Equity accumulators “should be outlawed”

Despite their popularity in the wealth management industry, many structured investment products are still criticised for lacking transparency, to the benefit of the firms issuing or promoting them. One Hong Kong-based derivatives trader goes as far as to say that certain instruments, such as equity accumulators, should be outlawed or at the very least regulated more stringently, as they saddle the buyer with most of the risk. Philip York, Hong Kong-based principal at systematic …