Structured Products. You agree that you are familiar with NASD Notice to Members 5-59 concerning the obligations of member firms when selling structured products and, to the extent that it is applicable to you, you agree to comply with the requirements therein.
Structured Products. PART A: INTERPRETATION AND SCOPE
Structured Products. Structured Products are products structured to fulfil a particular trading or market objective. A structured product may combine the features of two or more financial instruments (for example a bond and a derivative). Derivatives often constitute an integral part of a structured product. The product may involve an element of leverage and so a relatively small movement in the value of the relevant underlying asset or index may have a significant effect on the value of the structured product. Structured products are generally not traded on regulated markets and you take the risk on the counterparty issuing the structure. There is typically no recognised market for these investments and it may, therefore, be difficult for you to deal in the investment or to obtain reliable information about its value or the extent of the risks to which you are exposed. Some structured products include an element of capital protection – however, you should bear in mind that this is not a guarantee that the amount invested will be returned in all circumstances. The capital protection offered is typically subject to the investment being held until maturity and to the creditworthiness of the issuer. Structured products are often high risk investments and you could lose some or all of the money that you have invested in them. General risks Structured products are not suitable for all investors due to potential illiquidity, time to redemption, and the payoff profile of the strategy. These products may not be readily realisable investments and are not traded on any regulated market. Please consider carefully before investing. Additional risks associated with investing in structured products include: Market Risk Capital repayment depends on the performance of the Underlying, the future performance of which cannot be guaranteed. Credit Risk The holder of the investments will be exposed to the credit risk of the Issuer. Exit Risk The secondary market price of the investments will depend on many factors, including the value and volatility of the underlying index/ interest rates/ the dividend rate on the stocks that comprise the index/underlying stock, time remaining to maturity and the creditworthiness of the Issuer. Prior to maturity, the price may be less than the amount the holder would have received on maturity of the investment. Where the underlying is a security or a basket of securities We or our affiliates or persons associated with us or such affiliates may maintain a lon...
Structured Products. Structured products are investment vehicles with a finite life where derivatives are used to create a particular investment strategy. For example, in some instances, they are designed for investors who wish to combine market growth with a guarantee that they will get their original investment back or will pay out a fixed coupon if certain conditions are met. Structured products have different risk profiles depending upon a number of factors, for example, the investment strategy, the structure used, credit risk of underlying financial instruments, counterparty risk of the issuer and liquidity risk. Not all structured products are tradeable investments with some structured products requiring the investor to hold the product to maturity.
Structured Products. “Structured products” is the generic phrase for products which provide economic exposure to a wide range of underlying asset classes. The level of income and/or capital growth derived from a structured product is usually linked to the performance of the
Structured Products. Structured Products' refer to a broad range of synthetic products created to meet specific investment needs that cannot be met from the standardised financial instruments available in the market. Structured Products often use derivatives as underlying assets (e.g. options and swaps) and can be used as an alternative in the asset allocation process to reduce the risk exposure of a portfolio or to take advantage of current market trends. Structured Products are usually formed as contracts and can be issued as notes or structured deposits. Their value is derived from the market value of the underlying asset (shares, currencies, interest rates, commodities, financial indices and/or any combination of these) and its volatility, the time up to maturity as well as the interest rates. A sub-category of Structured Products is Capital Guaranteed Products where the initial capital is guaranteed by a banking organisation and is returned at the product's maturity. One other category of Structured Products is the Structured Liability Products which combine loans or other liabilities with some derivative products and offer the potential of reducing the cost of borrowing of the investor and hedging the risk arising from fluctuations of interest rates on the basis that some predefined conditions are being satisfied. If these conditions are not met then the borrower simply does not enjoy any benefits whereas in some types of products the borrower may be asked to pay a higher interest rate than the rate of the original loan. Transactions in Structured Products (excluding the Capital Guaranteed Products mentioned above) involve increased risk of losing the whole or part of the original invested capital. Investors in Structured Products are exposed to all the major risks mentioned in Part 1.
Structured Products. Structured products are equity instruments or debt instruments that contain embedded derivatives in addition to the host con tract. Provided that the economic characteristics and risks of the embedded derivative differ from those of the host contract and that this derivative qualifies as a derivative financial instru ment, the embedded derivative is bifurcated from the host contract and is separately recognised, measured and disclosed. If the derivative and the host contract are not bifurcated, the structured product is designated as a host contract that is recognised at fair value through profit or loss.
Structured Products. Each Selected Dealer agrees that it is familiar with NASD Notice to Members 5-59 concerning the obligations of member firms when selling structured products and, to the extent that it is applicable to each Selected Dealer, agrees to comply with the requirements therein.
Structured Products. Structured products are formed by combining two or more financial instruments, including one or more derivatives. They may be traded either over-the-counter or on-exchange. Structured products carry a high degree of risk and may not be suitable for many members of the public, as the risks associated with the financial instruments may be interconnected. Prior to engaging in structured product transactions, the Customer should understand the inherent risks involved. In particular, the various risks associated with each financial instrument should be evaluated separately as well as taking the structured product as a whole. With structured products, buyers can only assert their rights against the issuer. The Customer therefore needs to be aware that, as well as any potential loss it may incur due to a fall in the market value of the underlying, a total loss of its investment is possible should the issuer defaults. Equity-linked notes (or ELNs) are an example of structured products. ELNs may be viewed as combining a debt instrument with an option that allows a bull (rising), bear (falling) or range bet. The return on an ELN is usually determined by the performance of a single share or other security, a basket of securities or an equity index or other index. The Customer should also note that the return on investment of an ELN may be predetermined, so that even if the Customer's view of the direction of the underlying market is correct, the Customer will not gain more than the specified amount. In addition, there is a limited secondary market for outstanding ELN issues.
Structured Products. You represent, warrant and agree that, in connection with any purchase or sale of Securities wherein a Concession, discount or other allowance is received or granted, which Securities are “structured products” as described in the NASD’s Notice to Members 05-59 (as amended by any subsequent notice, regulation or release), or any “new product” as described in the NASD’s Notice to Members 05-26, (1) you will comply with the procedures outlined in such notices, as well as with the provisions of Rules 2110, 2210, 2720, 3010 and 3012 of the Conduct Rules of the NASD and (2) if you are a non-NASD member broker or dealer in a foreign country, you also will comply with the provisions outlined in (1) as though you were an NASD member.
