Danish investment bank Saxo Bank is partnering with Swiss fintech Leonteq Securities to combine their respective expertise for the manufacturing and distribution of structured products.
The collaboration will see Saxo become a sponsor under a standardised white-labelling issuance model established by Leonteq.
Under a white label arrangement, one party creates and manufactures the product and the other party purchases and onsells the product.
Saxo will be responsible for the distribution of Saxo guaranteed structured products to its large client base via its investment platforms.
At the same time, Leonteq has received an international distribution mandate from Saxo providing it access to Leonteq’s global distribution network.
Leonteq says it will add Saxo to its network of execution brokers and leverage on their “extensive trading capabilities to access capital markets in a cost-efficient manner”.
The fintech will also add Saxo guaranteed structured products on its digital investing platform, LYNQS.
The first Saxo guaranteed structured products are expected to be available on Leonteq’s platform in 2025, subject to regulatory approvals.
Saxo CEO Kim Fournais says the partnership marks a significant step for Saxo Bank in expanding its structured investment product offerings, particularly for its rapidly growing Swiss client base.
Saxo has established an international trading marketplace via its online platforms in Forex, stocks, contract for difference (CFDs), futures, funds, bonds, and futures spreads.
In 1998, Saxo launched one of the first online trading platforms in Europe, providing professional-grade tools and easy access to global financial markets.
Leonteq, meanwhile, offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product classes.
“This collaboration is truly a win-win,” Fournais says.
“Saxo’s clients will benefit from an even bigger product universe that further enhances their investment choices and access to global markets, while Leonteq will leverage our cutting-edge technology and robust infrastructure for trading and hedging activities.”
Leonteq has offices and subsidiaries in 13 countries across Europe, Middle East and Asia.
Saxo is a fully regulated and licensed independent provider with an offering of over 71,000 financial instruments.
The company is designated as a Systemically Important Financial Institution and has an investment-grade rating from S&P (A-).
Saxo has over 1.2 million clients globally and manages more than US$100 billion ($148.7 billion) in client funds.
Write to Angela East at Mining.com.au
Images: Saxo Bank
