Vontobel Holding AG (VONN), the Swiss bank and brokerage specializing in derivatives, said Deutsche Bank AG (DBK) will distribute structured products via its online service.
Deutsche Bank, Germany’s biggest lender, joins Morgan Stanley (MS:US) and Societe Generale SA (GLE) in using the service, known as deritrade. The platform helps certain companies selling structured products to pool costs and is compliant with European Union investor protection rules, Zurich-based Vontobel said in an e-mailed statement today.
“This collaboration will benefit both investors as well as the participating issuers,” Roger Studer, head of investment banking at Vontobel, said in the statement.
The bank, majority owned by a shareholder pool including the founding family, opened its deritrade platform to third parties in 2012. With 15 percent of the Swiss traded structured products market, it had the third-largest share behind UBS AG and Zuercher Kantonalbank, according to a December report by the Swiss Structured Products Association.
Vontobel rose 2.1 percent to 34.40 Swiss francs as of 12:43 p.m. in Zurich, paring the stock’s decline this year to 6.9 percent.
Pretax profit from private banking and asset management increased in the first half of 2013, while earnings at the investment banking unit declined amid slower trading in financial products, Vontobel reported last year. The structured products business “is still confronted with low volumes,” the company said on Oct. 30.
Vontobel oversaw 160.4 billion francs ($178 billion) for clients, including assets under management, custody assets and investment products, as of Sept. 30.
Structured products are customized investment packages that combine the performance and risk of different assets and derivatives. Derivatives are contracts with values derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates or the weather.
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