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Independent Wealth Management Forum 2019 HK - Exclusive Insights - David Schmid - 2

David Schmid of Leonteq Securities

Oct 28, 2019

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1. What has Leonteq got in Asia today? What are Leonteq’s priorities for the year ahead?

Video transcript

1. What has Leonteq got in Asia today? What are Leonteq’s priorities for the year ahead?

What we have today is a fully automated platform to help in managing the flow. So from price identification, be it through fixed connectivity, email pricing, to execution, documentation and booking, we have by now we set up a fully automated platform which is really capable of managing the flow that you get nowadays. The flow from banks nowadays is a lot of tickets, more volume with more competition, and therefore less margin. And therefore, our big focus was, this year, to actually automate the process, so the business is still a profitable business after all for us. What we have, in addition to this build up, is a robust, stable AMC platform, which basically allows us for very small sizes, we're talking about 1 million onwards, to create actively managed certificates, and essentially trade all instruments in the financial markets. So whether that's equities, bonds, such products, futures, forwards, options, listed options, you can nowadays, through Leonteq, trade the full range and then track the performance of that account through a certificate which you then can custodise with your private bank. We have invested quite a bit of money into this platform this year in order to be able to really go and then create daily reports, show the performance attribution, allow the client to execute electronically during 20 hours a day, and then replicate that performance in this certificate. And finally, I would say what we have done in Europe and what can be expected from us going forward will be that we will offer full lifecycle management of all products, of all issuers, to the client. This is a big innovation, a big focus we have had in Europe over the last 12 to 18 months. Just to say nowadays you know, you don't differentiate yourself with the product offering anymore, but with the service. So Leonteq has created a new marketplace, which we call LynQs. And LynQs essentially allows you to do pre-trade analytics, executions in real time through multiple issues, but then also post-trade analytics around portfolio, product management where we show a holistic view about the risk that a client has in structured products. And we're not just talking about the products that the client actually buys from us, we’re talking about the products that he bought from all issuers. So the Leonteq is in a position to say, we give you notifications about distance to barriers, coupon payments, distance to strike of all the products that the client has traded in the past. Now this is something we have done in Europe. We are not yet there in terms of replicating all the payoffs inclusive OTC in Asia. We are working on it, and it can be expected that next year we will go live with this LynQs platform also in Asian markets.

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