The SIX Swiss Exchange has launched its new exchange-traded product (ETPs) segment, allowing for the listing of collateralised exchange-traded securities in a section separate to ETFs.
The opening of the ETP segment follows the drafting of additional listing rules, which came into force on Friday.
The exchange says the ETPs eligible for the platform are collateralised, non-interest bearing debt securities, that track the performance of an underlying asset, either with or without leverage.
Alain Picard, head of ETFs and other financial products at the SIX Swiss Exchange says: "It's important to have a distinction between a fund, a collateralised note, and then a non-collateralised product. Especially for investors, who need to see the difference.
"So now there is a clear difference between ETFs and ETPs."
He says products can have different labels regardless of whether they are collateralised or not. For example, in Switzerland, providers can call their certificates ETCs even if they are not collateralised.
He adds: "We've had interest from a lot of issuers for this segment for a long time, but the problem has been differentiating between exchange-traded funds and exchange-traded products, which is not clear. For example, in Switzerland we are able to have funds on a single underlying like gold and so these are similar to ETPs."
The exchange has been in talks with all issuers and is soon due to hold a pre-launch event with RBS, Source and Deutsche Bank about listing their products.
Picard adds: "We will see more ETCs and ETNs in Europe tracking single commodities and underlyings which are not covered by Ucits III."
The first products due to be listed in this segment are expected in November. The exchange is ensuring the provision of continuous liquidity by requiring at least one market maker for each product.
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