Structured Products

Structured products at a glance

Structured products deliver a pre-packaged investment strategy based on derivatives. This is often achieved by replacing a fixed income product’s normal payment features - such as coupons and principal repayment - with the performance of separate underlying assets, such as stock, ETFS, bonds etc. 
Structured products provide access to a broader range of investors who might not otherwise be able to access more complex products.

To issue covered warrants and structured products drawing from an existing and live programme, the following documentation is required by London Stock Exchange. 

  • Trading form 
  • Pricing supplements/final terms

Please see our covered warrants and Structured product guide for more technical details.

What makes structured products such an attractive investment?

  • Flexibility: this can be both a standardised and bespoke market, allowing issuers to liaise with clients to produce the right tailored products for their needs
  • Access: structured products are accessible via London Stock Exchange Structured Products Platform, which offers both telephone and electronic execution, no central counterparty and T+3 CREST settlement
  • Liquidity: issuers are obliged to maintain continuous prices throughout the lifetime of the products
  • Diversity: the platform has a number of major global banks, delivering a truly international reach. All have significant pan-European experience in issuing products despite the youth of the UK’s securitised derivative market.

 

Disclaimer

Securitised derivatives are not suitable for all investors – they may be highly geared and therefore volatile. You should not deal in securitised derivatives unless you understand their nature and the extent of your exposure to risk. Since this disclaimer cannot cover all the risks and other significant aspects of these instruments, you should consult an appropriately qualified financial adviser if you are in any doubt. Information on this website does not constitute professional, financial or investment advice. It must not be used as a basis for making investment decisions and is in no way intended, directly or indirectly, as an attempt to market or sell any type of financial instrument.

View all documents for structured products

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