Unlike other investment classes, depending on their type and features, structured products can reflect
not just any market view, but also any risk profile. While, for example, buying shares directly is profitable only when
prices rise, structured products can also generate attractive return when prices track sideways or decline. If the
investor has formed a market view, risk propensity and therefore the right product type have to be determined.
Conservative or risk-averse investors are more likely to opt for capital protection products. However, pro-risk market
participants can benefit disproportionately from rising or falling prices by using leverage products. A further advantage
of structured products is that they do not just allow investment in equities or equity indices worldwide, but also in
commodities, property, currencies, interest rates, dividends, or credit spreads (company-specific risk premiums,
indicators for credit quality). They therefore open up asset classes and new markets for private investors that were
mainly reserved for institutional investors in the past, or that could be accessed only with difficulty. And finally,
their high liquidity is a factor favoring stuctured products. Even in times of turbulence, the market for structured
products proved to have excellent liqudity.
COSI – collateral secured instruments
Thanks to COSIs (collateral secured instruments), investors can significantly reduce the
risk of issuer default. To that purpose, the issuer or a designated provider of collateral
deposits fungible securities of a corresponding countervalue with SIX Swiss Exchange. In the event of
the issuer's insolvency, the securities are liquidated in favor of the investors. More on
SIX Exchange Regulation
As a stand-alone, independent body within
SIX, SIX Exchange Regulation
monitors and governs the activities of participants and issuers on SIX Swiss Exchange. One of its multiple tasks
is to list securities on the Swiss Exchange.