The Asset: Contineo expands its network of Private Bank clients

J.P. Morgan Private Bank, BSI and two other private banks have joined Contineo’s messaging network for structured products, bringing the list of subscribers to 40% of Asia’s top private banks measured by AUM. Natixis has joined the network as a new issuer.“We went live just seven months ago and have had an enthusiastic response to our offering,” says Mark Munoz, managing director of Contineo. The Hong Kong-based company is the first industry-supported, open messaging network aiming to facilitate quoting and trading in structured products by linking private banks and wealth management firms with issuers.

Four out of Asia’s top 10 private banks by AUM subscribe to Contineo network, while the issuers include Julius Baer, Barclays, BNP Paribas, Goldman Sachs, HSBC, JP Morgan and Societe Generale. The private banks are based mostly in Singapore and the issuers in Hong Kong.

Contineo facilitates a high level of automation in what has traditionally been a cumbersome process based on email and spreadsheets. The online platform is capable of delivering hundreds of quotes for structured products upon a single request. It facilitates placing of orders, communicating their status and delivering term sheets after a trade is executed.

“One of the reasons we’ve been able to have such quick adoption is that we have compliance support, regulatory reports, best execution reports… and about 25 others,” says Munoz. Compiling them has traditionally been very time consuming.

The company has been also leveraging its data analytics. “We’re able to deliver back some useful information to our subscribers about what’s happening in structured products across Asia,” says Munoz.

Contineo supports six types of equity-linked structured payoffs: equity-linked notes, knock-out equity linked notes, accumulators, decumulators, fixed coupon notes, daily range accrual notes and OTC options. “We’re looking at two or three other payoffs to add,” says Munoz.


Business Wire: Contineo Grabs 40% of Asia’s Top Private Banks With JP Morgan Private Bank, BSI and Natixis


Contineo, the industry-backed messaging network for equity-linked structured products, today announced that new subscribers JP Morgan Private Bank, BSI, and two other global private banks are joining the network on the buy-side, and Natixis has joined as a new issuer.

Contineo now has four of Asia’s top ten private banks and six of the top 20 as subscribers, as measured by AUM. Current network participants include Julius Baer, Barclays, BNP Paribas, Goldman Sachs, JP Morgan and Societe Generale.

The platform has been live since June last year and is already seeing a significant flow in RFQs and orders.

Nicolas Reille, Head of Sales, Equity Derivatives, Asia Pacific at Natixis, said that Contineo adds transparency to the structured products market. “Natixis is a strong supporter of more transparency. We believe the higher the transparency, the better for investors, distributors and products providers. In particular, a more transparent market will help to further diversify the range of structured products commonly traded by investors, improving the returns of their structured products portfolios in different market conditions, leading to a growing share of structured products in investors’ portfolios.”

Contineo Managing Director Mark Munoz expressed that in just seven months the firm had made enormous strides. “We went live just seven months ago and have had an enthusiastic response to our offering and now we see usage growing month over month with our new subscribers,” he said. “The business is growing rapidly and we are very pleased with its development alongside all our partners.”

Contineo acts as a communications hub for products including Equity Linked Notes; Knock-Out Equity Linked Notes; Accumulator; Decumulator; Fixed Coupon Notes; DRAN and OTC Options. The network also offers bespoke data products that illuminate for the first time the intricacies of the equity-linked structured product market.

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