SRP regulatory updates slowly coming in

Regulators worldwide are making moves to ensure that structured products are transparent and easy to understand for retail investors. In France, the Autorité des Marchés Financiers (AMF) has urged distributors to provide clear and accurate information to clients. The goal is to simplify complex products, such as key information documents (KIDs), for retail investors.

Over in South Korea, the Financial Supervisory Service (FSS) has levied fines totaling KRW3.01 billion (US$2.06 million) on five domestic securities firms. This decision follows an investigation into the mis-selling of equity-linked securities (ELS) related to the Hang Seng China Enterprises Index (HSCEI) since 2024.

Korean asset managers are taking advantage of regulatory changes and increased institutional interest to explore derivatives-driven ETF strategies. From covered calls to synthetic protective puts, these strategies aim to meet the demand for yield and volatility management in a rapidly growing market.

Ondo Finance, a New York-based company, has filed a registration statement with the US Securities and Exchange Commission (SEC) through its Ondo Global Markets platform. The SEC’s Division of Economic and Risk Analysis (DERA) has released reports outlining the growth of active exchange traded funds and the impact of fund mergers on investor fees.

As the market for actively managed certificates (AMCs) expands, transparency and regulatory compliance will be key factors in determining the sector’s future. Mayer Brown emphasizes the importance of clear documentation and regulatory positioning to avoid potential pushback from regulators.

Autocallable structured products have been analyzed for their long-term performance potential. Researchers suggest that a well-structured and diversified autocall strategy can be a viable alternative to traditional investments.

Natixis Corporate & Investment Banking (CIB) has invested over a decade in building an actively managed certificate (AMC) platform. By focusing on equity derivatives, securities financing, and index innovation, the bank has positioned itself at the forefront of this sector.

Salt Financial has appointed Alexander Gropper as Chief Operating Officer (COO) after his success as head of structuring and quantitative investment strategies (QIS). In Singapore, BNP Paribas has welcomed Terence Tan as Managing Director and Senior Relationship Manager in the financial institutions coverage team.

Union Bancaire Privée (UBP) in Asia ended 2025 on a high note with significant growth in both flow and non-flow structured products. The bank’s trading volumes in the region increased by over 90% year-on-year, led by Karrie Fung, head of sales and execution in Asia.

InspereX, an American broker-dealer, saw a 20% increase in notional sales of equity-linked structured products in 2025 compared to the previous year. The company entered 2026 with strong results, reflecting a growing demand for structured products in the market.

In December, US$12.6 billion in notional value was recorded from 3,888 structured notes registered with the SEC, a 5.8% increase from the previous year. Additionally, Cboe reported higher average daily trading volumes in January compared to the same period in 2025.

Eurex, Europe’s largest derivatives exchange, reported a decrease in overall trading activity in January alongside its clearing arm, Eurex Clearing. Frankfurt exchanges, monitored by Deutsche Borse, saw a total turnover of €2.24 billion in January, with leverage and investment products contributing significantly to the figures.