Structured product liquidity could lead to speculative trading, says former UK SPA chairman
A liquid structured products market would be great news for investors but the industry needs to consider the consequences, say market participants
A secondary market for selling retail structured products after they have launched is almost non-existent in the UK, but while advisers would like to reassure investors that they will able to sell products before maturity, industry participants at the UK Structured Products Association (SPA) conference in London this week warned of the possible side effects of such liquidity – including speculative trading or advisers being unprepared to explain how redemption prices are formulated.
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