New on deritrade: Autocallable Discount Certificates

Published on 04.03.2022 CET

We have further expanded our deritrade offering. Autocallable Discount Certificates are now available on deritrade

This product type is categorized as a "Yield Enhancement" structure. Autocallable Discount Certificates are therefore suitable for investors, who expect a sideways or moderately positive performance of the underlying. The discount in the issue price also protects against minor price declines. Instead of a coupon, the return on Autocallable Discount Certificates is generated by the difference between the nominal value and the reduced issue price. In case of an early redemption, it is imperative that the underlying closes at or above the individually defined Autocall level on an observation date. If no Autocall event occurs, repayment of the nominal value is still possible, if the closing fixing price notes above, or equal to, the strike price.

If the underlying closes below the strike price at final fixing, the investor receives either the physical delivery of the underlying, or a cash settlement derived from the corresponding final fixing price.

In contrast to Autocallable BRCs, the Discount Certificate with Autocall feature has the advantage that, in the event of an Autocall, the entire discount is realized as return - not just the pro rata coupon.

Example of an Autocallable Discount Certificate

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Published on 04.03.2022 CET