COSI now accessible to collateral providers from the United Kingdom
The internationalization of Collateral Secured Instruments (COSI) has reached another milestone: effective immediately, COSI products with British providers of collateral can be listed at SIX Swiss Exchange. This service, which minimizes structured product issuer risk, is offered exclusively at Scoach Zurich and Frankfurt.
The service, launched by SIX Swiss Exchange, Scoach Switzerland and the Swiss Structured Products Association, has proven itself since its launch in 2009 as a suitable answer to investors’ changing needs. The COSI segment process, which has won awards both in Switzerland and internationally, ensures that any outstanding claim by the investor vis-à-vis issuers of structured products is appropriately secured at all times.
SSPA President Daniel Sandmeier was happy: “The new access to the COSI segment for international providers of security is a great success for the Swiss structured products market. This means the market can be expanded and investors will have added investment opportunities with the best possible protection against issuer risk.”
To ensure that COSI investors can be compensated as quickly as possible through conversion of the securities, issuers deposit collateral of liquid securities with SIX Swiss Exchange. Therefore, should an issuer or collateral-provider declare bankruptcy, it is decisive that COSI collateralization is recognized in the collateral provider’s country of origin.
In cooperation with SIX Swiss Exchange, SIX Securities Services and Eurex Zurich, the SSPA has created a solution that ensures the service’s high standards also apply in an international context. Investor rights are not affected by the adjustments made to accommodate British collateral providers, nor by changes in the operational process. Scoach CEO Christian Reuss: “Demand from investors and issuers here and abroad for COSI collateralization is rising. Opening of the COSI segment to British collateral providers represents a milestone in the internationalization of the COSI service. Investors can now benefit from additional investment opportunities with the same issuer risk protection.”
SIX Swiss Exchange expects listings from the first issuers with British collateral providers in the coming months. Additional jurisdictions are in the negotiations stage.Download PDF