Issuer risk on structured products limited thanks to collateral security

Scoach Switzerland Ltd. and the Swiss Structured Products Association, SSPA, have presented key changes to structured products in Switzerland at a joint media event. These changes include collateral security for structured products, as well as the formulation of a new risk classification system and the integration of the Swiss categorisation system in Europe.

At the initiative of Scoach Switzerland and the Swiss Structured Products Association, SSPA, an innovative service has been developed to minimise issuer risk by means of collateral security. The new service will be offered by SIX Swiss Exchange Ltd and is rooted in the tried-and-trusted securities lending infrastructure of SIX SIS Ltd and Eurex Zurich Ltd. Collateral security functions via a sophisticated collateralisation mechanism which factors in an impartial valuation of the individual structured product, independent of the issuer. The launch is planned for early in the second quarter of 2009.