08.03.2018

Value Creation Report of the Swiss Structured Products Association: Growth rate compared to 2016 at 21% – total turnover of CHF 275 bn in 2017

Turnover for Swiss structured products of the major SSPA members strongly increased in 2017 and total turnover is with CHF 275 bn 21% or CHF 48 bn above the previous year’s figure. The total quarterly turnover was also above the previous year’s level and amounted in Q4 2017 to CHF 70 bn. Equity (49%) and foreign exchange (33%) are still dominating the turnover. Non-listed products constitute about 70% of turnover in 2017 (2016: 72%). With a total share of 87%, USD, EUR and CHF are still by far the major currencies used.

Structured product value creation statistics drawn up by the Boston Consulting Group take ac-count of listed as well as unlisted products created in or for Switzerland that are sold nationally as well as internationally. SSPA members Barclays Capital, Banque Cantonale Vaudoise, Commerzbank, Credit Suisse, Goldman Sachs, Julius Baer, Leonteq, Notenstein La Roche, Raiffeisen, UBS, Vontobel as well as Zurich Cantonal Bank took part in the survey for the fourth quarter of 2017. They represent a majority of the Swiss market.

2017 performance versus 2016:

  • Total turnover in 2017 of CHF 275 bn is 48 bn higher than in 2016; growth rate compared to the previous year is 21%.
  • Total quarterly turnover in Q4 2017 of CHF 70 bn is higher than in Q4 2016; growth rate compared with prior-year quarter is 33%.
  • With approx. 57%, yield enhancement products again account for over half of the total turnover in 2017. Leverage products constitute again the second largest portion with 16%. Capital protection products make up 13% in 2017, a relative growth of 144% with respect to prior-year. After reaching bottom in Q2 2016 with 3.1%, market share steadily grew since Participation products remain at 13% of total turnover in 2017. Although leverage products constitute only 16% of total turnover, they again represent the vast majority (87%) of transactions.
  • Equity products represent the largest portion of total turnover in 2017, growing from 44% to 49% compared to 2016. Compared to prior year, the share of foreign exchange products decreased from 43% to 33%. The share of fixed income products grew to 12% in 2017 (prior year: 8%).
  • Even though the primary market represents a stable but larger share of turnover (64%), the secondary market comprised around 96% of all transactions in 2017.
  • USD is again the predominant currency in 2017 with a share of 43% (prior year: 36%). The share of EUR is decreasing to 27% and CHF is slightly higher at 18%.

SSPA President Georg von Wattenwyl on the developments in the industry: «We are pleased about the increasing investor demand on a national and international level. The positive development underlines their relevance for interested investors. Structured products are increasingly being seen as an attractive alternative to generate returns and demand increased due to innovative products. With theme and strategy certificates, investors can participate in megatrends in a focused manner. As an association, we actively promote the systematic use in the portfolio context.»

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