Products

Certificates

Listed on NYSE Arca and traded like shares, certificates offer profit potential, with possible control over maximum loss.

What Are Certificates?

Certificates are exchange-traded securities issued by banks. The terms of their repayment at maturity are generally known—and guaranteed—when they are issued.

Certificates give investors means to trade a share or to diversify their exposure across an index or sector. They are issued by banks and have settlement terms on expiry that are known at the time of issue. There are several types of product, each with a specific investment and risk profile.

Segmentation By Exposure And Behavior

NYSE Arca's listed certificates offer a wide range of features that gamut from total protection of capital to highly volatile, highly leveraged products.

Asset Allocation

Due to the wide variety of asset classes, sectors and geographical regions to which they provide access certificates enable investors to add diversity to an existing portfolio.

Certificates provide access to a growing number of underlying assets, which can be broken down into six major asset classes:

  • Domestic and foreign shares
  • Baskets of domestic, foreign and themed shares
  • National, international and sector indices
  • Currency
  • Commodities

Characteristics

  • Diversity
    Certificates give investors the ability to trade a broad range of underlying assets from around the world, such as equities, sectors and indices, as well as execute investment strategies not easily achieved with traditional share investing.
  • Ease of Ownership
    Easy to buy via a bank or broker, certificates can be traded on the equity market easily.
  • Transparency
    NYSE Arca has introduced liquidity indicators that enable investors to assess issuer transparency; while detailed information on certificates is provided by each of our issuers.
  • Limited Liability
    The maximum loss that can be incurred on a certificate is never more than the initial investment (the 'premium').

Buying Certificates

Certificates can be bought and sold via a financial intermediary in the same way as shares or exchange-traded funds (ETFs). Orders are placed through NYSE Arca's electronic order book.

Pricing certificates through intrinsic value and time value impact:

  • Intrinsic Value
    Denotes the amount holders would receive if they were to exercise their right immediately.
  • Time Value
    The amount by which the current price exceeds the intrinsic value. Time value is a measure of the potential of a more favorable outcome for the underlying asset. The time decay accelerates in the final few months of the product’s term.

Investors can screen products according to risk level, issuer or underlying asset using our online filter. For more specific product information, please contact the issuer directly.