ALTERNATIVE SYSTEMS · ALTERNATIVE MARKETS
Structured Products
Issuer Framework
A structured note is a promise written in a payoff formula, and the issuer’s credit, the hedge behind it, and the disclosure to the investor all have to hold for the life of the instrument. We build the issuance platform end to end — programme and issuer structure, payoff design and hedging arrangements, documentation and disclosure, listing and settlement, and valuation and lifecycle reporting.
THE SPECIFICATION
Architecture & Audience
A structured product is a payoff wrapped in a credit. The investor takes the market view described in the term sheet and, whether they realise it or not, the credit risk of whoever issued it. Manufacturing the payoff requires hedging capability; selling it requires documentation and disclosure that survive a dispute when the payoff disappoints — and some will.
Institutions manufacturing products for their own distribution; platforms issuing on behalf of third parties; and banks and brokers formalizing an ad hoc issuance capability.
What We Deliver
A complete architecture, designed, launched, and managed
We design the issuance vehicle and credit structure: the entity that issues the notes, its credit standing relative to its group, and the structural features — collateral, guarantee, or keep-well arrangements — that determine what the investor actually holds and how it ranks in an insolvency. Vehicle design precedes programme design.
We establish the issuance programme and manage the preparation of the base prospectus with legal counsel: the framework document under which individual products are issued, the risk factors and disclosure requirements that must be satisfied, and the listing venue and passporting arrangements for the jurisdictions in which the products will be distributed.
We structure and negotiate the hedging counterparty arrangements that allow the issuer to manufacture the payoffs it promises. Hedging counterparty selection and ISDA documentation are negotiated with the issuer’s interests as the starting point, not the dealer’s standard terms.
We implement the pricing and structuring systems that allow the issuer to design products, calculate indicative terms, and produce term sheets for clients. System selection is benchmarked against the product scope, the distribution model, and the mark-to-market and risk reporting the issuer requires throughout the product’s life.
We build the product governance framework and target market assessment process required by MiFID II, PRIIPs, and the applicable equivalent in each distribution jurisdiction. Governance is documented and reviewed on the schedule the regulatory framework requires, not only at launch.
We structure the distribution agreements with the banks, brokers, and platforms that place the issuer’s products with end investors. Distribution agreements define the issuer’s oversight obligations, the distributor’s suitability and appropriateness duties, and the information flows the issuer needs to monitor its target market commitments.
We establish the listing and settlement arrangements that allow the issuer’s products to trade and settle through the depositories and clearing systems used by its distribution network. Arrangements are confirmed before the first product is issued, not tested at the first settlement failure.
We build the lifecycle and corporate action administration infrastructure that manages barrier observations, coupon payments, autocall events, early redemptions, and maturities across the issuer’s outstanding book. Administration is automated where possible and audited at each event.
We build the disclosure and regulatory reporting infrastructure that delivers the KID/KIIDs, performance scenarios, post-sale reporting, and the supervisory returns required by the issuer’s jurisdiction on schedule. Reporting is reconciled against the hedging book and the outstanding notional before submission.
What We Deliver
A complete architecture, designed, launched, and managed
We design the issuance vehicle and credit structure: the entity that issues the notes, its credit standing relative to its group, and the structural features — collateral, guarantee, or keep-well arrangements — that determine what the investor actually holds and how it ranks in an insolvency. Vehicle design precedes programme design.
We establish the issuance programme and manage the preparation of the base prospectus with legal counsel: the framework document under which individual products are issued, the risk factors and disclosure requirements that must be satisfied, and the listing venue and passporting arrangements for the jurisdictions in which the products will be distributed.
We structure and negotiate the hedging counterparty arrangements that allow the issuer to manufacture the payoffs it promises. Hedging counterparty selection and ISDA documentation are negotiated with the issuer’s interests as the starting point, not the dealer’s standard terms.
We implement the pricing and structuring systems that allow the issuer to design products, calculate indicative terms, and produce term sheets for clients. System selection is benchmarked against the product scope, the distribution model, and the mark-to-market and risk reporting the issuer requires throughout the product’s life.
We build the product governance framework and target market assessment process required by MiFID II, PRIIPs, and the applicable equivalent in each distribution jurisdiction. Governance is documented and reviewed on the schedule the regulatory framework requires, not only at launch.
We structure the distribution agreements with the banks, brokers, and platforms that place the issuer’s products with end investors. Distribution agreements define the issuer’s oversight obligations, the distributor’s suitability and appropriateness duties, and the information flows the issuer needs to monitor its target market commitments.
We establish the listing and settlement arrangements that allow the issuer’s products to trade and settle through the depositories and clearing systems used by its distribution network. Arrangements are confirmed before the first product is issued, not tested at the first settlement failure.
We build the lifecycle and corporate action administration infrastructure that manages barrier observations, coupon payments, autocall events, early redemptions, and maturities across the issuer’s outstanding book. Administration is automated where possible and audited at each event.
We build the disclosure and regulatory reporting infrastructure that delivers the KID/KIIDs, performance scenarios, post-sale reporting, and the supervisory returns required by the issuer’s jurisdiction on schedule. Reporting is reconciled against the hedging book and the outstanding notional before submission.
Infrastructure Selection
X-CHASE holds no commercial interest in any provider, assessing them strictly on live performance, structural fit, and renewal terms. Providers are named exclusively under formal engagement, never on a public website.