalization-weighted indices. In the index calculation, the largest 25 companies are double-weighted, while the remaining 25 companies are single-weighted.
