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Risk Classes for Certificates - PRIIPS Regulation Reshuffles Cards

03-03-2016 03:35 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: SmartTrade

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New regulation: ESMA requires, according to the PRIIPS Regulation, disclosure of the Summary Risk Indicator (SRI) from all providers of financial products. This shall condense all risk information of a financial product available for private investors by means of categorizing such into seven risk classes (see: Consultation Paper - PRIIPs Key Information Documents). In the future SRI must be recalculated and listed for each certificate on a daily basis.

SmartTrade has performed such calculations for over 40 000 certificates with payment structures referring to the DAX. The result: 80% of the products have been attributed to the three highest risk classes. Surprising: almost one in twelve DAX-certificates results in a calculation attributed to the lowest risk class.

Download full report: www.smarttra.de/uploads/files/Risk_Classes_Certificates_SRI_ENG.pdf

The FinTech Company SmartTrade with base in Berlin especially supports institutional investors, banks and asset managers in their independent evaluation of financial instruments and calculation of risk performance indicators. Furthermore SmartTrade develops web based tools for analyzing and selection for investment banks, financial portals and online brokers -
primarily in the sector of structured products.

Andre Fischer
Tel.: +49 30 57 70 21 592
http://smarttra.de
Email: andre.fischer@smarttra.de

smarttra.de GmbH
Gustav-Meyer-Allee 25
13355 Berlin

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