TFS Structured Products is part of the Tradition Group and benefits from its strong infrastructure. We operate from offices across Europe and are authorised and regulated in the UK by the Financial Conduct Authority (FCA).
Independence and Expertise
We are independent from any of the issuers we use to implement our products. Our independence is the key to an unbiased approach and means that our clients can rely on our expertise in derivatives and cross-asset capabilities to achieve their objectives.
Professionalism and Excellence
The success of our team has been built on long-term relationships and recurrent business. We pursue excellence in everything we do and thrive to consistently exceed our clients’ expectations.
Team work and Service
Each client has access to all of the team resources. We deliver outstanding service by working on tailor-made solutions and offering comprehensive secondary market follow-up and risk management tools.
Bespoke Ideas tailored for our clients
These ideas are tailored to meet precisely the objectives and requirements of each client: risk / return, maturity, currency and secondary market behaviour are all considered.
We offer scenario analysis, back testing, stress-testing, mark-to-market simulations and clearly worded fact sheets to help our clients make sound and informed decisions.
Access to over 15 Issuers
Once fully calibrated, products are tendered to a pool of suitable issuers to determine optimal pricing conditions, and executed in accordance with our clients guidelines.
Products are securitised and settled through Euroclear or CREST. We trade as principal and have established relationships and credit lines with all major custodian banks.
Strong After Sales support
Secondary market and valuations
All our products benefit from secondary market liquidity under normal market conditions, with prices displayed on Bloomberg, Reuters, SIX-Telekurs and our website. Product valuations are checked for accuracy using LexiFi pricing models and in-house market parameters.
We offer a proactive follow-up of our products and monitor secondary market opportunities for our clients.
We have developed a suite of online reporting and risk management tools to enhance transparency and facilitate decision-making.
In our view, structured products should be considered as a vehicle for an investment strategy.
Our bespoke approach to structuring means we work on a vast array of strategies with our clients:
- Replication and market access
- Smart Beta
- Yield enhancement
- Relative value and market neutral strategies
- Capital protection and Hedging
- Quantitative and alternative strategies
All our products are securitised and transferable. They can therefore be dealt and settled like bonds and shares.
We use the issuance programmes of large financial institutions and have long standing relationships with over 15 issuers to ensure diversification. We can also offer collateralised solutions to mitigate the credit risk associated with financial issuers. The choice of issuance wrapper is important as it may impact investors (e.g. tax treatment). Depending on the strategy being implemented, products can be wrapped as:
- Medium Term Notes
- Preference Shares (EIS)
- Special Purpose Vehicles
- Sharia Compliant Vehicles
Products can be issued as either a private placement or a public offer. Listing on a recognised exchange is also available.
Minimum size required to issue a tailor-made product depends on the issuer, the payoff and the underlying. We will always advise on the appropriate size required to achieve competitive pricing conditions.
Most of our trade ideas can be packaged in funded or unfunded format.
In an unfunded trade (typically issued as a warrant), investors purchase solely the option or derivative component. The security will be issued at a fraction of face value (e.g. 5 or 10% of the notional exposure) and the cash amount required to implement the strategy is therefore reduced. Unfunded trades can be used as a portfolio overlay (hedging), to create synthetic exposure to an underlying, to implement leverage or for cash extraction purposes. Investors bear the issuer’s credit risk only on the value of the derivative.
Our structuring capabilities span all major asset classes