Multi Times Call Structure:
Trust companies vs subsidiary asset management companies of the Securities firms
Trust companies were used the shells for the trade. They directly invested the beneficial certificates issued by the securities firm, the notional asset managers were the trust companies.
It is one channel product.
For privately offered asset management plan of the securities firm, the asset managers were the subsidiary asset management companies of the securities firms. According to the updated asset management regulation in year 2018, it required 25% dispersion. That is to say, the asset amount of each underlying product being invested in the asset management plan cannot exceed 25% of the net value of this asset management plan.
The N Times Call Structure product can be divided into two parts, one is to sign one swaps with the derivatives trading desk, for buying one index enhancement product (assuming the enhancement part is around 11-12%), then use the return from the enhancement part to buy the call options. For example, for the 4-time call structure product, there’s need to buy additional 3 call options. And for fund allocation, there’s need to select 4 derivatives trading counterparties for price quote.