COSI Collateral Secured Instruments
Since September 2009, structured products can be issued as collateralised certificates over the SIX Swiss Exchange and traded at Scoach Switzerland AG.
Collateralisation has become the solution brought by the SIX Group in an attempt to make structured products more secure. The issuers deposit collateral in the form of securities or cash in a SIX Swiss Exchange account at SIX SIS. Should the issuer become insolvent, the collateral is liquidated in favour of the investors. COSI collateralisation has been developed by the SIX Swiss Exchange, Scoach and various issuers to meet the requirements of various market participants, like investors, issuers and exchanges.
Thanks to collateralised certificates, investors can enjoy flexibility and innovation of structured products while keeping default risk at a minimum. This is a good solution for the investor who would like to eliminate issuer risk and is ready to pay a part of his return for this option. Collateralised certificates are designated with the "COSI" quality mark put on offering prospectuses, product factsheets, advertisements, websites and the brochures of COSI issuers.
Source: SIX Swiss Exchange, Scoach Schweiz AG