Raiffeisen tries to boost popularity of structured products

Raiffeisen Centrobank, the investment arm of the Austrian group of the same name, is trying to boost the popularity of structured products, listing the first certificates with the S&P 500 US index as underlying asset on the Stock Exchange.

Just several months after the emergence of the first rules on the trading of structured products on the BSE, two large Austrian groups, Erste and Raiffeisen, have come to compete on this market.

Though the certificates are viewed as more intricate investments products and domestic investors’ financial education level is still below that of other markets in the region, the two players see growth potential.

Raiffeisen Centrobank representatives estimate that after the first year monthly trading volumes involving the nine index certificates the company listed on the

Bucharest Stock Exchange are likely to reach 5-7m euros, similar to the Polish market ones.

Their estimates are more conservative than those of Erste Bank officials who a month ago estimated annual trades with their own structured products could go as high as 100m euros after the first year.