Stemming from the success of previous years and recognition that the flow space requires lightning-fast execution, Credit Suisse’s sizeable investment into systems continued to pay off as its pricing and execution platform, ‘Spirit Asia’ traded around US$2.5 billion in notional value this year alone. Credit Suisse’s ‘E-mail Pricer’ also has the ability to quote product prices with a universe of more than 1,000 underlying stocks through an automated e-mail service with a response time of three seconds or less.The ability to execute deals with an automated system has minimised the cost of each transaction, and the flexibility to execute bite-sized deals resonates with a clientele that has not forgotten the woes of the 2008 financial crisis and are now wary of having excessively concentrated positions. In turn, clients have been able to execute what Patricia Lau, Head of Equity Derivatives Sales, Hong Kong and Singapore at Credit Suisse, said to be the market’s smallest minimum notional sized deals at US$25,000.
As secondary trading in derivatives and structured products became increasingly popular in Asia in 2013, Credit Suisse quickly spotted the trend and capitalised on it. Lau and her team consequently began developing various Delta One products based on a basket of underlyings with a theme or proprietary strategy.
“Investors often stay away from buying structured products because they feel there is a lack of transparency and liquidity in the secondary market,” notes Lau. “The transparency in the calculation of month-to-month prices for Delta One products gives investors much more comfort in trading these notes prior to maturity.”
Credit Suisse’s breadth of products in more esoteric equity markets such as Thailand or Philippines, is also a factor the industry has recognised. Credit Suisse is a prominent player in structured products linked to local small-cap stocks – a trend among many Hong Kong tycoons and a relatively illiquid market that not too many others offer.
From catering to the needs of the next-door millionaire’s pint-sized deals to fulfilling billionaire-specific requirements, Credit Suisse has stood out as a clear and deserving winner of Asian Private Banker’s award for Best Provider of Asia Equity-linked Flow Products.